The bill amends Section 37-13-7 of the General Laws concerning labor and payment of debts by contractors in Rhode Island. It introduces a requirement that all contracts exceeding $1,000 for the transportation of school pupils or for construction and repair of public works must specify the minimum wages to be paid to employees, based on prevailing wage rates determined by the director of labor and training. Additionally, it mandates that contractors pay employees weekly and prohibits any deductions from their wages.

The bill specifies that, commencing on July 1, 2025, unless employed for ninety (90) days or less, a contractor or subcontractor shall not be permitted to make a payment of the cash equivalent of any applicable retirement or pension benefit directly to the employee in lieu of actually purchasing the retirement and/or pension benefit for said employee. The department of labor and training may require any contractor or subcontractor to provide proof that it is providing this benefit to its eligible employees.

The bill establishes penalties for non-compliance, allowing for civil penalties ranging from $1,000 to $3,000 per violation, and grants the director of labor and training the authority to seek injunctive relief against ongoing violations. Employees or their bargaining agents may also pursue private actions if contractors fail to provide proof of purchased benefits.

Statutes affected:
5505: 37-13-7