The bill amends Section 37-13-7 of the General Laws in Chapter 37-13, which pertains to labor and payment of debts by contractors. It introduces new provisions requiring that every contract exceeding $1,000 for the transportation of school pupils or for the 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 these payments.

The bill also outlines the definitions of wages and includes stipulations regarding healthcare and retirement benefits. Notably, 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 act establishes penalties for non-compliance, allowing for civil penalties ranging from $1,000 to $3,000 per violation and authorizing the director of labor and training to seek injunctive relief against ongoing violations. Furthermore, employees or their bargaining agents may pursue private actions if contractors fail to provide proof of purchased benefits. The act is set to take effect upon passage.

Statutes affected:
5505: 37-13-7