Chapter 04-084

2004 -- H 7910 SUBSTITUTE A

Enacted 06/11/04

A N A C T

RELATING TO LABOR -- PAYMENT OF WAGES

Introduced By: Representative Paul E. Moura

Date Introduced: February 12, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Sections 28-14-4, 28-14-17 and 28-14-19 of the General Laws in Chapter

28-14 entitled "Payment of Wages" are hereby amended to read as follows:

28-14-4. Payment on separation by employer. -- (a) Whenever an ~~employer~~ employee

separates ~~an employee~~ or is separated from the payroll of an employer, the unpaid wages or

compensation of the employee shall become due on the next regular payday and payable at the

usual place of payment.

(b) Whenever an employee separates or is separated from the payroll of an employer

after completing at least one (1) year of service, any vacation pay accrued or awarded by

collective bargaining, written or verbal company policy, or any other written or verbal agreement

between employer and employee shall become wages and payable in full or on a prorated basis

with all other due wages on the next regular payday for the employee.

employer liquidating the business, merging the business, disposing the business, or removing the

business out of state, all wages become immediately due and payable within twenty-four (24)

hours of the time of separation at the usual place of payment. If Additionally, if the employee has

completed at least one year of service with the employer, holiday pay, vacation pay in full or on a

prorated basis, and insurance benefits due the employee under a collective bargaining agreement,

company policy, or other agreement between the employer and employee shall be considered as

unpaid wages due and payable within twenty-four (24) hours of the time of separation at the usual

place of payment.

28-14-17. Penalty for violations. -- Any employer who violates or fails to comply with

any of the provisions of this chapter shall be guilty of a misdemeanor and upon conviction shall

be punished by a fine of not less than ~~fifty dollars ($50.00) nor more than one hundred dollars~~

~~($100)~~ four hundred dollars ($400) for each separate offense, or by imprisonment for not less than

ten (10) nor more than ninety (90) days, or by both fine and imprisonment. Each day of failure to

pay wages due an employee at the time specified in this chapter shall constitute a separate and

distinct violation.

28-14-19. Enforcement powers and duties of director of labor and training. -- (a) It

shall be the duty of the director to insure compliance with the provisions of this chapter, to

investigate any violations of this chapter, to institute or cause to be instituted actions for the

collection of wages and to institute action for penalties provided under this chapter. The director

or his or her authorized representatives are empowered to hold hearings and he or she shall

cooperate with any employee in the enforcement of a claim against his or her employer in any

case whenever, in his or her opinion, the claim is just and valid.

(b) The director is authorized to supervise the payment of amounts due to employees,

and the employer may be required to make these payments to the director to be held in a special

account in trust for the employees, and paid on order of the director directly to the employee or

the employees affected. The employer shall also pay the director an administrative fee equal to

twenty-five percent (25%) of any payment made directly to the employee or employees or made

to the director pursuant to this section. and chapters 5-23, 25-3 and 28-12 for the first offense. An

additional payment in the amount of fifty percent (50%) shall be assessed for each subsequent

violation. The fee shall be deposited in the general fund.

under this chapter, including the administrative fee contained in subsection (b) of this section,

with or without the consent of the employee or employees affected.

SECTION 2. This act shall take effect upon passage.

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LC01300/SUB A

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