Bill Text: IA HF503 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act requiring the payment of local prevailing wage rates to persons working on public improvements for public bodies, providing remedies and penalties, and including effective date provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-02 - Introduced, referred to Labor. H.J. 501. [HF503 Detail]
Download: Iowa-2017-HF503-Introduced.html
House File 503 - Introduced HOUSE FILE BY HUNTER A BILL FOR 1 An Act requiring the payment of local prevailing wage rates to 2 persons working on public improvements for public bodies, 3 providing remedies and penalties, and including effective 4 date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1943YH (3) 87 je/rj PAG LIN 1 1 Section 1. Section 84A.5, subsection 4, Code 2017, is 1 2 amended to read as follows: 1 3 4. The division of labor services is responsible for the 1 4 administration of the laws of this state under chapters 88, 1 5 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92, 1 6 and 94A, and section 85.68. The executive head of the division 1 7 is the labor commissioner, appointed pursuant to section 91.2. 1 8 Sec. 2. Section 91.4, subsection 2, Code 2017, is amended 1 9 to read as follows: 1 10 2. The director of the department of workforce development, 1 11 in consultation with the labor commissioner, shall, at the 1 12 time provided by law, make an annual report to the governor 1 13 setting forth in appropriate form the business and expense of 1 14 the division of labor services for the preceding year, the 1 15 number of remedial actions taken under chapter 89A, the number 1 16 of disputes or violations processed by the division and the 1 17 disposition of the disputes or violations, and other matters 1 18 pertaining to the division which are of public interest, 1 19 together with recommendations for change or amendment of the 1 20 laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B, 1 21 90A, 91A, 91C, 91D, 91E, 91F, 92, and 94A, and section 85.68, 1 22 and the recommendations, if any, shall be transmitted by the 1 23 governor to the first general assembly in session after the 1 24 report is filed. 1 25 Sec. 3. NEW SECTION. 91F.1 Short title. 1 26 This chapter shall be known and may be cited as the "Public 1 27 Improvement Quality Protection Act". 1 28 Sec. 4. NEW SECTION. 91F.2 Public policy. 1 29 It is in the public interest that public improvements 1 30 are completed by the best means and highest quality of labor 1 31 reasonably available, and that workers working on public 1 32 improvements be compensated according to the real value of the 1 33 services they perform. It is the policy of this state that the 1 34 wages of workers working on public improvements should be at 1 35 least equal to the prevailing wage rates paid for similar work 2 1 by responsible contractors in the community as a whole in order 2 2 to accomplish all of the following: 2 3 1. Protect workers and their contractors and subcontractors 2 4 from the effects of serious and unfair competition resulting 2 5 from wage levels detrimental to efficiency and well=being. 2 6 2. Ensure that contractors compete with one another 2 7 on the basis of the ability to perform work competently 2 8 and efficiently while maintaining community=established 2 9 compensation standards. 2 10 3. Recognize that local participation in public 2 11 improvements and family wage income and benefits are essential 2 12 to the protection of community standards. 2 13 4. Encourage training and education of workers to industry 2 14 skills standards. 2 15 5. Encourage contractors and subcontractors to use funds 2 16 allocated for employee fringe benefits for the actual purchase 2 17 of those benefits. 2 18 Sec. 5. NEW SECTION. 91F.3 Definitions. 2 19 As used in this chapter, unless the context otherwise 2 20 requires: 2 21 1. "Commissioner" means the labor commissioner appointed 2 22 pursuant to section 91.2. 2 23 2. "Contractor" or "subcontractor" means a person who 2 24 undertakes, offers to undertake, purports to have the capacity 2 25 to undertake, or submits a bid, individually or through others, 2 26 to engage in a public improvement. 2 27 3. "Custom fabrication" means the fabrication of plumbing, 2 28 heating, cooling, ventilation, architectural systems, 2 29 structural systems, exhaust duct systems, or mechanical 2 30 insulation. 2 31 4. "Division" means the division of labor of the department 2 32 of workforce development. 2 33 5. a. "Fringe benefits" means the following for the 2 34 provision or purchase of any of the benefits enumerated in 2 35 paragraph "b": 3 1 (1) The contribution irrevocably made by a contractor or 3 2 subcontractor to a trustee or to a third person pursuant to a 3 3 plan, fund, or program. 3 4 (2) The costs to the contractor or subcontractor which 3 5 may be reasonably anticipated in providing benefits to 3 6 workers pursuant to an enforceable commitment to carry out a 3 7 financially responsible plan or program, given in writing to 3 8 the workers affected. 3 9 b. (1) Medical or hospital care. 3 10 (2) Pensions or annuities on retirement or death. 3 11 (3) Supplemental unemployment benefits. 3 12 (4) Life insurance. 3 13 (5) Disability and sickness insurance. 3 14 (6) Accident insurance for nonwork=related accidents. 3 15 (7) Vacation or holiday pay. 3 16 (8) Defraying costs of apprenticeship programs approved by 3 17 and registered with the United States department of labor's 3 18 office of apprenticeship. 3 19 6. "Interested party" means any of the following: 3 20 a. A contractor who submits a bid for the purpose of 3 21 securing the award of a contract for a public improvement. 3 22 b. A subcontractor of a contractor mentioned in a bid 3 23 referred to in paragraph "a". 3 24 c. A worker employed by a contractor or subcontractor 3 25 described in either paragraph "a" or "b". 3 26 d. A labor organization that represents workers engaged 3 27 in the same craft or classification as workers employed by a 3 28 contractor or subcontractor described in either paragraph "a" 3 29 or "b" and that exists, in whole or in part, for the purpose 3 30 of negotiating with employers concerning the wages, hours, or 3 31 terms and conditions of employment of employees. 3 32 e. A joint labor=management committee established pursuant 3 33 to the federal Labor Management Cooperation Act of 1978, 29 3 34 U.S.C. {175a. 3 35 7. "Locality" means a county of this state. 4 1 8. "Maintenance work" means the repair of existing public 4 2 improvements when the size, type, or extent of the public 4 3 improvement is not changed or increased. 4 4 9. "Prevailing wage rate" means the hourly wage plus 4 5 fringe benefits, which the commissioner determines prevails in 4 6 accordance with this chapter, including all of the following: 4 7 a. Apprentice ratios and the prevailing apprentice pay 4 8 levels for each craft, classification, or type of worker which 4 9 the commissioner determines prevails in accordance with section 4 10 91F.5. 4 11 b. A prevailing rate for overtime pay for work in excess 4 12 of the normal prevailing workday and for weekend overtime pay 4 13 for each craft, classification, or type of worker, including 4 14 apprentices. 4 15 c. Holiday pay for holidays that prevail in the locality in 4 16 which the work is being performed. 4 17 10. "Public body" means the state and any of its political 4 18 subdivisions, including but not limited to a county, city, 4 19 township, school district, state board of regents, and public 4 20 utility. For the purposes of this chapter, "public utility" 4 21 includes municipally owned utilities and municipally owned 4 22 waterworks. 4 23 11. a. "Public improvement" means any of the following that 4 24 meets the criteria set out in paragraphs "b" and "c": 4 25 (1) Construction, alteration, reconstruction, repair, 4 26 rehabilitation, refinishing, refurbishing, remodeling, 4 27 renovation, custom fabricating, maintenance, landscaping, 4 28 improving, moving, wrecking, painting, decorating, or 4 29 demolishing of, or adding to or subtracting from any building, 4 30 structure, highway, road, street, bridge, alley, sewer, ditch, 4 31 sewage disposal plant, waterworks, parking facility, railroad, 4 32 excavation or other structure, project, development, or 4 33 improvement, or any part thereof undertaken by a public body, 4 34 including any of the following related activities: 4 35 (a) The erection of scaffolding or other structures or 5 1 works. 