(a)Any contractor who is or becomes an employer under the provisions of this chapter, who contracts with any out-of-state or nonresident subcontractor, who also is or becomes an employer under the provisions of this chapter, shall:
(1)withhold sufficient monies on the contract to guarantee that all contributions, penalties, and interest are paid upon completion of the contract; or
(2)require the subcontractor to secure a bond guaranteeing payment of all contributions, penalties, and interest due or to become due with respect to wages paid for employment on the contract.
(b)Failure to comply with the provisions of this section shall render the contractor directly liable for the contributions, penalties, and interest due from the subcontractor and the Commissioner shall have all of the r
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(a) Any contractor who is or becomes an employer under the provisions of this chapter, who contracts with any out-of-state or nonresident subcontractor, who also is or becomes an employer under the provisions of this chapter, shall:
(1) withhold sufficient monies on the contract to guarantee that all contributions, penalties, and interest are paid upon completion of the contract; or
(2) require the subcontractor to secure a bond guaranteeing payment of all contributions, penalties, and interest due or to become due with respect to wages paid for employment on the contract.
(b) Failure to comply with the provisions of this section shall render the contractor directly liable for the contributions, penalties, and interest due from the subcontractor and the Commissioner shall have all of the remedies of collection against the contractor under the provisions of this chapter as though the services in question were performed directly for the contractor.
(c) Any contractor who becomes liable for and pays contributions with respect to individuals in the employ of a subcontractor may recover the amounts paid from the subcontractor.
(d) As used in this section, the words “contractor” and “subcontractor” mean and include individuals, partnerships, firms or corporations, or other associations of persons engaged in the business of construction, alteration, repairing, dismantling, or demolition of buildings, roads, bridges, viaducts, sewers, water and gas mains, streets, disposal plants, water filters, tanks and towers, airports, dams, water wells, pipelines, and every other type of structure, project, development, or improvement coming within the definition of real property. (Added 1965, No. 115, eff. June 22, 1965; amended 2023, No. 85 (Adj. Sess.), § 182, eff. July 1, 2024.)