What rights do subcontractors have?

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What rights do subcontractors have?

My husband is a contractor for a company that maintains foreclosed homes. In turn, he has subcontractors that work for him. Is it legal for the company that my husband works for, to ask for background checks on the subcontractors that work for him? My husband believes in giving people a second chance in life and has 2 ex-cons that work for him. They have both been working for him for at least 5 years each and we trust them completely. Also, is it legal for the company my husband contracts for to require that he purchase his required insurances from the vendor of their choice? We are now paying almost twice the premium for our errors and omissions insurance because they require we buy our insurance from a specific company

Asked on April 12, 2013 under Business Law, Ohio

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Yes, these things are completely legal. The company your husband contracts for has a right to require these things of anyone whom does business with it; if your husband does not wish to do these things, that company does not need to hire him to do the work.


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