5 2 (b) The maintenance, repair, assembly, or disassembly of 5 3 equipment. 5 4 (c) The testing of materials. 5 5 (d) The hauling of refuse from a site to an outside disposal 5 6 location. 5 7 (e) The cleaning of grounds or structures. 5 8 (f) The addition to or fabrication into any structure, 5 9 project, development, or improvement of any material or article 5 10 of merchandise undertaken by a public body. 5 11 (2) The preparation and removal of roadway construction 5 12 zones, lane closures, flagging, or traffic diversions 5 13 undertaken by a public body. 5 14 (3) The installation, repair, maintenance, or calibration 5 15 of monitoring equipment for underground storage tanks 5 16 undertaken by a public body. 5 17 (4) Work that is performed on any property or premises 5 18 dedicated exclusively or nearly so to the completion of a 5 19 public improvement, and transportation of supplies, material, 5 20 and equipment to or from the property or premises undertaken 5 21 by a public body. 5 22 b. Work on the public improvement is performed under public 5 23 supervision or direction, and the work is financed wholly or 5 24 in part from public funds, or if at the time of commencement 5 25 of the public improvement all of the following conditions with 5 26 respect to the public improvement are met: 5 27 (1) Not less than fifty=five percent of the structure is 5 28 leased by a public body, or is subject to an agreement to be 5 29 subsequently leased by a public body. 5 30 (2) The portion of the structure that is leased or subject 5 31 to an agreement to be subsequently leased by a public body 5 32 measures more than twenty thousand square feet. 5 33 c. The public improvement has an estimated total cost that 5 34 exceeds twenty=five thousand dollars. 5 35 12. "Worker" means an individual who performs any 6 1 labor or service for a contractor or subcontractor on a 6 2 public improvement but does not include an individual when 6 3 transporting a seller, supplier, manufacturer, or processor of 6 4 materials or equipment. The individual is deemed an employee 6 5 of a contractor or subcontractor unless all of the following 6 6 apply: 6 7 a. The individual provides labor or services free from the 6 8 direction or control over the means and manner of providing the 6 9 labor or services, subject only to the right of the person for 6 10 whom the labor or services are provided to specify the desired 6 11 results. 6 12 b. The individual providing the labor or services is 6 13 responsible for obtaining business registrations or licenses 6 14 required by state law or local ordinance to provide the labor 6 15 or services. 6 16 c. The individual providing the labor or services furnishes 6 17 the tools and equipment necessary to provide the labor or 6 18 services. 6 19 d. The individual providing the labor or services has the 6 20 authority to hire and fire employees to perform the labor or 6 21 services. 6 22 e. Payment for the labor or services is made upon 6 23 completion of the performance of specific portions of a public 6 24 improvement, or is made on the basis of a periodic retainer. 6 25 f. The individual providing the labor or services represents 6 26 to the public that the labor or services are to be provided 6 27 by an independently established business. An individual is 6 28 engaged in an independently established business when four or 6 29 more of the following circumstances exist: 6 30 (1) Labor or services are primarily performed at a location 6 31 separate from the individual's residence or in a specified 6 32 portion of the residence that is set aside for performing labor 6 33 or services. 6 34 (2) Commercial advertising or business cards are purchased 6 35 by the individual, or the individual is a member of a trade or 7 1 professional association. 7 2 (3) Telephone or electronic mail listings used by the 7 3 individual for the labor or services are different from the 7 4 individual's personal listings. 7 5 (4) Labor or services are performed only pursuant to a 7 6 written contract. 7 7 (5) Labor or services are performed for two or more persons 7 8 or entities within a period of one year. 7 9 (6) The individual assumes financial responsibility 7 10 for errors and omissions in the performance of the labor or 7 11 services as evidenced by insurance, performance bonds, and 7 12 warranties relating to the labor or services provided. 7 13 Sec. 6. NEW SECTION. 91F.4 Administration ==== rules. 7 14 1. The commissioner and the division shall administer this 7 15 chapter. 7 16 2. The commissioner shall adopt rules pursuant to chapter 7 17 17A to administer this chapter. 7 18 Sec. 7. NEW SECTION. 91F.5 Determination of prevailing 7 19 wages. 7 20 1. The commissioner shall determine annually and publish, 7 21 on the first business day of July, the prevailing wage rates 7 22 by locality for each craft, classification, or type of worker 7 23 needed to perform work on public improvements. The rates shall 7 24 be conclusive for one year from the date of publication unless 7 25 superseded within the one year by a later publication of the 7 26 commissioner, or for a longer period as provided in subsection 7 27 5. 7 28 2. The commissioner shall announce all prevailing wage rate 7 29 determinations by locality and give notice by posting them 7 30 on the portion of the department of workforce development's 7 31 internet site related to the division. A printed version of 7 32 the prevailing wage rates for the state shall be available to 7 33 the public upon request to the division. 7 34 3. The public body awarding any contract for a public 7 35 improvement, or otherwise undertaking any public improvement, 8 1 shall obtain from the internet site the prevailing wage rate 8 2 in the locality in which work on the public improvement is 8 3 to be performed for each craft, classification, or type of 8 4 worker needed to perform work on the public improvement. 8 5 After a public improvement contract is awarded, or a public 8 6 improvement is otherwise undertaken, the prevailing wage 8 7 rate published by the commissioner and stated in the public 8 8 body's public improvement procurement documents shall remain 8 9 in effect throughout the duration of the public improvement 8 10 unless superseded by a later determination and publication by 8 11 the commissioner, or unless multiyear prevailing wage rates 8 12 have been published by the commissioner at the time the public 8 13 improvement procurement documents were released. 8 14 4. a. In determining the annual prevailing wage rate 8 15 for any craft, classification, or type of worker, the 8 16 commissioner shall ascertain and consider the applicable 8 17 wage rates and fringe benefits established by collective 8 18 bargaining agreements, the prevailing wage rate determinations 8 19 that may exist for federal public improvements within the 8 20 locality and other data obtained by the department during any 8 21 prevailing wage rate survey of contractors who participate in 8 22 an apprenticeship program approved by and registered with the 8 23 United States department of labor's office of apprenticeship, 8 24 who provide health insurance and retirement benefits for their 8 25 workers, and who are registered with the division. Based 8 26 upon these considerations, the commissioner shall calculate 8 27 the prevailing wage rates based on the wage rate plus fringe 8 28 benefits most often occurring for each craft, classification, 8 29 or other type of worker within each locality. 8 30 b. The minimum annual prevailing wage rate determination 8 31 established by the department shall not be lower than the 8 32 prevailing wage rate determination that may exist for federal 8 33 public improvements within the locality and in the nearest 8 34 labor market area. 8 35 c. None of the fringe benefits enumerated in this chapter 9 1 may be considered in the determination of prevailing wage 9 2 rates if the contractor or subcontractor is required by other 9 3 federal, state, or local law to provide such fringe benefits. 