Wage Bill Holds General Contractors Liable

Legislation holding general contractors liable for subcontractors that fail to pay employees is gaining traction at the state Capitol with less than a month until the session adjourns June 4.

HB 6955 originated in the Labor and Public Employees Committee, which approved it in March on a 9-4 party line vote.

The bill requires general contractors on private construction jobs to request payroll and wage information from subcontractors.

If subcontractors are engaged in wage theft, liability shifts to the general contractor.

The bill allows employees of subcontractors or the organization representing the employee to bring a civil lawsuit against general contractors.

Costly Lawsuits

While general contractors and subcontractors are required to pay prevailing wage rates on public works projects, there is no set prevailing wage for private construction jobs.

That makes it difficult to prove that wage theft is taking place, which in turn could lead to costly and burdensome lawsuits for general contractors and subs. 

A number of organizations and companies submitted testimony in opposition to the bill.

A number of organizations, including CBIA, the Home Builders and Remodelers Association, the Associated Builders and Contractors, the Associated Contractors of Connecticut, the Connecticut Subcontractors Association, and several construction companies submitted testimony opposing the bill.

They cited the near-impossible task of requiring general contractors to play the role of wage enforcement on private jobs, while also being held liable for the actions of another business.

Housing Development

Critics of the bill also point to Connecticut’s housing industry, which ranks close to last in the country in new housing development.

Passage of the bill could have a devastating impact on future housing needs, multi-use development, and workforce development within the industry.

Passage of the bill could have a devastating impact on future housing needs.

“Expecting general contractors to request and maintain extensive payroll and employee records of subcontractors and punishing them for not doing so will inevitably add significant administrative costs, costs associated with civil liability, and will slow the progression of housing and multi-use development projects,” said CBIA’s Paul Amarone.

As the construction and housing development industry attempts to grow its workforce, the bill creates unintended friction between general contractors and subcontractors, leading to added liability for both.

The bill awaits action in the House.

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For more information, contact CBIA’s Paul Amarone (860.244.1978).