The bill amends Chapter 28-14 of the General Laws by introducing a new section titled "Construction industry paycheck recovery." It establishes that contractors will be held civilly liable and/or jointly civilly liable for any claims of wage theft or nonpayment made by employees against them, their subcontractors, and any subcontractor involved in the performance of the contract, provided that written notice of the alleged violation is given to the contractor within 45 days of the last occurrence of the alleged wage theft.

The bill defines key terms such as "benefits," "construction," "construction contract," "contractor," "notice," "owner," "person," and "subcontractor." It outlines that a contractor making or taking a construction contract assumes liability for any debt resulting from actions under specified sections owed to a wage claimant or third party incurred by a subcontractor at any tier. A written offer and payment in full of all wages allegedly owed during the 45-day period after receipt of the notice by a contractor will extinguish the contractor's liability for damages under this section.

The contractor's joint and several liability is limited to 120 consecutive days of any alleged wage theft, counting back from the day of the last violation prior to the notice. This limitation does not impact other wage violation remedies available to a claimant. The bill specifies that no agreement or release by an employee or subcontractor to waive liability assigned to a contractor under this section shall be valid, and it does not impair the rights of a contractor to maintain an action against a subcontractor for owed wages.

Remedies available for claims under this section are limited to civil and administrative actions. Employees may authorize any person, organization, or collective bargaining agent to file a complaint on their behalf. In actions against a subcontractor, the contractor is considered jointly and severally liable for any unpaid wages, benefits, penalties, liquidated damages, attorneys' fees, and other costs resulting from such actions.

The bill allows the attorney general to bring a civil action to collect unpaid wages and penalties on behalf of employees. It prohibits contractors or any other person from evading the requirements of this section while allowing them to establish lawful remedies against subcontractors for liability created by violations of this section. The provisions of this section may be waived by a collective bargaining agreement with a bona fide building and construction trade labor organization, provided that such waiver explicitly references this section and does not diminish or impair the rights of employees under other sections of the law.

The act is set to take effect on September 1, 2025, and will apply to construction contracts entered into, renewed, modified, or amended on or after that date.