The bill amends Section 37-13-7 of the General Laws in Chapter 37-13, which concerns labor and payment of debts by contractors in Rhode Island. It introduces a requirement for contracts over $1,000 to specify minimum wages for various types of employees as determined by the director of labor and training, reflecting prevailing wages in the area. The amendment mandates weekly payment of full wages accrued, without deductions or rebates, and requires the posting of the wage scale at the work site. Additionally, the bill defines "wages" to include not only the basic hourly rate but also contributions to benefits such as medical care, pensions, and insurance.

Significant changes include a new provision, effective July 1, 2024, that prohibits contractors or subcontractors from paying the cash equivalent of healthcare benefits directly to employees; they must purchase actual healthcare benefits from a licensed third-party provider, with exemptions for certain employees. Penalties for non-compliance range from $1,000 to $3,000 per violation, and the director of labor and training is authorized to seek injunctive relief against ongoing violations. The bill also allows employees or their bargaining agents to take private legal action if aggrieved by a contractor's or subcontractor's failure to provide healthcare benefits. Additionally, the bill expands the definition of "public agency" and "agency" to include various Rhode Island entities and introduces a severability clause. The act prohibits the payment of cash equivalents for healthcare benefits by contractors and subcontractors, with civil fines for violations, and is set to take effect upon passage.

Statutes affected:
2901  SUB B: 37-13-7
2901  SUB A: 37-13-7
2901: 37-13-7