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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