The bill amends Chapter 28-14 of the General Laws by adding a new section titled "Construction industry paycheck recovery," which defines key terms such as "Benefits," "Construction," "Contractor," "Owner," and "Subcontractor." It establishes that contractors are liable for wage debts incurred by subcontractors and sets forth a process for wage claim notifications, requiring a 45-day notice period for alleged wage theft. The bill limits a contractor's liability to 120 days of alleged wage theft and invalidates any agreements that waive this liability. It also clarifies that remedies for wage claims are restricted to civil and administrative actions, and employees may authorize representatives to file claims on their behalf.
The legislation aims to strengthen protections for employees against wage theft in the construction industry by holding contractors jointly liable for unpaid wages and related costs resulting from subcontractor actions. It ensures that employees' rights under collective bargaining agreements are not diminished and includes a severability clause to maintain the validity of other provisions if any part of the section is invalidated. The act is set to take effect on September 1, 2025, and will apply to all construction contracts entered into, renewed, modified, or amended on or after that date.