2024 -- S 2125 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

     Introduced By: Senators Kallman, Ciccone, F. Lombardi, Tikoian, Sosnowski, Bissaillon,
Ruggerio, Miller, and Cano

     Date Introduced: January 12, 2024

     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. Construction industry paycheck recovery.

     (a) As used in this section:

     (1) "Benefits" means any and all benefits, including paid vacations, holidays, sick leave,

employer contributions and reimbursements to health insurance and/or any other retirement

benefits, and any other similar benefits that are incidents of employment.

     (2) "Construction" means the alteration, building, maintenance, reconstruction, moving or

demolition of any building, structure or improvement on, connected with, or on or beneath the

surface of any real property, or relating to the excavation, clear, grade, fill, or landscape of any real

property, or any other development or improvement to land. "Construction" also includes any

design or other professional or skilled services rendered by architects, engineers, land surveyors,

landscape architects, and construction managers.

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

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

improvement on, connected with, or on or beneath the surface of any real property, or relating to

the excavation, clear, grade, fill, or landscape of any real property, or any other development or

improvement to land.

     (4) "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.

     (5) “Notice” means a written communication mailed, postage prepaid, or hand delivered to

the contractor’s place of business, registered agent, officer, director, worksite manager or a

supervisor, or any other individual identified by the contractor as its representative. Notice shall

include, if known and available, the name of the employer, the amount of the claim or an

explanation of any data needed to calculate the amount of the claim and the dates that the claimant

worked.

     (6) "Person" means, and shall include, any natural person, corporation, municipality,

partnership, unincorporated association, or other legal entity.

     (7) "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,

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. "Owner" includes successors interest of the owner

and agents of the owner acting within their authority or on the owner’s behalf. An owner shall not

be subject to liability under subsection (b) of this section unless the owner is a contractor or

subcontractor.

     (8) "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.

     (b) A contractor making or taking a construction contract shall assume liability for any debt

resulting from an action under §§ 28-14-19, 28-14-19.1, 28-14-19.2, 37-13-14.1, or 37-13-17 owed

to a wage claimant 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 wage claimant's performance

of labor, provided that written notice of the alleged violation to be raised in that action is provided

to the contractor not more than forty-five (45) days from the last occurrence of the alleged wage

theft. A written offer and payment in full of all such wages allegedly owed during the forty-five

(45) day period after a receipt of the notice by a contractor shall extinguish a contractor’s liability

for damages under this section.

     (c) A contractor’s joint and several liability shall be limited to one hundred twenty (120)

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consecutive days of any alleged wage theft, counting back the one hundred twenty (120) days from

the day of the last violation prior to the notice. This one hundred twenty (120) day damages

limitation period shall not impact other wage violation remedies available to a claimant.

     (d) 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.

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

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

     (f) In the case of a private civil action brought by an employee under §§ 28-14-19.2 and

37-13-17, such employee may authorize and designate any person, organization or collective

bargaining agent to file a complaint with the director to make a wage claim on their behalf.

     (g) 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 in addition to any other

damages and penalties specified in §§ 28-14-17, 28-14-19, 28-14-19.1, 37-13-16, and 37-13-12.4

that are applicable.

     (h) Nothing in this section shall preclude the attorney general from bringing a civil action

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

     (i) A contractor or any other person shall not evade, or commit any act that negates, the

requirements of this section; provided, however, that this section shall not be deemed to prohibit a

contractor or subcontractor from establishing by contract or enforcing any other lawful remedies

against a subcontractor it hires for liability created by violation of this section; provided, that such

contract or arrangement does not diminish the right of employees to bring an action under the

provisions of this section.

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

of any employee under any 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 further, however, that such waiver shall not

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

     (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

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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.

     SECTION 2. This act shall take effect on September 1, 2024, and shall apply to

construction contracts entered into, renewed, modified or amended on or after the effective date of

this act.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

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     This act would make contractors civilly liable and/or jointly civilly liable for any claims of

wage theft or nonpayment from an employee against the contractor, its subcontractors and any

subcontractor involved in the performance of the contract provided that written notice of the alleged

violation to be given to the contractor not more than forty-five (45) days from the last occurrence

of the alleged wage theft. This act would authorize only administrative and/or civil actions to

recover the claimed wages. This act would also provide that these provisions could be waived by a

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

which has established itself as the collective bargaining representative for persons performing work

on a project.

     This act would take effect on September 1, 2024, and would apply to construction contracts

entered into, renewed, modified or amended on or after the effective date of this act

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