2023 -- S 0036

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LC000013

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

     Introduced By: Senators Kallman, McKenney, Goodwin, Gallo, Burke, Ruggerio, and
LaMountain

     Date Introduced: January 18, 2023

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 28-14 of the General Laws entitled "Payment of Wages" is hereby

amended by adding thereto the following section:

     28-14-32. Contractor liability.

     (a) A contractor making or taking a construction contract shall be liable for any debt

resulting from an action under this title, owed to an employee or third party on the wage claimant's

behalf, incurred by a subcontractor at any tier acting under, by, or for the contractor or its

subcontractors for the employee's performance of labor. The provisions of this section shall not be

deemed to limit the liability of a subcontractor under § 28-14-19.2 or any other provision of law.

     (b) No agreement or release by an employee or subcontractor to waive liability, assigned

to a contractor under this section, shall be valid. The provisions of this section shall not be deemed

to impair the rights of a contractor to maintain an action against a subcontractor for owed wages,

that are paid by a contractor, pursuant to this section.

     (c) Notwithstanding any other provision of law, the remedies available for a claim pursuant

to subsection (a) of this section, shall only be civil and administrative actions.

     (d) In the case of a private civil action by an employee, such employee may designate any

person, organization or collective bargaining agent authorized to file a complaint on his or her

behalf pursuant to § 28-14-19.2, to make a wage claim on his or her behalf.

     (e) In the case of an action against a subcontractor, the contractor shall be considered jointly

and severally liable for any unpaid wages benefits, wage supplements, penalties, liquidated

damages, attorneys' fees and any other costs resulting from such action.

     (f) Nothing herein shall preclude the attorney general from bringing a civil action to collect

unpaid wages and penalties on behalf of employees, pursuant to this section.

     (g) Before bringing a civil action pursuant to this section, an employee, or third party on

such employee's behalf, must give the contractor notice of the alleged violation. The notice need

only describe the general nature of the claim and shall not limit the liability of the contractor or

preclude subsequent amendments of an action, to encompass additional employees employed by

the subcontractor. An employee or third party on such employee's behalf, may not bring a civil

action until ten (10) business days after giving the contractor notice of the alleged violation and

may not bring a civil action if the contractor has corrected the alleged violation. An employee or

third party on such employee's behalf, is not required to give notice to a contractor, pursuant to this

subsection, before bringing a civil action pursuant to this section, if any employee, or third party

on any employee's behalf, previously has given notice to such contractor of the same alleged

violation or a prior alleged violation by the same subcontractor.

     (h) The provisions of this section shall not be deemed to diminish, impair, or otherwise

infringe on any other rights of an employee, provided pursuant to this chapter, including the right

of an employee to bring an action against any employer under the provisions of § 28-14-19.2.

     (i) Nothing in this section shall be deemed to diminish the rights, privileges, or remedies

of any employee under any collective bargaining agreement. On behalf of an employee,

subject to a collective bargaining agreement, the provisions of this section may be waived by

a collective bargaining agreement with a bona fide building and construction trade labor

organization, which has established itself, and/or its affiliates, as the collective bargaining

representative for persons performing work on a project; provided that, for such waiver to be

valid, it shall explicitly reference this section. Provided, however, that such waiver shall not

diminish or impair the rights of an employee provided under any other section of this chapter.

     (j) As used in this section:

     (1) "Construction contract" means a written or oral agreement for the construction,

reconstruction, alteration, maintenance, moving or demolition of any building, structure or

improvement, or relating to the excavation of or other development or improvement to land.

     (2) "Contractor" means any person, firm, partnership, corporation, association, company,

organization or other entity, including a construction manager, general or prime contractor, joint

venture, or any combination thereof, which enters into a construction contract with an owner.

     (3) "Owner" means any person, firm, partnership, corporation, company, association or

other organization or other entity, or a combination of any thereof, with an ownership interest,

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whether the interest or estate is in fee, as vendee under a contract to purchase, as lessee or another

interest or estate less than fee, that causes a building, structure or improvement, new or existing, to

be constructed, altered, repaired, maintained, moved or demolished or that causes land to be

excavated or otherwise developed or improved.

     (4) "Subcontractor" means any person, firm, partnership, corporation, company,

association, organization or other entity, or any combination thereof, which is a party to a contract

with a contractor, and/or the contractor's subcontractors, to perform any portion of work within the

scope of the contractor's construction contract with the owner, including where the subcontractor

has no direct privity of contract with the contractor.

     (k) Severability. If any provision of this section, or any application of any provision of this

section, is held to be invalid, that shall not affect the validity or effectiveness of any other provision

of this section, or of any other application of any provision of this section, which can be given

effect without that provision or application; and to that end, the provisions and applications of this

section are severable.

     (l) This section shall take effect one hundred and twenty days (120) after the passage date

and shall apply to construction contracts entered into, renewed, modified or amended on or after

such effective date and shall only apply to wages, benefits, and/or wage supplements earned on or

after such effective date.

     SECTION 2. This act shall take effect one hundred twenty days (120) after passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

***

     This act would provide for contractor liability for debts owed to an employer or third party,

on the wage claimants' behalf, incurred by a subcontractor.

     This act would take effect one hundred twenty days (120) after passage.

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