On February 12, 2014, President Obama issued an Executive Order to raise the minimum wage for Federal contractors and subcontractors under certain contracts, as he had foreshadowed in this year’s State of the Union. The Executive Order sets forth the new wage rate, when it may take effect, and what contracts will be affected by this minimum wage increase.
Click here for a link to the full alert, which I co-authored with my colleague Meghan Doherty.
California is not the only state that actively cracks down on unlicensed contractor activities. As recent as March 18, North Dakota Attorney General Wayne Stenehjem announced that Cease and Desist Orders had been issued against 7 unlicensed contractors for violations of North Dakota’s consumer fraud laws, banning them from doing any business in North Dakota. The Attorney General’s Consumer Protection Division investigates consumer complaints about unlicensed contractor activities. The recent investigation was initiated in connection with consumers reports that, not withstanding that they had been paid in advance for work, the contractors’ failed to properly complete the work and, in some cases, to even commence work.
Attorney General Stenehjem warns consumers:
“Never put down any money until you have made sure the contractor is properly licensed. Hiring an unlicensed contractor may prove to be very expensive as it is extremely difficult to recover money once they have fled the state.”
Additional news releases are available on the North Dakota Attorney General’s website.
Additional Source: Unlicensed Contractors Banned from Doing Business in ND (Mar. 18, 2014); Twenty Arrested in Law Enforcement Operation in Northwest ND (March 14, 2014); Stenehjem Bans Two Unlicensed Contractors (Feb. 12, 2014); Fall California Licensing Blitz Stings 75; California Contractors State License Board
UPDATE: Sacramento Business Journal, Planning commission gives Kings arena a big thumbs-up (Apr. 11, 2014) — “With a unanimous vote, the board recommended approval to the City Council both for the arena and entitlements for surrounding development.”
The Sacramento Bee confirmed yesterday that the City of Sacramento (City) announced that Sacramento’s Planning and Design Commission (Commission) is scheduled to vote on the planned downtown Sacramento Kings’ arena project at its April 10 meeting. Among the issues the Commission will debate include:
If the Commission approves the arena project, it will head to the City Council in late April or early May. In addition to the development plans and environmental report, the City Council will have to approve a proposal to commit $258 million in public money to the $448 million arena project.
Additional Source: The Sacramento Bee, Sacramento arena plan goes to Planning Commission April 10 (Mar. 28, 2014); Latest Concepts for Sacramento Kings Arena Unveiled; Turner Construction Company to Build New Sacramento Kings Arena; Sacramento Kings Announce They Will Be The First Pro Sports Franchise To Accept Bitcoin
The Nevada State Contractors Board (NSCB) announced today that it will be conducting a public workshop on Wednesday, April 30, 2014 at 9:00 a.m. and a public hearing on Thursday, May 15, 2014 at 9:00 a.m., in connection with its notice of intent to amend its regulations which are set forth in Chapter 624 of Nevada’s Administrative Code. In particular, it intends to expand the scope of its C-10 Landscape contracting classification and to add standards for imposing administrative fines.
Proposed Regulation R018-14 would amend the current C-10 Landscape contracting classification to include tree trimming and removal of trees and tree stumps, and proposed Regulation R019-14 would modify NAC § 624.7251 to include standards for the imposition of administrative fines for all violations of Chapter 624 of Nevada’s Revised Statute.
Anyone wishing to comment on the proposed regulations may appear at the scheduled public workshop or may address their comments, data, views or arguments, in written form to the Executive Officer of the NSCB, 2310 Corporate Circle, Suite 200, Henderson, NV 89074 and the Reno office located at 9670 Gateway Drive, Suite 100, Reno, NV 89521. Written submissions must be received by the NSCB five days prior to the scheduled workshop. If no person who is directly affected by the proposed action appears to request time to make an oral presentation, the NSCB may proceed immediately to act upon any written submissions.
UPDATE: CSLB, Catching Illegal Contracting in the Act with “Eyes on Site” (Apr. 2, 2014)
California’s Contractors State License Board (CSLB) Statewide Investigative Fraud Team (SWIFT) team has reported that 121 individuals have been arrested in connection with simultaneous undercover sting operations conducted March 25-27, 2014, in 9California locations. SWIFT investigators partnered with a variety of local law enforcement agencies to conduct the stings, including law enforcement agencies in Bass Lake (Madera County), Clovis (Fresno County), Dana Point (Orange County), Hanford (Kings County), Palos Verdes Estates (Los Angeles County), Sacramento (Sacramento County), San Jose (Santa Clara County), Vista (San Diego County), and Woodland (Yolo County).
