New laws about using subcontractors

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New laws about using subcontractors

#1 Post by Door&WindowPlus » Wed Feb 25, 2009 5:34 pm

I just saw this article. Anyone having issues with this? I am in California so it doesn't effect us yet. We don't use subs but alot of other companies do. ... ctics.aspx
Minnesota's law is by far the most stringent of those reviewed, with fines of up to $5,000 for both the sub and the hiring contractor (that's you) if found to be in violation.

According to the Washington Post, nine states have passed laws or regulations to crack down on misclassification practices. Based on messages to ProSales and from legislative affairs coordinators and executives of regional lumber associations, we know that laws similar to Minnesota's are now in place in New Jersey, Illinois, Washington, Colorado, Maryland and Nebraska. I understand that several New England states are also considering similar legislation, and I wouldn't be surprised to see other states follow this path if in the near term.

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Windows on Washington
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Re: New laws about using subcontractors

#2 Post by Windows on Washington » Wed Feb 25, 2009 6:00 pm

There are certainly differing levels of sub-contractor relationships.

Sending some random out on a job that you picked up that day is one end of the spectrum as is requiring all insurances, reporting, guidelines, material selections, and best practices the other end.

States being up in arms about not collecting taxes, there is your most poignant motivator. I agree to the extent that sub-contractors should being paying taxes. To require companies to hire people as employees to resolve that issue is overkill in my opinion.

The organized subs in this market are incorporated and as squared away as most large companies. The reason people like that model is because they ultimately make more money.

Keep taking more money away from the people working for it, give it to the gov't to spend. I know I like that. :roll:

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Window4U (IL)
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Re: New laws about using subcontractors

#3 Post by Window4U (IL) » Wed Feb 25, 2009 6:58 pm

This happened in Illinois a year ago. The unions pushed it through sympathetic democrat legislators to push the non-union competition out of business so that the unions could get a bigger share of the available work.

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