| Chapter 300 |
| 2026 -- H 7960 AS AMENDED Enacted 06/23/2026 |
| A N A C T |
| RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES |
Introduced By: Representative Arthur J. Corvese |
| Date Introduced: February 27, 2026 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 28-14-19 of the General Laws in Chapter 28-14 entitled "Payment of |
| Wages" is hereby amended to read as follows: |
| 28-14-19. Enforcement powers and duties of director of labor and training. |
| (a) It shall be the duty of the director to ensure compliance with the provisions of this |
| chapter and chapter 12 of this title. The director, or the director’s designee, may investigate any |
| violations thereof, institute or cause to be instituted actions for the collection of wages, and institute |
| action for penalties or other relief as provided for within and pursuant to those chapters. The |
| director, or the director’s authorized representatives, are empowered to hold hearings, and the |
| director or the director’s designee shall cooperate with any employee in the enforcement of a claim |
| against the employee’s employer in any case whenever, in the opinion of the director or the |
| director’s designee, the claim is just and valid. |
| (b) Upon receipt of a complaint or conducting an inspection under applicable law, the |
| director, or the director’s appropriate departmental designee, is authorized to investigate to |
| determine compliance with this chapter and chapter 12 of this title. The director or designee shall |
| forward all complaints to the investigatory team within the department of labor and training who |
| shall conduct the initial screening, investigation, and field audits, as set forth in § 28-14-19.1. |
| (c) With respect to all complaints deemed just and valid by the investigatory team, the |
| director, or the director’s designee, 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, business, corporation, or entity of any kind affected thereby. The hearing shall |
| be scheduled within thirty (30) days of in a reasonable and timely manner, not to exceed one |
| hundred twenty (120) days after service of a formal complaint as provided herein. The person, |
| business, corporation, or entity shall have an opportunity to be heard in respect to the matters |
| complained of at the time and place specified in the notice. The hearing shall be conducted by the |
| director or the director’s 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 thirty (30) days of in a reasonable and timely manner, not to exceed one |
| hundred twenty (120) days after 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 complaint or direct payment of any wages and/or benefits found to be due |
| and/or award such other appropriate relief or penalties authorized under this chapter and chapter 12 |
| of this title, and the order may direct payment of reasonable attorney’s fees and costs to the |
| complaining party. Interest at the rate of twelve percent (12%) per annum shall be awarded in the |
| order from the date of the nonpayment to the date of payment. |
| (d) The order shall also require payment of a further sum as a civil penalty in an amount |
| up to two (2) times the total wages and/or benefits found to be due, exclusive of interest, which |
| shall be shared equally between the department and the aggrieved party. In determining the amount |
| of any penalty to impose, the director, or the director’s designee, shall consider the size of the |
| employer’s business, the good faith of the employer, the gravity of the violation, the previous |
| violations, and whether or not the violation was an innocent mistake or willful. |
| (e) The director may institute any action to recover unpaid wages or other compensation or |
| obtain relief as provided under this section with or without the consent of the employee or |
| employees affected. |
| (f) No agreement between the employee and employer to work for less than the applicable |
| wage and/or benefit rate or to otherwise work under conditions in violation of applicable law is a |
| defense to an action brought pursuant to this section. |
| (g) The director shall notify the contractors’ registration board of any order issued or any |
| determination hereunder that an employer has violated this chapter, chapter 12 of this title, or |
| chapter 13 of title 37. The director shall notify the tax administrator of any determination hereunder |
| that may affect liability for an employer’s payment of wages and/or payroll taxes. |
| SECTION 2. Section 37-13-14.1 of the General Laws in Chapter 37-13 entitled "Labor and |
| Payment of Debts by Contractors" is hereby amended to read as follows: |
| 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 herthe director’s 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 after 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. 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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| LC005370 |
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