Of the 121 individuals arrested, 115 now may face misdemeanor charges for contracting without a license, which is prohibited by Bus. & Prof. Code § 7028. The penalty for a conviction is up to 6 months in jail and/or a fine of up to $5,000. Of those arrested, 94 may also be charged with illegal advertising in violation of Bus. & Prof. Code § 7027.1. Among other things, California law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license are permitted to advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty for illegal advertising is a fine of $700 to $1,000. Other charges may include requesting an excessive down payment in violation of Bus. & Prof. Code § 7159.5. In California, unless exempt, a home improvement project down payment cannot exceed 10% of the contract total or $1,000, whichever is less. This misdemeanor charge carries a maximum penalty of 6 months in jail and/or up to a $5,000 fine. The CSLB further reported that the blitz totals may increase as some suspects are expected to provide their bids to undercover investigators via text, email or fax at a later date.
Additional Source: Fall California Licensing Blitz Stings 75; California Contractors State License Board
Yesterday, Pillsbury attorney Joël Van Over published his advisory titled Who Says Life’s Not Fair: Good Faith and Fair Dealing Prevails in Metcalf Case. The Advisory discusses the Federal Circuit’s highly anticipated decision in Metcalf Construction Company, Inc. v. United States, No. 2013-5041 (Fed. Cir. Feb. 11, 2014). The Federal Circuit ruled that a contractor suing the government for breaching the implied duty of “good faith and fair dealing” need not show that the government’s conduct was “specifically targeted” to reappropriate the contractor’s benefits under the subject contract except in limited circumstances present in the court’s 2010 decision in Precision Pine & Timber, Inc. v. United States, 596 F.3d 817 (Fed. Cir. 2010). Rather, in Metcalf, the court reaffirmed the vitality of traditional standards used to prove a breach of the duty of good faith and fair dealing, such as where the government hindered or failed to cooperate with the contractor’s performance so as to “destroy the [contractor’s] reasonable expectations. . . regarding the fruits of the contract.”
Instead of sexist catcalls, construction works yell: “I’d like to show you the respect you deserve!” “A woman’s place is where she chooses!” “You know what I’d like to see? A society in which the objectification of women makes way for gender-neutral interaction free from assumptions and expectations” in a real-world extension of Snickers’ “You’re not you when you’re hungry” campaign. Check out the YouTube video titled Aussie Builders surprise public with loud empowering statements.
Additional Resource: AdWeek, Construction Workers Yell Messages of Empowerment to Women in Snickers Stunt … So when you’re hungry, you’re not a creep?
Today, Pillsbury attorneys Ken Taber and Teresa Lewi published their advisory titled Update: Amendments to New York City’s Paid Sick Leave Law Changes Effective April 1st Expand Obligations for Employers. The Advisory reports that New York City Mayor Bill de Blasio signed into law amendments to the Earned Sick Time Act that impose additional requirements on almost all private employers in the City, with enforcement set to begin on April 1st. It also discusses the new requirements.
Additional Sources: New York Employers Face Far-Reaching Employment Law Changes in 2014
Today, Pillsbury attorneys Mark Jones and Matt Ryan posted their advisory titled Health Care Reform Update: Employers Must Begin Reporting Details of Health Coverage to IRS. The Advisory discusses the significant new reporting requirements applicable to employers providing self-insured group health coverage to their employees and to other, large and mid-size employers subject to the shared responsibility (or “Pay or Play”) rules under the Affordable Care Act. It further discusses recently finalized regulations that explain the requirements and provide certain employers with opportunities to reduce their reporting burden. The reporting regime will become effective on January 1, 2015, relying in part on data collected in 2014.
Additional Resources: IRS Releases Final Regulations on “Pay or Play” (Feb. 25, 2014); Health Care Reform Update: Large Employers Must Offer Health Coverage or Pay Assessment (Jan. 22, 2013)
Today, Pillsbury attorneys Ray Sweigart and Jeff Kiburtz published their advisory titled An American Policyholder in London: English Choice of Law Clauses in United States Insurance Policies. The Advisory identifies a few of the issues on which English law is notably different from prevailing law in the United States and which ought to be taken into account when considering an English law and forum clause.
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