Effective July 1, 2022, Contractors Will be Liable for their Subcontractor’s Failure to Pay its Employees’ Wages and Benefits
July 25, 2022 —
Edward O. Pacer & David J. Scriven-Young - Peckar & AbramsonOn June 10, 2022, Illinois Governor J.B. Pritzker signed two House Bills that amend the Illinois Wage Payment & Collections Act, 820 ILCS 115 et. seq. (“Wage Act”), to provide greater protection for individuals working in the construction trades against wage theft in a defined class of projects. Pursuant to this new law, every general contractor, construction manager, or “primary contractor,” working on the projects included in the Bill’s purview will be liable for wages that have not been paid by a subcontractor or lower-tier subcontractor on any contract entered into after July 1, 2022, together with unpaid fringe benefits plus to attorneys’ fees and costs that are incurred by the employee in bringing an action under the Wage Act.
These amendments to the Wage Act apply to a primary contractor engaged in “erection, construction, alteration, or repair of a building structure, or other private work.” However, there are important limitations to the amendment’s applicability. The amendment does not apply to projects under contract with state or local government, or to general contractors that are parties to a collective bargaining agreement on a project where the work is being performed. Additionally, the amendment does not apply to primary contractors who are doing work with a value of less than $20,000, or work that involves only the altering or repairing of an existing single-family dwelling or single residential unit in a multi-unit building.
Reprinted courtesy of
Edward O. Pacer, Peckar & Abramson and
David J. Scriven-Young, Peckar & Abramson
Mr. Pacer may be contacted at epacer@pecklaw.com
Mr. Scriven-Young may be contacted at dscriven-young@pecklaw.com
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U.S. Construction Value Flat at End of Summer
December 04, 2013 —
CDJ STAFFThe Census Bureau has released it numbers for the value of construction put in place for September and October, and while further numbers are forthcoming, this current report shows little change. The value of construction dropped a miniscule 0.3% in September, however, residential construction actually showed a slight increase.
October then showed a 0.8% increase, but then private residential construction dropped by 0.5%. In all, however, by the end of October, private residential spending was up 17.8% over the prior year. As with other sectors of public spending, public residential spending dropped 3.4% from the prior year.
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Despite Misapplying California Law, Federal Court Acknowledges Virus May Cause Physical Alteration to Property
October 26, 2020 —
Scott P. DeVries, Michael S. Levine & Michael L. Huggins - Hunton Insurance Recovery BlogOn August 28, Judge Stephen V. Wilson of the Central District of California, entered the latest ruling in the ongoing saga of the COVID-19 business interruption coverage dispute between celebrity plaintiff’s attorney Mark Geragos and Insurer Travelers.
The case, 10E, LLC v. The Travelers Indemnity Co. of Connecticut, was filed in state court. Travelers removed to federal court, where Geragos sought remand and Travelers moved to dismiss. Judge Wilson denied remand and granted the Motion to Dismiss, finding plaintiff did not satisfactorily allege the actual presence of COVID-19 on insured property or physical damage to its property. This holding is inconsistent with long standing principles of California insurance law and appears to improperly enhance the minimal pleading threshold under Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (To survive a motion to dismiss, a complaint need only allege a claim “that is plausible on its face.”).
After rejecting Geragos’ attempt to have the case remanded based on a finding that Geragos had fraudulently joined a defendant to avoid removal, the Judge proceeded to the Motion to Dismiss which raised three issues: (1) the effect of the Virus Exclusion in the Travelers’ Policy, (2) whether plaintiff failed to allege that the governmental orders prohibited access to its property, and (3) whether plaintiff could “‘plausibly allege that it suffered ‘direct physical loss or damage to property’ as required for civil authority coverage.’” Rather than address the effect of the exclusion, which would be the narrowest issue (this exclusion is not present in all policies), the Court proceeded directly to the third issue, which has the broadest potential application.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth and
Michael L. Huggins, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Huggins may be contacted at mhuggins@HuntonAK.com
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Persimmon Offers to Fix Risky Homes as Cladding Crisis Grows
February 22, 2021 —
Olivia Konotey-Ahulu - BloombergPersimmon Plc, the U.K.’s biggest homebuilder, has offered to pay for work on potentially unsafe buildings in the wake of the cladding scandal that arose from London’s Grenfell Tower fire.
The firm has made a provision of 75 million pounds ($104 million) in its 2020 results for any necessary repair work on 26 buildings it developed that may be affected by the issue, it said in a statement Wednesday. It no longer owns the properties and said it would provide support where owners failed to accept their legal responsibilities.
