Connecticut 2025 Regular Session

Connecticut House Bill HB06955 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 4
	3	+	LCO No. 4598 1 of 6
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 6955
	5	+	General Assembly Raised Bill No. 6955
6	6		January Session, 2025
	7	+	LCO No. 4598
	8	+
	9	+
	10	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
	11	+
	12	+
	13	+	Introduced by:
	14	+	(LAB)
7	15
8	16
9	17
10	18
11		-
12		-	AN ~~ACT CONCERNING~~ A ~~CONTRACTOR'S RESPONSIBILITY FOR~~
13		-	~~UNPAID WAGES~~ ON A CONSTRUCTION CONTRACT.
	19	+	AN ACT CONCERNING THE LIABILITY OF A CONTRACTOR FOR
	20	+	UNPAID WAGES OWED TO AN EMPLOYEE OF A SUBCONTRACTOR
	21	+	FOR PERFORMANCE OF LABOR ON A CONSTRUCTION CONTRACT.
14	22		Be it enacted by the Senate and House of Representatives in General
15	23		Assembly convened:
16	24
17		-	Section 1. (NEW) (Effective October 1, 2025) (a) For ~~the~~ purposes of this 1
18		-	section and section ~~31-72~~ of ~~the general statutes, as amended by~~ this act: 2
	25	+	Section 1. (NEW) (Effective October 1, 2025) (a) For purposes of this 1
	26	+	section and section 2 of this act: 2
19	27		(1) "Construction contract" means any contract entered into on or 3
20	28		after October 1, 2025, for construction, renovation or rehabilitation in the 4
21	29		state, including any improvements to real property that are associated 5
22	30		with such construction, renovation or rehabilitation, or any subcontract 6
23		-	for construction, renovation or rehabilitation between an owner and a 7
24		-	contractor, a contractor and a subcontractor or between a subcontractor 8
25		-	and another subcontractor. "Construction contract" does not include (A) 9
26		-	any public works or other contract entered into with any agency or 10
27		-	department in the state, another state or a federal agency or department, 11
28		-	or (B) a home improvement contract for (i) the construction, renovation 12
29		-	or rehabilitation of an owner-occupied residence or the property where 13
30		-	such residence is located, or (ii) the construction, renovation or 14
31		-	rehabilitation of a one-family or two-family dwelling unit or the 15
32		-	property where such dwelling unit is located, except when such contract 16
33		-	is for the construction of more than fifteen one-family or two-family 17
34		-	dwelling units at one project site; 18 Substitute Bill No. 6955
	31	+	for construction, renovation or rehabilitation between a contractor and 7
	32	+	a subcontractor or between a subcontractor and another subcontractor. 8
	33	+	"Construction contract" does not include (A) any public works or other 9
	34	+	contract entered into with any agency or department in the state, 10
	35	+	another state or a federal agency or department, or (B) a home 11
	36	+	improvement contract for (i) the construction, renovation or 12
	37	+	rehabilitation of an owner-occupied residence, or (ii) the construction, 13
	38	+	renovation or rehabilitation of a one-family or two-family dwelling unit, 14
	39	+	Raised Bill No. 6955
35	40
36	41
37		-	LCO 2 of 4
38	42
39		-	(2) "Contractor" means any individual, firm, partnership, 19
40		-	corporation, association, company, organization or other business 20
41		-	entity, including, but not limited to, a construction manager, general or 21
42		-	prime contractor, joint venture or any combination thereof that has a 22
43		-	direct contractual relationship with an owner; 23
44		-	(3) "Employee" has the same meaning as provided in section 31-71a 24
45		-	of the general statutes; 25
46		-	(4) "Owner" has the same meaning as provided in section 42-158i of 26
47		-	the general statutes; 27
48		-	(5) "Subcontractor" means any individual, firm, partnership, 28
49		-	corporation, association, company, organization or other business entity 29
50		-	or any combination thereof that (A) does not have a direct contractual 30
51		-	relationship with an owner, and (B) (i) is a party to a construction 31
52		-	contract with a contractor, (ii) is a party to a construction contract with 32
53		-	another subcontractor that has a direct contractual relationship with a 33
54		-	contractor, or (iii) performs any portion of work at any tier within the 34
55		-	scope of a construction contract regardless of whether such 35
56		-	subcontractor has a direct contractual relationship with a contractor; 36
57		-	and 37
58		-	(6) "Wages" has the same meaning as provided in section 31-71a of 38
59		-	the general statutes. 39
60		-	(b) A contractor that enters into a construction contract shall be jointly 40
61		-	and severally liable for any unpaid wages due to an employee of a 41
62		-	subcontractor for such employee's performance of labor included within 42
