New Calif. Law Leaves Contractors With Questions

By John Kennedy (May 25, 2018, 3:52 PM EDT) -- Since the start of the year, California construction contractors have been bound by a new law that puts them on the hook for unpaid wages owed to their subcontractors' employees, a change praised by worker advocates but eyed warily by builders.

Concerns over Assembly Bill 1701, signed by the governor in October, include uncertainty about what type of work the law actually covers and the lack of a safe harbor for well-intentioned companies. Contractors are also looking for ways to hold subcontractors responsible for missed wage payments, experts said.

The law, now set down in Section 218.7 of the California Labor Code, makes...

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