2014 -- S 2673
Enacted 07/03/14
RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES
Introduced By: Senators Lombardi, DiPalma, Jabour, Conley, and Lombardo
Date Introduced: March 04, 2014
It is enacted by the General Assembly as follows:
SECTION 1. Section 28-14-17 of the General Laws in Chapter 28-14 entitled "Payment of Wages" is hereby amended to read as follows:
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 of the misdemeanor the employer shall be punished by a fine of
not less than four hundred dollars ($400) for each separate offense, or by
imprisonment for not less than ten (10) nor more
than ninety (90) days of up to one year,
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.
SECTION 2. 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 shall be punished by a fine of not less than five hundred
dollars ($500) nor more than one thousand dollars ($1,000) for each separate
offense, or by imprisonment for not less than ten
(10) nor more than ninety (90) days of
up to one year, 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 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 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 A first violation of this
section 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). A second or subsequent violation
of this section shall be considered a felony and shall be punishable for a
period of not more than three (3) years imprisonment, a fine of three thousand
dollars ($3,000), or both. 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 3. This act shall take effect upon passage.
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LC004473
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