Substitute Bill No. 409, set to be effective from October 1, 2024, addresses wage theft responsibility in the construction industry. The bill defines terms such as "construction contract," "contractor," "employee," "owner," "subcontractor," and "wages" in the context of construction, renovation, or rehabilitation contracts in the state, excluding contracts with the state or federal government and certain home improvement contracts. It establishes that contractors are jointly and severally liable for unpaid wages to any employee of their subcontractors or subcontractors of subcontractors for labor within the scope of the construction contract. The bill also allows contractors to include provisions in their subcontracts to establish remedies for liability created by a subcontractor's nonpayment of wages, provided these provisions do not diminish an employee's right to take legal action or waive the contractor's liability.

Additionally, the bill outlines procedures for contractors to request payroll records and other information from subcontractors, including the names of all employees and independent contractors, details of lower-tier subcontractors, and collective bargaining agreements. Subcontractors must comply with these requests within 30 days, and failure to do so may result in the contractor withholding payments. The bill amends Section 31-72 of the general statutes, allowing employees or labor organizations to recover unpaid wages in a civil action and specifying that employees can bring a civil action against subcontractors, contractors, or both, with a requirement to notify the contractor of the alleged violation by the subcontractor at least ten days before taking legal action. The definitions of "construction contract," "contractor," and "subcontractor" are consistent with those provided in the first section of the act.

Statutes affected:
Raised Bill: 31-72
LAB Joint Favorable Substitute: 31-72
File No. 296: 31-72
JUD Joint Favorable: 31-72