9 4 5. If the commissioner determines that the prevailing 9 5 wage rate for any craft, classification, or type of worker 9 6 is the rate established by a collective bargaining agreement 9 7 applicable in the locality, the commissioner may adopt that 9 8 rate by reference and that determination shall be effective 9 9 for the life of the agreement or until the commissioner adopts 9 10 another rate. 9 11 6. a. At any time within fifteen days after the division 9 12 has published on the department of workforce development's 9 13 internet site the annual prevailing wage rates for each 9 14 classification, craft, or other type of worker in the locality, 9 15 any interested person affected may object to the determination 9 16 or the part of the determination as the interested person 9 17 may deem objectionable by filing a written notice with the 9 18 commissioner by restricted certified mail as defined in 9 19 section 618.15. When objecting to a prevailing wage rate 9 20 determination, the interested person shall submit, as a 9 21 part of the written notice, the prevailing wage rate the 9 22 interested person believes to be the correct prevailing wage 9 23 rate determination, stating the specific grounds to support 9 24 that position. Upon receipt of the notice of objection, the 9 25 commissioner shall reconsider the determination and shall 9 26 affirm or modify the determination and reply in writing by 9 27 restricted certified mail to the interested person within 9 28 fifteen days from the date of the receipt of the notice of 9 29 objection. Any modification to the prevailing wage rate 9 30 determination shall be effective on the date the modification 9 31 is published by the commissioner. 9 32 b. If the commissioner declines to modify the determination, 9 33 within ten days upon receiving receipt of the commissioner's 9 34 decision, the interested person affected may submit in writing 9 35 the objection to the division by restricted certified mail, 10 1 stating the specified grounds of the objection. The department 10 2 of inspections and appeals shall be notified of the objection 10 3 and set a date for a hearing before an administrative law judge 10 4 on the objection, after giving notice by restricted certified 10 5 mail to the interested person and the division at least ten 10 6 days before the date of the hearing of the time and place of 10 7 the hearing. The hearing shall be held within forty=five days 10 8 after the objection is filed, and shall not be postponed or 10 9 reset for a later date except upon the consent, in writing, of 10 10 the interested person and the division. 10 11 7. The party requesting a hearing shall have the burden of 10 12 establishing that the annual prevailing wage rate determination 10 13 for that locality was not determined in accordance with this 10 14 chapter. If the party requesting a hearing under this section 10 15 objects to the commissioner's failure to include a craft, 10 16 classification, or type of worker within the annual prevailing 10 17 wage rate determination in the locality, the objector shall 10 18 have the burden of establishing that there is no existing 10 19 prevailing wage rate classification for the particular craft, 10 20 classification, or type of worker in any of the localities 10 21 under consideration. 10 22 8. The administrative law judge may in the administrative 10 23 law judge's discretion hear each written objection filed 10 24 separately or consolidate for hearing any one or more written 10 25 objections filed with the division. At the hearing, the 10 26 division shall introduce into evidence the investigation it 10 27 instituted which formed the basis of its determination, and the 10 28 division or any interested objectors may introduce evidence 10 29 that is material to the determination. The administrative 10 30 law judge shall rule upon each written objection and make a 10 31 final determination, as the administrative law judge believes 10 32 the evidence warrants, and promptly serve a copy of the final 10 33 determination by personal service or restricted certified mail 10 34 on all parties to the proceedings. The administrative law 10 35 judge shall render a final determination within thirty days 11 1 after the conclusion of the hearing. 11 2 9. If proceedings to review judicially the final 11 3 determination of the administrative law judge are not 11 4 instituted as provided in this section, the determination 11 5 shall be final and binding. The provisions of section 17A.19 11 6 shall apply to and govern all proceedings. Appeals from all 11 7 final orders and judgments entered by the court in review of 11 8 the final determination of the administrative law judge may be 11 9 taken by any party to the action. In all reviews or appeals 11 10 under this chapter, the attorney general shall represent the 11 11 division and defend its determination. 11 12 10. This section does not give reason or provide cause for 11 13 an injunction to halt or delay any public improvement. 11 14 Sec. 8. NEW SECTION. 91F.6 Payment of prevailing wages 11 15 required. 11 16 1. Contractors and subcontractors engaged in a public 11 17 improvement shall pay not less than the current specified 11 18 prevailing wage rates to all of their workers engaged in the 11 19 public improvement. However, this chapter does not prohibit 11 20 the payment of more than the prevailing wage rate to any 11 21 workers engaged in a public improvement. 11 22 2. All contractors and subcontractors required to pay the 11 23 prevailing wage rate under this chapter shall pay the wages 11 24 in legal tender, without any deduction for food, sleeping 11 25 accommodations, transportation, use of tools or safety 11 26 equipment, vehicle or equipment rental, or any other thing of 11 27 any kind or description. 11 28 Sec. 9. NEW SECTION. 91F.7 Requirements for public 11 29 improvements. 11 30 1. The public body awarding a contract for a public 11 31 improvement or otherwise undertaking a public improvement shall 11 32 specify in the call for bids for the contract that this chapter 11 33 applies to the public improvement. 11 34 2. If a public improvement requires the payment of 11 35 prevailing wage rates, the public body shall require the 12 1 contractor to execute a written instrument that not less 12 2 than the prevailing wage rate shall be paid to all workers 12 3 performing work on the public improvement. The written 12 4 instrument shall also contain a provision that if it is found 12 5 that any of the contractor's workers engaged in the public 12 6 improvement have been paid at a wage rate less than the 12 7 prevailing wage rate required by this chapter, the public body 12 8 may terminate the contractor's right to proceed with the work 12 9 and the contractor and its sureties shall be liable to the 12 10 public body for any excess costs occasioned by the failure to 12 11 pay the prevailing wage rate. The written instrument shall 12 12 have attached a list of the specified prevailing wage rates 12 13 for all crafts, classifications, or types of workers in the 12 14 locality for each worker needed to be included in the contract 12 15 for the public improvement. 12 16 3. If a contract is let for a public improvement requiring 12 17 the payment of prevailing wage rates, the public body 12 18 awarding the contract shall cause to be inserted in the public 12 19 improvement specifications and contract a stipulation that 12 20 not less than the prevailing wage rate shall be paid to all 12 21 workers performing work under the contract. The contract 12 22 shall also contain a provision to the effect that if it is 12 23 found that any of the contractor's workers engaged in the 12 24 public improvement have been paid at a wage rate less than the 12 25 prevailing wage rate required by this chapter, the public body 12 26 may terminate the contractor's right to proceed with the work 12 27 and the contractor and its sureties shall be liable to the 12 28 public body for any excess costs occasioned by the failure to 12 29 pay the prevailing wage rate. All bid specifications shall 12 30 list the specified prevailing wage rates for all crafts, 12 31 classifications, or types of workers in the locality for each 12 32 worker needed to be included in the contract. 