You get the work in, you get the work out, you get the bill out … but you don’t get the money in. So now what?
Legally you’re probably in the right and your client in the wrong, and you have the legal right to commence a lawsuit, perhaps in conjunction with lien rights. Occasionally this works fine … occasionally. Typically, however, a lawsuit becomes an exercise in damage control, with the righteous recovery being lost to attorney fees, lost billable time and negative karma. And all too often, a fee action is countered with a professional negligence cross-complaint. To the uninitiated, a lawsuit is the first thought; to the sophisticated, the last.
California Labor Code § 218.7 (AB 1701): How does this new law impact general contractors, subcontractors and project owners?
On October 14, 2017, Assembly Bill (AB) 1701 was signed into law as California Labor Code § 218.7. This law imposes potentially significant liability on general contractors for their subcontractors’ failure to pay wages, fringe, or other benefits to laborers. The following is a brief overview of AB 1701’s application: