NRS Chapter 108 provides for the creation of several types of statutory liens. One of those types of liens is called a mechanics or materialman’s lien.
The mechanics liens created under NRS Chapter 108 allow any laborer working on a construction site or who has provided labor upon a construction to file a mechanics lien if they are not paid their agreed upon amount of wages and compensation. These liens are referred to as mechanic’s liens despite the fact they apply to all construction laborers, electricians, plasterers, and others in the construction industry. NRS 108.222 allows a lien claimant to file a lien upon the property where they worked providing construction or improvements or repairs to the property or its improvements. The unpaid wages of a laborer are the basis for the mechanic’s lien on the property.
The lien of a laborer does not require any type of pre-lien notice. This is different than other claimants under NRS Chapter 108. All other lien claimants are required to file a pre-lien notice within days of first providing services on the construction or improvement. If those required to file pre-lien notices do not do so, they will lose their right to file such a lien. When it comes to those providing labor on a construction site or improvement, so long as they file their lien within 90 days of last providing services on the construction or work of improvement, their lien for unpaid wages will be timely. The unpaid wages available for recovery could be for the entire period of the construction project.
NRS 108.226 has several very specific conditions that are required for a lien claimant to perfect and enforce their lien. These steps must be followed fully. Failure to follow the steps will result in loss of the lien on the property and non-payment of wages. These requirements include form of the lien, who must be served, how they must be served, and other requirements for proper perfection of a lien.
A construction worker with a mechanic’s lien will be recovering unpaid wages against the property owner in exchange for release of the lien on the owner’s property. If the owner refuses to settle or pay the value of the lien, the worker must go through the process of foreclosing on the lien. This is only available on private construction and not on public works. This is a difficult process and can be quite complicated.
Because this recovery is against the owner of the property where the work was performed, this is an effective tactic for obtaining wages when the contractor or employer for whom the employee was working disappears or is bankrupt or insolvent.
If an employee works in construction in Nevada and has not been paid by his or her employer, they have several options for collecting unpaid wages. A mechanics lien is only one of those options. There are rules requiring strict adherence to claim procedures in some cases and short statutes of limitation in others. The only way in which to consider the best option for making a claim for wages, whether that is a mechanics lien or some other claim, is for an employee to contact a Nevada attorney experienced in employment and labor law to analyze the case and recommend a course of action based on the specific facts and the applicable law.
This article only provide legal information and does not provide legal advice on any specific situation. It also does not form an attorney-client relationship between the reader and the author.
