Recently Introduced Legislation Affecting Contractors

Earlier this year, a number of bills were introduced in the Maryland General Assembly that would affect contractors and subcontractors.  While they are too numerous to list in one blog post, a couple generally apply to most contractors and warrant attention.  The first, found here, would increase the maximum deposit a contractor could require under a home improvement contract from one-third to one-half of the total job amount.

 The second, found here, would require a home improvement contractor to obtain an acknowledgement that the consumer was provided with certain information (protections available through the Commission and the right to purchase a performance bond).  The consumer notice is already required; the bill would only require the contractor to obtain an acknowledgement from the customer.

 The third is perhaps the most important.  As I previously wrote about here, Maryland enacted a law in 2018 that imposes liability on a general contractor for wage violations committed by its subcontractors.  The law permits the subcontractors’ employees to sue the general contractor and seek a host of damages (including attorneys’ fees and treble damages).  It appears that the General Assembly has reconsidered the harshness of the law, and is considering a bill, found here, that would limit the joint and several liability of the general contractor to only those instances when the employee notified the general contractor in writing of the violation and the general contractor failed to cure the violation within thirty days. 

 Stay tuned for updates.