Bill Text: IA HF28 | 2019-2020 | 88th 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) 2020-01-22 - Subcommittee reassigned: Upmeyer, Dolecheck and Hunter. H.J. 120. [HF28 Detail]

Download: Iowa-2019-HF28-Introduced.html
House File 28 - Introduced HOUSE FILE 28 BY HUNTER A BILL FOR An Act requiring the payment of local prevailing wage rates to 1 persons working on public improvements for public bodies, 2 providing remedies and penalties, and including effective 3 date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1451YH (1) 88 je/rn
H.F. 28 Section 1. Section 84A.5, subsection 4, Code 2019, is 1 amended to read as follows: 2 4. The division of labor services is responsible for the 3 administration of the laws of this state under chapters 88 , 4 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 5 and 94A , and sections 73A.21 and 85.68 . The executive head of 6 the division is the labor commissioner, appointed pursuant to 7 section 91.2 . 8 Sec. 2. Section 91.4, subsection 2, Code 2019, is amended 9 to read as follows: 10 2. The director of the department of workforce development, 11 in consultation with the labor commissioner, shall, at the 12 time provided by law, make an annual report to the governor 13 setting forth in appropriate form the business and expense of 14 the division of labor services for the preceding year, the 15 number of remedial actions taken under chapter 89A , the number 16 of disputes or violations processed by the division and the 17 disposition of the disputes or violations, and other matters 18 pertaining to the division which are of public interest, 19 together with recommendations for change or amendment of the 20 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 21 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 22 and the recommendations, if any, shall be transmitted by the 23 governor to the first general assembly in session after the 24 report is filed. 25 Sec. 3. NEW SECTION . 91F.1 Short title. 26 This chapter shall be known and may be cited as the “Public 27 Improvement Quality Protection Act” . 28 Sec. 4. NEW SECTION . 91F.2 Public policy. 29 It is in the public interest that public improvements 30 are completed by the best means and highest quality of labor 31 reasonably available, and that workers working on public 32 improvements be compensated according to the real value of the 33 services they perform. It is the policy of this state that the 34 wages of workers working on public improvements should be at 35 -1- LSB 1451YH (1) 88 je/rn 1/ 31
H.F. 28 least equal to the prevailing wage rates paid for similar work 1 by responsible contractors in the community as a whole in order 2 to accomplish all of the following: 3 1. Protect workers and their contractors and subcontractors 4 from the effects of serious and unfair competition resulting 5 from wage levels detrimental to efficiency and well-being. 6 2. Ensure that contractors compete with one another 7 on the basis of the ability to perform work competently 8 and efficiently while maintaining community-established 9 compensation standards. 10 3. Recognize that local participation in public 11 improvements and family wage income and benefits are essential 12 to the protection of community standards. 13 4. Encourage training and education of workers to industry 14 skills standards. 15 5. Encourage contractors and subcontractors to use funds 16 allocated for employee fringe benefits for the actual purchase 17 of those benefits. 18 Sec. 5. NEW SECTION . 91F.3 Definitions. 19 As used in this chapter, unless the context otherwise 20 requires: 21 1. “Commissioner” means the labor commissioner appointed 22 pursuant to section 91.2. 23 2. “Contractor” or “subcontractor” means a person who 24 undertakes, offers to undertake, purports to have the capacity 25 to undertake, or submits a bid, individually or through others, 26 to engage in a public improvement. 27 3. “Custom fabrication” means the fabrication of plumbing, 28 heating, cooling, ventilation, architectural systems, 29 structural systems, exhaust duct systems, or mechanical 30 insulation. 31 4. “Division” means the division of labor of the department 32 of workforce development. 33 5. a. “Fringe benefits” means the following for the 34 provision or purchase of any of the benefits enumerated in 35 -2- LSB 1451YH (1) 88 je/rn 2/ 31
H.F. 28 paragraph “b” : 1 (1) The contribution irrevocably made by a contractor or 2 subcontractor to a trustee or to a third person pursuant to a 3 plan, fund, or program. 4 (2) The costs to the contractor or subcontractor which 5 may be reasonably anticipated in providing benefits to 6 workers pursuant to an enforceable commitment to carry out a 7 financially responsible plan or program, given in writing to 8 the workers affected. 9 b. (1) Medical or hospital care. 10 (2) Pensions or annuities on retirement or death. 11 (3) Supplemental unemployment benefits. 12 (4) Life insurance. 13 (5) Disability and sickness insurance. 14 (6) Accident insurance for nonwork-related accidents. 15 (7) Vacation or holiday pay. 16 (8) Defraying costs of apprenticeship programs approved by 17 and registered with the United States department of labor’s 18 office of apprenticeship. 19 6. “Interested party” means any of the following: 20 a. A contractor who submits a bid for the purpose of 21 securing the award of a contract for a public improvement. 22 b. A subcontractor of a contractor mentioned in a bid 23 referred to in paragraph “a” . 24 c. A worker employed by a contractor or subcontractor 25 described in either paragraph “a” or “b” . 26 d. A labor organization that represents workers engaged 27 in the same craft or classification as workers employed by a 28 contractor or subcontractor described in either paragraph “a” 29 or “b” and that exists, in whole or in part, for the purpose 30 of negotiating with employers concerning the wages, hours, or 31 terms and conditions of employment of employees. 32 e. A joint labor-management committee established pursuant 33 to the federal Labor Management Cooperation Act of 1978, 29 34 U.S.C. §175a. 35 -3- LSB 1451YH (1) 88 je/rn 3/ 31
H.F. 28 7. “Locality” means a county of this state. 1 8. “Maintenance work” means the repair of existing public 2 improvements when the size, type, or extent of the public 3 improvement is not changed or increased. 4 9. “Prevailing wage rate” means the hourly wage plus 5 fringe benefits that the commissioner determines prevails in 6 accordance with this chapter, including all of the following: 7 a. Apprentice ratios and the prevailing apprentice pay 8 levels for each craft, classification, or type of worker which 9 the commissioner determines prevails in accordance with section 10 91F.5. 11 b. A prevailing rate for overtime pay for work in excess 12 of the normal prevailing workday and for weekend overtime pay 13 for each craft, classification, or type of worker, including 14 apprentices. 15 c. Holiday pay for holidays that prevail in the locality in 16 which the work is being performed. 17 10. “Public body” means the state and any of its political 18 subdivisions, including but not limited to a county, city, 19 township, school district, state board of regents, and public 20 utility. For the purposes of this chapter, “public utility” 21 includes municipally owned utilities and municipally owned 22 waterworks. 23 11. a. “Public improvement” means any of the following that 24 meets the criteria set out in paragraphs “b” and “c” : 25 (1) Construction, alteration, reconstruction, repair, 26 rehabilitation, refinishing, refurbishing, remodeling, 27 renovation, custom fabricating, maintenance, landscaping, 28 improving, moving, wrecking, painting, decorating, or 29 demolishing of, or adding to or subtracting from any building, 30 structure, highway, road, street, bridge, alley, sewer, ditch, 31 sewage disposal plant, waterworks, parking facility, railroad, 32 excavation or other structure, project, development, or 33 improvement, or any part thereof undertaken by a public body, 34 including any of the following related activities: 35 -4- LSB 1451YH (1) 88 je/rn 4/ 31
