Connecticut 2024 Regular Session

Connecticut Senate Bill SB00409 Compare Versions

Version 1 (Old)

Version 2 (New)

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5	5		General Assembly Substitute Bill No. 409
6	6		February Session, 2024
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11	11		AN ACT CONCERNING WAGE THEFT RESPONSIBILITY.
12	12		Be it enacted by the Senate and House of Representatives in General
13	13		Assembly convened:
14	14
15	15		Section 1. (NEW) (Effective October 1, 2024) (a) For purposes of this 1
16	16		section and section 2 of this act: 2
17	17		(1) "Construction contract" means any contract entered into on or 3
18	18		after October 1, 2024, for construction, renovation or rehabilitation in 4
19	19		this state, including any improvements to real property that are 5
20	20		associated with such construction, renovation or rehabilitation, or any 6
21	21		subcontract for construction, renovation or rehabilitation between an 7
22	22		owner and a contractor, a contractor and a subcontractor or a 8
23	23		subcontractor and another subcontractor. "Construction contract" does 9
24	24		not include (A) any public works or other contract entered into with this 10
25	25		state, any other state or the United States, or (B) a home improvement 11
26	26		contract for (i) the construction, renovation or rehabilitation of an 12
27	27		owner-occupied residence, or (ii) the construction, renovation or 13
28	28		rehabilitation of a one-family or two-family dwelling unit, except when 14
29	29		such contract is for the construction of more than fifteen one-family or 15
30	30		two-family dwelling units at one project site; 16
31	31		(2) "Contractor" means any individual, firm, partnership, 17
32	32		corporation, association, company, organization or other business 18
33	33		entity, including, but not limited to, a construction manager, general or 19
34	34		prime contractor, joint venture or any combination thereof that has a 20 Substitute Bill No. 409
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37	37		LCO 2 of 5
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39	39		direct contractual relationship with an owner; 21
40	40		(3) "Employee" has the same meaning as provided in section 31-71a 22
41	41		of the general statutes; 23
42	42		(4) "Owner" has the same meaning as provided in section 42-158i of 24
43	43		the general statutes; 25
44	44		(5) "Subcontractor" means any individual, firm, partnership, 26
45	45		corporation, association, company, organization or other business entity 27
46	46		or any combination thereof that (A) does not have a direct contractual 28
47	47		relationship with an owner, and (B) (i) is a party to a construction 29
48	48		contract with a contractor, (ii) is a party to a construction contract with 30
49	49		another subcontractor that has a direct contractual relationship with a 31
50	50		contractor, or (iii) performs any portion of work at any tier within the 32
51	51		scope of a construction contract regardless of whether such 33
52	52		subcontractor has a direct contractual relationship with a contractor; 34
53	53		and 35
54	54		(6) "Wages" has the same meaning as provided in section 31-71a of 36
55	55		the general statutes. 37
56	56		(b) Any contractor who enters into a construction contract shall be 38
57	57		jointly and severally liable for any unpaid wages due to any employee 39
58	58		of any subcontractor in a direct contractual relationship with the 40
59	59		contractor, or any subcontractor of a subcontractor, for such employee's 41
60	60		performance of labor included within the scope of the construction 42
61	61		contract. 43
62	62		(c) Nothing in this section shall prohibit a contractor from including 44
63	63		in each of its subcontracts a provision establishing a remedy for any 45
64	64		liability created by the nonpayment of wages by a subcontractor, 46
65	65		provided such provision does not diminish the right of an employee to 47
66	66		bring an action under section 31-72 of the general statutes, as amended 48
67	67		by this act, and does not waive or release any liability assigned to a 49
68	68		contractor under this section. No such provision to waive or release 50
69	69		liability assigned to the contractor under this section shall be 51 Substitute Bill No. 409
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74	74		enforceable. 52
75	75		Sec. 2. (NEW) (Effective October 1, 2024) (a) (1) A contractor may 53
76	76		request from a subcontractor the payroll records of employees 54
77	77		providing labor under the construction contract. Such request shall be 55
78	78		sent to the subcontractor by certified mail and shall notify the 56
79	79		subcontractor that such subcontractor has thirty days to respond. 57
80	80		(2) Upon request of a contractor for the payroll records of employees 58
81	81		of a subcontractor pursuant to this subsection, a subcontractor and any 59
82	82		other subcontractors under contract to such subcontractor shall provide 60
83	83		such contractor with such payroll records not later than thirty days after 61
84	84		such request is received. Such payroll records shall (A) be attested to 62
85	85		and certified to be accurate and complete, (B) indicate the 63
86	86		subcontractor's and any lower tier subcontractor's payment status in 64
87	87		paying wages to employees, and (C) be marked or redacted only to 65
88	88		prevent disclosure of an employee's full Social Security number. 66
89	89		(b) (1) A contractor may request from a subcontractor: (A) The names 67
90	90		of all employees and independent contractors such subcontractor 68
91	91		employs who are providing labor under the construction contract 69
92	92		between the contractor and subcontractor; (B) when applicable, the 70
93	93		name, address and phone number of any subcontractors with whom 71
94	94		such subcontractor is under contract, the anticipated start date of such 72
95	95		contract and the duration of work under such contract; and (C) when 73
96	96		applicable, collective bargaining agreements of which such 74
