Comptroller may hold back project payments over wage violations

The Comptroller may withhold money owed to a contractor or subcontractor. This applies to a contractor or subcontractor doing work on a public works project who violates the prevailing wage rules in section 31-53(b). The Labor Commissioner must first issue a stop work order for a prevailing wage violation on a public works project and may notify the Comptroller. After the Comptroller gives notice, the contractor or subcontractor has ten business days to comply. If the contractor or subcontractor remains out of compliance, the Comptroller may withhold payment. Withholding may continue until the Labor Commissioner releases the stop work order, the contractor or subcontractor pays applicable penalties, or a settlement agreement is finalized.

The Labor Commissioner must order an employer to stop business at a specific workplace after finding certain wage violations. This applies when an investigation finds an employer violated section 31-288(g) or section 31-53(b). The order applies only to the employer found in violation and the specific workplace where the violation occurred. The employer may request a hearing in writing within ten days after the order is issued. The Commissioner must issue the order within seventy-two hours after finding the violation. It takes effect when served and remains in force until the Commissioner releases it after finding compliance or following a hearing.