Substitute Senate Bill No. 356 aims to strengthen the regulation of wages and employee welfare contributions for public works projects in the state. Key provisions include the requirement that all public works contracts stipulate wages must align with local prevailing rates, and if contractors do not contribute to employee welfare funds, those contributions must be included in workers' wages. The bill also introduces penalties for non-compliance, including fines and potential debarment from future contracts. It repeals Section 31-53, replacing it with updated language that mandates electronic filing of certified payroll and daily logs, while establishing a list of violators maintained by the Labor Commissioner and outlining a debarment process based on violation severity.

Additionally, the bill requires employers to maintain detailed records of wages and hours worked, including job classifications, and to submit certified payroll records electronically to the Labor Commissioner starting December 1, 2028. It defines "employee welfare fund" and outlines the responsibilities of employers regarding daily record-keeping, which must be submitted weekly. Non-compliance with these requirements is classified as a Class D felony, with penalties of up to $5,000 in fines and/or five years of imprisonment. The bill also establishes an online system for public access to certified payroll records while protecting personally identifiable information, with the effective date set for October 1, 2026.