“The concern around now banned cladding is affecting many thousands of homeowners who live in high-rise buildings right across the country,” Chairman Roger Devlin said in the statement. “We believe we have a clear duty to act to address this issue.”
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Olivia Konotey-Ahulu, Bloomberg
US Moves to Come Clean on PFAS in Drinking Water
September 18, 2023 —
Pam McFarland, Debra K. Rubin & Mary B. Powers - Engineering News-RecordCongress has allocated billions of dollars to address contamination caused by the ubiquitous class of “forever” chemicals known as PFAS—with billions more also earmarked in recent legal settlements with manufacturers—but drinking water managers, construction sector experts and other stakeholders say the true cost of cleanup could be much higher.
Reprinted courtesy of
Pam McFarland, Engineering News-Record,
Debra K. Rubin, Engineering News-Record and
Mary B. Powers, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
Ms. Rubin may be contacted at rubind@enr.com
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Housing Sales Hurt as Fewer Immigrants Chase Owner Dream
July 01, 2014 —
Kathleen M. Howley – BloombergAfter decades of factory shutdowns and population loss, the city of Dayton, Ohio, has found a fix for its housing market hard-hit by foreclosures -- immigration.
The rust-belt city of 140,000 has been encouraging immigrants from Mexico, Nigeria and Turkey to move there since 2011, after its population hit a 90-year low, by offering to help with resettlement and starting businesses. Dayton’s foreign population grew and so did its housing sales, rising last year at almost twice the national rate.
As the housing recovery nationwide sputters, the story of Dayton reveals a reason why: the U.S. market is missing the sales jolt provided by immigration. Last year, the number of immigrants granted U.S. residency -- typically a requirement to get a mortgage -- hit a nine-year low, according to government data. Immigrants, deterred by a weak American labor market since 2008, aren’t likely to get encouragement from Congress, where support for a reform bill has mostly evaporated.
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Kathleen M. Howley, BloombergMs. Howley may be contacted at
kmhowley@bloomberg.net
General Liability Alert: ADA Requirements Pertaining to Wall Space Adjacent to Interior Doors Clarified
February 26, 2015 —
Lawrence S. Zucker II and Kristian B. Moriarty – Haight Brown & Bonesteel LLPIn Kohler v. Bed Bath & Beyond (No. 12-56727, filed February 19, 2015) the United States Court of Appeals for the Ninth Circuit affirmed a grant of summary judgment in favor of a department store related to the necessary moving clearance for an interior restroom door pursuant to the Americans With Disabilities Act ("ADA").
Plaintiff, Chris Kohler, is paraplegic and requires the use of a wheelchair to move in public. On two separate days in May 2011, Kohler used the restroom inside the Bed Bath & Beyond store in Riverside, California. Of relevance to the appeal, Kohler contends there was less than ten inches of strike-side wall space on the pull side of Bed Bath & Beyond’s restroom door which allegedly made it difficult for Mr. Kohler to pull open the restroom door by pushing off the strike-side wall with one hand while pulling the door handle with the other. He also contends there was less than three inches of strike-side wall or floor space on the push side of the door, making it difficult for Kohler to open the door from the push side. The door at issue did not have a latch which would stop the door from freely swinging on a hinge.
Reprinted courtesy of
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP and
Kristian B. Moriarty, Haight Brown & Bonesteel LLP
Mr. Zucker may be contacted at lzucker@hbblaw.com
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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Will Superusers Future-Proof the AEC Industry?
May 13, 2019 —
Aarni Heiskanen - AEC BusinessDesign professionals who leverage tools and technology and, at the same time, have people skills, are essential to the future of the industry. They are Superusers, the protagonists of the latest book by Randy Deutsch.
Randy Deutsch is an architect, educator, workshop leader, writer, and international keynote speaker. I had a chance to interview him about his book, Superusers: Design Technology Specialists and the Future of Practice.
First, I was curious to know why he chose this topic for his fourth book. He explains: “Right now, it made a lot of sense to focus on the individual, not focus on collaboration and building teams, and really define what each individual team member should be.”
Who Are Superusers?
IT, technology, and tool specialists are typically experts in a relatively narrow field. Designers, especially architects, must have a wider perspective. Superusers are design technologists; liaisons between business needs and technology solutions. They demonstrate certain skillsets and mindsets.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi