05/29/2020
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 »
05/22/2020
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 »
05/22/2020
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 »
05/22/2020
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 »
05/21/2020
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 »
05/20/2020
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 »
05/18/2020
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 »
05/15/2020
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 »
05/15/2020
On May 12, 2020, the IRS issued guidance (IRS Notice 2020-19) to allow temporary changes to section 125 cafeteria plans. These plans allow participants to pay their portion of health insurance premiums and contribute to health care flexible spending accounts and dependent care assistance spending accounts (FSAs) on a pre-tax basis. In return for the… Read more »
05/14/2020
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 »
