Bill Text: PA HB1277 | 2011-2012 | Regular Session | Introduced

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Bill Title: Repealing the act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act.

Spectrum: Partisan Bill (Republican 31-0)

Status: (Introduced - Dead) 2011-04-06 - Referred to LABOR AND INDUSTRY [HB1277 Detail]

Download: Pennsylvania-2011-HB1277-Introduced.html

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PRINTER'S NO. 1456
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1277 Session of2011
INTRODUCED BY PERRY, BENNINGHOFF, AUMENT, BLOOM, BOYD, CLYMER, CREIGHTON, CUTLER, EVERETT, FLECK, GILLESPIE, GINGRICH, GROVE, HICKERNELL, KAUFFMAN, F. KELLER, M. K. KELLER, MARSICO, METCALFE, MILLER, MILNE, MOUL, PICKETT, RAPP, ROAE, ROCK, SAYLOR, SCHRODER, SWANGER AND TALLMAN, APRIL 6, 2011
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 6, 2011
AN ACT
Repealing the act of August 15, 1961 (P.L.987, No.442), entitled
"An act relating to public works contracts; providing for
prevailing wages; imposing duties upon the Secretary of Labor
and Industry; providing remedies, penalties and repealing
existing laws."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of August 15, 1961 (P.L.987, No.442),
known as the Pennsylvania Prevailing Wage Act, is repealed:
[AN ACT
Relating to public works contracts; providing for prevailing
wages; imposing duties upon the Secretary of Labor and
Industry; providing remedies, penalties and repealing
existing laws.
TABLE OF CONTENTS
Section 1. Short Title.
Section 2. Definitions.
Section 2.1. Advisory Board, Powers and Duties.
Section 2.2. Appeals Board Powers and Duties.
Section 3. Specifications.
Section 4. Duty of Public Body.
Section 5. Prevailing Wage.
Section 6. Duty of Contractor.
Section 7. Duty of Secretary.
Section 8. Review of Rates, Petition and Hearing.
Section 9. Posting of Rates.
Section 10. Duty of Public Body.
Section 11. Remedies and Penalties.
Section 12. Failure to Comply, Termination.
Section 13. Workmen's Rights.
Section 14. Rules and Regulations.
Section 15. Application of Act.
Section 16. Repealer.
Section 17. Effective Date.
Section 1. Short Title.--This act shall be known and may be
cited as the "Pennsylvania Prevailing Wage Act."
Section 2. Definitions.--As used in this act--
(1) "Department" means Department of Labor and Industry of
the Commonwealth of Pennsylvania.
(2) "Locality" means any political subdivision, or
combination of the same, within the county in which the public
work is to be performed. When no workmen for which a prevailing
minimum wage is to be determined hereunder are employed in the
locality, the locality may be extended to include adjoining
political subdivisions where such workmen are employed in those
crafts or trades for which there are no workmen employed in the
locality as otherwise herein defined.
(3) "Maintenance work" means the repair of existing
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facilities when the size, type or extent of such facilities is
not thereby changed or increased.
(4) "Public body" means the Commonwealth of Pennsylvania,
any of its political subdivisions, any authority created by the
General Assembly of the Commonwealth of Pennsylvania and any
instrumentality or agency of the Commonwealth of Pennsylvania.
(5) "Public work" means construction, reconstruction,
demolition, alteration and/or repair work other than maintenance
work, done under contract and paid for in whole or in part out
of the funds of a public body where the estimated cost of the
total project is in excess of twenty-five thousand dollars
($25,000), but shall not include work performed under a
rehabilitation or manpower training program.
(6) "Secretary" means the Secretary of Labor and Industry or
his duly authorized deputy or representative.
(7) "Workman" includes laborer, mechanic, skilled and semi-
skilled laborer and apprentices employed by any contractor or
subcontractor and engaged in the performance of services
directly upon the public work project, regardless of whether
their work becomes a component part thereof, but does not
include material suppliers or their employes who do not perform
services at the job site.
(8) "Work performed under a rehabilitation program," means
work arranged by and at a State institution primarily for
teaching and upgrading the skills and employment opportunities
of the inmates of such institutions.
(9) "Advisory Board" means the board created by section 2.1
of this act.
(10) "Appeals Board" means the board created by section 2.2
of this act. ((10) added Aug. 9, 1963, P.L.653, No.342)
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Section 3. Specifications.--The specifications for every
contract for any public work to which any public body is a
party, shall contain a provision stating the minimum wage rate
that must be paid to the workmen employed in the performance of
the contract.
Section 4. Duty of Public Body.--It shall be the duty of
every public body which proposes the making of a contract for
any project of public work to determine from the secretary the
prevailing minimum wage rates which shall be paid by the
contractor to the workmen upon such project. Reference to such
prevailing minimum rates shall be published in the notice issued
for the purpose of securing bids for such project of public
work. Whenever any contract for a project of public work is
entered into, the prevailing minimum wages as determined by the
secretary shall be incorporated into and made a part of such
contract and shall not be altered during the period such
contract is in force.
Section 5. Prevailing Wage.--Not less than the prevailing
minimum wages as determined hereunder shall be paid to all
workmen employed on public work.
Section 6. Duty of Contractor.--Every contractor and
subcontractor shall keep an accurate record showing the name,
craft and the actual hourly rate of wage paid to each workman
employed by him in connection with public work, and such record
shall be preserved for two years from date of payment. The
record shall be open at all reasonable hours to the inspection
of the public body awarding the contract and to the secretary.
Section 7. Duty of Secretary.--The secretary shall, after
consultation with the advisory board, determine the general
