In the last legislative session, the General Assembly enacted Public Act 26-12: An Act Concerning Workforce Development and Working Conditions in the State, which expands prime contractor liability for unpaid wages owed by its subcontractors in Connecticut’s construction industry. This new legislation offers an opportunity to review wage theft laws in New York’s construction industry and to examine what general contractors might expect in Massachusetts.
Among other things, Public Act 26-12 imposes a new liability on general contractors, now holding them jointly and severally liable for a subcontractor’s failure to pay its employees. This only applies to contractors that have entered into construction contracts with subcontractors. It does not include contracts for public works, home improvement or small residential construction projects.
A contractor can include a provision in the contract that establishes a remedy for unpaid wages, such as covering that liability by using money already withheld for retainage. However, a contractor cannot include a provision that waives liability or diminishes the right of a subcontractor’s employee to bring an action against the contractor.
This law will apply to new construction contracts commenced on or after Jan. 1, 2027. For any contract signed or renewed on or after Jan. 1, 2027, a clause that tries to waive or release the contractor from that liability is not...
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