Connecticut General Contractors Will Answer for Subcontractors' Unpaid Wages in 2027

Starting January 1, 2027, a general contractor on a covered construction job in Connecticut can be held responsible when a subcontractor does not pay its own workers. The rule is in Public Act 26-12, which the governor signed on May 11, 2026. It applies to contracts entered into on or after January 1, 2027.

This is a wage rule, not a licensing rule. The two sections that create it, Sections 55 and 56, never mention a license or a registration, and they do not change who needs one. What the rule does is give a general contractor more reason to know who it hires. Checking a subcontractor's license on the state's own lookup is one small part of that. This article covers what the act says, what it leaves out, and where a license check fits and where it does not. For how Connecticut licenses and registers contractors, start with the Connecticut contractor license page.

At a glance

• What it says: a contractor with a direct contract with the owner is "jointly and severally liable for any unpaid wages due to an employee of a subcontractor" for work inside the contract. (Public Act 26-12, Section 55)
• Starts: contracts entered into on or after January 1, 2027.
• Reaches: employees of subcontractors at any tier, not only the subs a general contractor hired itself.
• Left out: public works and other contracts with a state or federal agency or department. Also home improvement contracts for an owner occupied home or a one family or two family dwelling. The exception is building more than fifteen of those units at one project site.
• Before a suit: an employee generally gives the contractor at least 30 days' notice.
• Not in Sections 55 and 56: any license or registration requirement.

What the act says

A contractor who enters into a covered construction contract on or after January 1, 2027 is responsible for unpaid wages owed to a subcontractor's employee for work inside that contract. The act's word for it is "jointly and severally liable." Section 56 says who a worker can sue. The employee, or a labor organization representing the employee, may bring a civil action against the subcontractor, the contractor or both.

Who counts as the contractor? The act defines it as a business with "a direct contractual relationship with an owner," and names a construction manager and a general or prime contractor as examples. A subcontractor is anyone without a direct contract with the owner who works under a construction contract, "at any tier."

Wages have the meaning Connecticut already gives them in section 31-71a of the General Statutes. That is "compensation for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission or other basis of calculation."

The action runs under section 31-72, which sets the recovery. It is twice the full amount of the wages, with costs and reasonable attorney's fees. If the employer shows a good faith belief that the underpayment was lawful, it is the full amount. The act does not say how that last part applies to a contractor. That is a question for an attorney.

The liability section has no exception for a contractor that already paid its subcontractor in full. Bowditch & Dewey, a law firm that wrote up the act on October 27, reads it that way too. How a court applies it is a question for an attorney.

The 30 days' notice

Before bringing a civil action that names the contractor, an employee must give the contractor notice at least thirty days ahead. The notice describes the general nature of the alleged violation. Three details matter:

• No new notice is needed if the employee already gave the contractor notice of the same violation, or of an earlier violation by the same subcontractor.
• A notice does not limit the contractor's liability.
• A notice does not stop the action from being amended later to include other employees of that subcontractor.

What a contractor can put in a subcontract

The act lets a contractor write a remedy into its subcontracts for wages the subcontractor fails to pay. Its own example is a clause saying the liability can be paid from the retainage the contractor holds. There is a limit. For contracts entered into or renewed on or after January 1, 2027, the clause cannot reduce the employee's right to sue. A clause that waives or releases the contractor's liability is not enforceable.

What the act leaves out

Two kinds of contract are not "construction contracts" under Section 55:

• Public works and other contracts with a Connecticut agency or department, another state or a federal agency or department.
• Home improvement contracts for an owner occupied residence, or for a one family or two family dwelling unit and its property. The exception is a contract to build more than fifteen of those units at one project site.

Section 55 does not define "home improvement contract." Whether a particular job falls inside the exclusion is a question for an attorney.

Where a license check fits, and where it does not

A license check is a separate check from a wage check. Nothing in Sections 55 and 56 ties the liability to a license or a registration, in either direction.

What the check does is confirm that a subcontractor's license or registration is on file and active. Connecticut's own sources say how to do that.