prevailing minimum wage rate in the locality in which the public
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work is to be performed for each craft or classification of all
workmen needed to perform public work contracts during the
anticipated term thereof: Provided, however, That employer and
employe contributions for employe benefits pursuant to a bona
fide collective bargaining agreement shall be considered an
integral part of the wage rate for the purpose of determining
the minimum wage rate under this act. Nothing in this act,
however, shall prohibit the payment of more than the general
prevailing minimum wage rate to any workman employed on public
work. The secretary shall forthwith give notice by mail of all
determinations of general prevailing minimum wage rates made
pursuant to this section to any representative of any craft, any
employer or any representative of any group of employers, who
shall in writing request the secretary so to do.
Section 8. Review of Rates, Petition and Hearing.--Any
prospective bidder or his representative, any representative of
any group of employers engaged in the particular type of
construction, reconstruction, alteration and demolition or
repair work involved, any representative of any craft or
classification of workmen or the public body may, within ten
days after the publication and issue of the specifications
covering the particular contract for public work involved, file
with the secretary a verified petition to review the
determination of any such rate or rates. Within two days
thereafter a copy of such petition shall be filed with the
public body authorizing the public work. The petition shall set
forth the facts upon which it is based. The secretary shall,
upon notice to the petitioner, the public body authorizing the
public work and the recognized collective bargaining
representatives for the particular crafts and classifications
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involved, and also to all persons entitled to receive notice
pursuant to subsection (a) of section 7 hereof, institute an
investigation and hold a public hearing within twenty days after
the filing of such petition. Within ten days thereafter, the
secretary shall make a determination and transmit it, in
writing, to the public body and to the interested parties. Such
determination shall be final unless within ten days an appeal is
filed with the Appeals Board.
Upon receipt by the public body of the notice of the filing
of such petition, the public body awarding the contract or
authorizing the public work shall extend the closing date for
the submission of bids until five days after the final
determination of the general prevailing minimum wage rates
pursuant to this section and the publication of such findings.
Upon the filing of any such petition, notice thereof and of
the extension of the closing date for submission of bids, shall
be given forthwith by the awarding public body in a special
bulletin to all interested parties as defined herein, notice
shall also be given to the bidders by the awarding body of the
final determination of the secretary or Appeals Board which
shall also be included in the contract. The determination of the
secretary or Appeals Board shall be included in the contract.
Section 9. Posting of Rates.--Contractors and sub-
contractors performing public work for a public body subject to
the provisions of this act shall post the general prevailing
minimum wage rates for each craft and classification involved,
as determined by the secretary, including the effective date of
any changes thereof, in prominent and easily accessible places
at the site of the work, or at such place or places as are used
by them to pay workmen their wages.
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Section 10. Duty of Public Body.--(a) Before final payment
is made by, or on behalf of any public body of any sum or sums
due on public work, it shall be the duty of the treasurer of the
public body or other officer or person charged with the custody
and disbursement of the funds of the public body to require the
contractor and subcontractor to file statements, in writing, in
form satisfactory to the secretary, certifying to the amounts
then due and owing from such contractor and subcontractor,
filing such statement to any and all workmen for wages due on
account of public work, setting forth therein the names of the
persons whose wages are unpaid and the amount due to each
respectively, which statement so to be filed shall be verified
by the oath of the contractor and subcontractor, as the case may
be, that he has read such statement subscribed by him, knows the
contents thereof and that the same is true of his own knowledge:
Provided, nevertheless, That nothing herein shall impair the
right of a contractor to receive final payment because of the
failure of any subcontractor to comply with provisions of this
act.
(b) In case any workman shall have filed a protest, in
writing, within three months from the date of the occurrence of
the incident complained of, with the secretary, objecting to the
payment to any contractor to the extent of the amount or amounts
due or to become due to the said workman for wages or for labors
performed on public works, the secretary shall direct the fiscal
or financial officer of the public body, or other person charged
with the custody and disbursements of the funds of the public
body, to deduct from the whole amount of any payment on account
thereof the sum or sums admitted by any contractor in such
statement or statements so filed, to be due and owing by him on
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account of wages earned on such public work before making
payment of the amount certified for payment and may withhold the
amount so deducted for the benefit of the workmen whose wages
are unpaid, as shown by the verified statement filed by any
contractor, and may pay directly to any workmen the amount shown
to be due to him for such wages by the statements filed as
hereinbefore required, thereby discharging the obligation of the
contractor to the person receiving such payment to the extent of
the amount thereof.
(c) Any contractor or subcontractor who shall, under oath,
