Connecticut 2022 Regular Session

Connecticut Senate Bill SB00418 Compare Versions

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4		-	Senate Bill No. 418
	7	+	General Assembly Raised Bill No. 418
	8	+	February Session, 2022
	9	+	LCO No. 2941
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6		-	Public Act No. 22-17
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	12	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
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	14	+
	15	+	Introduced by:
	16	+	(LAB)
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9	20		AN ACT CONCERNING WAGE THEFT.
10	21		Be it enacted by the Senate and House of Representatives in General
11	22		Assembly convened:
12	23
13		-	Section 1. Subsection (b) of section 31-53 of the 2022 supplement to
14		-	the general statutes is repealed and the following is substituted in lieu
15		-	thereof (Effective July 1, 2023):
16		-	(b) [Any] If the commissioner, upon inspection or investigation of a
17		-	complaint, believes that a contractor or subcontractor [who] has
18		-	knowingly or wilfully [employs] employed any mechanic, laborer or
19		-	worker in the construction, remodeling, refinishing, refurbishing,
20		-	rehabilitation, alteration or repair of any public works project for or on
21		-	behalf of the state or any of its agents, or any political subdivision of the
22		-	state or any of its agents, at a rate of wage on an hourly basis that is less
23		-	than the rate customary or prevailing for the same work in the same
24		-	trade or occupation in the town in which such public works project is
25		-	being constructed, remodeled, refinished, refurbished, rehabilitated,
26		-	altered or repaired, or who [fails] has failed to pay the amount of
27		-	payment or contributions paid or payable on behalf of each such person
28		-	to any employee welfare fund, or in lieu thereof to the person, as
29		-	provided by subsection (a) of this section, such contractor or
30		-	subcontractor shall be issued a citation and may be fined [not less than
31		-	two thousand five hundred dollars but not more than] five thousand Senate Bill No. 418
	24	+	Section 1. Subsections (a) and (b) of section 31-53 of the 2022 1
	25	+	supplement to the general statutes are repealed and the following is 2
	26	+	substituted in lieu thereof (Effective October 1, 2022): 3
	27	+	(a) Each contract for the construction, remodeling, refinishing, 4
	28	+	refurbishing, rehabilitation, alteration or repair of any public works 5
	29	+	project by the state or any of its agents, or by any political subdivision 6
	30	+	of the state or any of its agents, shall contain the following provision: 7
	31	+	"The wages paid on an hourly basis to any person performing the work 8
	32	+	of any mechanic, laborer or worker on the work herein contracted to be 9
	33	+	done and the amount of payment or contribution paid or payable on 10
	34	+	behalf of each such person to any employee welfare fund, as defined in 11
	35	+	subsection (i) of this section, shall be at a rate equal to the rate customary 12
	36	+	or prevailing for the same work in the same trade or occupation in the 13
	37	+	town in which such public works project is being constructed. Any 14
	38	+	contractor who is not obligated by agreement to make payment or 15
	39	+	contribution on behalf of such persons to any such employee welfare 16 Raised Bill No. 418
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33		-	Public Act No. 22-17 2 of 3
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35		-	dollars for each offense. [and (1) for the first violation, shall be
36		-	disqualified from bidding on contracts with the state or any political
37		-	subdivision until the contractor or subcontractor has made full
38		-	restitution of the back wages owed to such persons and for an additional
39		-	six months thereafter, and (2) for subsequent violations, shall be
40		-	disqualified from bidding on contracts with the state or any political
41		-	subdivision until the contractor or subcontractor has made full
42		-	restitution of the back wages owed to such persons and for not less than
43		-	an additional two years thereafter.] The commissioner shall maintain a
44		-	list of any contractor or subcontractor that, during the three preceding
45		-	calendar years, violates this section or enters into a settlement with the
46		-	commissioner to resolve any claim brought by the commissioner
47		-	pursuant to this section. For each contractor or subcontractor placed on
48		-	such list, the commissioner shall record the following information: (1)
49		-	The nature of the violation; (2) the total amount of wages and fringe
50		-	benefits making up the violation or agreed upon in any settlement with
51		-	the commissioner; and (3) the total amount of civil penalties and fines
52		-	agreed upon by the commissioner. The commissioner shall review the
53		-	list on the first day of May each year for the preceding rolling three-year
54		-	period and may refer for debarment any contractor or subcontractor that
55		-	committed a violation of this section during the rolling three-year
56		-	period. The commissioner shall refer for debarment any contractor or
57		-	subcontractor that entered into one or more settlement agreements with
58		-	the commissioner where the sum total of all settlements within such
59		-	period exceeds fifty thousand dollars in back wages or fringe benefits,
60		-	or entered into one or more settlement agreements with the
61		-	commissioner where the sum total of all settlements within such period
62		-	exceeds fifty thousand dollars in civil penalties or fines agreed upon by
63		-	the commissioner. Any contractor or subcontractor the commissioner
64		-	refers for debarment may request a hearing before the commissioner.
