Toll Bros. Wins On Contract Law, But Wage Suits Revived

Law360, New York (July 29, 2011, 2:48 PM EDT) -- A California appeals court on Thursday ruled for Toll Bros. Inc. that a state law about services contracts requires parties to pay minimum wages rather than market labor rates, but partly revived two putative class actions to hold the developer liable for subcontractors' alleged wage violations.

The unanimous decision is the first to tackle the substance of California Labor Code Section 2810, a law enacted in 2004 that bars parties from entering contracts for construction and other services if they know the contract price is insufficient...
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