(a) For purposes of this section:

(1) “Business organization” means any sole proprietorship, partnership, corporation, limited liability company, association, firm or other form of business or legal entity;

(2) “Financial assistance” means any and all forms of loans, cash payments, extensions of credit, guarantees, equity investments, tax abatements or any other form of financing totaling one million dollars or more; and

(3) “Project” means any construction, remodeling, refinishing, refurbishing, rehabilitation, alteration or repair of any property owned by a business organization.

(b) On and after July 1, 2018, if the Department of Economic and Community Development provides financial assistance to any business organization for any construction project of such business organization, the Department of Economic and Community Development shall require, as a condition of providing such financial assistance, that any contract entered into by the business organization for such project shall contain the following provision: “The wages paid on an hourly basis to any person performing the work of any mechanic, laborer or worker on the work herein contracted to be done and the amount of payment or contribution paid or payable on behalf of each such person to any employee welfare fund, as defined in subsection (i) of section 31-53, shall be at a rate equal to the rate customary or prevailing for the same work in the same trade or occupation in the town in which such construction, remodeling, refinishing, refurbishing, rehabilitation, alteration or repair project is being undertaken. Any contractor who is not obligated by agreement to make payment or contribution on behalf of such persons to any such employee welfare fund shall pay to each mechanic, laborer or worker as part of such person’s wages the amount of payment or contribution for such person’s classification on each pay day.”

(c) Any contractor or subcontractor who knowingly or wilfully employs any mechanic, laborer or worker in any project receiving financial assistance from the Department of Economic and Community Development for such project, at a rate of wage on an hourly basis that is less than the rate customary or prevailing for the same work in the same trade or occupation in the town in which such project is located, or who fails to pay the amount of payment or contributions paid or payable on behalf of each such person to any employee welfare fund, as defined in subsection (i) of section 31-53, or in lieu thereof to the person, as provided by subsection (b) of this section, shall be fined not less than two thousand five hundred dollars but not more than five thousand dollars for each offense and (1) for the first violation, shall be disqualified from bidding on contracts for projects for which the Department of Economic and Community Development provides financial assistance until the contractor or subcontractor has made full restitution of the back wages owed to such persons and for an additional six months thereafter, and (2) for subsequent violations, shall be disqualified from bidding on contracts for projects for which the Department of Economic and Community Development provides financial assistance until the contractor or subcontractor has made full restitution of the back wages owed to such persons and for not less than an additional two years thereafter. In addition, if it is found by the contracting officer representing the business organization that any mechanic, laborer or worker employed by the contractor or any subcontractor directly on the site for the work covered by the contract has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid as required by this section, the business organization may (A) by written or electronic notice to the contractor, terminate such contractor’s right to proceed with the work or such part of the work as to which there has been a failure to pay said required wages and to prosecute the work to completion by contract or otherwise, and the contractor and the contractor’s sureties shall be liable to the business organization for any excess costs occasioned the business organization thereby, or (B) withhold payment of money to the contractor or subcontractor. The contracting business organization shall, not later than two days after taking such action, notify the Labor Commissioner, in writing or electronically, of the name of the contractor or subcontractor, the project involved, the location of the work, the violations involved, the date the contract was terminated and steps taken to collect the required wages.

(d) The Labor Commissioner may make complaint to the proper prosecuting authorities for the violation of any provision of subsection (c) of this section.

(e) The Labor Commissioner shall predetermine the prevailing rate and the amount of payment or contributions paid or payable on behalf of each person to any employee welfare fund, as defined in subsection (i) of section 31-53, in each town where such contract is to be performed, in the same manner as provided in subsection (d) of section 31-53.

(June Sp. Sess. P.A. 17-2, S. 566.)

History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.