THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JULY 2, 2012  

AN ACT

Amending 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," further providing for definitions; providing

for duties of contractors, trustees or third parties managing

fringe benefit payments; further providing for duty of

secretary; providing for right of workmen to challenge fringe

benefit payments allocation; further providing for remedies

and penalties; and providing for prohibited conduct.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2 of the act of August 15, 1961 (P.L.987,

No.442), known as the Pennsylvania Prevailing Wage Act, is

amended by adding a paragraph to read:

Section 2.  Definitions.--As used in this act--

* * *

(11)  "Fringe benefit" means medical or hospital care,

pensions on retirement or death, compensation for injuries or

illness resulting from occupational activity or insurance to

provide any of the foregoing. The term also means unemployment

benefits, life insurance, disability insurance, sickness

insurance or accident insurance, vacation or holiday pay and

defraying the costs of apprenticeship program. The term does not

include any other fees.

Section 2.  The act is amended by adding a section to read:

Section 6.1.  Duties of Contractors, Trustees or Third

Parties Managing Fringe Benefit Payments.--The secretary shall

require contractors, trustees or third parties managing the

administration of fringe benefit payments under a collective

bargaining agreement to maintain accurate records of fringe

benefit payments made to each worker. The records must contain a

clear description of each item for which funds were allocated in

a fringe benefit payment. The secretary must be provided access

to the records.

Section 3.  Section 7 of the act, amended August 9, 1963

(P.L.653, No.342), is amended to read:

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

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 fringe 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 4.  The act is amended by adding a section to read:

Section 10.1.  Right of Workmen to Challenge Fringe Benefit

Payments Allocation.--(a)  Within three months from the date of

the occurrence of the incident complained of, a workman may file

a protest in writing with the secretary objecting to the misuse

of a fringe benefit payment made by an employer to a contractor,

trustee or third party administering fringe benefit payments

under a collective bargaining agreement. A protest made under

this subsection must be based on the alleged use of payments for

purposes not covered by a fringe benefit.

(b)  A contractor or labor organization may not retaliate

against a worker who makes a complaint under subsection (a) with

respect to hiring, job assignments, seniority or another job-

related matter. A workman aggrieved under this section has a

cause of action against the contractor or labor organization. In

rendering a judgment in an action brought under this act, a

court shall order, as it considers appropriate, the payment of

back wages and fringe benefits, seniority rights, actual damages

or a combination of the remedies. A court shall also award the

complainant all or a portion of the costs of litigation,

including reasonable attorney fees and witness fees if it

determines the award is appropriate.

Section 5.  Section 11 of the act is amended by adding a

subsection to read:

Section 11.  Remedies and Penalties.--* * *

(i)  If, after notice and hearing as required by this

section, the secretary determines that a contractor, third

person or trustee administering fringe benefit payments under a

collective bargaining agreement utilized payments made by

employers for fringe benefits for a purpose not permitted under

this act and the misuse was intentional, the secretary shall:

(1)  order restitution of the amount misused back to fringe

benefit purposes; and

(2)  impose an administrative penalty of up to ten thousand

dollars ($10,000) on the trustee or third party.

In addition, the secretary may prohibit the trustee or third

party from administering payments made by an employer under this

act for up to three years. The secretary may request the

Attorney General to investigate the third party or trustee to

determine possible criminal violations.

Section 6.  The act is amended by adding a section to read:

Section 13.1.  Prohibited Conduct.--A contractor or labor

organization may not discriminate against a workman on

assignment to work to a public project based on his contribution

to or his failure to contribute to a fund utilized for political

activity. A workman aggrieved under this section has a cause of

action against the labor organization. A court, in rendering a

judgment in an action brought under this act, shall order, as it

considers appropriate, the payment of back wages and fringe

benefits, seniority rights, damages or a combination of the

remedies. A court shall also award the complainant all or a

portion of the costs of litigation, including reasonable

attorney fees and witness fees if it determines that the award

is appropriate.

Section 7.  This act shall take effect in 60 days.