12 33 4. If a public improvement requires the payment of 12 34 prevailing wage rates, the contractor shall require any 12 35 subcontractors engaged by the contractor on the public 13 1 improvement to execute a written instrument that not less 13 2 than the prevailing wage rates shall be paid to all workers 13 3 performing work on the public improvement. The written 13 4 instrument shall also contain a provision that if it is 13 5 found that any of the subcontractor's workers engaged in the 13 6 public improvement have been paid at a wage rate less than the 13 7 prevailing wage rate required by this chapter, the public body 13 8 may terminate the subcontractor's right to proceed with the 13 9 work and the subcontractor and its sureties shall be liable to 13 10 the public body for any excess costs occasioned by the failure 13 11 to pay the prevailing wage rate. The written instrument shall 13 12 have attached a list of the specified prevailing wage rates 13 13 for all crafts, classifications, or types of workers in the 13 14 locality for each worker needed to be included in the contract. 13 15 5. If a subcontract is let for a public improvement 13 16 requiring the payment of the prevailing wage rate, the 13 17 contractor to whom the contract is awarded shall insert 13 18 into the subcontract and into the public improvement project 13 19 specifications for each subcontract a written stipulation that 13 20 not less than the prevailing wage rate shall be paid to all 13 21 workers performing work under the subcontract. A subcontractor 13 22 shall insert into each lower=tiered subcontract a stipulation 13 23 that not less than the prevailing wage rate shall be paid 13 24 to all workers performing work under the subcontract. The 13 25 subcontract shall also contain a provision that if it is 13 26 found that any of the subcontractor's workers engaged in the 13 27 public improvement have been paid at a wage rate less than the 13 28 prevailing wage rate required by this chapter, the public body 13 29 may terminate the subcontractor's right to proceed with the 13 30 work and the subcontractor and its sureties shall be liable to 13 31 the public body for any excess costs occasioned by the failure 13 32 to pay the prevailing wage rate. All bid specifications shall 13 33 list the specified prevailing wage rates for all crafts, 13 34 classifications, or types of workers in the locality for each 13 35 worker needed to be included in the subcontract. 14 1 6. A contractor or subcontractor engaging in a public 14 2 improvement shall submit a performance bond in an amount 14 3 determined by the public body which bond shall include a 14 4 provision that will guarantee the payment of the prevailing 14 5 wage rates as required by the contract. 14 6 7. Before final payment is made by or on behalf of a public 14 7 body of any sum or sums due on a public improvement, the 14 8 treasurer of the public body or other officer or person charged 14 9 with the custody and disbursement of the funds of the public 14 10 body shall require the contractor and subcontractor to file a 14 11 written statement with the public body, in a form satisfactory 14 12 to the division, certifying to the amounts then due and owing 14 13 from the contractor and subcontractor to any and all workers 14 14 for wages due on account of the public improvement, setting 14 15 forth the names of the persons whose wages are unpaid and 14 16 the amount due to each respectively. The statement shall be 14 17 verified by the oath of the contractor or subcontractor, as the 14 18 case may be, that the contractor or subcontractor has read the 14 19 statement certified by the contractor or subcontractor, knows 14 20 the contents, and that the statement is true in accordance with 14 21 the contractor's or subcontractor's own knowledge. However, 14 22 this chapter shall not impair the right of a contractor to 14 23 receive final payment from a public body because of the failure 14 24 of a subcontractor to comply with provisions of this chapter. 14 25 The treasurer of the public body or other officer or person 14 26 charged with the custody and disbursement of the funds of the 14 27 public body shall withhold the amount, if any, listed on the 14 28 verified statement filed pursuant to this section for the 14 29 benefit of the worker whose wages are unpaid as shown by the 14 30 verified statement filed by the contractor or subcontractor, 14 31 and the public body shall pay directly to any worker the amount 14 32 shown by the statement to be due to the worker for the wages. 14 33 Payment shall discharge the obligation of the contractor or 14 34 subcontractor to the person receiving the payment to the extent 14 35 of the amount of the payment. 15 1 8. The public body awarding a contract for a public 15 2 improvement or otherwise undertaking a public improvement shall 15 3 notify the commissioner in writing, on a form prescribed by 15 4 the commissioner, if a contract subject to the provisions of 15 5 this chapter has been awarded. The public body shall file 15 6 the notification with the commissioner within thirty days 15 7 after the contract is awarded or before commencement of the 15 8 public improvement, and shall include a list of all first=tier 15 9 subcontractors. 15 10 Sec. 10. NEW SECTION. 91F.8 Federal public improvements 15 11 ==== not applicable. 15 12 The provisions of this chapter shall not be applicable 15 13 to public improvements financed entirely by federal funds 15 14 which require a prevailing wage rate determination by the 15 15 United States department of labor. However, unless a federal 15 16 provision applies, if a public improvement is financed in part 15 17 by a public body and in part by federal funds, the higher of the 15 18 prevailing wage rates shall prevail for the public improvement. 15 19 Sec. 11. NEW SECTION. 91F.9 Records required. 15 20 1. While participating in a public improvement, the 15 21 contractor and each subcontractor shall do all of the 15 22 following: 15 23 a. Make and keep, for a period of not less than three years, 15 24 accurate records of all workers employed by the contractor or 15 25 subcontractor on the public improvement. The records shall 15 26 include each worker's name, address, telephone number when 15 27 available, social security number, trade classification, the 15 28 hourly wages paid in each pay period, the number of hours 15 29 worked each day, and the starting and ending times of work each 15 30 day. 15 31 b. Submit weekly a certified payroll to the public body 15 32 in charge of the public improvement. The certified payroll 15 33 shall consist of a complete copy of the records identified in 15 34 paragraph "a". The certified payroll shall be accompanied by a 15 35 statement signed by the contractor or subcontractor which avers 16 1 that the records are true and accurate and the hourly wages 16 2 paid to each worker are not less than the prevailing wage rate 16 3 required by this chapter. 16 4 2. The public body in charge of the public improvement 16 5 shall keep the records submitted in accordance with subsection 16 6 1, paragraph "b", for a period of not less than three years. 16 7 The records shall be considered public records and be made 16 8 available in accordance with chapter 22. Personal information 16 9 submitted in accordance with subsection 1, paragraph "a", 16 10 including names, addresses, social security numbers, telephone 16 11 numbers, and other identifying information shall remain 16 12 confidential and shall not be made public. 16 13 3. The contractor and each subcontractor shall make 16 14 available for inspection the records identified in subsection 16 15 1, paragraph "a", to the public body in charge of the public 16 16 improvement, its officers and agents, and to the division. 