63		-	the scope of the construction contract. 43
	43	+	LCO No. 4598 2 of 6
	44	+
	45	+	except when such contract is for the construction of more than fifteen 15
	46	+	one-family or two-family dwelling units at one project site; 16
	47	+	(2) "Contractor" means any individual, firm, partnership, 17
	48	+	corporation, association, company, organization or other business 18
	49	+	entity, including, but not limited to, a construction manager, general or 19
	50	+	prime contractor, joint venture or any combination thereof that has a 20
	51	+	direct contractual relationship with an owner; 21
	52	+	(3) "Employee" has the same meaning as provided in section 31-71a 22
	53	+	of the general statutes; 23
	54	+	(4) "Owner" has the same meaning as provided in section 42-158i of 24
	55	+	the general statutes; 25
	56	+	(5) "Subcontractor" means any individual, firm, partnership, 26
	57	+	corporation, association, company, organization or other business entity 27
	58	+	or any combination thereof that (A) does not have a direct contractual 28
	59	+	relationship with an owner, and (B) (i) is a party to a construction 29
	60	+	contract with a contractor, (ii) is a party to a construction contract with 30
	61	+	another subcontractor that has a direct contractual relationship with a 31
	62	+	contractor, or (iii) performs any portion of work at any tier within the 32
	63	+	scope of a construction contract regardless of whether such 33
	64	+	subcontractor has a direct contractual relationship with a contractor; 34
	65	+	and 35
	66	+	(6) "Wages" has the same meaning as provided in section 31-71a of 36
	67	+	the general statutes. 37
	68	+	(b) A contractor who enters into a construction contract shall be 38
	69	+	jointly and severally liable for any unpaid wages due to an employee of 39
	70	+	a subcontractor in a direct contractual relationship with the contractor, 40
	71	+	or a subcontractor of a subcontractor in a direct contractual relationship 41
	72	+	with the contractor, for such employee's performance of labor included 42
	73	+	within the scope of the construction contract. 43
	74	+	Raised Bill No. 6955
	75	+
	76	+
	77	+
	78	+	LCO No. 4598 3 of 6
	79	+
64	80		(c) Nothing in this section shall prohibit a contractor from including 44
65	81		in any construction contract between such contractor and a 45
66	82		subcontractor a provision establishing a remedy for any liability created 46
67	83		by the nonpayment of wages by a subcontractor, provided such 47
68	84		provision does not diminish the right of an employee to bring an action 48
69		-	under section 31-72 of the general statutes, as amended by this act, and 49 Substitute Bill No. 6955
70		-
71		-
72		-	LCO 3 of 4
73		-
	85	+	under section 31-72 of the general statutes, as amended by this act, and 49
74	86		does not waive or release any liability assigned to a contractor under 50
75	87		this section. No such provision to waive or release liability assigned to 51
76	88		the contractor under this section shall be enforceable. 52
77		-	Sec. 2. Section 31-72 of the general statutes is repealed and the 53
78		-	following is substituted in lieu thereof (Effective October 1, 2025): 54
79		-	(a) When any employer fails to pay an employee wages in accordance 55
80		-	with the provisions of sections 31-71a to 31-71i, inclusive, or fails to 56
81		-	compensate an employee in accordance with section 31-76k or where an 57
82		-	employee or a labor organization representing an employee institutes 58
83		-	an action to enforce an arbitration award which requires an employer to 59
84		-	make an employee whole or to make payments to an employee welfare 60
85		-	fund, such employee or labor organization shall recover, in a civil action, 61
86		-	(1) twice the full amount of such wages, with costs and such reasonable 62
87		-	attorney's fees as may be allowed by the court, or (2) if the employer 63
88		-	establishes that the employer had a good faith belief that the 64
89		-	underpayment of wages was in compliance with law, the full amount of 65
90		-	such wages or compensation, with costs and such reasonable attorney's 66
91		-	fees as may be allowed by the court. Any agreement between an 67
92		-	employee and his or her employer for payment of wages other than as 68
93		-	specified in said sections shall be no defense to such action. The Labor 69
94		-	Commissioner may collect the full amount of any such unpaid wages, 70
95		-	payments due to an employee welfare fund or such arbitration award, 71
96		-	as well as interest calculated in accordance with the provisions of section 72
97		-	31-265 from the date the wages or payment should have been received, 73
98		-	had payment been made in a timely manner. In addition, the Labor 74
