Month: May 2020

Joint Check Agreement Causes Big Trouble in Virginia

05/29/2020Harvey, James R.

Many general contractors manage the risk of a subcontractor’s financial instability by issuing joint checks to the subcontractor and its suppliers on a project. These arrangements are usually governed by a separate agreement that sets forth the roles and rights of the parties, and limits the general contractor’s liability to sub-subcontractors and suppliers with whom… Read more »

Payments Due Subcontractors and Suppliers in Virginia


05/22/2020Harvey, James R.

Virginia’s law on the payment of subcontractors and suppliers just got some muscles. For years, Virginia had a statute that made it a crime for any contractor or subcontractor “with the intent to defraud” to retain or use funds for any purpose other than to pay persons performing labor or furnishing material on a project…. Read more »

Construction and Virginia’s New Wage Laws

Construction of office building on purple sunset with two cranes

05/22/2020Harvey, James R.

Of the record number of new laws in Virginia, a trio of wage laws will arguably have the biggest impact on contractors changing the way the construction companies operate in Virginia. Virginia statutes on non-payment of wages, worker misclassification and wage theft all create new administrative penalties and private rights of actions that combine to… Read more »

CDC Issues Additional Guidance for Businesses on Reopening

05/22/2020Bibeau, Anne G.

Following the nationwide rush to reopen, the Centers for Disease Control (CDC) has issued decision trees for businesses to follow in deciding when to reopen and a brochure with detailed guidance for reducing the risk of infection in the workplace. Much of the information in these new CDC publications is similar to what the CDC… Read more »

Virginia Enacts New Whistleblower Law for Private Employers

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05/21/2020Pierce, Michael D.

Effective July 1, 2020, private employers in Virginia will have a number of new legal obligations and potential liabilities. One of these new laws is Virginia Code § 40.1-27.3, the Fraud and Abuse Whistleblower Protection Act. This new law creates several new protections for employees involved in reporting suspicious, questionable, or unlawful employer activity. The… Read more »

U.S. Department of Labor Expands Overtime Exemption for Commission-Based Employees of Retail or Service Establishments

05/20/2020Pierce, Michael D.

On May 18, 2020, the Wage and Hour Division of the U.S. Department of Labor (DOL) announced a new final rule to govern the determination of whether an employer qualifies as a “retail or service” establishment for purposes of applying an overtime exemption to commission-based employees. Section 7(i) of the Fair Labor Standards Act (“FLSA”)… Read more »

Virginia’s Mechanic’s Lien Plus Statute: Making those in higher tiers personally liable separate from and regardless of mechanic’s lien rights

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05/18/2020Lowenstein, Neil S.

Within Virginia’s mechanic’s lien article is a little known, and little used, mechanism providing for personal liability of higher tiers separate from that article’s mechanic’s lien rights. The title is “How owner or general contractor made personally liable to subcontractor, laborer or materialman.” It is actually a very simple process; and all it takes is… Read more »

Additional guidance from the SBA on “available liquidity” element of certifications for PPP Loans – Safe Harbor extended to May 18, 2020.

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05/15/2020King, Ray W.

Since the passage of the CARES Act and the SBA completing the first round of PP Loans, companies have been dealing with an ever changing set of guidelines interpreting the eligibility requirements for a PPP Loan and the eventual forgiveness of the Loan.  Unfortunately, no clear guidance is yet available. On April 23, 2020, the… Read more »