The Connecticut prevailing wage law (Section 31-53 of the General Statutes) requires contractors on state and municipal construction jobs to pay the prevailing hourly wage as set by the Labor Department to all mechanics, laborers, and 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 law also requires general contractors to keep payroll records, and to submit monthly payroll certifications. It is a felony to falsify these payroll affidavits. Subcontractors are subject to similar payroll certification requirements, but the general contractor is ultimately responsible for any payroll violations on the project.

The punishment for violating the prevailing wage law can include substantial fines, jail time, and restitution of the unpaid wages or benefits. A first violation results in suspension from bidding on future public projects until restitution is made, and subsequent violations result in suspension for a period of two years. An offending contractor can also be terminated from a project and be held liable for any excess completion costs resulting from the termination.

Unfortunately, there are instances where a subcontractor fails to adhere to the prevailing wage law (typically by failing to pay pension and other benefits to the union), leaving the contractor on the hook. The Labor Department can require the contractor on a public project to pay the employee wages and benefits for a subcontractor if the subcontractor fails to do so – even if it results in the contractor having made the same payment twice. The Connecticut legislature has recently taken action to provide a remedy to contractors forced to make these payments due to the delinquency of a subcontractor.

The new law, Public Act 10-47, was signed into law by Governor Rell on May 11, and it becomes effective on October 1, 2010. It amends Section 31-53 to give general contractors a statutory cause of action to recover the damages sustained by making such payment, together with costs and reasonable attorney’s fees. The new law also allows the same legal recourse to a subcontractor that is required to pay wages or benefits due to a lower tier subcontractor’s failure to do so. While the law does not ensure a contractor recovery from a deadbeat subcontractor, it does provide an added measure of recourse by permitting the recovery of attorney’s fees and costs associated with having to bring such an action.