99		-	Commissioner may bring any legal action necessary to recover twice the 75
100		-	full amount of unpaid wages, payments due to an employee welfare 76
101		-	fund or arbitration award, and the employer shall be required to pay the 77
102		-	costs and such reasonable attorney's fees as may be allowed by the court. 78
103		-	The commissioner shall distribute any wages, arbitration awards or 79
104		-	payments due to an employee welfare fund collected pursuant to this 80
105		-	section to the appropriate person. 81
106		-	(b) When a subcontractor fails to pay an employee wages for labor 82 Substitute Bill No. 6955
	89	+	Sec. 2. (NEW) (Effective October 1, 2025) (a) (1) A contractor may 53
	90	+	request from a subcontractor the payroll records of employees 54
	91	+	providing labor under the construction contract between the contractor 55
	92	+	and subcontractor. Such request shall be sent to the subcontractor by 56
	93	+	certified mail and shall notify the subcontractor that such subcontractor 57
	94	+	has thirty days to respond. 58
	95	+	(2) Upon request of a contractor for the payroll records of employees 59
	96	+	of a subcontractor pursuant to this subsection, a subcontractor and any 60
	97	+	lower tier subcontractors under contract to such subcontractor shall 61
	98	+	provide such contractor with such payroll records not later than thirty 62
	99	+	days after such request is received. Such payroll records shall (A) be 63
	100	+	attested to and certified to be accurate and complete, (B) indicate the 64
	101	+	subcontractor's and any lower tier subcontractor's payment status in 65
	102	+	paying wages to employees, and (C) be marked or redacted only to 66
	103	+	prevent disclosure of an employee's full Social Security number. 67
	104	+	(b) (1) A contractor may request from a subcontractor in a direct 68
	105	+	contractual relationship with the contractor: (A) The names of all 69
	106	+	employees and independent contractors such subcontractor employs 70
	107	+	who are providing labor under the construction contract between the 71
	108	+	contractor and subcontractor; (B) when applicable, the name, address 72
	109	+	and phone number of any subcontractors with whom such 73
	110	+	subcontractor is under contract, the anticipated start date of such 74
	111	+	contract and the duration of work under such contract; and (C) when 75
	112	+	Raised Bill No. 6955
107	113
108	114
109		-	LCO 4 of 4
110	115
111		-	performed within the scope of a construction contract entered into on or 83
112		-	after October 1, 2025, the employee, or a labor organization representing 84
113		-	the employee, may bring a civil action under this section against either 85
114		-	the subcontractor, the contractor or both the subcontractor and 86
115		-	contractor. Not less than thirty days prior to bringing a civil action 87
116		-	under this section, if a contractor is a party in such action, an employee 88
117		-	shall provide notice of an alleged violation by the subcontractor to such 89
118		-	contractor. Such notice shall describe the general nature of the alleged 90
119		-	violation. No employee shall be required to provide notice pursuant to 91
120		-	this subsection if such employee has previously given notice to a 92
121		-	contractor of either the same violation or a prior violation by the same 93
122		-	subcontractor. Any notice provided to a contractor pursuant to this 94
123		-	subsection shall not limit the liability of the contractor or preclude 95
124		-	subsequent amendments of an action brought under this section to 96
125		-	encompass additional employees employed by the subcontractor. For 97
126		-	purposes of this section, "construction contract", "contractor" and 98
127		-	"subcontractor" have the same meanings as provided in section 1 of this 99
128		-	act. 100
	116	+	LCO No. 4598 4 of 6
	117	+
	118	+	applicable, collective bargaining agreements of which such 76
	119	+	subcontractor is a signatory contractor. Such request shall be sent to the 77
	120	+	subcontractor by certified mail and shall notify the subcontractor that 78
	121	+	such subcontractor has thirty days to respond. For purposes of this 79
	122	+	subdivision, "signatory contractor" means a subcontractor that is 80
	123	+	independently obligated to one or more collective bargaining 81
	124	+	agreements with any labor organization. 82
	125	+	(2) Upon request of a contractor pursuant to this section, a 83
	126	+	subcontractor and any lower tier subcontractor under contract to such 84
	127	+	subcontractor shall provide the contractor with such information not 85
	128	+	later than thirty days after such request is received. 86
