388-11.5. Contractor liability; unpaid wages
(a) A general contractor entering into or under a contract in the State for the erection, construction, alteration, or repair of a building, structure, or other private construction work not subject to chapter 104 shall assume and be liable for any debt owed to a claimant for wages incurred by a subcontractor at any tier acting under, by, or for the general contractor, for the claimant's performance of labor included in the contract between the general contractor and the owner. The general contractor's liability under this section shall extend only to unpaid wages to the claimant, including any interest owed, but shall not extend to penalties, consequential or liquidated damages, or any benefit, fringe benefit, or contribution claims.
A general contractor shall not evade or commit
any act that negates the requirements of this section; provided that this
section does not prohibit a general contractor or subcontractor from
contracting with or enforcing any lawful remedies against a subcontractor for
the liability created by the nonpayment of wages by the subcontractor or by a
subcontractor at any tier working under another subcontractor.
(b) Notwithstanding any law to the contrary,
actions to enforce a general contractor's liability for unpaid wages may
include the following:
(1) The director may enforce liability for unpaid
wages established by subsection (a) against a general contractor; provided that
the general contractor's liability shall be limited to unpaid wages, including
any interest owed; or
(2) A joint labor-management cooperation committee
established pursuant to section 175a of the federal Labor Management
Cooperation Act of 1978 (29 U.S.C. 175a) may bring an action in any court of
competent jurisdiction against a general contractor or subcontractor at any
tier for unpaid wages owed to a claimant by the general contractor or
subcontractor for the performance of private construction work not subject to
chapter 104, including unpaid wages owed by the general contractor, pursuant to
subsection (a). The court may award a prevailing party in the action
reasonable attorney's fees and costs, including expert witness fees; provided
that attorney's fees and costs, including expert witness fees, shall not be
awarded against a general contractor for unpaid wages except for those of its
direct employees. As a condition precedent to an action against a general
contractor to enforce the liability established by subsection (a), the
committee shall provide written notice to the general contractor and subcontractor
who employed the claimant, within ninety days from the date on which the person
did or performed the labor for which claim is made, but no later than
forty-five days after the date of completion as defined in section 507-43,
stating with substantial accuracy the amount claimed and the name of the party
for whom the labor was done or performed. The written notice shall be served
by registered or certified mail to the general contractor and subcontractor at
any place the general contractor or subcontractor maintains an office or
conducts their business, or in any manner authorized by law to serve notice.
The written notice shall not limit the liability of the general contractor or
preclude subsequent amendments of an action to encompass additional claimants
employed by the subcontractor.
No other party may
bring an action against a general contractor to enforce the liability
established in this section.
(c) Unless
otherwise provided by law, property of the general contractor may be attached
for the payment of any judgment received after trial and pursuant to this
section.
(d) An
action brought pursuant to this section shall be filed within one year from the
date on which the person did or performed the labor for which the claim is
made, but no later than forty-five days after the date of completion as defined
in section 507-43.
(e) This
section does not apply to work performed by an employee of the State or any
political subdivision of the State.
(f) Upon request by a general contractor to a
subcontractor, the subcontractor and any lower tier subcontractors under
contract with the subcontractor shall provide payroll records, which, at a
minimum, shall contain the information set forth in section 387-6 of its
employees who are providing labor on a private construction work. The payroll
records shall be marked or obliterated only to prevent disclosure of an
employee's full social security number, except that the last four digits of the
employee's social security number shall be provided. Upon request of a general
contractor to a subcontractor, the subcontractor and any lower tier
subcontractors under contract with the subcontractor shall provide the general
contractor with award information that includes the project name, name and
address of the subcontractor, lower-tier subcontractor with whom the
subcontractor is under contract, anticipated start date, duration, estimated
journeyperson and apprentice hours, and contact information for the subcontractors
on the project. A subcontractor's failure to comply with this subsection shall
not relieve a general contractor from any of the obligations contained in this
section.
(g) The
obligations and remedies in this section shall be in addition to any
obligations and remedies otherwise provided by law, except that nothing in this
section shall be construed to impose liability on a general contractor for
anything other than unpaid wages to the claimant, including any interest owed,
and shall not extend to penalties, consequential or liquidated damages, or any
benefit, fringe benefit, or contribution claims.
(h) Nothing
in this section shall alter an owner's obligation to pay a general contractor,
or the general contractor's obligation to pay a subcontractor, in a timely
manner; provided that a general contractor may withhold all sums owed to a
subcontractor if the subcontractor does not provide the information requested
under subsection (f) in a timely manner and until the time that the information
is provided.
(i) The
provisions of this section shall be severable. If any provision of this
section or its application is held invalid, that invalidity shall not affect
other provisions or applications that can be given effect without the invalid
provision or application.
(j) For
purposes of this section:
"General contractor" means a
contractor who has a direct contractual relationship with an owner.
"Subcontractor" means a contractor
who does not have a direct contractual relationship with an owner.
"Subcontractor" includes a contractor who has a contractual
relationship with a general contractor or with another subcontractor.
[L 2023, c 47, §1]