H.F. 28 (a) The erection of scaffolding or other structures or 1 works. 2 (b) The maintenance, repair, assembly, or disassembly of 3 equipment. 4 (c) The testing of materials. 5 (d) The hauling of refuse from a site to an outside disposal 6 location. 7 (e) The cleaning of grounds or structures. 8 (f) The addition to or fabrication into any structure, 9 project, development, or improvement of any material or article 10 of merchandise undertaken by a public body. 11 (2) The preparation and removal of roadway construction 12 zones, lane closures, flagging, or traffic diversions 13 undertaken by a public body. 14 (3) The installation, repair, maintenance, or calibration 15 of monitoring equipment for underground storage tanks 16 undertaken by a public body. 17 (4) Work that is performed on any property or premises 18 dedicated exclusively or nearly so to the completion of a 19 public improvement, and transportation of supplies, material, 20 and equipment to or from the property or premises undertaken 21 by a public body. 22 b. Work on the public improvement is performed under public 23 supervision or direction, and the work is financed wholly or 24 in part from public funds, or if at the time of commencement 25 of the public improvement all of the following conditions with 26 respect to the public improvement are met: 27 (1) Not less than fifty-five percent of the structure is 28 leased by a public body, or is subject to an agreement to be 29 subsequently leased by a public body. 30 (2) The portion of the structure that is leased or subject 31 to an agreement to be subsequently leased by a public body 32 measures more than twenty thousand square feet. 33 c. The public improvement has an estimated total cost that 34 exceeds twenty-five thousand dollars. 35 -5- LSB 1451YH (1) 88 je/rn 5/ 31
H.F. 28 12. “Worker” means an individual who performs any 1 labor or service for a contractor or subcontractor on a 2 public improvement but does not include an individual when 3 transporting a seller, supplier, manufacturer, or processor of 4 materials or equipment. The individual is deemed an employee 5 of a contractor or subcontractor unless all of the following 6 apply: 7 a. The individual provides labor or services free from the 8 direction or control over the means and manner of providing the 9 labor or services, subject only to the right of the person for 10 whom the labor or services are provided to specify the desired 11 results. 12 b. The individual providing the labor or services is 13 responsible for obtaining business registrations or licenses 14 required by state law or local ordinance to provide the labor 15 or services. 16 c. The individual providing the labor or services furnishes 17 the tools and equipment necessary to provide the labor or 18 services. 19 d. The individual providing the labor or services has the 20 authority to hire and fire employees to perform the labor or 21 services. 22 e. Payment for the labor or services is made upon 23 completion of the performance of specific portions of a public 24 improvement, or is made on the basis of a periodic retainer. 25 f. The individual providing the labor or services represents 26 to the public that the labor or services are to be provided 27 by an independently established business. An individual is 28 engaged in an independently established business when four or 29 more of the following circumstances exist: 30 (1) Labor or services are primarily performed at a location 31 separate from the individual’s residence or in a specified 32 portion of the residence that is set aside for performing labor 33 or services. 34 (2) Commercial advertising or business cards are purchased 35 -6- LSB 1451YH (1) 88 je/rn 6/ 31
H.F. 28 by the individual, or the individual is a member of a trade or 1 professional association. 2 (3) Telephone or electronic mail listings used by the 3 individual for the labor or services are different from the 4 individual’s personal listings. 5 (4) Labor or services are performed only pursuant to a 6 written contract. 7 (5) Labor or services are performed for two or more persons 8 or entities within a period of one year. 9 (6) The individual assumes financial responsibility 10 for errors and omissions in the performance of the labor or 11 services as evidenced by insurance, performance bonds, and 12 warranties relating to the labor or services provided. 13 Sec. 6. NEW SECTION . 91F.4 Administration —— rules. 14 1. The commissioner and the division shall administer this 15 chapter. 16 2. The commissioner shall adopt rules pursuant to chapter 17 17A to administer this chapter. 18 Sec. 7. NEW SECTION . 91F.5 Determination of prevailing 19 wages. 20 1. The commissioner shall determine annually and publish, 21 on the first business day of July, the prevailing wage rates 22 by locality for each craft, classification, or type of worker 23 needed to perform work on public improvements. The rates shall 24 be conclusive for one year from the date of publication unless 25 superseded within the one year by a later publication of the 26 commissioner, or for a longer period as provided in subsection 27 5. 28 2. The commissioner shall announce all prevailing wage rate 29 determinations by locality and give notice by posting them 30 on the portion of the department of workforce development’s 31 internet site related to the division. A printed version of 32 the prevailing wage rates for the state shall be available to 33 the public upon request to the division. 34 3. The public body awarding any contract for a public 35 -7- LSB 1451YH (1) 88 je/rn 7/ 31
H.F. 28 improvement, or otherwise undertaking any public improvement, 1 shall obtain from the internet site the prevailing wage rate 2 in the locality in which work on the public improvement is 3 to be performed for each craft, classification, or type of 4 worker needed to perform work on the public improvement. 5 After a public improvement contract is awarded, or a public 6 improvement is otherwise undertaken, the prevailing wage 7 rate published by the commissioner and stated in the public 8 body’s public improvement procurement documents shall remain 9 in effect throughout the duration of the public improvement 10 unless superseded by a later determination and publication by 11 the commissioner, or unless multiyear prevailing wage rates 12 have been published by the commissioner at the time the public 13 improvement procurement documents were released. 14 4. a. In determining the annual prevailing wage rate 15 for any craft, classification, or type of worker, the 16 commissioner shall ascertain and consider the applicable 17 wage rates and fringe benefits established by collective 18 bargaining agreements, the prevailing wage rate determinations 19 that may exist for federal public improvements within the 20 locality, and other data obtained by the department during any 21 prevailing wage rate survey of contractors who participate in 22 an apprenticeship program approved by and registered with the 23 United States department of labor’s office of apprenticeship, 24 who provide health insurance and retirement benefits for their 25 workers, and who are registered with the division. Based 26 upon these considerations, the commissioner shall calculate 27 the prevailing wage rates based on the wage rate plus fringe 28 benefits most often occurring for each craft, classification, 29 or other type of worker within each locality. 30 b. The minimum annual prevailing wage rate determination 31 established by the department shall not be lower than the 32 prevailing wage rate determination that may exist for federal 33 public improvements within the locality and in the nearest 34 labor market area. 35 -8- LSB 1451YH (1) 88 je/rn 8/ 31
