PA 10-47—SB 97

Labor and Public Employees Committee

Judiciary Committee

AN ACT CREATING A CIVIL ACTION TO ALLOW CONTRACTORS TO RECOVER UNPAID EMPLOYEE PENSION OBLIGATIONS FROM SUBCONTRACTORS

SUMMARY: Under the prevailing wage law, the Labor Department can require a contractor on a public project to pay the employee wages and benefits for a subcontractor who fails to do so. The act permits a contractor to bring a Superior Court civil action to recover the damages sustained by making such payments, together with costs and a reasonable attorney's fee. It gives the same legal recourse to a subcontractor required to cover wages or benefits not paid by a lower-tier subcontractor (i. e, a person with whom a subcontractor contracts to do a portion of the job it was initially hired to do).

The act also makes conforming changes.

EFFECTIVE DATE: October 1, 2010

BACKGROUND

Prevailing Wage Law

The state prevailing wage law requires contractors on all state and municipal construction jobs to pay the prevailing hourly wage, as determined by the Labor Department, to all mechanics, laborers, or other workers. This requirement applies to repair and renovation projects of $100,000 or more and new construction projects of $400,000 or more. The punishment for violating the law includes fines, suspension from bidding on future public projects, and jail time (CGS 31-53, 31-53a, & 31-54).

OLR Tracking: JM: KM: VR: DF