Rhode Island 2023 Regular Session

Rhode Island House Bill H5372 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5372
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7	7	LC001168
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES
16	16	Introduced By: Representatives Potter, Shanley, Kazarian, Casey, Bennett, O'Brien,
17	17	Cruz, and Fellela
18	18	Date Introduced: February 03, 2023
19	19	Referred To: House Labor
20	20
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Chapter 28-14 of the General Laws entitled "Payment of Wages" is hereby 1
24	24	amended by adding thereto the following section: 2
25	25	28-14-32. Contractor liability. 3
26	26	(a) A contractor making or taking a construction contract shall be liable for any debt 4
27	27	resulting from an action under this chapter, owed to an employee or third party on the wage 5
28	28	claimant's behalf, incurred by a subcontractor at any tier acting under, by, or for the contractor or 6
29	29	its subcontractors for the employee's performance of labor. The provisions of this section shall not 7
30	30	be deemed to limit the liability of a subcontractor under § 28-14-19.2 or any other provision of law. 8
31	31	(b) No agreement or release by an employee or subcontractor to waive liability assigned to 9
32	32	a contractor under this section shall be valid. The provisions of this section shall not be deemed to 10
33	33	impair the rights of a contractor to maintain an action against a subcontractor for owed wages that 11
34	34	are paid by a contractor pursuant to this section. 12
35	35	(c) Notwithstanding any other provision of law, the remedies available for a claim pursuant 13
36	36	to subsection (a) of this section shall only be civil and administrative actions. 14
37	37	(d) In the case of a private civil action by an employee, an employee may designate any 15
38	38	person, organization or collective bargaining agent authorized to file a complaint on his or her 16
39	39	behalf pursuant to § 28-14-19.2, to make a wage claim on their behalf. 17
40	40	(e) In the case of an action against a subcontractor, the contractor shall be considered jointly 18
41	41	and severally liable for any unpaid wages benefits, wage supplements, penalties, presumed or 19
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45	45	statutorily imposed damages, attorneys' fees and any other costs resulting from such action. 1
46	46	(f) Nothing herein shall preclude the attorney general from bringing a civil action to collect 2
47	47	unpaid wages and penalties on behalf of employees pursuant to this section. 3
48	48	(g) Before bringing a civil action pursuant to this section, an employee, or third party on 4
49	49	such employee's behalf, shall give the contractor notice of the alleged violation. The notice need 5
50	50	only describe the general nature of the claim and shall not limit the liability of the contractor or 6
51	51	preclude subsequent amendments of an action to encompass additional employees employed by the 7
52	52	subcontractor. An employee, or third party on an employee's behalf, may not bring a civil action 8
53	53	until ten (10) business days after giving the contractor notice of the alleged violation and may not 9
54	54	bring a civil action if the contractor corrects the alleged violation. An employee, or third party on 10
55	55	an employee's behalf, is not required to give notice to a contractor pursuant to this subsection before 11
56	56	bringing a civil action pursuant to this section if any employee, or third party on any employee's 12
57	57	behalf, previously has given notice to the contractor of the same alleged violation or a prior alleged 13
58	58	violation by the same subcontractor. 14
59	59	(h) The provisions of this section shall not be deemed to diminish, impair, or otherwise 15
60	60	infringe on any other rights of an employee provided pursuant to this chapter, including the right 16
61	61	of an employee to bring an action against any employer pursuant to the provisions of § 28-14-19.2. 17
62	62	(i) Nothing in this section shall be deemed to diminish the rights, privileges, or remedies 18
63	63	of any employee under any collective bargaining agreement. On behalf of an employee 19
64	64	subject to a collective bargaining agreement, the provisions of this section may be waived by 20
65	65	a collective bargaining agreement with a bona fide building and construction trade labor 21
66	66	organization which has established itself, and/or its affiliates, as the collective bargaining 22
67	67	representative for persons performing work on a project; provided that, for such waiver to be 23
68	68	valid, it shall explicitly reference this section. Provided, however, that such waiver shall not 24
69	69	diminish or impair the rights of an employee under any other section of this chapter. 25
70	70	(j) As used in this section: 26
71	71	(1) "Construction contract" means a written or oral agreement for the construction, 27
72	72	reconstruction, alteration, maintenance, moving or demolition of any building, structure or 28
73	73	improvement, or relating to the excavation of or other development or improvement to land. 29
74	74	(2) "Contractor" means any person, firm, partnership, corporation, association, company, 30
75	75	organization or other entity, including a construction manager, general or prime contractor, joint 31
76	76	venture, or any combination thereof, which enters into a construction contract with an owner. 32
77	77	(3) "Owner" means any person, firm, partnership, corporation, company, association or 33
78	78	other organization or other entity, or a combination of any thereof, (with an ownership interest, 34
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82	82	whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another 1
83	83	interest or estate less than fee) that causes a building, structure or improvement, new or existing, to 2
84	84	be constructed, altered, repaired, maintained, moved or demolished or that causes land to be 3
85	85	excavated or otherwise developed or improved. 4
86	86	(4) "Subcontractor" means any person, firm, partnership, corporation, company, 5
87	87	association, organization or other entity, or any combination thereof, which is a party to a contract 6
88	88	with a contractor, and/or the contractor's subcontractors to perform any portion of work within the 7
89	89	scope of the contractor's construction contract with the owner, including where the subcontractor 8
90	90	has no direct privity of contract with the contractor. 9
91	91	(k) Severability. If any provision of this act, or any application of any provision of this act, 10
92	92	is held to be invalid, that shall not affect the validity or effectiveness of any other provision of this 11
93	93	act, or of any other application of any provision of this act, which can be given effect without that 12
94	94	provision or application; and to that end, the provisions and applications of this act are severable. 13
95	95	(l) This act shall take effect one hundred and twenty days (120) after the passage date and 14
96	96	shall apply to construction contracts entered into, renewed, modified or amended on or after such 15
97	97	effective date and shall only apply to wages, benefits, and/or wage supplements earned on or after 16
98	98	such effective date. 17
99	99	SECTION 2. This act shall take effect one hundred twenty days (120) after passage. 18
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106	106	EXPLANATION
107	107	BY THE LEGISLATIVE COUNCIL
108	108	OF
109	109	A N A C T
110	110	RELATING TO LABOR AND LABOR RELATIONS - PAYMENT OF WAGES
111	111	***
112	112	This act would provide for contractor liability for debts owed to an employee or third party 1
113	113	on the wage claimants behalf, incurred by a subcontractor. 2
114	114	This act would take effect one hundred twenty days (120) after passage. 3
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