H.F. 28 c. None of the fringe benefits enumerated in this chapter 1 may be considered in the determination of prevailing wage 2 rates if the contractor or subcontractor is required by other 3 federal, state, or local law to provide such fringe benefits. 4 5. If the commissioner determines that the prevailing 5 wage rate for any craft, classification, or type of worker 6 is the rate established by a collective bargaining agreement 7 applicable in the locality, the commissioner may adopt that 8 rate by reference and that determination shall be effective 9 for the life of the agreement or until the commissioner adopts 10 another rate. 11 6. a. At any time within fifteen days after the division 12 has published on the department of workforce development’s 13 internet site the annual prevailing wage rates for each 14 classification, craft, or other type of worker in the locality, 15 any interested person affected may object to the determination 16 or the part of the determination as the interested person 17 may deem objectionable by filing a written notice with the 18 commissioner by restricted certified mail as defined in 19 section 618.15. When objecting to a prevailing wage rate 20 determination, the interested person shall submit, as a 21 part of the written notice, the prevailing wage rate the 22 interested person believes to be the correct prevailing wage 23 rate determination, stating the specific grounds to support 24 that position. Upon receipt of the notice of objection, the 25 commissioner shall reconsider the determination and shall 26 affirm or modify the determination and reply in writing by 27 restricted certified mail to the interested person within 28 fifteen days from the date of the receipt of the notice of 29 objection. Any modification to the prevailing wage rate 30 determination shall be effective on the date the modification 31 is published by the commissioner. 32 b. If the commissioner declines to modify the determination, 33 within ten days upon receiving receipt of the commissioner’s 34 decision, the interested person affected may submit in writing 35 -9- LSB 1451YH (1) 88 je/rn 9/ 31
H.F. 28 the objection to the division by restricted certified mail, 1 stating the specified grounds of the objection. The department 2 of inspections and appeals shall be notified of the objection 3 and set a date for a hearing before an administrative law judge 4 on the objection, after giving notice by restricted certified 5 mail to the interested person and the division at least ten 6 days before the date of the hearing of the time and place of 7 the hearing. The hearing shall be held within forty-five days 8 after the objection is filed, and shall not be postponed or 9 reset for a later date except upon the consent, in writing, of 10 the interested person and the division. 11 7. The party requesting a hearing shall have the burden of 12 establishing that the annual prevailing wage rate determination 13 for that locality was not determined in accordance with this 14 chapter. If the party requesting a hearing under this section 15 objects to the commissioner’s failure to include a craft, 16 classification, or type of worker within the annual prevailing 17 wage rate determination in the locality, the objector shall 18 have the burden of establishing that there is no existing 19 prevailing wage rate classification for the particular craft, 20 classification, or type of worker in any of the localities 21 under consideration. 22 8. The administrative law judge may in the administrative 23 law judge’s discretion hear each written objection filed 24 separately or consolidate for hearing any one or more written 25 objections filed with the division. At the hearing, the 26 division shall introduce into evidence the investigation it 27 instituted which formed the basis of its determination, and the 28 division or any interested objectors may introduce evidence 29 that is material to the determination. The administrative 30 law judge shall rule upon each written objection and make a 31 final determination, as the administrative law judge believes 32 the evidence warrants, and promptly serve a copy of the final 33 determination by personal service or restricted certified mail 34 on all parties to the proceedings. The administrative law 35 -10- LSB 1451YH (1) 88 je/rn 10/ 31
H.F. 28 judge shall render a final determination within thirty days 1 after the conclusion of the hearing. 2 9. If proceedings to review judicially the final 3 determination of the administrative law judge are not 4 instituted as provided in this section, the determination 5 shall be final and binding. The provisions of section 17A.19 6 shall apply to and govern all proceedings. Appeals from all 7 final orders and judgments entered by the court in review of 8 the final determination of the administrative law judge may be 9 taken by any party to the action. In all reviews or appeals 10 under this chapter, the attorney general shall represent the 11 division and defend its determination. 12 10. This section does not give reason or provide cause for 13 an injunction to halt or delay any public improvement. 14 Sec. 8. NEW SECTION . 91F.6 Payment of prevailing wages 15 required. 16 1. Contractors and subcontractors engaged in a public 17 improvement shall pay not less than the current specified 18 prevailing wage rates to all of their workers engaged in the 19 public improvement. However, this chapter does not prohibit 20 the payment of more than the prevailing wage rate to any 21 workers engaged in a public improvement. 22 2. All contractors and subcontractors required to pay the 23 prevailing wage rate under this chapter shall pay the wages 24 in legal tender, without any deduction for food, sleeping 25 accommodations, transportation, use of tools or safety 26 equipment, vehicle or equipment rental, or any other thing of 27 any kind or description. 28 Sec. 9. NEW SECTION . 91F.7 Requirements for public 29 improvements. 30 1. The public body awarding a contract for a public 31 improvement or otherwise undertaking a public improvement shall 32 specify in the call for bids for the contract that this chapter 33 applies to the public improvement. 34 2. If a public improvement requires the payment of 35 -11- LSB 1451YH (1) 88 je/rn 11/ 31
H.F. 28 prevailing wage rates, the public body shall require the 1 contractor to execute a written instrument that not less 2 than the prevailing wage rate shall be paid to all workers 3 performing work on the public improvement. The written 4 instrument shall also contain a provision that if it is found 5 that any of the contractor’s workers engaged in the public 6 improvement have been paid at a wage rate less than the 7 prevailing wage rate required by this chapter, the public body 8 may terminate the contractor’s right to proceed with the work 9 and the contractor and its sureties shall be liable to the 10 public body for any excess costs occasioned by the failure to 11 pay the prevailing wage rate. The written instrument shall 12 have attached a list of the specified prevailing wage rates 13 for all crafts, classifications, or types of workers in the 14 locality for each worker needed to be included in the contract 15 for the public improvement. 16 3. If a contract is let for a public improvement requiring 17 the payment of prevailing wage rates, the public body 18 awarding the contract shall cause to be inserted in the public 19 improvement specifications and contract a stipulation that 20 not less than the prevailing wage rate shall be paid to all 21 workers performing work under the contract. The contract 22 shall also contain a provision to the effect that if it is 23 found that any of the contractor’s workers engaged in the 24 public improvement have been paid at a wage rate less than the 25 prevailing wage rate required by this chapter, the public body 26 may terminate the contractor’s right to proceed with the work 27 and the contractor and its sureties shall be liable to the 28 public body for any excess costs occasioned by the failure to 29 pay the prevailing wage rate. All bid specifications shall 30 list the specified prevailing wage rates for all crafts, 31 classifications, or types of workers in the locality for each 32 worker needed to be included in the contract. 33 4. If a public improvement requires the payment of 34 prevailing wage rates, the contractor shall require any 35 -12- LSB 1451YH (1) 88 je/rn 12/ 31
