"Maryland imposes sweeping new liability for construction general contractors" by Ron Taylor was published in Westlaw Journal Employment on June 5, 2018. Here is an excerpt:
In the waning days of the legislative term, the Maryland General Assembly passed legislation making construction general contractors jointly and severally liable for the failure of subcontractors to pay their employees in accordance with Maryland's wage and hour law.
The governor did not veto the bill and, instead, allowed it to become law. As a result, the new law will become effective October 1, 2018.
The ramifications of the new law are sweeping. Under Maryland law, an employer that fails to pay its employees in accordance with Maryland's wage and hour laws may be liable to the employee or employees for up to three times the wages owed, plus reasonable attorneys' fees and other costs. Until now, this liability has largely been confined to the direct employer of the employees.