§ 198-e. Construction industry wage theft. 1. A contractor making or
taking a construction contract shall be liable for any debt resulting
from an action under section one hundred ninety-eight of this article,
owed to an employee or third party on the employee's behalf, incurred by
a subcontractor at any tier acting under, by, or for the contractor or
its subcontractors for the employee's performance of labor. The
provisions of this section shall not be deemed to limit the liability of
a subcontractor under section one hundred ninety-eight of this article.

2. No agreement or release by an employee or subcontractor to waive
liability of a contractor under this section shall be valid except as
otherwise provided herein. The provisions of this section shall not be
deemed to impair the rights of a contractor to maintain an action
against a subcontractor for amounts for owed wages that are paid by a
contractor pursuant to this section.

3. Notwithstanding any other provision of law, the remedies available
for a claim pursuant to subdivision one of this section shall only be
civil and administrative actions.

4. In the case of a private civil action by an employee, such employee
may designate any person, organization or collective bargaining agent
authorized to file a complaint with the commissioner pursuant to section
one hundred ninety-six-a of this article, to make a claim pursuant to
this section on his or her behalf.

5. In the case of an action against a subcontractor, the contractor
shall be considered jointly and severally liable for any unpaid wages,
benefits, wage supplements, and any other remedies available pursuant to
the requirements of section one hundred ninety-eight of this article.

6. Nothing herein shall preclude the attorney general from bringing a
civil action to collect unpaid wages and penalties on behalf of
employees pursuant to this section.

7. A contractor or any other person shall not evade, or commit any act
that negates, the requirements of this section, provided, however, that
this section shall not be deemed to prohibit a contractor or
subcontractor from establishing by contract or enforcing any other
lawful remedies against a subcontractor it hires for liability created
by violation of this section, provided that such contract or arrangement
does not diminish the right of employees to bring an action under the
provisions of this section.

8. As used in this section:

a. "Construction contract" means a written or oral agreement for the
construction, reconstruction, alteration, maintenance, moving or
demolition of any building, structure or improvement, or relating to the
excavation of or other development or improvement to land. For purposes
of this section, a construction contract shall not include: any contract
which is subject to article eight of this chapter; a home improvement
contract for the performance of a home improvement between a home
improvement contractor and the owner of an owner-occupied dwelling; and
a home construction contract for one- or two-family dwelling units
except where such contract or contracts results in the construction of
more than ten one- or two-family owner-occupied dwellings at one project
site annually.

b. "Contractor" means any person, firm, partnership, corporation,
association, company, organization or other entity, including a
construction manager, general or prime contractor, joint venture, or any
combination thereof, which enters into a construction contract with an
owner.

c. "Owner" means any person, firm, partnership, corporation, company,
association or other organization or other entity, or a combination of
any thereof, (with an ownership interest, whether the interest or estate
is in fee, as vendee under a contract to purchase, as lessee or another
interest or estate less than fee) that causes a building, structure or
improvement, new or existing, to be constructed, altered, repaired,
maintained, moved or demolished or that causes land to be excavated or
otherwise developed or improved.

d. "Subcontractor" means any person, firm, partnership, corporation,
company, association, organization or other entity, or any combination
thereof, which is a party to a contract with a contractor, and/or party
to a contract with the contractor's subcontractors at any tier to
perform any portion of work within the scope of the contractor's
construction contract with the owner, including where the subcontractor
has no direct privity of contract with the contractor.

9. A contractor's liability pursuant to the provisions of this section
shall be applicable only for claims occurring no earlier than three
years prior to the initiation of such claim in a court of competent
jurisdiction or the commencement of a civil action brought forth by the
attorney general or department. Before bringing a civil action pursuant
to this section, an employee, or third party on such employee's behalf,
must give the contractor notice of the alleged violation. The notice
need only describe the general nature of the claim and shall not limit
the liability of the contractor or preclude subsequent amendments of an
action to encompass additional employees employed by the subcontractor.
An employee, or third party on such employee's behalf, may not bring a
civil action until ten business days after giving the contractor notice
of the alleged violation and may not bring a civil action if the
contractor corrects the alleged violation. An employee, or third party
on such employee's behalf, is not required to give notice to a
contractor pursuant to this subdivision before bringing a civil action
pursuant to this section if any employee, or third party on any
employee's behalf, previously has given notice to such contractor of the
same alleged violation or a prior alleged violation by the same
subcontractor. The provisions of this section shall not be deemed to
diminish, impair, or otherwise infringe on any other rights of an
employee provided pursuant to this chapter, including the right of an
employee to bring an action against any employer under the provisions of
section one hundred ninety-eight of this article.

10. Nothing in this section shall be deemed to diminish the rights,
privileges, or remedies of any employee under any collective bargaining
agreement. On behalf of an employee subject to a collective bargaining
agreement, the provisions of this section may be waived by a collective
bargaining agreement with a bona fide building and construction trade
labor organization which has established itself, and/or its affiliates,
as the collective bargaining representative for persons performing work
on a project, provided that for such waiver to be valid, it shall
explicitly reference this section. Provided, however, that such waiver
shall not diminish or impair the rights of an employee provided under
any other section of this chapter.