Bill
HB 5366
The bill creates joint liability for prime contractors for unpaid wages of subcontractors’ workers, triggered by 45-day notice and capped to 120 days of wages.
Title: AN ACT RELATING TO LABOR AND LABOR RELATIONS — PAYMENT OF WAGES
Statute added: R.I. Gen. Laws § 28-14-32 (proposed)
Primary sponsor: Rep. Shaheen (with Reps. Morales, Potter, Felix, Ajello, Edwards, Cruz, Bennett, Craven, McNamara, Kazarian listed in the text)
Status (as provided): Committee recommended measure be held for further study (02/12/2025). Filed/introduced in February–March 2025. Related: SB 2033 and HB 4129 (companions).
Purpose
- To create a payday-recovery cause of action specific to the construction industry that makes a prime contractor potentially liable for unpaid wages and related amounts owed by subcontractors, and to set notice, limitation, remedy, and procedural rules for such claims.
Key definitions (selected)
- “Construction”: broad definition covering building, alteration, maintenance, excavation, landscaping, and related professional design or construction services (architects, engineers, surveyors, construction managers).
- “Contractor” and “Subcontractor”: defined to include general/principal contractors, construction managers, entities at any tier, and those without direct privity.
- “Benefits”: includes paid leave, employer contributions to health and retirement, and similar employment benefits.
- “Notice”: written communication (mailed or hand-delivered) to the contractor’s business, registered agent, officer, manager, supervisor, or other identified representative and, if known, should include employer name, claim amount (or data to calculate it), and work dates.
Core provisions and effects
- Joint liability: A contractor who makes or takes a construction contract “shall assume liability” for debts arising from wage claims (statutory provisions referenced: §§ 28-14-19, 28-14-19.1, 28-14-19.2, 37-13-14.1, 37-13-17) incurred by a subcontractor for work performed on the contractor’s project — but only if the claimant provides written notice to the contractor within 45 days of the last occurrence of the alleged wage theft.
- 45‑day cure: If the contractor timely receives notice and within 45 days offers and pays in full the allegedly owed wages, the contractor’s liability under this section is extinguished.
- 120‑day damages cap: Contractor joint-and-several liability is limited to unpaid wage/benefit claims covering the 120 consecutive days immediately preceding the last violation prior to notice. The cap does not eliminate other wage remedies available to claimants.
- Remedies limited to civil/administrative actions: Claims under this section are limited to civil and administrative remedies (criminal remedies not added here). The Attorney General retains authority to bring civil actions under the section.
- Employee representation: Employees may designate a person, organization, or collective bargaining agent to file wage complaints on their behalf under certain statutes.
- Non-waiver/CBAs: Employee or subcontractor releases attempting to waive contractor liability are invalid. However, a bona fide construction trade union collective bargaining agreement may waive this section only if it explicitly references the section; such waiver cannot diminish other statutory rights.
- Contractor recourse: The bill preserves a contractor’s right to pursue reimbursement or other legal remedies against a subcontractor that caused the liability.
- Anti-evasion and severability clauses: Prohibits evasion of the section and includes severability.
Who is affected
- Workers on construction projects (wage claimants) benefit from an additional path to recover unpaid wages and benefits.
- Prime/general contractors and construction managers may incur joint and several liability for unpaid wages of subcontractor workers subject to notice and temporal limits.
- Subcontractors remain principally responsible but may face downstream liability/repayment obligations if a contractor pays wages on their behalf.
- Owners are not generally liable unless they act as a contractor or subcontractor.
- Labor organizations and collective bargaining parties are affected through allowed representative filing and potential limited waivers.
Procedural/timeline highlights
- Claimants must give written notice to the contractor within 45 days of the last wage-theft occurrence to activate contractor liability.
- Contractor liability for damages is capped to work performed in the 120 days prior to the last violation before notice.
- The section restricts remedies to civil/administrative enforcement; it preserves AG authority and contractor subrogation rights.
Current legislative status
- As of 02/12/2025 the House committee recommended the measure be held for further study. The bill has companion measures in the Senate and another House bill listed.
Compiled from official sources — confirm details with the bill’s official record.
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