| Photo by David Klein on Unsplash
HARTFORD, Conn. — Connecticut Governor Ned Lamont has signed new legislation strengthening the state’s ability to prevent and prosecute wage theft on public works projects, responding to years of complaints from construction workers and labor advocates who say some contractors have skirted existing laws. The measure, signed on June 27, 2024, expands oversight, increases penalties, and closes loopholes that allowed certain employers to underpay workers or misclassify them to avoid prevailing‑wage requirements.
State officials say the law was enacted after repeated incidents in which subcontractors on state‑funded projects failed to pay workers the legally required rate or withheld overtime wages. Several complaints were filed with the Connecticut Department of Labor (CTDOL), including cases involving highway repair crews and school construction projects. In some instances, workers reported being paid in cash, denied pay stubs, or told to sign falsified time sheets.
“This legislation ensures that workers on public projects receive every dollar they earn,” Lamont said in a statement. “Wage theft is not only illegal—it undermines fair competition and harms families who rely on these wages.”
How Contractors Skirt Compliance
Wage theft in public works typically occurs when contractors misclassify employees as independent contractors, underreport hours, or pay below the prevailing wage required for state‑funded construction. Investigators say some companies used layers of subcontractors to obscure responsibility, making it difficult for regulators to track who was actually employing the workers.
Under previous law, CTDOL could issue fines and require back pay, but enforcement was slow and penalties were limited. The new legislation gives the agency expanded authority to audit payroll records, suspend contractors from bidding on future projects, and impose higher civil penalties for repeat violations. It also requires general contractors to certify compliance for all subcontractors, closing a loophole that allowed wage theft to occur deeper in the contracting chain.
Labor advocates say the changes were overdue. “We’ve seen contractors who repeatedly violate wage laws and still win public contracts,” said Connecticut AFL‑CIO President Ed Hawthorne. “This law finally gives the state the tools to stop bad actors and protect workers.”
Background and Comparison to Previous Statutes
Connecticut’s prevailing‑wage law has existed for decades, requiring contractors on public works projects to pay wages comparable to union rates. However, enforcement relied heavily on worker complaints, and CTDOL lacked the resources to proactively monitor large projects. The previous statute also did not clearly define contractor liability when violations occurred at the subcontractor level.
The new law clarifies that wage theft on public works is a serious offense subject to heightened penalties, including potential criminal charges for intentional violations. It also mandates more frequent payroll reporting and allows CTDOL to issue stop‑work orders when wage theft is suspected—an authority previously limited to misclassification cases.
Lawmakers say the legislation was prompted by testimony from workers who described losing thousands of dollars in unpaid wages. “No one working on a taxpayer‑funded project should fear being cheated,” said State Sen. Julie Kushner, co‑chair of the Labor Committee. “This bill strengthens accountability and ensures public dollars support fair labor practices.”
A Step Toward Fairer Public Contracting
The law is part of a broader effort to modernize Connecticut’s labor enforcement system, including digital payroll tracking and expanded whistleblower protections. CTDOL officials say they expect an increase in audits and faster resolution of complaints.
For workers, advocates say the message is clear: wage theft will no longer be treated as a minor infraction. As the law takes effect, Connecticut aims to ensure that public projects reflect not only infrastructure investment but also a commitment to fair and lawful treatment of the people who build them.
