Rhode Island 2023 Regular Session

Rhode Island House Bill H5747 Compare Versions

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

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5	5	2023 -- H 5747
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7	7	LC001673
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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 Morales, McNamara, Felix, Speakman, Henries, J. Brien,
17	17	Alzate, Fellela, Cruz, and Cardillo
18	18	Date Introduced: February 21, 2023
19	19	Referred To: House Labor
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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. Construction industry wage theft. 3
26	26	(a) As used in this section: 4
27	27	(1) "Benefits" means any and all benefits, including paid vacations, holidays, sick leave, 5
28	28	employer contributions and reimbursements to health insurance and/or any other retirement 6
29	29	benefits, and any other similar benefits that are incidents of employment. 7
30	30	(2) "Construction" means the alteration, building, maintenance, reconstruction, moving or 8
31	31	demolition of any building, structure or improvement on, connected with, or on or beneath the 9
32	32	surface of any real property, or relating to the excavation, clear, grade, fill, or landscape of any real 10
33	33	property, or any other development or improvement to land. "Construction" also includes any 11
34	34	design or other professional or skilled services rendered by architects, engineers, land surveyors, 12
35	35	landscape architects, and construction managers. 13
36	36	(3) "Construction contract" means a written or oral agreement for the construction, 14
37	37	reconstruction, alteration, maintenance, moving or demolition of any building, structure or 15
38	38	improvement on, connected with, or on or beneath the surface of any real property, or relating to 16
39	39	the excavation, clear, grade, fill, or landscape of any real property, or any other development or 17
40	40	improvement to land. 18
41	41	(4) "Contractor" means any person, firm, partnership, corporation, association, company, 19
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45	45	organization or other entity, including a construction manager, general or prime contractor, joint 1
46	46	venture, or any combination thereof, which enters into a construction contract with an owner. 2
47	47	(5) "Person" means, and shall include, any natural person, corporation, municipality, 3
48	48	partnership, unincorporated association, or other legal entity. 4
49	49	(6) "Owner" means any person, firm, partnership, corporation, company, association or 5
50	50	other organization or other entity, or a combination of any thereof, (with an ownership interest, 6
51	51	whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another 7
52	52	interest or estate less than fee) that causes a building, structure or improvement, new or existing, to 8
53	53	be constructed, altered, repaired, maintained, moved or demolished or that causes land to be 9
54	54	excavated or otherwise developed or improved. "Owner" includes successors interest of the owner 10
55	55	and agents of the owner acting within their authority or on the owner’s behalf. 11
56	56	(7) "Subcontractor" means any person, firm, partnership, corporation, company, 12
57	57	association, organization or other entity, or any combination thereof, which is a party to a contract 13
58	58	with a contractor, and/or the contractor's subcontractors to perform any portion of work within the 14
59	59	scope of the contractor's construction contract with the owner, including where the subcontractor 15
60	60	has no direct privity of contract with the contractor. 16
61	61	(b) A contractor making or taking a construction contract shall assume liability for any debt 17
62	62	resulting from an action under §§ 28-14-19, 28-14-19.1, 28-14-19.2, 37-13-14.1, or 37-13-17 owed 18
63	63	to a wage claimant or third party on the wage claimant 's behalf, incurred by a subcontractor at any 19
64	64	tier acting under, by, or for the contractor or its subcontractors for the wage claimant's performance 20
65	65	of labor. 21
66	66	(c) No agreement or release by an employee or subcontractor to waive liability assigned to 22
67	67	a contractor under this section shall be valid. The provisions of this section shall not be deemed to 23
68	68	impair the rights of a contractor to maintain an action against a subcontractor for owed wages that 24
69	69	are paid by a contractor pursuant to this section. 25
70	70	(d) Notwithstanding any other provision of law, the remedies available for a claim pursuant 26
71	71	to subsection (b) of this section shall only be civil and administrative actions. 27
72	72	(e) In the case of a private civil action brought by an employee under §§ 28-14-19.2 and 28
73	73	37-13-17, such employee may authorize and designate any person, organization or collective 29
74	74	bargaining agent to file a complaint with the director to make a wage claim on their behalf. 30
75	75	(f) In the case of an action against a subcontractor, the contractor shall be considered jointly 31
76	76	and severally liable for any unpaid wages, benefits, wage supplements, penalties, liquidated 32
77	77	damages, attorneys' fees and any other costs resulting from such action in addition to any other 33
78	78	damages and penalties specified in §§ 28-14-17, 28-14-19, 28-14-19.1, 37-13-16, and 37-13-12.4 34
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82	82	that are applicable. 1
83	83	(g) Nothing in this section shall preclude the attorney general from bringing a civil action 2
84	84	to collect unpaid wages and penalties on behalf of employees pursuant to this section. 3
85	85	(h) A contractor or any other person shall not evade, or commit any act that negates, the 4
86	86	requirements of this section; provided, however, that this section shall not be deemed to prohibit a 5
87	87	contractor or subcontractor from establishing by contract or enforcing any other lawful remedies 6
88	88	against a subcontractor it hires for liability created by violation of this section; provided, that such 7
89	89	contract or arrangement does not diminish the right of employees to bring an action under the 8
90	90	provisions of this section. 9
91	91	(i) Severability. If any provision of this section, or any application of any provision of this 10
92	92	section, is held to be invalid, that shall not affect the validity or effectiveness of any other provision 11
93	93	of this section, or of any other application of any provision of this section, which can be given 12
94	94	effect without that provision or application; and to that end, the provisions and applications of this 13
95	95	section are severable. 14
96	96	SECTION 2. This act shall take effect on September 1, 2023, and shall apply to 15
97	97	construction contracts entered into, renewed, modified or amended on or after the effective date of 16
98	98	this act. 17
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105	105	EXPLANATION
106	106	BY THE LEGISLATIVE COUNCIL
107	107	OF
108	108	A N A C T
109	109	RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES
110	110	***
111	111	This act would make contractors liable and/or jointly liable for any claims of wage theft or 1
112	112	nonpayment from an employee against the contractor, its subcontractors and any subcontractor 2
113	113	involved in the performance of the contract. This act would authorize only administrative and/or 3
114	114	civil actions to recover the claimed wages. 4
115	115	This act would take effect on September 1, 2023, and would apply to construction contracts 5
116	116	entered into, renewed, modified or amended on or after the effective date of this act 6
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