House Bill No. 5275, set to take effect on October 1, 2026, establishes that contractors will be jointly and severally liable for unpaid wages owed to employees of subcontractors involved in construction contracts. The bill defines "construction contracts" to encompass agreements for construction, renovation, or rehabilitation, while explicitly excluding public works contracts and certain home improvement contracts. It clarifies the definitions of key terms such as "contractor," "employee," "owner," and "subcontractor." Furthermore, the bill allows contractors to include provisions in their contracts with subcontractors that outline remedies for wage nonpayment, provided these do not infringe upon employees' rights to pursue legal action for unpaid wages.

The bill amends Section 31-72 of the general statutes, enabling employees or their labor organizations to initiate civil actions against subcontractors or contractors for unpaid wages related to construction contracts. It mandates that employees notify contractors of alleged violations at least thirty days prior to filing a lawsuit, although prior notice for similar violations is not required. The bill retains the existing provision allowing employees to recover double the amount of unpaid wages, along with costs and attorney's fees, and empowers the Labor Commissioner to collect and distribute unpaid wages. Additionally, any provision that waives or releases a contractor's liability is rendered unenforceable, ensuring that employees maintain their rights to seek unpaid wages.

Statutes affected:
Raised Bill: 31-72
LAB Joint Favorable: 31-72
File No. 91: 31-72