HB 5275 — AN ACT CONCERNING A CONTRACTOR'S RESPONSIBILITY FOR UNPAID WAGES ON A CONSTRUCTION CONTRACT.

House of Representatives General Assembly RaisedFile Bill No.

527591 February Session, 2026 LCOHouse Bill No.

10755275 ReferredHouse toof Representatives, March 19, 2026 The Committee on LABORLabor ANDand PUBLICPublic EMPLOYEESEmployees Introducedreported by:through REP.

(LAB)SANCHEZ, ANE. ACT CONCERNING A CONTRACTOR'S RESPONSIBILITY FOR UNPAID WAGES ON A CONSTRUCTION CONTRACT.

of the 24th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT CONCERNING A CONTRACTOR'S RESPONSIBILITY FOR UNPAID WAGES ON A CONSTRUCTION CONTRACT.

"Construction contract" does not include (A) any public works or other contract entered into with any agency or department inthe state, another state or a federal agency or department, or (B) a home improvement contract for (i) the construction, renovation or rehabilitation of an owner-occupied residence or the property where suchHB5275 residence/ isFile located, or (ii) the construction, renovation or LCO 1075 1 of 4 Raised Bill No.

527591 rehabilitation1 ofHB5275 aFile one-familyNo. or two-family dwelling unit or the propertywheresuchdwellingunit islocated,exceptwhensuchcontract is for the construction of more than fifteen one-family or two-family dwelling units at one project site;

91 such residence is located, or (ii) the construction, renovation or rehabilitation of a one-family or two-family dwelling unit or the propertywheresuchdwellingunit islocated,exceptwhensuchcontract is for the construction of more than fifteen one-family or two-family dwelling units at one project site;

(c) Nothing in this section shall prohibit a contractor from including LCOHB5275 1075/ 2File of 4 Raised Bill No.

527591 in2 anyHB5275 constructionFile contractNo. between such contractor and a subcontractor a provision establishing a remedy for any liability created by the nonpayment of wages by a subcontractor, provided such provision does not diminish the right of an employee to bring an action under section 31-72 of the general statutes, as amended by this act, and does not waive or release any liability assigned to a contractor under this section.

91 in any construction contract between such contractor and a subcontractor a provision establishing a remedy for any liability created by the nonpayment of wages by a subcontractor, provided such provision does not diminish the right of an employee to bring an action under section 31-72 of the general statutes, as amended by this act, and does not waive or release any liability assigned to a contractor under this section.

LCOHB5275 1075/ 3File of 4 Raised Bill No.

527591 The3 commissionerHB5275 shallFile distributeNo. any wages, arbitration awards or payments due to an employee welfare fund collected pursuant to this section to the appropriate person.

91 The commissioner shall distribute any wages, arbitration awards or payments due to an employee welfare fund collected pursuant to this section to the appropriate person.

2 October 1, 2026 31-72 LAB Joint Favorable LCOHB5275 1075/ 4File ofNo. 4

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91 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill, which makes contractors liable for unpaid wages owed to employees of subcontractors that perform work on any portion of certain construction contracts, does not result in any fiscal impact to the state or municipalities.1 Section 2 allows an employee and other designated parties to bring civil action against a contractor for unpaid wages.

The court system disposes of over 250,000 cases annually and the number of cases is not anticipated to be great enough to need additional resources.

The Out Years State Impact:

None Municipal Impact:

None 1Current law, unchanged by the bill, allows employees to sue an employer for failure to pay wages or fringe benefits, and may be awarded up to twice their unpaid wages, related costs, and attorney's fees (CGS § 31-72).

HB5275 / File No.

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91 OLR Bill Analysis HB 5275 AN ACT CONCERNING A CONTRACTOR'S RESPONSIBILITY FOR UNPAID WAGES ON A CONSTRUCTION CONTRACT.

SUMMARY For certain construction contracts executed on or after October 1, 2026,thisbillmakesa constructioncontractorjointlyandseverallyliable for any unpaid wages owed to a subcontractor’s employee working within the contract’s scope.

Under the bill, if the subcontractor fails to pay such an employee, either the employee or a labor organization may sue the subcontractor, the contractor, or both.

If the contractor is a party in the suit, the employeemustgivethecontractoratleast30days’advancenoticeabout the subcontractor’s alleged violation before suing.

The notice must describe the alleged violation’s general nature.

However, the employee does not have to give this notice if he or she has previously given the contactor notice about the same violation or a prior violation by the same subcontractor.

The bill specifies that the notice does not limit the contractor’s liability or prevent subsequent amendments to the suit to include more of the subcontractor’s employees.

The bill also specifies that it does not prohibit a construction contract between a contractor and subcontractor from including a provision establishing a remedy for any liability created by a subcontractor’s nonpayment of wages, as long as it does not (1) diminish an employee’s right to bring a lawsuit for unpaid wages or (2) waive or release any liability assigned to the contractor under the bill.

Additionally, the bill makes any provision to waive or release liability assigned to the contractor unenforceable.

EFFECTIVE DATE:

October 1, 2026 HB5275 / File No.