H.F. 28 subcontractors engaged by the contractor on the public 1 improvement to execute a written instrument that not less 2 than the prevailing wage rates shall be paid to all workers 3 performing work on the public improvement. The written 4 instrument shall also contain a provision that if it is 5 found that any of the subcontractor’s workers engaged in the 6 public improvement have been paid at a wage rate less than the 7 prevailing wage rate required by this chapter, the public body 8 may terminate the subcontractor’s right to proceed with the 9 work and the subcontractor and its sureties shall be liable to 10 the public body for any excess costs occasioned by the failure 11 to pay the prevailing wage rate. The written instrument shall 12 have attached a list of the specified prevailing wage rates 13 for all crafts, classifications, or types of workers in the 14 locality for each worker needed to be included in the contract. 15 5. If a subcontract is let for a public improvement 16 requiring the payment of the prevailing wage rate, the 17 contractor to whom the contract is awarded shall insert 18 into the subcontract and into the public improvement project 19 specifications for each subcontract a written stipulation that 20 not less than the prevailing wage rate shall be paid to all 21 workers performing work under the subcontract. A subcontractor 22 shall insert into each lower-tiered subcontract a stipulation 23 that not less than the prevailing wage rate shall be paid 24 to all workers performing work under the subcontract. The 25 subcontract shall also contain a provision that if it is 26 found that any of the subcontractor’s workers engaged in the 27 public improvement have been paid at a wage rate less than the 28 prevailing wage rate required by this chapter, the public body 29 may terminate the subcontractor’s right to proceed with the 30 work and the subcontractor and its sureties shall be liable to 31 the public body for any excess costs occasioned by the failure 32 to pay the prevailing wage rate. All bid specifications shall 33 list the specified prevailing wage rates for all crafts, 34 classifications, or types of workers in the locality for each 35 -13- LSB 1451YH (1) 88 je/rn 13/ 31
H.F. 28 worker needed to be included in the subcontract. 1 6. A contractor or subcontractor engaging in a public 2 improvement shall submit a performance bond in an amount 3 determined by the public body which bond shall include a 4 provision that will guarantee the payment of the prevailing 5 wage rates as required by the contract. 6 7. Before final payment is made by or on behalf of a public 7 body of any sum or sums due on a public improvement, the 8 treasurer of the public body or other officer or person charged 9 with the custody and disbursement of the funds of the public 10 body shall require the contractor and subcontractor to file a 11 written statement with the public body, in a form satisfactory 12 to the division, certifying to the amounts then due and owing 13 from the contractor and subcontractor to any and all workers 14 for wages due on account of the public improvement, setting 15 forth the names of the persons whose wages are unpaid and 16 the amount due to each respectively. The statement shall be 17 verified by the oath of the contractor or subcontractor, as the 18 case may be, that the contractor or subcontractor has read the 19 statement certified by the contractor or subcontractor, knows 20 the contents, and that the statement is true in accordance with 21 the contractor’s or subcontractor’s own knowledge. However, 22 this chapter shall not impair the right of a contractor to 23 receive final payment from a public body because of the failure 24 of a subcontractor to comply with provisions of this chapter. 25 The treasurer of the public body or other officer or person 26 charged with the custody and disbursement of the funds of the 27 public body shall withhold the amount, if any, listed on the 28 verified statement filed pursuant to this section for the 29 benefit of the worker whose wages are unpaid as shown by the 30 verified statement filed by the contractor or subcontractor, 31 and the public body shall pay directly to any worker the amount 32 shown by the statement to be due to the worker for the wages. 33 Payment shall discharge the obligation of the contractor or 34 subcontractor to the person receiving the payment to the extent 35 -14- LSB 1451YH (1) 88 je/rn 14/ 31
H.F. 28 of the amount of the payment. 1 8. The public body awarding a contract for a public 2 improvement or otherwise undertaking a public improvement shall 3 notify the commissioner in writing, on a form prescribed by 4 the commissioner, if a contract subject to the provisions of 5 this chapter has been awarded. The public body shall file 6 the notification with the commissioner within thirty days 7 after the contract is awarded or before commencement of the 8 public improvement, and shall include a list of all first-tier 9 subcontractors. 10 Sec. 10. NEW SECTION . 91F.8 Federal public improvements 11 —— not applicable. 12 The provisions of this chapter shall not be applicable 13 to public improvements financed entirely by federal funds 14 which require a prevailing wage rate determination by the 15 United States department of labor. However, unless a federal 16 provision applies, if a public improvement is financed in part 17 by a public body and in part by federal funds, the higher of the 18 prevailing wage rates shall prevail for the public improvement. 19 Sec. 11. NEW SECTION . 91F.9 Records required. 20 1. While participating in a public improvement, the 21 contractor and each subcontractor shall do all of the 22 following: 23 a. Make and keep, for a period of not less than three years, 24 accurate records of all workers employed by the contractor or 25 subcontractor on the public improvement. The records shall 26 include each worker’s name, address, telephone number when 27 available, social security number, trade classification, the 28 hourly wages paid in each pay period, the number of hours 29 worked each day, and the starting and ending times of work each 30 day. 31 b. Submit weekly a certified payroll to the public body 32 in charge of the public improvement. The certified payroll 33 shall consist of a complete copy of the records identified in 34 paragraph “a” . The certified payroll shall be accompanied by a 35 -15- LSB 1451YH (1) 88 je/rn 15/ 31
