Hirer Beware

12:44 pm Uncategorized

seal ca 150x150 Hirer Beware  From California Labor Code 2810:

A person or entity may not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, or security guard contractor, where the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.

In a nutshell:  if a business hires a contractor and that contractor doesn’t pay his employees or his subcontractors, the business may be liable for those wages.

The terms “know” and “should know” are so broadly defined that it behooves any entity hiring a contractor to do their due diligence on the contractor’s capacity to perform to the standards of the contract and pay his workers fairly and promptly.

If you are a California business that routinely hires contractors for construction, farm labor, garment, janitorial or security guard work, contact our Newport Beach business planning law firm to learn how to protect yourself from a potential Code 2810 violation.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.

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