1. Wage Theft (Failing to Pay Wages)
The Crime: Class C Misdemeanor to a Class D Felony.
The Trap: When cash is tight, you might delay payroll, withhold final paychecks, or skip paying overtime. Failing to pay employees earned wages isn’t just a breach of contract; it’s a crime. If the amount unpaid exceeds $2,000, you can be charged with a Class D felony, for up to 5 years in prison.
The Statute: Conn. Gen. Stat. § 31-71g
2. Workers’ Compensation Premium Fraud
The Crime: Class C Felony.
The Trap: Workers’ comp premiums are notoriously high for certain trades. You might try to save on premiums by paying employees “under the table” or reclassifying roofers as office workers. Defrauding a workers’ comp insurer to cut premiums is a Class C felony, for up to 10 years in prison.
The Statute: Conn. Gen. Stat. § 31-290c
3. Sales Tax Evasion
The Crime: Class A Misdemeanor to a Class D Felony.
The Trap: You collect 6.35% sales tax from customers; do you pay the State or treat the money like a zero-interest slush fund for operating expenses? Willful failure to pay sales tax collected, or willfully delivering a false return to DRS, are Class D felonies, for up to 5 years in prison.
The Statute: Conn. Gen. Stat. § 12-428
4. Commercial Bribery (The “Kickback”)
The Crime: Class A Misdemeanor.
The Trap: When you’re desperate to win a lucrative contract, do you slip a purchasing manager an envelope of cash or take them for an expensive trip? Paying a kickback or bribe to an employee of another company without their employer’s knowledge is a Class A misdemeanor, for up to a year in jail — and a way to ruin your reputation.
The Statute: Conn. Gen. Stat. § 53a-160
5. Operating Without a Required Registration
The Crime: Class B Misdemeanor (Class A for subsequent offenses).
The Trap: If you want to start flipping houses or doing bathroom remodels, don’t skip the hassle of registering with DCP. Performing home improvement work without the registration isn’t just a regulatory fine; it’s a Class B misdemeanor for the first offense, for up to 6 months in jail.
The Statute: Conn. Gen. Stat. § 20-427
6. Larceny by False Pretenses
The Crime: Ranging up to a Class B Felony.
The Trap: Don’t take a big upfront deposit for a service or product you don’t intend to provide, and don’t siphon funds from a business partner. These moves go beyond “poor customer service” or “bad friend behavior” into criminal larceny. Depending on the value of the stolen money or property (e.g., over $20,000 constitutes Larceny in the first degree), you could be staring down a Class B felony, carrying up to 20 years in prison.
The Statute: Conn. Gen. Stat. § 53a-119