16 17 4. For the purpose of verifying the accuracy of the records 16 18 submitted pursuant to this section, the contractor and each 16 19 subcontractor shall make its workers available at the site of 16 20 the public improvement for interview by the public body in 16 21 charge of the public improvement, its officers and agents, and 16 22 the division. 16 23 5. Contractors and subcontractors performing work on public 16 24 improvements subject to this chapter shall post the prevailing 16 25 wage rates for each craft, classification, or type of workers 16 26 involved in the public improvement in a prominent and easily 16 27 accessible place at the site of the public improvement or at 16 28 the place or places used by the contractor or subcontractor to 16 29 pay workers their wages. 16 30 Sec. 12. NEW SECTION. 91F.10 Powers of commissioner. 16 31 The commissioner shall do all of the following: 16 32 1. Inquire diligently about any complaint of a violation of 16 33 this chapter, institute actions for penalties prescribed, and 16 34 enforce generally the provisions of this chapter. 16 35 2. Sue for injunctive relief against the awarding of a 17 1 contract, the undertaking of a public improvement, or the 17 2 continuation of a public improvement when the prevailing wage 17 3 rate requirements of this chapter have not been met. 17 4 3. Investigate and ascertain the wages of workers engaged in 17 5 any public improvement in this state. 17 6 4. a. Enter and inspect the place of business or employment 17 7 of a contractor, subcontractor, or workers employed on a public 17 8 improvement in this state, for the purpose of examining and 17 9 inspecting books, registers, payrolls, and other records of a 17 10 contractor or subcontractor that in any way relate to or have a 17 11 bearing upon the question of wages, hours, and other conditions 17 12 of employment of workers covered under this chapter. 17 13 b. Copy the books, registers, payrolls, and other 17 14 records as the commissioner or the commissioner's authorized 17 15 representative deems necessary or appropriate. 17 16 c. Question the workers for the purpose of ascertaining 17 17 whether the provisions of this chapter have been and are being 17 18 complied with. 17 19 d. Administer oaths, take or cause to be taken depositions 17 20 of witnesses, and require by subpoena the attendance and 17 21 testimony of witnesses and the production of all books, 17 22 registers, payrolls, and other evidence relative to the matter 17 23 under investigation or hearing. 17 24 5. Require from a contractor or subcontractor full and 17 25 correct statements in writing, including sworn statements, 17 26 with respect to wages, hours, names, addresses, and other 17 27 information pertaining to its workers and their employment, 17 28 as the commissioner or the commissioner's authorized 17 29 representative may deem necessary or appropriate. 17 30 6. Require a contractor or subcontractor to file, within 17 31 ten days of receipt of a request, any records enumerated in 17 32 subsection 4, sworn as to their validity and accuracy as 17 33 required by subsection 5. If the contractor or subcontractor 17 34 fails to provide the requested records within ten days, the 17 35 commissioner may direct, within fifteen days after the end 18 1 of the ten=day period, that the fiscal or financial officer 18 2 charged with the custody and disbursements of the funds of the 18 3 public body, which contracted for construction of the public 18 4 improvement or undertook the public improvement, to immediately 18 5 withhold from payment to the contractor or subcontractor 18 6 up to twenty=five percent of the amount to be paid to the 18 7 contractor or subcontractor under the terms of the contract 18 8 or written instrument under which the public improvement is 18 9 being performed. The amount withheld shall be immediately 18 10 released upon receipt by the public body of a notice from 18 11 the commissioner indicating that the request for records as 18 12 required by this section has been satisfied. 18 13 7. If a contractor or subcontractor fails to provide 18 14 requested records in accordance with subsection 6 within ten 18 15 days, direct, within fifteen days after the end of the ten=day 18 16 period, the fiscal or financial officer charged with the 18 17 custody and disbursements of the funds of the public body, 18 18 which contracted for construction of the public improvement or 18 19 undertook the public improvement, to pay directly to workers 18 20 employed by the contractor or subcontractor from the amount 18 21 withheld from the contractor or subcontractor pursuant to 18 22 subsection 6 any prevailing wage rates found to be due and 18 23 payable to the workers. 18 24 8. Contract with a person registered as a public accountant 18 25 under chapter 542 to conduct an audit of a contractor, 18 26 subcontractor, or public body. 18 27 Sec. 13. NEW SECTION. 91F.11 Notice of violations. 18 28 1. For purposes of this section: 18 29 a. "Accurate records" means the payroll records required 18 30 to be submitted to the public body in charge of the public 18 31 improvement by section 91F.9. "Accurate records" also means the 18 32 hourly rate of contribution and costs paid for fringe benefits 18 33 and whether the contributions and costs of the fringe benefits 18 34 were paid into a fund or paid directly to the worker. 18 35 b. "Decision" means a determination by the division that a 19 1 single violation of this chapter has occurred, warranting the 19 2 commissioner to issue a notice of violation to a contractor or 19 3 subcontractor. 19 4 c. "Notice of second violation" is a formal written notice 19 5 issued by the division advising a contractor or subcontractor 19 6 that a second or subsequent violation has occurred within three 19 7 years from the date of the notice of a first violation. 19 8 d. "Notice of violation" means a formal written notice 19 9 issued by the division to a contractor or subcontractor 19 10 that the division has made a decision that the contractor or 19 11 subcontractor has violated this chapter. 19 12 e. "Violation" means that a contractor or subcontractor has 19 13 done one of the following: 19 14 (1) Failed or refused to pay the prevailing wage rate to one 19 15 or more workers as required by this chapter. 19 16 (2) Failed to keep accurate records as required by this 19 17 chapter. 19 18 (3) Failed to produce for the division accurate records or 19 19 produced records not in compliance with this chapter. 19 20 (4) Refused to submit records or testimony to the division 19 21 in response to a subpoena issued in accordance with this 19 22 chapter. 19 23 (5) Refused to comply with the certified payroll provision 19 24 of section 91F.9. 19 25 (6) Refused the division access, at any reasonable hour at 19 26 a location within the state, to inspect the contractor's or 19 27 subcontractor's records as required by this chapter. 19 28 (7) Failed to insert into each subcontract or lower=tiered 19 29 subcontract and into the public improvement specifications 19 30 for each subcontract or lower=tiered subcontract or provide a 19 31 written instrument if no contract exists, a written stipulation 19 32 that not less than the prevailing wage rate be paid as required 19 33 by this chapter, and a statement that if it is found that a 19 34 subcontractor's workers engaged in the public improvement have 19 35 been paid at a rate of wages less than the prevailing wage rate 20 1 required to be paid by the contract, the public body shall 20 2 terminate the subcontractor's right to proceed with the work. 20 3 (8) Failed to obtain a bond in the proper amount that 20 4 guarantees the payment of the prevailing wage rates required in 20 5 the contract. 20 6 (9) Failed to post the prevailing wage rates as required by 20 7 this chapter. 20 8 2. After receipt of a complaint or on the division's 20 9 initiative, the commissioner shall review the investigative 20 10 file to determine whether a violation has occurred for 20 11 which the contractor or subcontractor must be given notice. 