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Employer Liability for Wage Violations of Subcontractors
In some cases, employers can be held liable when their contractors or subcontractors violate minimum and prevailing wage laws.
In New York and California, garment manufacturers are liable for minimum wage violations by contractors and subcontractors. These laws were passed because in that industry, such violations were particularly common, and it was widespread practice for companies to use “fly-by-night” contractors.
In states that have “prevailing wage” laws – requiring contractors in public works projects to pay the standard market wage for a particular type of work – employers are often responsible for ensuring that subcontractors follow this law.
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