News Brief

Law360 Quotes Mayo on NY Law Conferring Joint-Employer Relationship for Contractors and Subcontractors in Wage-and-Hour Actions

January 18, 2022

Celena Mayo (Partner-New York, NY) was quoted extensively in “4 ‘Survival’ Tips to Comply with NY Joint Liability Wage Law,” an article that appeared in the January 10, 2022, edition of The article references a new state law in New York conferring joint employer status on general construction contractors for the wage violations of their subcontractors. Celena noted that “Although the law places a high burden on prime contractors, it does provide them with tools to ensure their subcontractors are complying with wage laws, and companies should wield those powers … Companies could face up to 300 percent in liquidated damages for willful violations, which could potentially bankrupt a business.” She specifically noted that contractors can request certified wage-and-hour records and withhold payment from subcontractors if those are not provided, and include a provision that requires workers to endorse on a weekly basis that their time records are correct. Celena reinforced the value of a compliance officer who could “act as a hub to address these issues, get information out and ensure that the subcontractors are doing what they need to do.”

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