verify the statement required to be filed under this section,
which is known to him to be false, shall be guilty of a
misdemeanor, and shall, upon conviction, be sentenced to pay a
fine of not exceeding two thousand five hundred dollars ($2,500)
or to undergo imprisonment not exceeding five years, or both.
Section 11. Remedies and Penalties.--(a) The fiscal or
financial officer, or any public body having public work
performed under which any workman shall have been paid less than
the prevailing wage, shall forthwith notify the secretary, in
writing, of the name of the person or firm failing to pay the
prevailing wages.
(b) Any workman may, within three months from the date of
the occurrence of the incident complained of, file a protest, in
writing, with the secretary objecting to the amount of wages
paid for services performed by him on public work as being less
than the prevailing wages for such services.
(c) Whenever a fiscal or financial officer of any public
body shall notify the secretary that any person or firm required
to pay its workmen the prevailing wage under this act has failed
so to do, or whenever any workman employed upon public work
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shall have filed a timely protest objecting that he has been
paid less than prevailing wages as required by this act, it
shall be the duty of and the secretary shall forthwith
investigate the matter and determine whether or not there has
been a failure to pay the prevailing wages and whether such
failure was intentional or otherwise. In any such investigation,
the secretary shall provide for an appropriate hearing upon due
notice to interested parties including the workmen, the employer
and their respective representative, if any.
(d) In the event that the secretary shall determine, after
notice and hearing as required by this section, that any person
or firm has failed to pay the prevailing wages and that such
failure was not intentional, he shall afford such person or firm
a reasonable opportunity to adjust the matter by making payment
or providing adequate security for the payment of the amounts
required to be paid under this act as prevailing wages to the
workmen affected on such terms and conditions as shall be
approved by the secretary.
(e) In the event that the secretary shall determine, after
notice and hearing as required by this section, that any person
or firm has failed to pay the prevailing wages and that such
failure was intentional, he shall thereupon notify all public
bodies of the name or names of such persons or firms and no
contract shall be awarded to such persons or firms or to any
firm, corporation or partnership in which such persons or firms
have an interest until three years have elapsed from the date of
the notice to the public bodies aforesaid. The secretary may in
addition thereto request the Attorney General to proceed to
recover the penalties for the Commonwealth of Pennsylvania which
are payable under subsection (f) of this section.
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(f) Whenever it shall be determined by the secretary, after
notice and hearing as required by this section, that any person
or firm has failed to pay the prevailing wages and that such
failure was intentional, such persons or firm shall be liable to
the Commonwealth of Pennsylvania for liquidated damages, in
addition to damages for any other breach of the contract in the
amount of the underpayment of wages due any workman engaged in
the performance of such contract.
(g) It shall not constitute a failure to pay the prevailing
wage rates for the work of a particular craft or classification
where the prevailing wage rates determined for a specific craft
or classification has been paid, and it is asserted that one or
more bona fide craft unions contend that the work should have
been assigned to their members instead of the members of the
specific craft to whom it was assigned or by whom it was
performed.
(h) The following shall constitute substantial evidence of
intentional failure to pay prevailing wage rates:
(1) Any acts of omission or commission done wilfully or with
a knowing disregard of the rights of workmen resulting in the
payment of less than prevailing wage rates.
(2) After there has been a finding by the secretary in the
manner required by this section that any person or firm has
failed to pay the prevailing wages prescribed by this act and
thereafter there shall be a failure by such person or firm to
pay the prevailing wages prescribed by this act, or there shall
be a subsequent failure of such person or firm to comply with
any opportunity to adjust any differences which shall be
afforded him by the secretary.
Section 12. Failure to Comply, Termination.--In any case
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where the secretary shall have determined that any person or
firm has failed to pay the prevailing wages under subsections
(e) and (f) of section 11 hereof, he may direct the public body
to terminate, and the public body may terminate, any such
contractor's right to proceed with the public work.
Section 13. Workmen's Rights.--Any workmen paid less than
the rates specified in the contract shall have a right of action
for the difference between the wage so paid and the wages
stipulated in the contract, which right of action shall be
instituted within six months from the occurrence of the event
creating such right.
Section 14. Rules and Regulations.--The secretary is hereby
authorized and empowered to prescribe, adopt, promulgate,
rescind and enforce rules and regulations pertaining to the
administration and enforcement of the provisions of this act.
Section 15. Application of Act.--This act shall have no
application to any public works subject to the Walsh-Healey Act,
the act of June 30, 1936, chapter 881, 49 Stat. 2036, 41 USCA
sections 35-45, or the Davis Bacon Act, the act of March 3,
1931, 40 U. S. Code 276 (a).
Section 16. Repealer.--All acts and parts of acts are
repealed in so far as they are inconsistent herewith.
Section 17. Effective Date.--This act shall take effect on
the first day of the sixth month following date of final
enactment.]
Section 2. This act shall take effect in 60 days.
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