65		-	Such hearing shall be conducted in accordance with the provisions of
66		-	chapter 54. In addition, if it is found by the contracting officer
67		-	representing the state or political subdivision of the state that any Senate Bill No. 418
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	46	+	fund shall pay to each mechanic, laborer or worker as part of such 17
	47	+	person's wages the amount of payment or contribution for such person's 18
	48	+	classification on each pay day." 19
	49	+	(b) [Any] If the commissioner, upon inspection or investigation of a 20
	50	+	complaint, believes that a contractor or subcontractor [who] has 21
	51	+	knowingly or wilfully [employs] employed any mechanic, laborer or 22
	52	+	worker in the construction, remodeling, refinishing, refurbishing, 23
	53	+	rehabilitation, alteration or repair of any public works project for or on 24
	54	+	behalf of the state or any of its agents, or any political subdivision of the 25
	55	+	state or any of its agents, at a rate of wage on an hourly basis that is less 26
	56	+	than the rate customary or prevailing for the same work in the same 27
	57	+	trade or occupation in the town in which such public works project is 28
	58	+	being constructed, remodeled, refinished, refurbished, rehabilitated, 29
	59	+	altered or repaired, or who [fails] has failed to pay the amount of 30
	60	+	payment or contributions paid or payable on behalf of each such person 31
	61	+	to any employee welfare fund, or in lieu thereof to the person, as 32
	62	+	provided by subsection (a) of this section, such contractor or 33
	63	+	subcontractor shall be issued a citation and fined [not less than two 34
	64	+	thousand five hundred dollars but not more than] five thousand dollars 35
	65	+	for each offense and (1) for the first violation, shall be disqualified from 36
	66	+	bidding on contracts with the state or any political subdivision (A) until 37
	67	+	the contractor or subcontractor has made full restitution of the back 38
	68	+	wages owed to such persons, and (B) for an additional six months 39
	69	+	thereafter, [and] (2) for any subsequent [violations] violation, shall be 40
	70	+	disqualified from bidding on contracts with the state or any political 41
	71	+	subdivision (A) until the contractor or subcontractor has made full 42
	72	+	restitution of the back wages owed to such persons, and (B) for not less 43
	73	+	than an additional two years thereafter, and (3) for more than one 44
	74	+	violation within a five-year period, the commissioner shall refer the 45
	75	+	matter to the Attorney General, who may institute a civil action to 46
	76	+	recover any unpaid wages, plus interest. The Attorney General may file 47
	77	+	an action to enjoin such conduct and debar the contractor for up to five 48
	78	+	years from the date on which the action is filed. Each citation issued by 49
	79	+	the commissioner pursuant to this subsection shall be in writing and 50 Raised Bill No. 418
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71		-	mechanic, laborer or worker employed by the contractor or any
72		-	subcontractor directly on the site for the work covered by the contract
73		-	has been or is being paid a rate of wages less than the rate of wages
74		-	required by the contract to be paid as required by this section, the state
75		-	or contracting political subdivision of the state may (A) by written or
76		-	electronic notice to the contractor, terminate such contractor's right to
77		-	proceed with the work or such part of the work as to which there has
78		-	been a failure to pay said required wages and to prosecute the work to
79		-	completion by contract or otherwise, and the contractor and the
80		-	contractor's sureties shall be liable to the state or the contracting political
81		-	subdivision for any excess costs occasioned the state or the contracting
82		-	political subdivision thereby, or (B) withhold payment of money to the
83		-	contractor or subcontractor. The contracting department of the state or
84		-	the political subdivision of the state shall, not later than two days after
85		-	taking such action, notify the Labor Commissioner, in writing or
86		-	electronically, of the name of the contractor or subcontractor, the project
87		-	involved, the location of the work, the violations involved, the date the
88		-	contract was terminated, and steps taken to collect the required wages.
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	86	+	shall specifically describe the nature of the violation. Any contractor or 51
	87	+	subcontractor issued a citation pursuant to this subsection may request 52
	88	+	a hearing before the commissioner. Such request shall be made in 53
	89	+	writing to the commissioner not later than ten days after the issuance of 54
	90	+	the citation. The commissioner shall grant such request for a hearing if 55
	91	+	such request includes a dispute of the material facts that resulted in the 56
	92	+	issuance of the citation. Such hearing shall be conducted in accordance 57
	93	+	with the provisions of chapter 54. In addition, if it is found by the 58
	94	+	contracting officer representing the state or political subdivision of the 59
	95	+	state that any mechanic, laborer or worker employed by the contractor 60
	96	+	or any subcontractor directly on the site for the work covered by the 61
	97	+	contract has been or is being paid a rate of wages less than the rate of 62
	98	+	wages required by the contract to be paid as required by this section, the 63
	99	+	state or contracting political subdivision of the state may (A) by written 64
	100	+	or electronic notice to the contractor, terminate such contractor's right to 65
	101	+	proceed with the work or such part of the work as to which there has 66
	102	+	been a failure to pay said required wages and to prosecute the work to 67
	103	+	completion by contract or otherwise, and the contractor and the 68
	104	+	contractor's sureties shall be liable to the state or the contracting political 69
	105	+	subdivision for any excess costs occasioned the state or the contracting 70
	106	+	political subdivision thereby, or (B) withhold payment of money to the 71
	107	+	contractor or subcontractor. The contracting department of the state or 72
	108	+	the political subdivision of the state shall, not later than two days after 73
	109	+	taking such action, notify the Labor Commissioner, in writing or 74
	110	+	electronically, of the name of the contractor or subcontractor, the project 75
	111	+	involved, the location of the work, the violations involved, the date the 76
	112	+	contract was terminated, and steps taken to collect the required wages. 77
	113	+	This act shall take effect as follows and shall amend the following
	114	+	sections:
	115	+
	116	+	Section 1 October 1, 2022 31-53(a) and (b)
	117	+
	118	+	LAB Joint Favorable
	119	+	JUD Joint Favorable Raised Bill No. 418
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