Connecticut HB 5275: AN ACT CONCERNING AUDITS OF CERTAIN NONSTATE ENTITIES RECEIVING STATE FINANCIAL ASSISTANCE.

Bill Text

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General Assembly Raised Bill No. 5275
February Session, 2026 LCO No. 1075

Referred to Committee on LABOR AND PUBLIC
EMPLOYEES

Introduced by:
(LAB)

AN ACT CONCERNING A CONTRACTOR'S RESPONSIBILITY FOR
UNPAID WAGES ON A CONSTRUCTION CONTRACT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) (a) For the purposes of this 1
section and section 31-72 of the general statutes, as amended by this act: 2
(1) "Construction contract" means any contract entered into on or 3
after October 1, 2026, for construction, renovation or rehabilitation in the 4
state, including any improvements to real property that are associated 5
with such construction, renovation or rehabilitation, or any subcontract 6
for construction, renovation or rehabilitation between an owner and a 7
contractor, a contractor and a subcontractor or between a subcontractor 8
and another subcontractor. "Construction contract" does not include (A) 9
any public works or other contract entered into with any agency or 10
department in the state, another state or a federal agency or department, 11
or (B) a home improvement contract for (i) the construction, renovation 12
or rehabilitation of an owner-occupied residence or the property where 13
such residence is located, or (ii) the construction, renovation or 14

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rehabilitation of a one-family or two-family dwelling unit or the 15
property where such dwelling unit is located, except when such contract 16
is for the construction of more than fifteen one-family or two-family 17
dwelling units at one project site; 18
(2) "Contractor" means any individual, firm, partnership, 19
corporation, association, company, organization or other business 20
entity, including, but not limited to, a construction manager, general or 21
prime contractor, joint venture or any combination thereof that has a 22
direct contractual relationship with an owner; 23
(3) "Employee" has the same meaning as provided in section 31-71a 24
of the general statutes; 25
(4) "Owner" has the same meaning as provided in section 42-158i of 26
the general statutes; 27
(5) "Subcontractor" means any individual, firm, partnership, 28
corporation, association, company, organization or other business entity 29
or any combination thereof that (A) does not have a direct contractual 30
relationship with an owner, and (B) (i) is a party to a construction 31
contract with a contractor, (ii) is a party to a construction contract with 32
another subcontractor that has a direct contractual relationship with a 33
contractor, or (iii) performs any portion of work at any tier within the 34
scope of a construction contract regardless of whether such 35
subcontractor has a direct contractual relationship with a contractor; 36
and 37
(6) "Wages" has the same meaning as provided in section 31-71a of 38
the general statutes. 39
(b) A contractor that enters into a construction contract shall be jointly 40
and severally liable for any unpaid wages due to an employee of a 41
subcontractor for such employee's performance of labor included within 42
the scope of the construction contract. 43
(c) Nothing in this section shall prohibit a contractor from including 44

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in any construction contract between such contractor and a 45
subcontractor a provision establishing a remedy for any liability created 46
by the nonpayment of wages by a subcontractor, provided such 47
provision does not diminish the right of an employee to bring an action 48
under section 31-72 of the general statutes, as amended by this act, and 49
does not waive or release any liability assigned to a contractor under 50
this section. No such provision to waive or release liability assigned to 51
the contractor under this section shall be enforceable. 52
Sec. 2. Section 31-72 of the general statutes is repealed and the 53
following is substituted in lieu thereof (Effective October 1, 2026): 54
(a) When any employer fails to pay an employee wages in accordance 55
with the provisions of sections 31-71a to 31-71i, inclusive, or fails to 56
compensate an employee in accordance with section 31-76k or where an 57
employee or a labor organization representing an employee institutes 58
an action to enforce an arbitration award which requires an employer to 59
make an employee whole or to make payments to an employee welfare 60
fund, such employee or labor organization shall recover, in a civil action, 61
(1) twice the full amount of such wages, with costs and such reasonable 62
attorney's fees as may be allowed by the court, or (2) if the employer 63
establishes that the employer had a good faith belief that the 64
underpayment of wages was in compliance with law, the full amount of 65
such wages or compensation, with costs and such reasonable attorney's 66
fees as may be allowed by the court. Any agreement between an 67
employee and his or her