H.F. 28 statement signed by the contractor or subcontractor which avers 1 that the records are true and accurate and the hourly wages 2 paid to each worker are not less than the prevailing wage rate 3 required by this chapter. 4 2. The public body in charge of the public improvement 5 shall keep the records submitted in accordance with subsection 6 1, paragraph “b” , for a period of not less than three years. 7 The records shall be considered public records and be made 8 available in accordance with chapter 22. Personal information 9 submitted in accordance with subsection 1, paragraph “a” , 10 including names, addresses, social security numbers, telephone 11 numbers, and other identifying information shall remain 12 confidential and shall not be made public. 13 3. The contractor and each subcontractor shall make 14 available for inspection the records identified in subsection 15 1, paragraph “a” , to the public body in charge of the public 16 improvement, its officers and agents, and to the division. 17 4. For the purpose of verifying the accuracy of the records 18 submitted pursuant to this section, the contractor and each 19 subcontractor shall make its workers available at the site of 20 the public improvement for interview by the public body in 21 charge of the public improvement, its officers and agents, and 22 the division. 23 5. Contractors and subcontractors performing work on public 24 improvements subject to this chapter shall post the prevailing 25 wage rates for each craft, classification, or type of workers 26 involved in the public improvement in a prominent and easily 27 accessible place at the site of the public improvement or at 28 the place or places used by the contractor or subcontractor to 29 pay workers their wages. 30 Sec. 12. NEW SECTION . 91F.10 Powers of commissioner. 31 The commissioner shall do all of the following: 32 1. Inquire diligently about any complaint of a violation of 33 this chapter, institute actions for penalties prescribed, and 34 enforce generally the provisions of this chapter. 35 -16- LSB 1451YH (1) 88 je/rn 16/ 31
H.F. 28 2. Sue for injunctive relief against the awarding of a 1 contract, the undertaking of a public improvement, or the 2 continuation of a public improvement when the prevailing wage 3 rate requirements of this chapter have not been met. 4 3. Investigate and ascertain the wages of workers engaged in 5 any public improvement in this state. 6 4. a. Enter and inspect the place of business or employment 7 of a contractor, subcontractor, or workers employed on a public 8 improvement in this state, for the purpose of examining and 9 inspecting books, registers, payrolls, and other records of a 10 contractor or subcontractor that in any way relate to or have a 11 bearing upon the question of wages, hours, and other conditions 12 of employment of workers covered under this chapter. 13 b. Copy the books, registers, payrolls, and other 14 records as the commissioner or the commissioner’s authorized 15 representative deems necessary or appropriate. 16 c. Question the workers for the purpose of ascertaining 17 whether the provisions of this chapter have been and are being 18 complied with. 19 d. Administer oaths, take or cause to be taken depositions 20 of witnesses, and require by subpoena the attendance and 21 testimony of witnesses and the production of all books, 22 registers, payrolls, and other evidence relative to the matter 23 under investigation or hearing. 24 5. Require from a contractor or subcontractor full and 25 correct statements in writing, including sworn statements, 26 with respect to wages, hours, names, addresses, and other 27 information pertaining to its workers and their employment, 28 as the commissioner or the commissioner’s authorized 29 representative may deem necessary or appropriate. 30 6. Require a contractor or subcontractor to file, within 31 ten days of receipt of a request, any records enumerated in 32 subsection 4, sworn as to their validity and accuracy as 33 required by subsection 5. If the contractor or subcontractor 34 fails to provide the requested records within ten days, the 35 -17- LSB 1451YH (1) 88 je/rn 17/ 31
H.F. 28 commissioner may direct, within fifteen days after the end 1 of the ten-day period, that the fiscal or financial officer 2 charged with the custody and disbursements of the funds of the 3 public body, which contracted for construction of the public 4 improvement or undertook the public improvement, to immediately 5 withhold from payment to the contractor or subcontractor 6 up to twenty-five percent of the amount to be paid to the 7 contractor or subcontractor under the terms of the contract 8 or written instrument under which the public improvement is 9 being performed. The amount withheld shall be immediately 10 released upon receipt by the public body of a notice from 11 the commissioner indicating that the request for records as 12 required by this section has been satisfied. 13 7. If a contractor or subcontractor fails to provide 14 requested records in accordance with subsection 6 within ten 15 days, direct, within fifteen days after the end of the ten-day 16 period, the fiscal or financial officer charged with the 17 custody and disbursements of the funds of the public body, 18 which contracted for construction of the public improvement or 19 undertook the public improvement, to pay directly to workers 20 employed by the contractor or subcontractor from the amount 21 withheld from the contractor or subcontractor pursuant to 22 subsection 6 any prevailing wage rates found to be due and 23 payable to the workers. 24 8. Contract with a person registered as a public accountant 25 under chapter 542 to conduct an audit of a contractor, 26 subcontractor, or public body. 27 Sec. 13. NEW SECTION . 91F.11 Notice of violations. 28 1. For purposes of this section: 29 a. “Accurate records” means the payroll records required 30 to be submitted to the public body in charge of the public 31 improvement by section 91F.9. “Accurate records” also means the 32 hourly rate of contribution and costs paid for fringe benefits 33 and whether the contributions and costs of the fringe benefits 34 were paid into a fund or paid directly to the worker. 35 -18- LSB 1451YH (1) 88 je/rn 18/ 31
H.F. 28 b. “Decision” means a determination by the division that a 1 single violation of this chapter has occurred, warranting the 2 commissioner to issue a notice of violation to a contractor or 3 subcontractor. 4 c. “Notice of second violation” is a formal written notice 5 issued by the division advising a contractor or subcontractor 6 that a second or subsequent violation has occurred within three 7 years from the date of the notice of a first violation. 8 d. “Notice of violation” means a formal written notice 9 issued by the division to a contractor or subcontractor 10 that the division has made a decision that the contractor or 11 subcontractor has violated this chapter. 12 e. “Violation” means that a contractor or subcontractor has 13 done one of the following: 14 (1) Failed or refused to pay the prevailing wage rate to one 15 or more workers as required by this chapter. 16 (2) Failed to keep accurate records as required by this 17 chapter. 18 (3) Failed to produce for the division accurate records or 19 produced records not in compliance with this chapter. 20 (4) Refused to submit records or testimony to the division 21 in response to a subpoena issued in accordance with this 22 chapter. 23 (5) Refused to comply with the certified payroll provision 24 of section 91F.9. 25 (6) Refused the division access, at any reasonable hour at 26 a location within the state, to inspect the contractor’s or 27 subcontractor’s records as required by this chapter. 28 (7) Failed to insert into each subcontract or lower-tiered 29 subcontract and into the public improvement specifications 30 for each subcontract or lower-tiered subcontract or provide a 31 written instrument if no contract exists, a written stipulation 32 that not less than the prevailing wage rate be paid as required 33 by this chapter, and a statement that if it is found that a 34 subcontractor’s workers engaged in the public improvement have 35 -19- LSB 1451YH (1) 88 je/rn 19/ 31