97	97		subcontractor is a signatory contractor. Such request shall be sent to the 75
98	98		subcontractor by certified mail and shall notify the subcontractor that 76
99	99		such subcontractor has thirty days to respond. For purposes of this 77
100	100		subdivision, "signatory contractor" means a subcontractor that is 78
101	101		independently obligated to one or more collective bargaining 79
102	102		agreements with any labor organization. 80
103	103		(2) Upon request of a contractor pursuant to this section, a 81
104	104		subcontractor and any lower tier subcontractor under contract to such 82
105	105		subcontractor shall provide such contractor with such information not 83 Substitute Bill No. 409
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110	110		later than thirty days after such request is received. 84
111	111		(c) Failure by a subcontractor to comply with a request from a 85
112	112		contractor under subsections (a) and (b) of this section shall be cause for 86
113	113		a contractor to withhold payments owed to a subcontractor. 87
114	114		Sec. 3. Section 31-72 of the general statutes is repealed and the 88
115	115		following is substituted in lieu thereof (Effective October 1, 2024): 89
116	116		(a) When any employer fails to pay an employee wages in accordance 90
117	117		with the provisions of sections 31-71a to 31-71i, inclusive, or fails to 91
118	118		compensate an employee in accordance with section 31-76k or where an 92
119	119		employee or a labor organization representing an employee institutes 93
120	120		an action to enforce an arbitration award which requires an employer to 94
121	121		make an employee whole or to make payments to an employee welfare 95
122	122		fund, such employee or labor organization shall recover, in a civil action, 96
123	123		(1) twice the full amount of such wages, with costs and such reasonable 97
124	124		attorney's fees as may be allowed by the court, or (2) if the employer 98
125	125		establishes that the employer had a good faith belief that the 99
126	126		underpayment of wages was in compliance with law, the full amount of 100
127	127		such wages or compensation, with costs and such reasonable attorney's 101
128	128		fees as may be allowed by the court. Any agreement between an 102
129	129		employee and his or her employer for payment of wages other than as 103
130	130		specified in said sections shall be no defense to such action. The Labor 104
131	131		Commissioner may collect the full amount of any such unpaid wages, 105
132	132		payments due to an employee welfare fund or such arbitration award, 106
133	133		as well as interest calculated in accordance with the provisions of section 107
134	134		31-265 from the date the wages or payment should have been received, 108
135	135		had payment been made in a timely manner. In addition, the Labor 109
136	136		Commissioner may bring any legal action necessary to recover twice the 110
137	137		full amount of unpaid wages, payments due to an employee welfare 111
138	138		fund or arbitration award, and the employer shall be required to pay the 112
139	139		costs and such reasonable attorney's fees as may be allowed by the court. 113
140	140		The commissioner shall distribute any wages, arbitration awards or 114
141	141		payments due to an employee welfare fund collected pursuant to this 115
142	142		section to the appropriate person. 116 Substitute Bill No. 409
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147	147		(b) When a subcontractor fails to pay an employee for labor 117
148	148		performed within the scope of a construction contract, the employee, or 118
149	149		a labor organization representing the employee, may bring a civil action 119
150	150		under this section against either the subcontractor, the contractor or 120
151	151		both the subcontractor and contractor. Not less than ten days prior to 121
152	152		bringing a civil action under this section, such employee shall provide 122
153	153		notice of an alleged violation by such subcontractor to the contractor. 123
154	154		Such notice shall describe the general nature of the alleged violation. No 124
155	155		employee shall be required to provide notice pursuant to this subsection 125
156	156		if such employee has previously given notice to a contractor of either 126
157	157		the same violation or a prior violation by the same subcontractor. Any 127
158	158		notice provided to a contractor pursuant to this subsection shall not 128
159	159		limit the liability of the contractor or preclude subsequent amendments 129
160	160		of an action brought under this section to encompass additional 130
161	161		employees employed by the subcontractor. For purposes of this section, 131
162	162		"construction contract", "contractor" and "subcontractor" have the same 132
163	163		meanings as provided in section 1 of this act. 133
164	164		This act shall take effect as follows and shall amend the following
165	165		sections:
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167	167		Section 1 October 1, 2024 New section
168	168		Sec. 2 October 1, 2024 New section
169	169		Sec. 3 October 1, 2024 31-72
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	171	+	Statement of Legislative Commissioners:
	172	+	In Section 1(b) "entering" was changed to "who enters into" for
	173	+	conformity with standard drafting conventions, and Subsec. (c) was
	174	+	rewritten for clarity; in Section 2(a)(1) "on a construction contract" was
	175	+	changed to "under the construction contract" for conformity with
	176	+	standard drafting conventions, and in Subsec. (b)(1) "on the construction
	177	+	contract" was changed to "under the construction contract" for
	178	+	conformity, and in Section 3(b) "entered into on or after October 1, 2024,"
	179	+	was deleted for conformity with standard drafting conventions.
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172	181		LAB Joint Favorable Subst.
173		-	JUD Joint Favorable
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