• The lookup. The Department of Consumer Protection (DCP) runs a lookup called eLicense at elicense.ct.gov. DCP's Verify a License page says: "Search for active or inactive licenses, permits, and registrations in Connecticut," by a person's name or a business name. The lookup page says its data is "maintained by the State of Connecticut, updated instantly, and considered a primary source of verification." In the portal, click Online Services, then Lookup a License.
• DCP's own advice. In a February 2025 consumer alert written for the public, DCP said it is "critical to verify the credentials of any contractor they are considering hiring." It added: "The credential should match the individual's identity, as well as be appropriate for the scope of work to be completed." That advice is aimed mainly at homeowners. It does not mention general contractors or subcontractors.
• What there is to find. Connecticut has no statewide general contractor license. DCP registers home improvement contractors and new home construction contractors, and it licenses the skilled trades: electrical, plumbing, heating and cooling, sheet metal and other construction occupations. On large buildings, our Connecticut page says subcontractors doing structural work such as framing, masonry or roofing also need DCP's Major Contractor Registration. The state calls these threshold buildings: four or more stories, sixty feet or more in height, and other tests.

So a general contractor can confirm that an electrical, plumbing or heating and cooling sub holds an active DCP license, or that a structural sub on a large building is registered. A purely commercial job outside the trades and outside the threshold rule has no state registration to look up. Our page says that work falls to whatever the local municipality requires.

For companies that want to work in Connecticut

Connecticut has no statewide general contractor license, so the credential depends on the work. Residential work calls for the Home Improvement Contractor registration, unless an exemption applies. New homes call for a separate registration. Large buildings call for the Major Contractor Registration. Our page says electrical, plumbing and HVAC contracting businesses must have a licensed individual, E-1, P-1 or S-1, as qualifier.

A company that needs a licensed qualifier can have a licensed qualifying agent placed with it as a full time W-2 employee. The Licensing Company places qualifying agents and prepares the qualifier filing with DCP. Whether a person or a company qualifies is for DCP to decide. Contractor qualifier services explains how it works, and the Connecticut contractor license page has the rest of the state's rules.

Frequently asked questions

When does the liability start? For construction contracts entered into on or after January 1, 2027. The act was signed May 11, 2026.

Which subcontractors' employees does it reach? Employees of subcontractors at any tier. The act defines a subcontractor as someone without a direct contract with the owner who works under a construction contract. It does not matter whether the general contractor hired that sub directly.

Does the act require a contractor to check a subcontractor's license? No. Sections 55 and 56 do not mention licenses or registrations. A license lookup shows a credential's status. The act does not treat it as a wage check.

Can a subcontract clause release the contractor from the liability? No. A clause in a contract entered into or renewed on or after January 1, 2027 that waives or releases the liability is not enforceable. The act does let a contractor write in a remedy against the subcontractor, such as paying the liability from retainage. The employee's right to sue cannot be reduced.

Does it cover a home repair job? Home improvement contracts for an owner occupied home, or for a one family or two family dwelling, are left out. The exception is building more than fifteen of those units at one project site. An attorney can say how that applies to a given contract.

Where do I look up a Connecticut license? On DCP's eLicense portal at elicense.ct.gov. DCP's instructions: click Online Services, choose Lookup a License, then search by license type, license number, name or city.

This article is general education, not legal advice. A Connecticut construction attorney can confirm how Public Act 26-12 applies to a specific contract.

Marshall Schofield, one of the nation's leading contractor exam prep instructors, has helped thousands upon thousands of contractors get licensed. Jeremiah Jaskulski is a licensed contractor who has lived the licensing process across multiple states. Together they founded The Licensing Company, and they help contractors get licensed the right way in Connecticut and nationwide. Sources: Connecticut Public Act 26-12, Sections 55 and 56, Connecticut General Assembly bill status for HB 5003, Connecticut General Statutes sections 31-71a and 31-72, Bowditch & Dewey on JD Supra, October 27, 2026, DCP eLicense License Lookup, DCP Verify a License, DCP consumer alert, February 26, 2025 and the Connecticut contractor license page.