Things you can do to avoid finding yourselves on the hook for your lower-tiered subcontractor’s even more Scrooge-like failure to pay their workers.
For both private works projects and state and local public works projects in California, higher-tiered contractors can find themselves opening up their wallets if their lower-tiered subcontractors fail to pay their workers. And if you think this is just another one of those crazy California things, think again. Higher-tiered parties on federal public works projects can also be asked to open up their wallets if their lower-tiered subcontractors stiff their workers.
While we’re coming upon the season of giving, here’s a Scrooge-like guide on things you can do to avoid finding yourselves on the hook for your lower-tiered subcontractor’s even more Scrooge-like failure to pay their workers.
Mr. Murai may be contacted at gmurai@nomosllp.com