Liability for Wages of Subcontractor's Employees.

Although it has been tucked in the employment law code of the Kansas Statutes for some years, K.S.A.44-317 is now getting noticed, and used.

The statute, which applies to both private and public work, makes any upper-tier contractor or subcontractor liable for the unpaid wages of their subcontractors, even if the sub had been paid in full. If a subcontractor goes into bankruptcy or shuts its doors and leaves employees unpaid, this could lead to a sizeable liability. It may be time to tighten up both your subcontract language, and your administrative procedures, to protect yourself as best you can.