	129	+	(c) Failure by a subcontractor to comply with a request from a 87
	130	+	contractor under subsections (a) and (b) of this section shall be cause for 88
	131	+	a contractor to withhold payments owed to a subcontractor. 89
	132	+	Sec. 3. Section 31-72 of the general statutes is repealed and the 90
	133	+	following is substituted in lieu thereof (Effective October 1, 2025): 91
	134	+	(a) When any employer fails to pay an employee wages in accordance 92
	135	+	with the provisions of sections 31-71a to 31-71i, inclusive, or fails to 93
	136	+	compensate an employee in accordance with section 31-76k or where an 94
	137	+	employee or a labor organization representing an employee institutes 95
	138	+	an action to enforce an arbitration award which requires an employer to 96
	139	+	make an employee whole or to make payments to an employee welfare 97
	140	+	fund, such employee or labor organization shall recover, in a civil action, 98
	141	+	(1) twice the full amount of such wages, with costs and such reasonable 99
	142	+	attorney's fees as may be allowed by the court, or (2) if the employer 100
	143	+	establishes that the employer had a good faith belief that the 101
	144	+	underpayment of wages was in compliance with law, the full amount of 102
	145	+	such wages or compensation, with costs and such reasonable attorney's 103
	146	+	fees as may be allowed by the court. Any agreement between an 104
	147	+	employee and his or her employer for payment of wages other than as 105
	148	+	specified in said sections shall be no defense to such action. The Labor 106
	149	+	Raised Bill No. 6955
	150	+
	151	+
	152	+
	153	+	LCO No. 4598 5 of 6
	154	+
	155	+	Commissioner may collect the full amount of any such unpaid wages, 107
	156	+	payments due to an employee welfare fund or such arbitration award, 108
	157	+	as well as interest calculated in accordance with the provisions of section 109
	158	+	31-265 from the date the wages or payment should have been received, 110
	159	+	had payment been made in a timely manner. In addition, the Labor 111
	160	+	Commissioner may bring any legal action necessary to recover twice the 112
	161	+	full amount of unpaid wages, payments due to an employee welfare 113
	162	+	fund or arbitration award, and the employer shall be required to pay the 114
	163	+	costs and such reasonable attorney's fees as may be allowed by the court. 115
	164	+	The commissioner shall distribute any wages, arbitration awards or 116
	165	+	payments due to an employee welfare fund collected pursuant to this 117
	166	+	section to the appropriate person. 118
	167	+	(b) When a subcontractor fails to pay an employee wages for labor 119
	168	+	performed within the scope of a construction contract, the employee, or 120
	169	+	a labor organization representing the employee, may bring a civil action 121
	170	+	under this section against either the subcontractor, the contractor or 122
	171	+	both the subcontractor and contractor. Not less than ten days prior to 123
	172	+	bringing a civil action under this section, an employee shall provide 124
	173	+	notice of an alleged violation by such subcontractor to the contractor. 125
	174	+	Such notice shall describe the general nature of the alleged violation. No 126
	175	+	employee shall be required to provide notice pursuant to this subsection 127
	176	+	if such employee has previously given notice to a contractor of either 128
	177	+	the same violation or a prior violation by the same subcontractor. Any 129
	178	+	notice provided to a contractor pursuant to this subsection shall not 130
	179	+	limit the liability of the contractor or preclude subsequent amendments 131
	180	+	of an action brought under this section to encompass additional 132
	181	+	employees employed by the subcontractor. For purposes of this section, 133
	182	+	"construction contract", "contractor" and "subcontractor" have the same 134
	183	+	meanings as provided in section 1 of this act. 135
129	184		This act shall take effect as follows and shall amend the following
130	185		sections:
131	186
132	187		Section 1 October 1, 2025 New section
133		-	~~Sec~~. ~~2 October 1, 2025 31-72~~
	188	+	Raised Bill No. 6955
134	189
135		-	LAB Joint Favorable Subst.
	190	+
	191	+
	192	+	LCO No. 4598 6 of 6
	193	+
	194	+	Sec. 2 October 1, 2025 New section
	195	+	Sec. 3 October 1, 2025 31-72
	196	+
	197	+	Statement of Purpose:
	198	+	To make a contractor liable for unpaid wages owed to an employee of a
	199	+	subcontractor at any tier who performs work on any portion of a
	200	+	construction contract.
	201	+
	202	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	203	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	204	+	underlined.]
136	205