This post was co-authored by Labor + Employment group lawyer Christopher Costain, Hayden Eckblom (Summer Intern), and Pasqualina Fox-Mina (Summer Associate). Hayden and Pasqualina are not admitted to practice law.
On May 11, 2026, Connecticut Governor Ned Lamont signed into law Public Act 26-12, a wide-ranging bill centered around employee rights. Our colleagues in Robinson+Cole’s Labor, Employment, Benefits + Immigration group recently published a legal update summarizing the key components of Public Act 26-12. Here, we focus on the Wage Theft and Prevailing Wage concepts in the bill that directly relate to the construction industry.
Wage Theft
With exceptions for public works and small residential projects, general contractors will be jointly and severally liable for any unpaid wages owed to an employee of a subcontractor of any tier on private construction projects, beginning with contracts entered into on or after January 1, 2027. As we know, there is a separate regime for public works projects involving payment bonds.
At least 30 days prior to initiating an action against a general contractor, employees must provide notice to the general contractor of the subcontractor’s alleged violation describing the general nature of the alleged violation. However, employees who have previously notified a general contractor of the same violation, or a violation by the same subcontractor, are not required to provide advance notice to the general contractor.
The law permits general contractors to include a provision in their subcontracts establishing a remedy against the subcontractor to offset what the general contractor has paid for violations under the act, including permitting unpaid wages to be repaid from the subcontractor’s remaining retainage. However, note that such provisions do not waive or release liability for unpaid wages to employees, who may still bring an action for violations against either or both the general contractor and the subcontractor. General contractors may not contract around the liability to employees created by this act.
This potential remedy poses challenges, given that pre-existing law allows employees to bring a wage claim two, or in some cases three, years later. Also, a general contractor’s ability to verify that wages have been paid correctly could be difficult given the practical realities of tracking subcontractor’s payment to its employees, and in light of the fact that wage rates can vary dramatically for these construction projects, as they may not (and likely do not) involve prevailing wages.
Prevailing Wage Amendments
Beginning October 1, 2026, employers working on projects subject to Connecticut’s prevailing wage laws must complete daily records of each person performing the work of a mechanic, laborer or worker on projects subject to those laws. The daily records must include:
- The name and location of the project;
- The date;
- The name or signature, and where applicable the trade license number of each covered individual; and
- The arrival and departure time of each covered individual.
In addition to recording this information, employers must keep, preserve, and submit weekly these daily records. Employers must submit the records, by mail, e-mail, or another accepted method, to the contracting agency, the Department of Economic and Community Development, or project developer. Importantly, those records are considered a public record subject to inspection under the Connecticut Freedom of Information Act.
Employers that fail to comply with the new filing requirement may be subject to up to three months’ imprisonment, fines up to $500, or both.
Please feel free to reach out to the attorneys in Robinson+Cole’s Construction Law and Labor, Employment, Benefits + Immigration groups to discuss how to position your projects and businesses to mitigate the risks associated with this new law.