This bill is similar to a measure that went into effect in California on Jan. 1 but has fewer teeth. In California, general contractors must pay valid wage claims whether or not the subcontractor has been paid in full. However, the law does allow general contractors to withhold payment from subcontractors until they offer proof that they’ve paid their employees.
Attorney John Antracoli, a partner in the trial section and construction law group at Rutan & Tucker, told Construction Dive in December that the California law could also be a way for small subcontractors to fight back against being shortchanged on their payments.