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Comptroller Sean Scanlon Proposes Legislation To Protect Workers On State Contracts From Wage Theft

January 27, 2025
Sean Scanlon
Sean Scanlon
CT State Comptroller
2023-present

(HARTFORD, CT) – Comptroller Sean Scanlon today was joined by Labor Committee members and labor union leadership to propose “An Act Allowing the Comptroller to Enforce Wage Statutes,” a bill designed to improve accountability among contractors and protect workers on state-funded projects.

Comptroller Scanlon, Connecticut State Building Trades, and the Connecticut Laborers’ District Council collaborated on this legislation after bringing concerns to the Comptroller of state contractors withholding funds allocated for labor wages.

“Connecticut workers deserve to be paid fairly and treated with dignity,” said Comptroller Scanlon. “If a state contractor is treating their workers unfairly or short-changing them for money they earn, we shouldn’t be sending taxpayer dollars to those projects. Under this bill, we’ll stop payments until any issue is investigated and resolved to ensure fair labor practices are followed and public funds are protected.”

Under the bill, the Comptroller would be notified by the Department of Labor when a state contractor is under investigation for wage law violations. At the Comptroller’s discretion, state payments to the project could be halted until the investigation is completed and any penalties or settlements are finalized.

“Wage theft is an ongoing, serious crime in Connecticut, affecting hundreds of working people every year. But the number of our wage theft inspectors is way down, and wage theft collections are near a 40-year low.  Anything we can do to let businesses know that they’ll be held accountable for employee wage theft is worth doing, including the Comptroller’s proposal to pause state payments to projects that are under investigation for wage theft,” said Senator Julie Kushner, Senate Chair of Labor and Public Employees Committee. “This is taxpayer money. Let’s not see it wasted on criminal activity.”

“I would like to thank Comptroller Scanlon for his attention to this very serious matter,” said Representative Manny SanchezHouse Chair of Labor and Public Employees Committee. “This legislation protects workers earning for their families and ensures projects under investigation for wage theft don’t continue receiving payments.”

“The Building Trades applauds Comptroller Scanlon for proposing this bill and sending a message to irresponsible employers that the State doesn’t cut checks for wage theft.” said Keith Brothers, President of the Connecticut State Building Trades Council. “Only with strong enforcement mechanisms, like those utilized by our Department of Labor’s Wage & Workplace Division and like this bill proposed by Comptroller Scanlon, can we truly disincentivize irresponsible companies from circumventing wage laws and exploiting workers. This is a commonsense proposal that we hope passes into law with strong bipartisan support.”

“Sadly, wage theft is calculated into some companies’ profit margins,” said Joe Toner, Executive Director of the Connecticut State Building Trades Council. “Our responsible in-state contractors shouldn’t have to compete against companies who cheat their workers and thwart our laws as a business model. And taxpayers shouldn’t be forced to pick up the tab for those corrupt players. This bill gives us another tool to help recover lost wages and keep companies honest.”

Comptroller Scanlon looks forward to testifying in support of this legislation and working with the Labor Committee, the Connecticut Department of Labor, and the entire General Assembly, to ensure passage.

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