20 12 All information and observations made during an audit or 20 13 investigation shall be considered and shall constitute the 20 14 basis for the division's decision that this chapter has 20 15 been violated and that a notice of violation is required 20 16 to be issued. The notice of violation shall identify the 20 17 specific violation and the amount of moneys estimated due the 20 18 division and in controversy based on reasons contained in the 20 19 investigative file. 20 20 3. In making a decision that a contractor or subcontractor 20 21 has failed to allow the commissioner access to accurate 20 22 records, the commissioner shall rely on the information 20 23 contained in the investigative file, the certified payroll 20 24 records submitted to the public body in charge of the public 20 25 improvement or any other information, and shall assess a 20 26 separate violation for each day worked by each worker on the 20 27 public improvement. Each decision of a separate violation 20 28 shall be listed in the notice of violation. 20 29 4. In determining that this chapter has been violated and 20 30 that the issuance of a notice of violation is required, the 20 31 commissioner shall base the decision on one or any combination 20 32 of the following reasons: 20 33 a. The severity of the violation, which includes the 20 34 following: 20 35 (1) The amount of wages that are determined to be underpaid 21 1 pursuant to this chapter. 21 2 (2) The activity or conduct complained of that violates the 21 3 requirements of this chapter and was not merely a technical, 21 4 nonsubstantive error. Examples of a technical error include 21 5 but are not limited to a mathematical error, bookkeeping error, 21 6 transposition of numbers, or computer or programming error. 21 7 b. The nature and duration of the present violation and the 21 8 prior history of the contractor or subcontractor related to 21 9 this history. The prior history considered shall not exceed 21 10 seven years before the date of the notice of violation. 21 11 c. Whether the contractor or subcontractor submitted 21 12 certified payroll records with the public body in charge of the 21 13 public improvement; whether the contractor or subcontractor 21 14 has kept payroll records and accurate records for three years; 21 15 and whether the contractor or subcontractor produced certified 21 16 payroll records in accordance with section 91F.9. 21 17 d. Whether the contractor or subcontractor has violated any 21 18 other provision of this chapter. 21 19 5. The notices of the first, second, and subsequent 21 20 violations shall be sent by restricted certified mail, 21 21 addressed to the last known address of the contractor or 21 22 subcontractor involved. The notices shall contain a reference 21 23 to the specific provisions of this chapter alleged to have been 21 24 violated, identify the particular public improvement involved, 21 25 identify the conduct complained of, and identify whether the 21 26 notice is a notice of a first, second, or subsequent violation, 21 27 and include a contractor's or subcontractor's statement of 21 28 liabilities. 21 29 Sec. 14. NEW SECTION. 91F.12 Violations ==== remedies and 21 30 penalties. 21 31 1. If the commissioner determines that a public body has 21 32 divided a public improvement into more than one contract for 21 33 the purpose of avoiding compliance with this chapter, the 21 34 commissioner shall issue an order compelling compliance. In 21 35 making a determination whether a public body has divided a 22 1 public improvement into more than one contract for the purpose 22 2 of avoiding compliance with this chapter, the commissioner 22 3 shall consider all of the following: 22 4 a. The physical separation of the public improvement 22 5 structures or work. 22 6 b. The timing of the work on the public improvement phases 22 7 or structures. 22 8 c. The continuity of public improvement contractors and 22 9 subcontractors working on public improvement parts or phases. 22 10 d. The manner in which the public body and the contractor 22 11 and subcontractors administer and implement work on the public 22 12 improvement. 22 13 2. A worker employed by the contractor or subcontractor who 22 14 is paid less than the specified prevailing wage rate under this 22 15 chapter shall have a private right of action for the difference 22 16 between the amount so paid and the specified prevailing wage 22 17 rate, together with costs and reasonable attorney fees as shall 22 18 be allowed by the court. 22 19 3. The contractor or subcontractor shall additionally be 22 20 liable to the division for fifty percent of the amount of 22 21 underpayments and shall be additionally liable to the worker 22 22 for punitive damages in an amount equal to five percent of the 22 23 liability to the division for underpayments for each month 22 24 following the date of payment during which underpayments remain 22 25 unpaid, together with costs and reasonable attorney fees as 22 26 shall be allowed by the court. 22 27 4. If a second or subsequent action to recover underpayments 22 28 is brought against a contractor or subcontractor within a 22 29 three=year period and the contractor or subcontractor is 22 30 found liable for underpayments to a worker, the contractor or 22 31 subcontractor shall be liable to the division for seventy=five 22 32 percent of the amount of underpayments payable as a result of 22 33 the second or subsequent action, additionally liable to the 22 34 worker for ten percent of the amount of the liability to the 22 35 division for underpayments for each month following the date 23 1 of payment during which the underpayments remain unpaid, and 23 2 further liable to the worker for triple the difference between 23 3 the amount so paid to the worker and the specified prevailing 23 4 wage rate required, together with costs and reasonable attorney 23 5 fees as shall be allowed by the court. The three=year period 23 6 begins to run from the date the contractor or subcontractor is 23 7 determined liable for the first violation. 23 8 5. The commissioner and any interested party shall also 23 9 have a right of action on behalf of a worker who has a right of 23 10 action under this chapter. An action brought to recover the 23 11 same shall be deemed to be a suit for wages, and all judgments 23 12 entered in the action shall have the same force and effect as 23 13 other judgments for wages. At the request of a worker employed 23 14 by a contractor or subcontractor who is paid less than the 23 15 prevailing wage rate required by this chapter, the commissioner 23 16 may take an assignment of the wage claim in trust for the 23 17 assigning worker and may bring any legal action necessary to 23 18 collect the claim, and the contractor or subcontractor shall 23 19 be required to pay the expenses of the division incurred in 23 20 collecting the claim. 23 21 6. In circumstances where a worker may not be available to 23 22 receive a payment or judgment, the payment due the worker shall 23 23 revert to the division after one year elapses from the time 23 24 payment was attempted to be made or judgment was rendered. 23 25 7. a. It is a violation of this chapter to do any of the 23 26 following: 23 27 (1) To request or demand, either before or after the worker 23 28 is engaged in a public improvement, that a worker pay back, 23 29 return, donate, contribute, or give any part or all of the 23 30 worker's wages, salary, or thing of value, to any person, upon 23 31 the statement, representation, or understanding that failure to 23 32 comply with the request or demand will prevent the worker from 23 33 procuring or retaining employment. 23 34 (2) To directly or indirectly pay, request, or authorize any 23 35 other person to violate this chapter. 24 1 b. This subsection does not apply to an agent or 24 2 representative of a duly constituted labor organization acting 24 3 in the collection of dues or assessments of the organization. 