September 5, 2018 / 1:54 AM / 21 days ago

9th Circuit says scrapped Nevada contractor law was valid

A divided U.S. appeals court on Tuesday said a Nevada law limiting general contractors’ liability for subcontractors’ wage and benefit violations that state lawmakers repealed after a federal judge struck it down was valid after all.

The 9th U.S. Circuit Court of Appeals in a 2-1 decision said Nevada’s law regulated debt collection by trusts that administer employee benefit plans, and not the plans themselves, so a judge was wrong to rule that it was preempted by the Employee Retirement Income Security Act of 1974.

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