H.F. 28 been paid at a rate of wages less than the prevailing wage rate 1 required to be paid by the contract, the public body shall 2 terminate the subcontractor’s right to proceed with the work. 3 (8) Failed to obtain a bond in the proper amount that 4 guarantees the payment of the prevailing wage rates required in 5 the contract. 6 (9) Failed to post the prevailing wage rates as required by 7 this chapter. 8 2. After receipt of a complaint or on the division’s 9 initiative, the commissioner shall review the investigative 10 file to determine whether a violation has occurred for 11 which the contractor or subcontractor must be given notice. 12 All information and observations made during an audit or 13 investigation shall be considered and shall constitute the 14 basis for the division’s decision that this chapter has 15 been violated and that a notice of violation is required 16 to be issued. The notice of violation shall identify the 17 specific violation and the amount of moneys estimated due the 18 division and in controversy based on reasons contained in the 19 investigative file. 20 3. In making a decision that a contractor or subcontractor 21 has failed to allow the commissioner access to accurate 22 records, the commissioner shall rely on the information 23 contained in the investigative file, the certified payroll 24 records submitted to the public body in charge of the public 25 improvement or any other information, and shall assess a 26 separate violation for each day worked by each worker on the 27 public improvement. Each decision of a separate violation 28 shall be listed in the notice of violation. 29 4. In determining that this chapter has been violated and 30 that the issuance of a notice of violation is required, the 31 commissioner shall base the decision on one or any combination 32 of the following reasons: 33 a. The severity of the violation, which includes the 34 following: 35 -20- LSB 1451YH (1) 88 je/rn 20/ 31
H.F. 28 (1) The amount of wages that are determined to be underpaid 1 pursuant to this chapter. 2 (2) The activity or conduct complained of that violates the 3 requirements of this chapter and was not merely a technical, 4 nonsubstantive error. Examples of a technical error include 5 but are not limited to a mathematical error, bookkeeping error, 6 transposition of numbers, or computer or programming error. 7 b. The nature and duration of the present violation and the 8 prior history of the contractor or subcontractor related to 9 this history. The prior history considered shall not exceed 10 seven years before the date of the notice of violation. 11 c. Whether the contractor or subcontractor submitted 12 certified payroll records with the public body in charge of the 13 public improvement; whether the contractor or subcontractor 14 has kept payroll records and accurate records for three years; 15 and whether the contractor or subcontractor produced certified 16 payroll records in accordance with section 91F.9. 17 d. Whether the contractor or subcontractor has violated any 18 other provision of this chapter. 19 5. The notices of the first, second, and subsequent 20 violations shall be sent by restricted certified mail, 21 addressed to the last known address of the contractor or 22 subcontractor involved. The notices shall contain a reference 23 to the specific provisions of this chapter alleged to have been 24 violated, identify the particular public improvement involved, 25 identify the conduct complained of, and identify whether the 26 notice is a notice of a first, second, or subsequent violation, 27 and include a contractor’s or subcontractor’s statement of 28 liabilities. 29 Sec. 14. NEW SECTION . 91F.12 Violations —— remedies and 30 penalties. 31 1. If the commissioner determines that a public body has 32 divided a public improvement into more than one contract for 33 the purpose of avoiding compliance with this chapter, the 34 commissioner shall issue an order compelling compliance. In 35 -21- LSB 1451YH (1) 88 je/rn 21/ 31
H.F. 28 making a determination whether a public body has divided a 1 public improvement into more than one contract for the purpose 2 of avoiding compliance with this chapter, the commissioner 3 shall consider all of the following: 4 a. The physical separation of the public improvement 5 structures or work. 6 b. The timing of the work on the public improvement phases 7 or structures. 8 c. The continuity of public improvement contractors and 9 subcontractors working on public improvement parts or phases. 10 d. The manner in which the public body and the contractor 11 and subcontractors administer and implement work on the public 12 improvement. 13 2. A worker employed by the contractor or subcontractor who 14 is paid less than the specified prevailing wage rate under this 15 chapter shall have a private right of action for the difference 16 between the amount so paid and the specified prevailing wage 17 rate, together with costs and reasonable attorney fees as shall 18 be allowed by the court. 19 3. The contractor or subcontractor shall additionally be 20 liable to the division for fifty percent of the amount of 21 underpayments and shall be additionally liable to the worker 22 for punitive damages in an amount equal to five percent of the 23 liability to the division for underpayments for each month 24 following the date of payment during which underpayments remain 25 unpaid, together with costs and reasonable attorney fees as 26 shall be allowed by the court. 27 4. If a second or subsequent action to recover underpayments 28 is brought against a contractor or subcontractor within a 29 three-year period and the contractor or subcontractor is 30 found liable for underpayments to a worker, the contractor or 31 subcontractor shall be liable to the division for seventy-five 32 percent of the amount of underpayments payable as a result of 33 the second or subsequent action, additionally liable to the 34 worker for ten percent of the amount of the liability to the 35 -22- LSB 1451YH (1) 88 je/rn 22/ 31
H.F. 28 division for underpayments for each month following the date 1 of payment during which the underpayments remain unpaid, and 2 further liable to the worker for triple the difference between 3 the amount so paid to the worker and the specified prevailing 4 wage rate required, together with costs and reasonable attorney 5 fees as shall be allowed by the court. The three-year period 6 begins to run from the date the contractor or subcontractor is 7 determined liable for the first violation. 8 5. The commissioner and any interested party shall also 9 have a right of action on behalf of a worker who has a right of 10 action under this chapter. An action brought to recover the 11 same shall be deemed to be a suit for wages, and all judgments 12 entered in the action shall have the same force and effect as 13 other judgments for wages. At the request of a worker employed 14 by a contractor or subcontractor who is paid less than the 15 prevailing wage rate required by this chapter, the commissioner 16 may take an assignment of the wage claim in trust for the 17 assigning worker and may bring any legal action necessary to 18 collect the claim, and the contractor or subcontractor shall 19 be required to pay the expenses of the division incurred in 20 collecting the claim. 21 6. In circumstances where a worker may not be available to 22 receive a payment or judgment, the payment due the worker shall 23 revert to the division after one year elapses from the time 24 payment was attempted to be made or judgment was rendered. 25 7. a. It is a violation of this chapter to do any of the 26 following: 27 (1) To request or demand, either before or after the worker 28 is engaged in a public improvement, that a worker pay back, 29 return, donate, contribute, or give any part or all of the 30 worker’s wages, salary, or thing of value, to any person, upon 31 the statement, representation, or understanding that failure to 32 comply with the request or demand will prevent the worker from 33 procuring or retaining employment. 34 (2) To directly or indirectly pay, request, or authorize any 35 -23- LSB 1451YH (1) 88 je/rn 23/ 31
