Joint and several liability (JSL) is a legal doctrine that lets a worker harmed by a legal violation recover the full amount owed from any one of the responsible parties, regardless of the party’s proportional share. In construction, that means a worker whose subcontractor-employer failed to pay them the wages they are legally owed can pursue the developer or GC, even if the developer or GC already paid the subcontractor in full for the work. This spares workers and labor departments from having to track down and sue the specific, and possibly insolvent, party actually responsible. It also incentivizes developers and GCs to stop handing work to the cheapest, low-road bidder, since they now share the financial consequences if that bidder breaks the law.
At their core, JSL laws exist because legal action needs to be taken against those at the top, who willingly assume risk by employing sketchy partners to cut costs. This directly counters the fissuring of the construction industry, enforcing labor standards that “prevent unscrupulous labor brokers and dishonest subcontractors from profiting at workers’ expense while allowing responsible contractors to compete on a level playing field.” They operate on the principle that the owner/developer and the GC are best positioned to prevent wage theft on a construction project. The owner/developer controls the project, selects the GC, establishes the budget and schedule, and ultimately benefits from the work performed. The GC is tasked with delivering a timely and high-quality project to the customer, and therefore must oversee any subcontractors responsible for carrying out this goal. Since both parties exercise significant control over the project and the subcontracting chain, it is only fair for both to also carry responsibility for how subcontractors treat their workers, ensuring the payment of wages and benefits.