Failure or refusal of labor contractor to pay claim; worker claim to Bureau of Labor and Industries. (1) If a person acting as a labor contractor fails, neglects or refuses to make prompt payment of a claim for labor or services furnished by a person in connection with a contract or agreement as such claim becomes due, the person with whom the labor contractor has made the contract or agreement may pay such claim to the person furnishing the labor or services or, upon demand, may pay such claim to the Bureau of Labor and Industries for the benefit of persons furnishing labor and charge the amount of the payment against funds due or to become due the labor contractor by reason of such contract or agreement

(2) The payment of a claim in the manner authorized in this section shall not relieve the labor contractor or the labor contractor’s surety from obligation with respect to any unpaid claims. [1989 c.164 §8; 2013 c.584 §23]