H.F. 28 other person to violate this chapter. 1 b. This subsection does not apply to an agent or 2 representative of a duly constituted labor organization acting 3 in the collection of dues or assessments of the organization. 4 8. In addition to other penalties provided under this 5 chapter, whoever induces a worker working on a public 6 improvement subject to this chapter to give up or forego 7 any part of the prevailing wage rates to which the worker 8 is entitled under this chapter by threat not to employ 9 or by threat of dismissal from employment is guilty of a 10 serious misdemeanor. An agreement between the worker and the 11 contractor or subcontractor to work for less than the specified 12 prevailing wage rate shall not be a defense to criminal 13 prosecution. 14 9. a. A contract shall not be awarded by a public 15 body to a contractor or subcontractor who, on two separate 16 occasions within a three-year period, has been determined 17 to have violated this chapter, or to any firm, corporation, 18 partnership, or association in which the contractor or 19 subcontractor has any interest until five years have elapsed 20 from the date on which a final determination is rendered 21 finding the contractor or subcontractor in violation of this 22 chapter. 23 b. For the purposes of this subsection, “any interest” means 24 an interest in the entity bidding or performing work on the 25 public improvement, whether as an owner, partner, officer, 26 manager, employee, agent, consultant, or representative. “Any 27 interest” includes but is not limited to all instances where the 28 barred contractor or subcontractor receives payments, whether 29 cash or any other form of compensation, from any entity bidding 30 or performing work on the public improvement, or enters into 31 a contract with the entity bidding or performing work on the 32 public improvement for services performed or to be performed 33 under contract that have been or will be assigned or sublet, 34 or for vehicles, tools, equipment, or supplies that have been 35 -24- LSB 1451YH (1) 88 je/rn 24/ 31
H.F. 28 or will be sold, rented, or leased during the period from the 1 initiation of the barring proceedings until the end of the term 2 of the barring period. “Any interest” does not include shares 3 held in a publicly traded corporation if the shares were not 4 received as compensation after the barring of an entity bidding 5 or performing work on a public improvement. 6 10. If the division determines that a contractor or 7 subcontractor has violated this chapter on two separate 8 occasions within a three-year period, the division shall list 9 on the department of workforce development’s internet site and 10 keep on record the name of the contractor or subcontractor and 11 give notice by restricted certified mail of the list to any 12 public body requesting the list. 13 11. Upon a determination that a contractor or subcontractor 14 has violated this chapter on two separate occasions within a 15 three-year period, the division shall notify the violating 16 contractor or subcontractor by restricted certified mail. The 17 contractor or subcontractor has ten working days to request of 18 the division a hearing before an administrative law judge on 19 the alleged violation. Failure to respond within ten working 20 days shall result in automatic and immediate barring of the 21 violator from work as provided in subsection 9 and placement 22 and publication of the violator’s name on the department of 23 workforce development’s internet site as provided in subsection 24 10. If the contractor or subcontractor requests a hearing 25 within ten working days by restricted certified mail, the 26 department of inspections and appeals shall set a hearing 27 before an administrative law judge on the alleged violation. 28 The hearing shall take place no later than forty-five calendar 29 days after the receipt by the division of the request for a 30 hearing. An action by an administrative law judge constitutes 31 final agency action and is subject to judicial review under 32 section 17A.19. 33 12. The attorney general shall prosecute the cases 34 identified in this section upon complaint by the commissioner 35 -25- LSB 1451YH (1) 88 je/rn 25/ 31
H.F. 28 or by any interested person. In any proceeding brought 1 pursuant to this section, the commissioner shall be represented 2 by the attorney general. 3 13. This section does not give reason or provide cause for 4 an injunction to halt or delay any public improvement. 5 Sec. 15. NEW SECTION . 91F.13 Apprentices. 6 This chapter shall not prevent the employment of apprentices 7 upon public improvements. However, an apprentice employed 8 on a public improvement must be registered with the United 9 States department of labor’s office of apprenticeship under 10 an apprenticeship program registered with that office, paid 11 the proper wages specified in the standards of apprenticeship, 12 and engaged only in the trade to which the apprentice is 13 registered. If the apprentice is employed on a public 14 improvement in a trade to which the apprentice is not 15 registered with the United States department of labor’s office 16 of apprenticeship, the apprentice shall be treated as any other 17 worker under this chapter. 18 Sec. 16. IMPLEMENTATION OF ACT. Section 25B.2, subsection 19 3, shall not apply to this Act. 20 Sec. 17. EFFECTIVE DATE. This Act takes effect January 1, 21 2020. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill requires a contractor to pay workers the same 26 hourly wage plus fringe benefits for a public improvement 27 costing more than $25,000 as prevails in the locality of the 28 public improvement. The bill allows the per-hour wage rate to 29 be based on what is normally paid in the area by contractors 30 for similar projects, and to be adjusted on a yearly basis by 31 the department of workforce development. 32 The wage rates that the workers must be paid shall also 33 include benefits such as medical care, life insurance, overtime 34 pay, and vacation and holiday pay. The bill applies to any 35 -26- LSB 1451YH (1) 88 je/rn 26/ 31
H.F. 28 public improvement that receives money from a public body and 1 includes most types of public improvements from construction to 2 road maintenance to painting to hauling. 3 The labor commissioner determines the wage rates for 4 specific geographical areas and for specific crafts, 5 classifications, and types of workers. This information must 6 be posted on the department of workforce development’s internet 7 site. In determining what the wage rate for a worker is, the 8 commissioner may consult collective bargaining agreements, wage 9 rate determinations for federal projects in the same area, and 10 other information the department may receive from contractors 11 who participate in an apprenticeship program approved by the 12 federal office of apprenticeship. 13 Any person affected by the wage rates has 15 days after the 14 department of workforce development has posted the wage rates 15 on its internet site to object in writing, stating the specific 16 reason for the objection, to the labor commissioner. The 17 commissioner must reconsider the determination being objected 18 to, and either affirm or modify it within 15 days of receiving 19 the objection. 20 If the commissioner declines to modify the determination, 21 within 10 days, the person affected may submit an objection in 22 writing to the division of labor services, stating the specific 23 reasons for the objection. A hearing must be set by the 24 department of inspections and appeals before an administrative 25 law judge within 45 days after the objection is filed. The 26 person who filed the objection must show the administrative 27 law judge that the wage rate was somehow made in error. The 28 division is required to show how it determined the wage 29 rate. The administrative law judge must make a decision about 30 the wage rate within 30 days and it is considered a final 31 determination. 32 The bill requires that contractors and subcontractors not 33 pay the workers less than the established wage rate but does 34 not prohibit them from paying the workers more than the wage 35 -27- LSB 1451YH (1) 88 je/rn 27/ 31