24 4 8. In addition to other penalties provided under this 24 5 chapter, whoever induces a worker working on a public 24 6 improvement subject to this chapter to give up or forego 24 7 any part of the prevailing wage rates to which the worker 24 8 is entitled under this chapter by threat not to employ 24 9 or by threat of dismissal from employment is guilty of a 24 10 serious misdemeanor. An agreement between the worker and the 24 11 contractor or subcontractor to work for less than the specified 24 12 prevailing wage rate shall not be a defense to criminal 24 13 prosecution. 24 14 9. a. A contract shall not be awarded by a public 24 15 body to a contractor or subcontractor who, on two separate 24 16 occasions within a three=year period, has been determined 24 17 to have violated this chapter, or to any firm, corporation, 24 18 partnership, or association in which the contractor or 24 19 subcontractor has any interest until five years have elapsed 24 20 from the date on which a final determination is rendered 24 21 finding the contractor or subcontractor in violation of this 24 22 chapter. 24 23 b. For the purposes of this subsection, "any interest" means 24 24 an interest in the entity bidding or performing work on the 24 25 public improvement, whether as an owner, partner, officer, 24 26 manager, employee, agent, consultant, or representative. "Any 24 27 interest" includes but is not limited to all instances where the 24 28 barred contractor or subcontractor receives payments, whether 24 29 cash or any other form of compensation, from any entity bidding 24 30 or performing work on the public improvement, or enters into 24 31 a contract with the entity bidding or performing work on the 24 32 public improvement for services performed or to be performed 24 33 under contract that have been or will be assigned or sublet, 24 34 or for vehicles, tools, equipment, or supplies that have been 24 35 or will be sold, rented, or leased during the period from the 25 1 initiation of the barring proceedings until the end of the term 25 2 of the barring period. "Any interest" does not include shares 25 3 held in a publicly traded corporation if the shares were not 25 4 received as compensation after the barring of an entity bidding 25 5 or performing work on a public improvement. 25 6 10. If the division determines that a contractor or 25 7 subcontractor has violated this chapter on two separate 25 8 occasions within a three=year period, the division shall list 25 9 on the department of workforce development's internet site and 25 10 keep on record the name of the contractor or subcontractor and 25 11 give notice by restricted certified mail of the list to any 25 12 public body requesting the list. 25 13 11. Upon a determination that a contractor or subcontractor 25 14 has violated this chapter on two separate occasions within a 25 15 three=year period, the division shall notify the violating 25 16 contractor or subcontractor by restricted certified mail. The 25 17 contractor or subcontractor has ten working days to request of 25 18 the division a hearing before an administrative law judge on 25 19 the alleged violation. Failure to respond within ten working 25 20 days shall result in automatic and immediate barring of the 25 21 violator from work as provided in subsection 9 and placement 25 22 and publication of the violator's name on the department of 25 23 workforce development's internet site as provided in subsection 25 24 10. If the contractor or subcontractor requests a hearing 25 25 within ten working days by restricted certified mail, the 25 26 department of inspections and appeals shall set a hearing 25 27 before an administrative law judge on the alleged violation. 25 28 The hearing shall take place no later than forty=five calendar 25 29 days after the receipt by the division of the request for a 25 30 hearing. An action by an administrative law judge constitutes 25 31 final agency action and is subject to judicial review under 25 32 section 17A.19. 25 33 12. The attorney general shall prosecute the cases 25 34 identified in this section upon complaint by the commissioner 25 35 or by any interested person. In any proceeding brought 26 1 pursuant to this section, the commissioner shall be represented 26 2 by the attorney general. 26 3 13. This section does not give reason or provide cause for 26 4 an injunction to halt or delay any public improvement. 26 5 Sec. 15. NEW SECTION. 91F.13 Apprentices. 26 6 This chapter shall not prevent the employment of apprentices 26 7 upon public improvements. However, an apprentice employed 26 8 on a public improvement must be registered with the United 26 9 States department of labor's office of apprenticeship under 26 10 an apprenticeship program registered with that office, paid 26 11 the proper wages specified in the standards of apprenticeship, 26 12 and engaged only in the trade to which the apprentice is 26 13 registered. If the apprentice is employed on a public 26 14 improvement in a trade to which the apprentice is not 26 15 registered with the United States department of labor's office 26 16 of apprenticeship, the apprentice shall be treated as any other 26 17 worker under this chapter. 26 18 Sec. 16. IMPLEMENTATION OF ACT. Section 25B.2, subsection 26 19 3, shall not apply to this Act. 26 20 Sec. 17. EFFECTIVE DATE. This Act takes effect January 1, 26 21 2018. 26 22 EXPLANATION 26 23 The inclusion of this explanation does not constitute agreement with 26 24 the explanation's substance by the members of the general assembly. 26 25 This bill requires a contractor to pay workers the same 26 26 hourly wage plus fringe benefits for a public improvement 26 27 costing more than $25,000 as prevails in the locality of the 26 28 public improvement. The bill allows the per=hour wage rate to 26 29 be based on what is normally paid in the area by contractors 26 30 for similar projects, and to be adjusted on a yearly basis by 26 31 the department of workforce development. 26 32 The wage rates that the workers must be paid shall also 26 33 include benefits such as medical care, life insurance, overtime 26 34 pay, and vacation and holiday pay. The bill applies to any 26 35 public improvement that receives money from a public body and 27 1 includes most types of public improvements from construction to 27 2 road maintenance to painting to hauling. 27 3 The labor commissioner determines the wage rates for 27 4 specific geographical areas and for specific crafts, 27 5 classifications, and types of workers. This information must 27 6 be posted on the department of workforce development's internet 27 7 site. In determining what the wage rate for a worker is, the 27 8 commissioner may consult collective bargaining agreements, wage 27 9 rate determinations for federal projects in the same area, and 27 10 other information the department may receive from contractors 27 11 who participate in an apprenticeship program approved by the 27 12 federal office of apprenticeship. 27 13 Any person affected by the wage rates has 15 days after the 27 14 department of workforce development has posted the wage rates 27 15 on its internet site to object in writing, stating the specific 27 16 reason for the objection, to the labor commissioner. The 27 17 commissioner must reconsider the determination being objected 27 18 to, and either affirm or modify it within 15 days of receiving 27 19 the objection. 27 20 If the commissioner declines to modify the determination, 27 21 within 10 days, the person affected may submit an objection in 27 22 writing to the division of labor services, stating the specific 27 23 reasons for the objection. A hearing must be set by the 27 24 department of inspections and appeals before an administrative 27 25 law judge within 45 days after the objection is filed. The 27 26 person who filed the objection must show the administrative 27 27 law judge that the wage rate was somehow made in error. The 27 28 division is required to show how it determined the wage 27 29 rate. The administrative law judge must make a decision about 27 30 the wage rate within 30 days and it is considered a final 27 31 determination. 27 32 The bill requires that contractors and subcontractors not 27 33 pay the workers less than the established wage rate but does 27 34 not prohibit them from paying the workers more than the wage 27 35 rate. The wage rate must be paid without any deductions 28 1 such as for food, sleeping quarters, use of tools, or safety 28 2 equipment. 