Chapter
359
2006 -- S 2660
Enacted 07/07/06
A N A
C T
RELATING TO LABOR AND
PAYMENT OF DEBTS BY CONTRACTORS
Introduced By: Senators
Ruggerio, Paiva-Weed, Goodwin, Ciccone, and DaPonte
Date Introduced: February
09, 2006
It is enacted
by the General Assembly as follows:
SECTION
1. Sections 37-13-12.4 and 37-13-14.1 of the General Laws in Chapter 37-13
entitled
"Labor and Payment of Debts by Contractors" are hereby amended to
read as follows:
37-13-12.4.
Penalty for violations. -- Except as otherwise provided in this
chapter, any
employer
who shall violate or fail to comply with any of the provisions of this chapter
shall be
guilty
of a misdemeanor and upon conviction thereof shall be punished by a fine
of not less than
fifty five hundred dollars ($50.00)($500)
nor more than one hundred thousand dollars
($100)($1,000) 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.
37-13-14.1.
Enforcement -- Hearings. -- (a) Before issuing an order or
determination,
the
director of labor and training shall order a hearing thereon at a time and
place to be specified,
and
shall give notice thereof, together with a copy of the complaint or the purpose
thereof, or a
statement
of the facts disclosed upon investigation, which notice shall be served personally
or by
mail on
any person, firm, or corporation affected thereby. The person, firm, or
corporation shall
have an
opportunity to be heard in respect to the matters complained of at the time and
place
specified
in the notice, which time shall be not less than five (5) days from the service
of the
notice
personally or by mail. The hearing shall be held within ten (10) days from the
order of
hearing.
The hearing shall be conducted by the director of labor and training or his or
her
designee.
The hearing officer in the hearing shall be deemed to be acting in a judicial
capacity,
and
shall have the right to issue subpoenas, administer oaths, and examine
witnesses. The
enforcement
of a subpoena issued under this section shall be regulated by Rhode Island
civil
practice
law and rules. The hearing shall be expeditiously conducted and upon such
hearing the
hearing
officer shall determine the issues raised thereon and shall make a
determination and enter
an order
within ten (10) days of the close of the hearing, and forthwith serve a copy of
the order,
with a
notice of the filing thereof, upon the parties to the proceeding, personally or
by mail. The
order
shall dismiss the charges or direct payment of wages or supplements found to be
due,
including
interest at the rate of twelve percentum (12%) per annum from the date of the
underpayment
to the date of payment, and may direct payment of reasonable attorney's fees
and
costs to
the complaining party.
(b) In addition to directing payment of wages or supplements including interest
found to
be due,
the order shall also require payment of a further sum as a civil penalty in an
amount equal
to up to three times the total amount found to be
due. Further, if the amount of salary owed to an
employee
pursuant to this chapter but not paid to the employee in violation of thereof
exceeds
five
thousand dollars ($5,000), it shall constitute a misdemeanor and shall be
referred to the office
of the
attorney general. The misdemeanor shall be punishable for a period of not more
than one
year in
prison and/or fined not more than one thousand dollars ($1,000). In assessing
the amount
of the
penalty, due consideration shall be given to the size of the employer's
business, the good
faith of
the employer, the gravity of the violation, the history of previous violations
and the
failure
to comply with recordkeeping or other nonwage requirements. The surety of the
person,
firm, or
corporation found to be in violation of the provisions of this chapter shall be
bound to
pay any
penalties assessed on such person, firm, or corporation. The penalty shall be
paid to the
department
of labor and training for deposit in the state treasury; provided, however, it
is hereby
provided
that the general treasurer shall establish a dedicated "prevailing wages
enforcement
fund"
for the purpose of depositing the penalties paid as provided herein. There is
hereby
appropriated
to the annual budget of the department of labor and training the amount of the
fund
collected
annually under this section, to be used at the direction of the director of
labor and
training
for the sole purpose of enforcing prevailing wage rates as provided in this
chapter.
(c) For the purposes of this chapter, each day or part thereof of violation of
any provision
of this
chapter by a person, firm, or corporation, whether the violation is continuous
or
intermittent,
shall constitute a separate and succeeding violation.
(d) In addition to the above, any person, firm, or corporation found in willful
violation of
any of
the provisions of this chapter by the director of labor and training, an
awarding authority,
or the
hearing officer, shall be ineligible to bid on or be awarded work by an
awarding authority
or
perform any such work for a period of no less than eighteen (18) months and no
more than
thirty-six
(36) months from the date of the order entered by the hearing officer. Once a
person,
firm, or
corporation is found to be in violation of this chapter, all pending bids with
any awarding
authority
shall be revoked, and any bid awarded by an awarding authority prior to the
commencement
of the work shall also be revoked.
(e) In addition to the above, any person, firm, or corporation found to have
committed
two (2)
or more willful violations in any period of eighteen (18) months of any of the
provisions
of this
chapter by the hearing officer, which violations are not arising from the same
incident,
shall be
ineligible to bid on or be awarded work by an awarding authority or perform any
work
for a
period of sixty (60) months from the date of the second violation.
(f) The order of the hearing officer shall remain in full force and effect
unless stayed by
order of
the superior court.
(g) The director of labor and training, awarding authority, or hearing officer
shall notify
the
bonding company of any person, firm, or corporation suspected of violating any
section of
this
chapter. The notice shall be mailed certified mail, and shall enumerate the
alleged violations
being
investigated.
(h) In addition to the above, any person, firm, or corporation found to have
willfully
made a
false or fraudulent representation on certified payroll records shall be
referred to the
office of
the attorney general. The false or fraudulent representation shall be
considered a
misdemeanor
and shall be punishable for a period of not more than one year in prison and/or
fined
one thousand dollars ($1,000). Further, any person, firm, or corporation found
to have
willfully
made a false or fraudulent representation on certified payroll records shall be
required to
pay a
civil penalty to the department of labor and training in an amount of no less
than two
thousand
dollars ($2,000) and not greater than fifteen thousand dollars ($15,000) per
representation.
SECTION
2. This act shall take effect upon passage.
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LC00097
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