Summary — HB 6955
Title: AN ACT CONCERNING A CONTRACTOR'S RESPONSIBILITY FOR UNPAID WAGES ON A CONSTRUCTION CONTRACT
Bill Number: HB 6955 (File No. 353)
Introduced: February 13, 2025
Subject Areas: Construction contracts; contractors; subcontractors; employees; employers; liability; records; wage violations
Purpose / Intent
Based on the bill title and legislative history, HB 6955 is intended to address contractor liability for unpaid wages on construction projects. Its broad purpose is to protect workers (employees/subcontractor employees) who may be owed wages by making prime/general contractors responsible or otherwise accountable for unpaid wages arising under subcontracts on a construction contract.
Note: The bill text was not included in the materials provided. The summary below identifies the bill’s procedural status and describes likely or typical provisions based on the title. For exact statutory wording, consult the official bill text on the Legislative Commissioners’ Office (LCO) or the General Assembly website.
Legislative Status / Timeline
- 2025-02-13: Referred to Joint Committee on Labor and Public Employees
- 2025-02-14: Public hearing held (0220)
- 2025-03-13: Joint Favorable Substitute reported; filed with LCO
- 2025-03-24: Referred to Office of Legislative Research (OLR) and Office of Fiscal Analysis (OFA) for review (03/31/25)
- 2025-03-31: Reported out of LCO; Favorable Report; Tabled for House Calendar; House Calendar No. 235; File No. 353
Next procedural steps (typical): House floor consideration, possible amendments, House vote, transmission to Senate, committee referral in Senate, potential concurrence/negotiation, and, if passed by both chambers, enrollment for the Governor’s signature.
Key Provisions — likely scope and mechanisms (based on title)
Because full text was not provided, the following are typical measures such a bill might include. Confirm specifics in the official text.
- Establishes contractor liability: makes the prime/general contractor responsible (jointly or severally) for wages owed by subcontractors to their employees on that construction contract.
- Withholding/retention mechanisms: may permit owners or prime contractors to withhold final payment or a portion of progress payments until wage claims are resolved or payroll records are produced.
- Recordkeeping and disclosure: could require subcontractors to provide payroll records, certified statements, or proof of payment to workers upon request.
- Notice and cure requirements: may require notice to subcontractors with a defined time to cure wage violations before contractor liability attaches.
- Enforcement and remedies: may permit employees, the Commissioner of Labor, or the state to pursue civil penalties, wage recovery, liens, or administrative enforcement against contractors, and possibly provide for attorneys’ fees and costs.
- Limited defenses/indemnity: may set out defenses for contractors (e.g., lack of knowledge, compliance with reasonable due diligence) or require indemnification clauses in subcontractor agreements.
- Applicability: likely applies to public construction contracts, private contracts, or both—text will determine scope.
Who Is Affected
- Construction employees and laborers (potentially improved wage protection)
- Subcontractors (increased reporting, compliance obligations)
- Prime/general contractors (potential increased legal and financial liability; administrative burdens)
- Project owners (may be given withholding authority or new duties)
- State labor enforcement agencies and courts (additional enforcement responsibilities)
Potential Impact
- Worker protections: stronger ability for workers to recover unpaid wages.
- Risk allocation: shifts additional financial and compliance risk onto prime contractors and possibly project owners.
- Contracting practices: may prompt stricter subcontractor vetting, increased use of bond/insurance, or higher contract prices to cover risk.
- Administrative/fiscal: could increase demand on labor enforcement resources; potential fiscal impacts to state depending on enforcement arrangements (OLR/OFA analyses recommended).
Recommendations / Next Steps
- Consult the official bill text and the OLR/OFA analyses for exact provisions, fiscal impact, and effective dates.
- Monitor House floor action and any amendments that may change liability scope, defenses, or applicability.
