NFIB Joins Minority Groups in Opposition to Contractor Liability Legislation

Date: March 17, 2022

NFIB continues to oppose HB 5412, legislation to enable civil liability against a General or Prime Contractor for the payment of wages to the employees of Subcontractors.  Regardless of whether a prime contractor has paid a subcontractor, the prime would still be responsible for and liable if the subcontractor fails to pay their employees.  This broad expansion of employer liability would add tremendous costs for small contractors.  NFIB joined Hispanic American Construction Industry Association (HACIA), Black Construction Owners & Entrepreneurs (BCOE), Women Construction Owners & Entrepreneurs (WCOE), Associated Builders and Contractors (ABC) and Home Builders Association of Illinois in opposition to this legislation that would dramatically increase bonding costs, limit access to capital, and add tremendous liability for contractors.  The legislation passed the House with 2 votes to spare, after initially failing to pass by the same margin.  The Coalition has been working the Senate daily to increase awareness of the legislation intended to correct the despicable practice of wage theft.  However, by expanding exposure to the prime contractor, the legislation does nothing to prevent the subcontractor from committing wage theft.

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