It happens more often than it should. An employer refuses to pay an employee the wages that are due. What is an employee to do? Complain to the boss? Band together with coworkers? File a complaint with the Labor Commissioner?
A little known Nevada law is available to assist some workers with the collection of unpaid wages and benefits. NRS 608.150(1) provides “every original contractor entering into any contract in this State for the erection, construction, alteration, maintenance or repair, including, without limitation, repairs made under a warranty, of any building or structure, including, without limitation, any equipment or fixtures related thereto, or other work of improvement, shall assume and is liable for the indebtedness for labor incurred by any subcontractor or any contractors acting under, by or for the original contractor.”
Ok, so what does all of that really say? It says that a construction worker employed by a contractor on a construction project who is not paid his or her wages, can seek payment of their unpaid wages from contractors above the employer who did not pay them. In other words, a person working for a subcontractor can seek payment of their unpaid wages from a general contractor.
In addition, an employee may be able to make a claim against the project owner because under the statute, “‘original contractor’ includes a contractor or any other person who enters into a contract.” This means that if an employee is not paid by a contractor who entered into the construction contract with the property or project owner, the employee can attempt to recover his or her unpaid wages from the project or property owner.
The statute of limitations on this claim is two years, so the employee does have some time in which to consider this claim before making it. It is also important to note that Nevada is one of only a few states that have a statute like this. Depending on the circumstances of the employee’s case, they can also be awarded attorney’s fee and costs in cases they bring under this law.
The law only applies in construction but it is a useful tool for employees who remain unpaid by their employer. It is particularly useful because of the sheer number of construction employers who short employees on pay or simply refuse to pay them. The quickest way to recover lost wages for the employer may simply be seeking them from a higher tiered contractor.
This article merely provides legal information and is not to be construed in any manner as providing legal advice. The only way to obtain advice is by seeking advice from a licensed attorney in your state and forming an attorney-client relationship with that attorney.
