California bill would make employers responsible for subcontractors' wages, workers' comp

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Prime contractors would only be responsible if the subcontractor reneges on their responsibility

April 28, 2014

The hiring of subcontractors wouldn’t let companies off the hook for unpaid wages, taxes, or worker’s comp claims for contingency workers under a bill in the California legislature. Under the recently revised Assembly Bill 1897, employers would have to pay wages, taxes, and workers compensation on behalf of a subcontractor’s workers if the subcontractor reneges on that responsibility.

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