SB 268 — AN ACT AUTHORIZING THE COMPTROLLER TO WITHHOLD PAYMENT FOR VIOLATIONS OF THE PREVAILING WAGE STATUTES.

Senate GeneralBill Assembly File No.

76268 FebruaryPublic Session,Act 2026 Senate Bill No.

26826-17 Senate,AN MarchACT 19,AUTHORIZING 2026THE TheCOMPTROLLER CommitteeTO onWITHHOLD LaborPAYMENT andFOR PublicVIOLATIONS EmployeesOF reportedTHE throughPREVAILING SEN.WAGE STATUTES.

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

AN ACT AUTHORIZING THE COMPTROLLER TO WITHHOLD PAYMENT FOR VIOLATIONS OF THE PREVAILING WAGE STATUTES.

SB268(b) /The Filecommissioner No.or the director, for such purpose, may issue subpoenas for the attendance of witnesses and the production of books and records.

76Any 1employer SB268or Fileany officer or agent of any employer, Senate Bill No.

76268 (b)corporation, Thefirm commissioneror partnership who wilfully fails to furnish time and wage records as required by law to the commissioner, the director of minimum wage or any wage enforcement agent upon request, or who refuses to admit the director,commissioner, forthe director or such purpose,agent mayto issuethe subpoenasplace forof employment of such employer, corporation, firm or partnership, or who hinders or delays the attendancecommissioner, the director or such agent in the performance of witnessesthe andcommissioner's, the productiondirector's or such agent's duties in the enforcement of booksthis andsection records.shall be fined not less than one thousand dollars.

Any employer or any officer or agent of any employer, corporation, firm or partnership who wilfully fails to furnish time and wage records as required by law to the commissioner, the director of minimum wage or any wage enforcement agent upon request, or who refuses to admit the commissioner, the director or such agent to the place of employment of such employer, corporation, firm or partnership, or who hinders or delays the commissioner, the director or such agent in the performance of the commissioner's, the director's or such agent's duties in the enforcement of this section shall be fined not less than one thousand dollars.

SB268Public /Act File No.

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76268 (2) Any employer against which a stop work order is issued pursuant to subdivision (1) of this subsection may request a hearing before the commissioner.

(3) If, after ten business days, such contractor or subcontractor remains out of compliance with the provisions of subsection (b) of section 31-53, the Comptroller may withhold payment of money to such contractorPublic orAct subcontractor until the commissioner issues an order releasing the stop work order pursuant to subsection (c) of this section or upon payment of any penalties imposed under section 31-53 or 31- SB268 / File No.

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76268 contractor or subcontractor until the commissioner issues an order releasing the stop work order pursuant to subsection (c) of this section or upon payment of any penalties imposed under section 31-53 or 31- 69a or finalization of any settlement agreement entered into pursuant to section 31-53.

ThisGovernor's actAction: shall take effect as follows and shall amend the following sections:

SectionApproved 1May October14, 1, 2026 31-76aPublic LABAct Joint Favorable SB268 / File No.

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76 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:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Resources of the General Fund GF – Preclude See Below See Below Cost Note:

GF=General Fund Municipal Impact:

None Explanation The bill precludes costs to the General Fund beginning in FY 27 by allowing the Comptroller to withhold payment of money to non- compliant contractors or subcontractors who receive stop work orders until the labor commissioner releases such stop work orders.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

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76 OLR Bill Analysis SB 268 AN ACT AUTHORIZING THE COMPTROLLER TO WITHHOLD PAYMENT FOR VIOLATIONS OF THE PREVAILING WAGE STATUTES.

SUMMARY This bill sets a process for the state comptroller to withhold payment to a contractor or subcontractor who has violated the state’s prevailing wage law.

More specifically, it allows the labor commissioner to notify the comptroller when, as allowed under existing law, she issues a stop work order against a contractor or subcontractor for knowingly or willfully failing to pay an employee the prevailing wage required on a public worksproject.

Thenotice must bein a way set by thecomptroller.

The bill requires the comptroller, within 10 business days after getting the notice, to notify the contractor or subcontractor that (1) he received the notice from the labor commissioner and (2) the contractor or subcontractor must comply with the prevailing wage requirement within 10 business days after receiving the comptroller’s notice.

If the contractor or subcontractor remains noncompliant after this 10- day period, the bill allows the comptroller to withhold payment to the contractor or subcontractor until the (1) labor commissioner releases the stop work order, (2) contractor or subcontractor pays any penalties imposed under the prevailing wage law or the law on additional wage- related penalties, or (3) parties finalize a settlement agreement.

EFFECTIVE DATE:

October 1, 2026 BACKGROUND Prevailing Wage Law The state’s prevailing wage law generally requires contractors and SB268 / File No.

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76 subcontractorsoncertainpublicworksprojectstopaytheirconstruction workers wages and benefits equal to those that are customary or prevailing for the same work, in the same occupation, in the same town.

The requirement applies to new construction projects costing at least $1 million and renovation projects costing at least $100,000.

Under existing law, unchanged by the bill, if the contracting officer on a prevailing wage job finds that a contractor or subcontractor failed to pay a worker the required prevailing wage, the state may generally (1) terminate the contractor’s right to proceed with the work or (2) withhold payment to the contractor or subcontractor (CGS § 31-53).