Connecticut Contractor Wage Liability Law (HB5003): 2027 Rules

By StartBusinessByStatePublisher: Robert Smith Research process

Connecticut HB5003 (Public Act 26-12), 2026 Session · Signed May 11, 2026 · Wage sections effective January 1, 2027 · Updated October 19, 2026

For private construction contracts signed on or after January 1, 2027, a Connecticut contractor that deals directly with the owner is jointly and severally liable for wages any subcontractor, at any tier, fails to pay its workers for work under that contract. Workers can sue the subcontractor, the contractor or both, and can recover up to twice the unpaid wages.

What changed

HB5003 is a long workforce bill (Public Act 26-12). Sections 55 and 56 create a new rule for construction wages and change Connecticut’s wage-collection law (section 31-72 of the general statutes).

Source: Public Act 26-12, sections 55 and 56.
	Before Jan. 1, 2027	For contracts signed Jan. 1, 2027 or later
Who a worker could sue for unpaid wages	Their own employer (the subcontractor)	The subcontractor, the contractor, or both
General contractor’s risk	Generally limited to its own employees	Liable for any sub’s unpaid wages within the contract’s scope
Waiver clauses	—	A clause waiving the contractor’s liability can’t be enforced
Damages under section 31-72	Claimed against the employer	Can now be claimed against the contractor too

Key definitions

Contractor: any business with a direct contract with the owner, such as a general or prime contractor, construction manager or joint venture.
Subcontractor: any business without a direct contract with the owner that works under a contractor or another sub, or does any part of the work at any tier.
Construction contract: a contract signed on or after January 1, 2027, for construction, renovation or rehabilitation in Connecticut, including related real property improvements, and the subcontracts under it.
Wages and employee use the meanings in Connecticut’s wage payment law (section 31-71a).

What is not covered

Public works and other contracts with any state, federal or Connecticut agency.
Home improvement contracts on an owner-occupied home or its property.
Contracts on one- and two-family homes, unless the project builds more than 15 such homes on one site.

So the rule mainly reaches private commercial jobs, apartment and mixed-use buildings, and larger housing developments.

How a claim works

A sub doesn’t pay a worker for work within the contract’s scope.
If the worker plans to sue the contractor, the worker (or their union) must first give the contractor written notice describing the general nature of the violation, at least 30 days before suing. No new notice is needed if the worker already notified the contractor about the same or an earlier violation by the same sub.
The worker can sue the sub, the contractor or both. Notice doesn’t limit the contractor’s liability, and more workers can be added later.
Under section 31-72, the worker recovers twice the unpaid wages plus costs and attorney fees, or the full amount (not double) if the employer shows a good-faith belief it paid correctly. The Labor Commissioner can also collect unpaid wages with interest.

What contractors can still do

A contractor can write remedies into its subcontracts, such as paying unpaid wages out of retainage (money held back until the job is done). For contracts signed or renewed on or after January 1, 2027, those clauses can’t reduce a worker’s right to sue and can’t waive the contractor’s liability. A waiver clause is unenforceable.

Why it passed

The act doesn’t include a stated purpose for these sections. By their terms, they make sure workers at any tier of a private job can collect unpaid wages from the business at the top of the contract chain, not just from a sub that may have gone out of business.

Example

A general contractor signs a contract in March 2027 to build a 30-unit apartment building in Hartford. It hires an electrical sub, which hires a smaller drywall sub. The drywall sub misses two weeks of pay for six workers, totaling $14,000. After giving the GC 30 days’ notice, the workers sue both the drywall sub and the GC. If they win and there’s no good-faith defense, the court can award $28,000 plus attorney fees, and the GC can be on the hook for it. The GC’s subcontract might let it recover from the electrical sub or take it from retainage.

If the same GC were renovating an owner-occupied single-family home, this rule wouldn’t apply.

Costs and risks

The law sets no fee. The cost is risk: a GC may pay twice a sub’s missed payroll plus legal fees. Expect more paperwork on both sides, like certified payroll, lien waivers and payment proofs, and maybe higher bids or bonding costs to cover the risk.

What to do now

If you’re a general contractor or construction manager:

Update your 2027 subcontract template with payroll reporting and retainage remedies. Don’t include a waiver; it won’t hold up.
Vet subs’ finances and payment history before you hire them.
Ask for proof of payroll before each payment, at every tier.
Ask your insurance agent and surety how this affects your coverage and bonds.

If you’re a subcontractor (electrical, plumbing, HVAC and others):

Expect payroll proof requests from GCs, and pass them down to your own subs.
Keep clean pay records for every worker on every job.
If cash is tight, talk to the GC early. A missed payroll now has consequences up the chain.

FAQ

Does this apply to contracts signed in 2026?

No. It applies to construction contracts entered into on or after January 1, 2027.

Does it apply to state or town projects?

No. Public works and other government contracts are excluded.

I’m a sub that hires another sub. Am I liable for their wages?

The new joint liability rule is placed on the contractor that has the direct contract with the owner.

Can my subcontract make the sub pay me back?

Yes. Remedy clauses, including paying from retainage, are allowed as long as they don’t cut off the worker’s rights or waive the contractor’s liability.

Does a home renovation count?

Not if it’s an owner-occupied home, or a one- or two-family home that isn’t part of a project of more than 15 such homes.

Related guides

Sources

This page summarizes the law and official documents. It is not legal advice. Check with the state agency named above for current rules.