New Law Empowers the State Comptroller To Stop Issuing Payments to Contractors When a Stop-Work Order Is in Effect Due To Prevailing Wage Violations
(HARTFORD, CT) – Governor Ned Lamont today announced that he has signed legislation (Public Act 26-17) creating a new law that empowers the state comptroller to withhold payments to contractors and subcontractors on state-funded public works projects in instances when stop-work orders have been issued by the Connecticut Department of Labor due to violations of the state’s prevailing wage statutes.
Prevailing wages are the minimum wage rates and benefits that are set for different classifications of workers in a specific area.
“Our administration is committed to protecting the rights of Connecticut workers and will stand by them to ensure they are being compensated fairly and in accordance with the law,” Governor Lamont said. “This new law acknowledges that we shouldn’t award taxpayer dollars on public works projects to contractors who are skirting labor laws and avoid paying their workers what they have legally earned. While the majority of contractors do their best to remain in compliance with wage laws, this legislation provides the state with one additional tool to act as a strong deterrent to wage theft and hold who violate these rules accountable.”
Under existing law, the Connecticut Department of Labor can issue stop-work orders on public works projects when contractors or subcontractors are violating prevailing wage laws and keep those orders in effect until workers have been repaid. However, until now, the state comptroller was required to continue issuing payments to such contractors, allowing them to still be paid by taxpayer funds even while they are being actively investigated for prevailing wage violations. Upon the enactment of this new law, the state comptroller will have the authority to withhold these payments until the case is resolved, creating a greater deterrent to prevent wage theft and ensure compliance with Connecticut’s wage laws.
Comptroller Sean Scanlon was one of the leading proponents of the bill and helped lead its approval through the Connecticut General Assembly.
“The premise of this law is simple: if you don’t pay workers what they’re owed on a taxpayer-funded project, the state’s not going to pay you until you make it right,” Comptroller Scanlon said. “I’m proud to have introduced this bill and to have worked with partners in labor and the legislature to get it passed this year so that we can ensure bad actors are held accountable.”
This new law takes effect October 1, 2026. It was approved in the House of Representatives by a vote of 107 to 40, and in the Senate by a vote of 31 to 5.