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Potential Liability Trap for Contractors?

  • By: James Rumps
  • 12-13-2022
  • Category: Uncategorized

The Illinois General Assembly recently passed a law that creates a potential liability trap for General Contractors in our state.  Normally, when you work on a project, you hire out subcontractors who take care of their employees.  They are responsible for their employees' wages, benefits, insurance, and workman’s comp issues.

Thanks to the Illinois Wage Payment and Collection Act (820 ILCS115/13.5) this has changed. 

The Illinois Wage Payment and Collection Act now makes General Contractors liable for “unpaid wages or fringe or other benefit payments or contributions, including interest owed to subcontractors’ employees.” 

This new law creates a number of problems for General Contractors including:
-non-payment of wages becomes the responsibility of the GC
-accuracy of the subcontractor’s bid becomes the responsibility of the GC
-subcontractor fraud becomes the responsibility of the GC
-cash on hand for materials becomes the responsibility of the GC
-and many more potential issues.

If you haven’t addressed these issues in your contracts with subcontractors, now is the time to get started.  Marvel Law can help to protect you and mitigate any exposure you may currently have to this law.  Do this before the upcoming construction season to ensure that you are protected.

The Illinois General Assembly doesn’t have your back, but Marvel Law does.  Contact us to set up a time for us to help you.