H.F. 28 rate. The wage rate must be paid without any deductions 1 such as for food, sleeping quarters, use of tools, or safety 2 equipment. 3 The bill also requires the public body to monitor the 4 contractors and subcontractors to ensure that the wage rate 5 is paid. A call for bids must state that the wage rate must 6 be included in the bids for the public improvement. All 7 bids shall list the specific wage rates for each craft, 8 classification, and type of worker needed for the public 9 improvement. All contractors and subcontractors are required 10 to sign a contract that states they will pay workers the wage 11 rate determined by the division. If the contractors and 12 subcontractors are found to not be paying the wage rate, the 13 contract states that the contractor’s or subcontractor’s right 14 to work on the public improvement and get paid for work already 15 done may be terminated. 16 Before the contractor or subcontractor receives the final 17 payment for the public improvement, the public body overseeing 18 the public improvement must certify the payments include proper 19 amounts due the workers, and the contractor or subcontractor 20 must swear under oath that the records are accurate. 21 The bill does not apply to public improvement projects 22 funded by the federal government that require federal 23 prevailing wage rates. However, unless a federal provision 24 applies, if a public improvement project is financed by both a 25 state public body and the federal government, then the higher 26 of the applicable wage rates shall be paid to the workers. 27 The bill also requires that contractors and subcontractors 28 keep detailed records for at least three years about the 29 workers, the rates paid, and the hours worked for each 30 public improvement. The records are public records and must 31 be available for inspection. However, workers’ personal 32 information is not available to the public for inspection. 33 During the public improvement, a contractor or subcontractor 34 must present a certified weekly payroll to demonstrate that 35 -28- LSB 1451YH (1) 88 je/rn 28/ 31
H.F. 28 the correct and full wage rate is being paid to workers. The 1 contractors and subcontractors must make all workers available 2 on-site to officials for interviews so that the records’ 3 accuracy can be checked. Contractors and subcontractors must 4 also post the wage rates for each craft, classification, and 5 type of worker in a public place where workers can see the 6 posting or at the place where they receive their wages. 7 The commissioner is given specific powers for investigation, 8 enforcement, and penalization. The commissioner may sue to 9 prevent a contractor or subcontractor from being awarded 10 a contract for a public improvement when the wage rate 11 requirements have not been met. The commissioner is given the 12 power to withhold payments if a contractor or subcontractor 13 does not produce records upon request and to pay the workers 14 directly if the contractor or subcontractor continues to refuse 15 to provide records. 16 After receiving a complaint, the commissioner shall 17 investigate whether there has been a violation. If the 18 commissioner determines there has been a violation, the 19 contractor or subcontractor must be given notice of that 20 violation. The notice is a formal written statement from the 21 department of workforce development that states the specific 22 violation and the amount of money due as a penalty. 23 If a public body has divided up a public improvement to 24 avoid having to pay the wage rate, the commissioner shall order 25 compliance. A worker who is paid less than the wage rate set by 26 this law can sue for the difference in payment and collect the 27 difference along with costs and attorney fees in court. 28 The contractor or subcontractor shall also have to pay the 29 division 50 percent of the amount of underpayment and is liable 30 to the worker for punitive damages of up to 5 percent of the 31 underpayments for each month the underpayment remains unpaid 32 plus costs and attorney fees. 33 If a second or subsequent action for underpaying a worker 34 is brought against a contractor or subcontractor within a 35 -29- LSB 1451YH (1) 88 je/rn 29/ 31
H.F. 28 three-year period and the contractor or subcontractor is 1 liable, the contractor or subcontractor shall pay the division 2 75 percent of the amount of underpayment, is liable to the 3 worker for 10 percent of the penalty for underpayments for each 4 month following it that the underpayment remains unpaid, and 5 is liable to the worker for triple the difference between the 6 amount paid to the worker and the amount due under the wage 7 rate set by the commissioner plus costs and attorney fees. 8 The commissioner or any interested party has a right of 9 action on behalf of any individual who has a right of action 10 under the bill. The commissioner may file a lawsuit in trust 11 for a worker who assigns the claim and then bring legal action 12 to collect the claim. The contractor shall be required to pay 13 the expenses for collection of the claim. 14 The bill prohibits a person from requesting or demanding 15 that a worker pay back, return, donate, contribute, or give 16 any part or all of the worker’s wages, salary, or thing of 17 value, to any person who asserts that failure to comply with 18 the request or demand will prevent the worker from procuring 19 or retaining employment. The bill prohibits a person from 20 paying, requesting, or authorizing any other person to violate 21 the requirements of the bill. However, these provisions do 22 not apply to authorized labor organization representatives 23 collecting dues or assessments. 24 In addition to other penalties under the bill, anyone who 25 attempts to get a worker to give up any part of compensation 26 on a public improvement by threat not to hire or by threat of 27 firing is guilty of a serious misdemeanor. Any agreement to 28 work for less than the determined wage rate is not a defense to 29 criminal prosecution. A serious misdemeanor is punishable by 30 confinement for no more than one year and a fine of at least 31 $315 but not more than $1,875. 32 If a contractor or subcontractor has violated the bill twice 33 within a three-year period, the contractor or subcontractor 34 or any company or group associated with the contractor or 35 -30- LSB 1451YH (1) 88 je/rn 30/ 31
H.F. 28 subcontractor shall not be given any public improvement work 1 for five years. The department of workforce development 2 shall keep a list on its internet site of contractors and 3 subcontractors who have violated the bill twice within a 4 three-year period and notify public bodies by restricted 5 certified mail. 6 A contractor or subcontractor who has been notified of 7 the second violation has 10 days to request a hearing before 8 an administrative law judge. A hearing must be held within 9 45 days of the request. If no hearing is requested, the 10 contractor is barred from receiving public improvement work and 11 its name and information is posted on the department’s internet 12 site. 13 Apprentices employed on a public improvement project must 14 be registered with the federal office of apprenticeship. 15 Apprentices must receive the wages set out in the standards of 16 apprenticeship and do only the work specified in the trade to 17 which they are apprenticed. An apprentice not registered with 18 the federal program shall be paid the wage rate the same as any 19 other worker. 20 The bill may include a state mandate as defined in Code 21 section 25B.3. The bill makes inapplicable Code section 25B.2, 22 subsection 3, which would relieve a political subdivision from 23 complying with a state mandate if funding for the cost of 24 the state mandate is not provided or specified. Therefore, 25 political subdivisions are required to comply with any state 26 mandate included in the bill. 27 The bill takes effect January 1, 2020. 28 -31- LSB 1451YH (1) 88 je/rn 31/ 31
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