28 3 The bill also requires the public body to monitor the 28 4 contractors and subcontractors to ensure that the wage rate 28 5 is paid. A call for bids must state that the wage rate must 28 6 be included in the bids for the public improvement. All 28 7 bids shall list the specific wage rates for each craft, 28 8 classification, and type of worker needed for the public 28 9 improvement. All contractors and subcontractors are required 28 10 to sign a contract that states they will pay workers the wage 28 11 rate determined by the division. If the contractors and 28 12 subcontractors are found to not be paying the wage rate, the 28 13 contract states that the contractor's or subcontractor's right 28 14 to work on the public improvement and get paid for work already 28 15 done may be terminated. 28 16 Before the contractor or subcontractor receives the final 28 17 payment for the public improvement, the public body overseeing 28 18 the public improvement must certify the payments include proper 28 19 amounts due the workers, and the contractor or subcontractor 28 20 must swear under oath that the records are accurate. 28 21 The bill does not apply to public improvement projects 28 22 funded by the federal government that require federal 28 23 prevailing wage rates. However, unless a federal provision 28 24 applies, if a public improvement project is financed by both a 28 25 state public body and the federal government, then the higher 28 26 of the applicable wage rates shall be paid to the workers. 28 27 The bill also requires that contractors and subcontractors 28 28 keep detailed records for at least three years about the 28 29 workers, the rates paid, and the hours worked for each 28 30 public improvement. The records are public records and must 28 31 be available for inspection. However, workers' personal 28 32 information is not available to the public for inspection. 28 33 During the public improvement, a contractor or subcontractor 28 34 must present a certified weekly payroll to demonstrate that 28 35 the correct and full wage rate is being paid to workers. The 29 1 contractors and subcontractors must make all workers available 29 2 on=site to officials for interviews so that the records' 29 3 accuracy can be checked. Contractors and subcontractors must 29 4 also post the wage rates for each craft, classification, and 29 5 type of worker in a public place where workers can see the 29 6 posting or at the place where they receive their wages. 29 7 The commissioner is given specific powers for investigation, 29 8 enforcement, and penalization. The commissioner may sue to 29 9 prevent a contractor or subcontractor from being awarded 29 10 a contract for a public improvement when the wage rate 29 11 requirements have not been met. The commissioner is given the 29 12 power to withhold payments if a contractor or subcontractor 29 13 does not produce records upon request and to pay the workers 29 14 directly if the contractor or subcontractor continues to refuse 29 15 to provide records. 29 16 After receiving a complaint, the commissioner shall 29 17 investigate whether there has been a violation. If the 29 18 commissioner determines there has been a violation, the 29 19 contractor or subcontractor must be given notice of that 29 20 violation. The notice is a formal written statement from the 29 21 department of workforce development that states the specific 29 22 violation and the amount of money due as a penalty. 29 23 If a public body has divided up a public improvement to 29 24 avoid having to pay the wage rate, the commissioner shall order 29 25 compliance. A worker who is paid less than the wage rate set by 29 26 this law can sue for the difference in payment and collect the 29 27 difference along with costs and attorney fees in court. 29 28 The contractor or subcontractor shall also have to pay the 29 29 division 50 percent of the amount of underpayment and is liable 29 30 to the worker for punitive damages of up to 5 percent of the 29 31 underpayments for each month the underpayment remains unpaid 29 32 plus costs and attorney fees. 29 33 If a second or subsequent action for underpaying a worker 29 34 is brought against a contractor or subcontractor within a 29 35 three=year period and the contractor or subcontractor is 30 1 liable, the contractor or subcontractor shall pay the division 30 2 75 percent of the amount of underpayment, is liable to the 30 3 worker for 10 percent of the penalty for underpayments for each 30 4 month following it that the underpayment remains unpaid, and 30 5 is liable to the worker for triple the difference between the 30 6 amount paid to the worker and the amount due under the wage 30 7 rate set by the commissioner plus costs and attorney fees. 30 8 The commissioner or any interested party has a right of 30 9 action on behalf of any individual who has a right of action 30 10 under the bill. The commissioner may file a lawsuit in trust 30 11 for a worker who assigns the claim and then bring legal action 30 12 to collect the claim. The contractor shall be required to pay 30 13 the expenses for collection of the claim. 30 14 The bill prohibits a person from requesting or demanding 30 15 that a worker pay back, return, donate, contribute, or give 30 16 any part or all of the worker's wages, salary, or thing of 30 17 value, to any person who asserts that failure to comply with 30 18 the request or demand will prevent the worker from procuring 30 19 or retaining employment. The bill prohibits a person from 30 20 paying, requesting, or authorizing any other person to violate 30 21 the requirements of the bill. However, these provisions do 30 22 not apply to authorized labor organization representatives 30 23 collecting dues or assessments. 30 24 In addition to other penalties under the bill, anyone who 30 25 attempts to get a worker to give up any part of compensation 30 26 on a public improvement by threat not to hire or by threat of 30 27 firing is guilty of a serious misdemeanor. Any agreement to 30 28 work for less than the determined wage rate is not a defense to 30 29 criminal prosecution. A serious misdemeanor is punishable by 30 30 confinement for no more than one year and a fine of at least 30 31 $315 but not more than $1,875. 30 32 If a contractor or subcontractor has violated the bill twice 30 33 within a three=year period, the contractor or subcontractor 30 34 or any company or group associated with the contractor or 30 35 subcontractor shall not be given any public improvement work 31 1 for five years. The department of workforce development 31 2 shall keep a list on its internet site of contractors and 31 3 subcontractors who have violated the bill twice within a 31 4 three=year period and notify public bodies by restricted 31 5 certified mail. 31 6 A contractor or subcontractor who has been notified of 31 7 the second violation has 10 days to request a hearing before 31 8 an administrative law judge. A hearing must be held within 31 9 45 days of the request. If no hearing is requested, the 31 10 contractor is barred from receiving public improvement work and 31 11 its name and information is posted on the department's internet 31 12 site. 31 13 Apprentices employed on a public improvement project must 31 14 be registered with the federal office of apprenticeship. 31 15 Apprentices must receive the wages set out in the standards of 31 16 apprenticeship and do only the work specified in the trade to 31 17 which they are apprenticed. An apprentice not registered with 31 18 the federal program shall be paid the wage rate the same as any 31 19 other worker. 31 20 The bill may include a state mandate as defined in Code 31 21 section 25B.3. The bill makes inapplicable Code section 25B.2, 31 22 subsection 3, which would relieve a political subdivision from 31 23 complying with a state mandate if funding for the cost of 31 24 the state mandate is not provided or specified. Therefore, 31 25 political subdivisions are required to comply with any state 31 26 mandate included in the bill. 31 27 The bill takes effect January 1, 2018. LSB 1943YH (3) 87 je/rj
