Come October 1st 2018, a general contractor will become jointly and severally liable for subcontractors’ failure to pay employees!
With this new law now in place, general contractors’ policies towards their subcontractors and their requirement for subcontractors’ surety bond status may change significantly. Wage claims in Maryland can be made for as much as three years after an incident. As a result, general contractors are sure to demand that subcontractors obtain and maintain bonds for at least three years after performing work on a project.
What’s more, since a court may award claimants with as much as three times the wages owed, subcontractors will likely be required to obtain bonds in amounts that will be able to cover high claim amounts.