🔒CT comptroller backs payment freezes for contractors in CT wage theft probes

State Comptroller Sean Scanlon urged state lawmakers on Tuesday to approve legislation that would allow his office to halt payments to contractors accused of violating Connecticut’s prevailing wage laws on state-funded projects. Scanlon, who made the appeal during a news conference at which he was joined by labor representatives and state legislators, argued that the change would protect workers and safeguard taxpayer dollars. Senate Bill 268, which was introduced by the legislature’s Labor and Public Employees Committee and is co-sponsored by Rep. Nicholas Menapace (D-Niantic), would give the comptroller discretion to pause payments to a contractor after the state Department of Labor notifies his office that a contractor is under investigation for wage law violations. Under the bill, payments could be stopped 10 business days after the notice and would remain on hold until the investigation is completed and any penalties or settlements are resolved. Scanlon said the measure is intended to deter so-called “wage theft” — practices that include failing to pay legally required wages on public works projects. “If a state contractor is short-changing workers, we shouldn’t be sending taxpayer dollars to those projects,” he said. A similar bill cleared the committee last year but fell short of final passage in the House. Scanlon said he has continued to work with labor groups to refine the proposal and build support this session. Sen. Julie Kushner (D-Danbury) and co-chair of the Labor and Public Employees Committee, said the bill would push prime contractors to more closely vet subcontractors. If a subcontractor violates wage laws, the contractor that hired them should be held responsible, she said. Rep. Manny Sanchez (D-New Britain) and the committee’s other co-chair, said stronger enforcement is needed to ensure workers are paid what they are owed. Labor leaders also back the proposal. State Building Trades Council President Keith Brothers said the bill would strengthen coordination and enforcement, while Executive Director Joe Toner said wage theft too often is treated as a routine cost of doing business. Business groups have previously raised concerns about due process and cash-flow disruptions if payments are withheld before investigations are completed. Supporters say the bill balances those concerns by giving contractors notice and tying any payment hold to the outcome of the investigation. Scanlon said he will continue working with lawmakers and the Labor Department to advance the measure this session.