State of Maryland Passes New Law to Hold General Contractors Liable When Subcontractors Exploit Construction Workers

State of Maryland Passes New Law to Hold General Contractors Liable When Subcontractors Exploit Construction Workers

April 17, 2018 – Annapolis, MD –  On April 5, 2018, Maryland Senate Bill 853 was enacted into law as Chapter 17.  The new law, which takes effect on October 1, 2018, will hold general construction contractors liable for state wage violations when their subcontractors take advantage of their workforce and do not pay wages and benefits on-time as required by law.

“This is an important new law that will ensure that construction workers will be able to collect unpaid wages and benefits when they are exploited by these unscrupulous construction contractors,” said Robert Naughton, Northeast Regional Council of Carpenters Tri-State Regional Manager. “The new law will be a big help to the businesses we work with and will also be an important new tool to combat wage theft, which is depriving our State of much needed tax revenues that could be used for education, social services and public works.”

Quotes from Maryland elected officials who sponsored and supported this important new law:

“I was extremely proud to stand with the Northeast Regional Council of Carpenters in helping to pass a piece of legislation that supports the hardworking men and women throughout Maryland’s construction industry,” said Maryland State Senate President Mike Miller.

“I was proud to sponsor a bill that makes it a little easier for the construction industry and labor community to tackle the rampant problem of wage theft,” said State Senator Kathy Klausmeier.

“The Maryland General Assembly is proud to stand with labor in fighting wage theft,” said Maryland State House Speaker Michael Busch. “We hope that this legislation will create a construction industry in Maryland that is better for both workers and businesses alike.”

“This legislation, while creating an effective tool for employees to collect unpaid wages, is a big win for the law-abiding construction business community,” said State Delegate Mary Ann Lisanti, who also sponsored the State bill.