A newly filed Superior Court lawsuit illustrates why developers may no longer treat contractor wage compliance as someone else’s problem. The lawsuit was filed by LIUNA Local 3 and Laborers’ Eastern Region Organizing Fund (LEROF). The complaint alleges that more than 240 laborers working on two major developments went unpaid for weeks, leaving at least $716,000.00 in wages outstanding and exposing upstream contractors to claims exceeding $2 million including liquidated damages and other relief.
The lawsuit names the general contractor and a concrete subcontractor, not the developers, as defendants. Nevertheless, the political and reputational consequences have reached the developers whose projects were involved.
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