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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MILLER, AUMENT, BEAR, BOYD, CALTAGIRONE, CREIGHTON, CUTLER, DENLINGER, EVERETT, GILLESPIE, GINGRICH, GROVE, HARRIS, HICKERNELL, LAWRENCE, MARSICO, PERRY, PICKETT, ROAE, ROCK, SAYLOR, SCAVELLO AND SWANGER, JULY 2, 2012 |
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| REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JULY 2, 2012 |
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| AN ACT |
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1 | Amending the act of August 15, 1961 (P.L.987, No.442), entitled |
2 | "An act relating to public works contracts; providing for |
3 | prevailing wages; imposing duties upon the Secretary of Labor |
4 | and Industry; providing remedies, penalties and repealing |
5 | existing laws," further providing for definitions; providing |
6 | for duties of contractors, trustees or third parties managing |
7 | fringe benefit payments; further providing for duty of |
8 | secretary; providing for right of workmen to challenge fringe |
9 | benefit payments allocation; further providing for remedies |
10 | and penalties; and providing for prohibited conduct. |
11 | The General Assembly of the Commonwealth of Pennsylvania |
12 | hereby enacts as follows: |
13 | Section 1. Section 2 of the act of August 15, 1961 (P.L.987, |
14 | No.442), known as the Pennsylvania Prevailing Wage Act, is |
15 | amended by adding a paragraph to read: |
16 | Section 2. Definitions.--As used in this act-- |
17 | * * * |
18 | (11) "Fringe benefit" means medical or hospital care, |
19 | pensions on retirement or death, compensation for injuries or |
20 | illness resulting from occupational activity or insurance to |
21 | provide any of the foregoing. The term also means unemployment |
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1 | benefits, life insurance, disability insurance, sickness |
2 | insurance or accident insurance, vacation or holiday pay and |
3 | defraying the costs of apprenticeship program. The term does not |
4 | include any other fees. |
5 | Section 2. The act is amended by adding a section to read: |
6 | Section 6.1. Duties of Contractors, Trustees or Third |
7 | Parties Managing Fringe Benefit Payments.--The secretary shall |
8 | require contractors, trustees or third parties managing the |
9 | administration of fringe benefit payments under a collective |
10 | bargaining agreement to maintain accurate records of fringe |
11 | benefit payments made to each worker. The records must contain a |
12 | clear description of each item for which funds were allocated in |
13 | a fringe benefit payment. The secretary must be provided access |
14 | to the records. |
15 | Section 3. Section 7 of the act, amended August 9, 1963 |
16 | (P.L.653, No.342), is amended to read: |
17 | Section 7. Duty of Secretary.--The secretary shall, after |
18 | consultation with the advisory board, determine the general |
19 | prevailing minimum wage rate in the locality in which the public |
20 | work is to be performed for each craft or classification of all |
21 | workmen needed to perform public work contracts during the |
22 | anticipated term thereof: Provided, however, That employer and |
23 | employe contributions for employe fringe benefits pursuant to a |
24 | bona fide collective bargaining agreement shall be considered an |
25 | integral part of the wage rate for the purpose of determining |
26 | the minimum wage rate under this act. Nothing in this act, |
27 | however, shall prohibit the payment of more than the general |
28 | prevailing minimum wage rate to any workman employed on public |
29 | work. The secretary shall forthwith give notice by mail of all |
30 | determinations of general prevailing minimum wage rates made |
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1 | pursuant to this section to any representative of any craft, any |
2 | employer or any representative of any group of employers, who |
3 | shall in writing request the secretary so to do. |
4 | Section 4. The act is amended by adding a section to read: |
5 | Section 10.1. Right of Workmen to Challenge Fringe Benefit |
6 | Payments Allocation.--(a) Within three months from the date of |
7 | the occurrence of the incident complained of, a workman may file |
8 | a protest in writing with the secretary objecting to the misuse |
9 | of a fringe benefit payment made by an employer to a contractor, |
10 | trustee or third party administering fringe benefit payments |
11 | under a collective bargaining agreement. A protest made under |
12 | this subsection must be based on the alleged use of payments for |
13 | purposes not covered by a fringe benefit. |
14 | (b) A contractor or labor organization may not retaliate |
15 | against a worker who makes a complaint under subsection (a) with |
16 | respect to hiring, job assignments, seniority or another job- |
17 | related matter. A workman aggrieved under this section has a |
18 | cause of action against the contractor or labor organization. In |
19 | rendering a judgment in an action brought under this act, a |
20 | court shall order, as it considers appropriate, the payment of |
21 | back wages and fringe benefits, seniority rights, actual damages |
22 | or a combination of the remedies. A court shall also award the |
23 | complainant all or a portion of the costs of litigation, |
24 | including reasonable attorney fees and witness fees if it |
25 | determines the award is appropriate. |
26 | Section 5. Section 11 of the act is amended by adding a |
27 | subsection to read: |
28 | Section 11. Remedies and Penalties.--* * * |
29 | (i) If, after notice and hearing as required by this |
30 | section, the secretary determines that a contractor, third |
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1 | person or trustee administering fringe benefit payments under a |
2 | collective bargaining agreement utilized payments made by |
3 | employers for fringe benefits for a purpose not permitted under |
4 | this act and the misuse was intentional, the secretary shall: |
5 | (1) order restitution of the amount misused back to fringe |
6 | benefit purposes; and |
7 | (2) impose an administrative penalty of up to ten thousand |
8 | dollars ($10,000) on the trustee or third party. |
9 | In addition, the secretary may prohibit the trustee or third |
10 | party from administering payments made by an employer under this |
11 | act for up to three years. The secretary may request the |
12 | Attorney General to investigate the third party or trustee to |
13 | determine possible criminal violations. |
14 | Section 6. The act is amended by adding a section to read: |
15 | Section 13.1. Prohibited Conduct.--A contractor or labor |
16 | organization may not discriminate against a workman on |
17 | assignment to work to a public project based on his contribution |
18 | to or his failure to contribute to a fund utilized for political |
19 | activity. A workman aggrieved under this section has a cause of |
20 | action against the labor organization. A court, in rendering a |
21 | judgment in an action brought under this act, shall order, as it |
22 | considers appropriate, the payment of back wages and fringe |
23 | benefits, seniority rights, damages or a combination of the |
24 | remedies. A court shall also award the complainant all or a |
25 | portion of the costs of litigation, including reasonable |
26 | attorney fees and witness fees if it determines that the award |
27 | is appropriate. |
28 | Section 7. This act shall take effect in 60 days. |
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