SB 418 — AN ACT CONCERNING WAGE THEFT.

GeneralSenate Assembly Raised Bill No.

418 FebruaryPublic Session,Act 2022 LCO No.

294122-17 ReferredAN toACT CommitteeCONCERNING onWAGE LABORTHEFT. AND PUBLIC EMPLOYEES Introduced by:

(LAB) AN ACT CONCERNING WAGE THEFT.

SubsectionsSubsection (a) and (b) of section 31-53 of the 2022 supplement to the general statutes areis repealed and the following is substituted in lieu thereof (Effective OctoberJuly 1, 2022):2023):

(a)(b) Each[Any] contractIf forthe commissioner, upon inspection or investigation of a complaint, believes that a contractor or subcontractor [who] has knowingly or wilfully [employs] employed any mechanic, laborer or worker in the construction, remodeling, refinishing, refurbishing, rehabilitation, alteration or repair of any public works project byfor or on behalf of the state or any of its agents, or by any political subdivision of the state or any of its agents, shallat containa rate of wage on an hourly basis that is less than the followingrate provision:customary or prevailing for the same work in the same trade or occupation in the town in which such public works project is being constructed, remodeled, refinished, refurbished, rehabilitated, altered or repaired, or who [fails] has failed to pay the amount of payment or contributions paid or payable on behalf of each such person to any employee welfare fund, or in lieu thereof to the person, as provided by subsection (a) of this section, such contractor or subcontractor shall be issued a citation and may be fined [not less than two thousand five hundred dollars but not more than] five thousand Senate Bill No.

"The418 wagesdollars paidfor on an hourly basis to any person performing the work of any mechanic, laborer or worker on the work herein contracted to be done and the amount of payment or contribution paid or payable on behalf of each suchoffense. person to any employee welfare fund, as defined in subsection(i)ofthis section,shallbeat arate equalto therate customary or prevailing for the same work in the same trade or occupation in the town in which such public works project is being constructed.

Any[and contractor(1) whofor isthe notfirst obligatedviolation, byshall agreementbe todisqualified makefrom paymentbidding on contracts with the state or contributionany political subdivision until the contractor or subcontractor has made full restitutionofthebackwagesowedtosuchpersonsandfor anadditional six months thereafter, and (2) for subsequent violations, shall be disqualified from bidding on behalfcontracts with the state or any political subdivision until the contractor or subcontractor has made full restitution of the back wages owed to such persons toand anyfor suchnot employeeless welfarethan LCOan 2941additional \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00418-R01two years thereafter.] The commissioner shall maintain a list of 4any SB.docxcontractor Raisedor Billsubcontractor No.that, during the three preceding calendar years, violates this section or enters into a settlement with the commissioner to resolve any claim brought by the commissioner pursuant to this section.

418For fund shall pay to each mechanic, laborer or worker as part of such person'swagestheamount ofpayment or contributionfor suchperson's classification on each pay day." (b) [Any] If the commissioner, upon inspection or investigation of a complaint, believes that a contractor or subcontractor [who]placed has knowingly or wilfully [employs] employed any mechanic, laborer or worker in the construction, remodeling, refinishing, refurbishing, rehabilitation, alteration or repair of any public works project for or on behalf of the state or any of its agents, or any political subdivision of the state or any of its agents, at a rate of wage on an hourly basis that is less than the rate customary or prevailing for the same work in the same trade or occupation in the town in which such publiclist, works project is being constructed, remodeled, refinished, refurbished, rehabilitated, altered or repaired, or who [fails] has failed to pay the amount of payment or contributions paid or payable on behalf of each such person to any employee welfare fund, or in lieu thereof to the person, as provided by subsection (a) of this section, such contractor or subcontractor shall be issued a citation and fined [not less than two thousand five hundred dollars but not more than] five thousand dollars for each offense and (1) for the first violation, shall be disqualified from bidding on contracts with the state or any political subdivision (A) until the contractor or subcontractor has made full restitution of the back wages owed to such persons, and (B) for an additional six months thereafter, [and] (2) for any subsequent [violations] violation, shall be disqualified from bidding on contracts with the state or any political subdivision (A) until the contractor or subcontractor has made full restitution of the back wages owed to such persons, and (B) for not less than an additional two years thereafter, and (3) for more than one violation within a five-year period, the commissioner shall referrecord the matterfollowing toinformation: the Attorney General, who may institute a civil action to recover any unpaid wages, plus interest.

(1) The Attorneynature Generalof may file an action to enjoin such conduct and debar the contractorviolation; for up to five years from the date on which the action is filed.

Each(2) citation issued by the commissionertotal pursuantamount toof thiswages subsectionand shallfringe bebenefits inmaking writingup andthe LCOviolation 2941or {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-004182agreed ofupon 4in R02-SB.docxany }settlement Raisedwith Billthe No.commissioner;

418and shall(3) specifically describe the naturetotal amount of civil penalties and fines agreed upon by the violation.commissioner.

AnyThe contractorcommissioner orshall subcontractorreview issuedthe alist citationon pursuantthe tofirst thisday subsectionof mayMay requesteach year for the preceding rolling three-year periodandmayreferfordebarmentanycontractororsubcontractorthat committed a hearingviolation beforeof this section during the commissioner.rolling three-year period.

SuchThe requestcommissioner shall berefer madefor indebarment writingany tocontractor or subcontractor that entered into one or more settlement agreements with the commissioner notwhere laterthe thansum tentotal daysof afterall settlements within such period exceeds fifty thousand dollars in back wages or fringe benefits, or entered into one or more settlement agreements with the issuancecommissioner where the sum total of all settlements within such period exceeds fifty thousand dollars in civil penalties or fines agreed upon by the citation.commissioner.

TheAny commissionercontractor shallor grantsubcontractor suchthe requestcommissioner refers for adebarment hearingmay if such request includes a disputehearing ofbefore the materialcommissioner. facts that resulted in the issuance of the citation.

In addition, if it is found by the contracting officer representing the state or political subdivision of the state that any mechanic,Public laborerAct orNo. worker employed by the contractor or any subcontractor directly on the site for the work covered by the contract has been or is being paid a rate of wages less than the rate of wages required by thecontract to be paid as required by this section, the state or contracting political subdivision of the state may (A) by written or electronic notice to the contractor, terminate such contractor's right to proceed with the work or such part of the work as to which there has been a failure to pay said required wages and to prosecute the work to completion by contract or otherwise, and the contractor and the contractor'ssuretiesshallbeliableto thestate or thecontracting political subdivision for any excess costs occasioned the state or the contracting political subdivision thereby, or (B) withhold payment of money to the contractor or subcontractor.

22-17 2 of 3 Senate Bill No.

418 mechanic, laborer or worker employed by the contractor or any subcontractor directly on the site for the work covered by the contract has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid as required by this section, the state or contracting political subdivision of the state may (A) by written or electronic notice to the contractor, terminate such contractor's right to proceed with the work or such part of the work as to which there has been a failure to pay said required wages and to prosecute the work to completion by contract or otherwise, and the contractor and the contractor'ssuretiesshallbeliable to thestate or thecontracting political subdivision for any excess costs occasioned the state or the contracting political subdivision thereby, or (B) withhold payment of money to the contractor or subcontractor.

ThisApproved actMay shall10, take2022 effectPublic asAct followsNo. and shall amend the following sections:

Section22-17 1 October 1, 2022 31-53(a) and (b) LAB Joint Favorable JUD Joint Favorable LCO 2941 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00418- 3 of 43 R02-SB.docx } Raised Bill No.

418 LCO 2941 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00418- 4 of 4 R02-SB.docx }