In this era of declining property values, owner abandoned projects, and defaulting developers, the private works stop notice has become a central element in contractor payment claims. The private works stop notice is served on a construction lender along with a bond, and creates a lien on undisbursed construction loan funds. But a recent trial court order in a Federal District Court in Arizona shows that this remedy of last resort may be threatened by a new legal challenge.
Could California Private Works Stop Notice Claims Be Challenged on Basis That State Stop Notice Law is Preempted by Federal Lending Regulations?
Federal contractors are now required to post a new labor law notice for employees
Effective June 21, 2010 new U.S. Department of Labor regulations took effect requiring most federal contractors (including subcontractors) to post notices advising employees of their rights under the National Labor Relations Act, to organize and bargain collectively with their employers and to engage in other protected concerted activity. Additionally, the notice provides examples of illegal conduct by employers and unions, and it provides contact information to the National Labor Relations Board. A copy of the required notice is available here.
