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Depends on the Contract. Alot of subcontractor contracts prevent this. If the Prime contractor has received an estimate from a subcontractor and the subcontractor is working at the site or project under a estimate or purchase order then yes, the Prime contractor can be held liable for all monies under the contract if the subcontractor can prove that the employees were on their payroll and during this project the Prime contractor solicited Sub employees to become independent contractors.

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Q: Can a business who hires a company for contract work and then helps their employees it has hired go into business in direct competition on same job be held liable?
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