2023 -- S 0036
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES
Introduced By: Senators Kallman, McKenney, Goodwin, Gallo, Burke, Ruggerio, and
LaMountain
Date Introduced: January 18, 2023
Referred To: Senate Labor
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 28-14 of the General Laws entitled "Payment of Wages" is hereby 1
amended by adding thereto the following section: 2
28-14-32. Contractor liability. 3
(a) A contractor making or taking a construction contract shall be liable for any debt 4
resulting from an action under this title, owed to an employee or third party on the wage claimant's 5
behalf, incurred by a subcontractor at any tier acting under, by, or for the contractor or its 6
subcontractors for the employee's performance of labor. The provisions of this section shall not be 7
deemed to limit the liability of a subcontractor under § 28-14-19.2 or any other provision of law. 8
(b) No agreement or release by an employee or subcontractor to waive liability, assigned 9
to a contractor under this section, shall be valid. The provisions of this section shall not be deemed 10
to impair the rights of a contractor to maintain an action against a subcontractor for owed wages, 11
that are paid by a contractor, pursuant to this section. 12
(c) Notwithstanding any other provision of law, the remedies available for a claim pursuant 13
to subsection (a) of this section, shall only be civil and administrative actions. 14
(d) In the case of a private civil action by an employee, such employee may designate any 15
person, organization or collective bargaining agent authorized to file a complaint on his or her 16
behalf pursuant to § 28-14-19.2, to make a wage claim on his or her behalf. 17
(e) In the case of an action against a subcontractor, the contractor shall be considered jointly 18
and severally liable for any unpaid wages benefits, wage supplements, penalties, liquidated 19
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damages, attorneys' fees and any other costs resulting from such action. 1
(f) Nothing herein shall preclude the attorney general from bringing a civil action to collect 2
unpaid wages and penalties on behalf of employees, pursuant to this section. 3
(g) Before bringing a civil action pursuant to this section, an employee, or third party on 4
such employee's behalf, must give the contractor notice of the alleged violation. The notice need 5
only describe the general nature of the claim and shall not limit the liability of the contractor or 6
preclude subsequent amendments of an action, to encompass additional employees employed by 7
the subcontractor. An employee or third party on such employee's behalf, may not bring a civil 8
action until ten (10) business days after giving the contractor notice of the alleged violation and 9
may not bring a civil action if the contractor has corrected the alleged violation. An employee or 10
third party on such employee's behalf, is not required to give notice to a contractor, pursuant to this 11
subsection, before bringing a civil action pursuant to this section, if any employee, or third party 12
on any employee's behalf, previously has given notice to such contractor of the same alleged 13
violation or a prior alleged violation by the same subcontractor. 14
(h) The provisions of this section shall not be deemed to diminish, impair, or otherwise 15
infringe on any other rights of an employee, provided pursuant to this chapter, including the right 16
of an employee to bring an action against any employer under the provisions of § 28-14-19.2. 17
(i) Nothing in this section shall be deemed to diminish the rights, privileges, or remedies 18
of any employee under any collective bargaining agreement. On behalf of an employee, 19
subject to a collective bargaining agreement, the provisions of this section may be waived by 20
a collective bargaining agreement with a bona fide building and construction trade labor 21
organization, which has established itself, and/or its affiliates, as the collective bargaining 22
representative for persons performing work on a project; provided that, for such waiver to be 23
valid, it shall explicitly reference this section. Provided, however, that such waiver shall not 24
diminish or impair the rights of an employee provided under any other section of this chapter. 25
(j) As used in this section: 26
(1) "Construction contract" means a written or oral agreement for the construction, 27
reconstruction, alteration, maintenance, moving or demolition of any building, structure or 28
improvement, or relating to the excavation of or other development or improvement to land. 29
(2) "Contractor" means any person, firm, partnership, corporation, association, company, 30
organization or other entity, including a construction manager, general or prime contractor, joint 31
venture, or any combination thereof, which enters into a construction contract with an owner. 32
(3) "Owner" means any person, firm, partnership, corporation, company, association or 33
other organization or other entity, or a combination of any thereof, with an ownership interest, 34
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whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another 1
interest or estate less than fee, that causes a building, structure or improvement, new or existing, to 2
be constructed, altered, repaired, maintained, moved or demolished or that causes land to be 3
excavated or otherwise developed or improved. 4
(4) "Subcontractor" means any person, firm, partnership, corporation, company, 5
association, organization or other entity, or any combination thereof, which is a party to a contract 6
with a contractor, and/or the contractor's subcontractors, to perform any portion of work within the 7
scope of the contractor's construction contract with the owner, including where the subcontractor 8
has no direct privity of contract with the contractor. 9
(k) Severability. If any provision of this section, or any application of any provision of this 10
section, is held to be invalid, that shall not affect the validity or effectiveness of any other provision 11
of this section, or of any other application of any provision of this section, which can be given 12
effect without that provision or application; and to that end, the provisions and applications of this 13
section are severable. 14
(l) This section shall take effect one hundred and twenty days (120) after the passage date 15
and shall apply to construction contracts entered into, renewed, modified or amended on or after 16
such effective date and shall only apply to wages, benefits, and/or wage supplements earned on or 17
after such effective date. 18
SECTION 2. This act shall take effect one hundred twenty days (120) after passage. 19
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES
***
This act would provide for contractor liability for debts owed to an employer or third party, 1
on the wage claimants' behalf, incurred by a subcontractor. 2
This act would take effect one hundred twenty days (120) after passage. 3
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