290.250. Prevailing wage, incorporation into contracts--failure to pay, penalty--complaints of violation, public body or prime contractor to withhold payment--determination of a violation, investigati
Prevailing wage, incorporation into contracts--failure to pay,penalty--complaints of violation, public body or prime contractorto withhold payment--determination of a violation, investigationrequired--employer's right to dispute--enforcement proceedingpermitted, when.
290.250. 1. Every public body authorized to contract for orconstruct public works before advertising for bids or undertaking suchconstruction shall request the department to determine the prevailing ratesof wages for workmen for the class or type of work called for by the publicworks, in the locality where the work is to be performed. The departmentshall determine the prevailing hourly rate of wages in the locality inwhich the work is to be performed for each type of workman required toexecute the contemplated contract and such determination or schedule of theprevailing hourly rate of wages shall be attached to and made a part of thespecifications for the work. The public body shall then specify in theresolution or ordinance and in the call for bids for the contract what isthe prevailing hourly rate of wages in the locality for each type ofworkman needed to execute the contract and also the general prevailing ratefor legal holiday and overtime work. It shall be mandatory upon thecontractor to whom the contract is awarded and upon any subcontractor underhim to pay not less than the specified rates to all workmen employed bythem in the execution of the contract. The public body awarding thecontract shall cause to be inserted in the contract a stipulation to theeffect that not less than the prevailing hourly rate of wages shall be paidto all workmen performing work under the contract. The employer shallforfeit as a penalty to the state, county, city and county, city, town,district or other political subdivision on whose behalf the contract ismade or awarded one hundred dollars for each workman employed, for eachcalendar day, or portion thereof, such workman is paid less than the saidstipulated rates for any work done under said contract, by him or by anysubcontractor under him, and the said public body awarding the contractshall cause to be inserted in the contract a stipulation to this effect.It shall be the duty of such public body awarding the contract, and itsagents and officers, to take cognizance of all complaints of all violationsof the provisions of sections 290.210 to 290.340 committed in the course ofthe execution of the contract, and, when making payments to the contractorbecoming due under said contract, to withhold and retain therefrom all sumsand amounts due and owing as a result of any violation of sections 290.210to 290.340. It shall be lawful for any contractor to withhold from anysubcontractor under him sufficient sums to cover any penalties withheldfrom him by the awarding body on account of said subcontractor's failure tocomply with the terms of sections 290.210 to 290.340, and if payment hasalready been made to him, the contractor may recover from him the amount ofthe penalty in a suit at law.
2. In determining whether a violation of sections 290.210 to 290.340has occurred, and whether the penalty under subsection 1 of this sectionshall be imposed, it shall be the duty of the department to investigate anyclaim of violation. Upon completing such investigation, the departmentshall notify the employer of its findings. If the department concludesthat a violation of sections 290.210 to 290.340 has occurred and a penaltymay be due, the department shall notify the employer of such finding byproviding a notice of penalty to the employer. Such penalty shall not bedue until forty-five days after the date of the notice of the penalty.
3. The employer shall have the right to dispute such notice ofpenalty in writing to the department within forty-five days of the date ofthe notice. Upon receipt of this written notice of dispute, the departmentshall notify the employer of the right to resolve such dispute througharbitration. The state and the employer shall submit to an arbitrationprocess to be established by the department by rule, and in conformancewith the guidelines and rules of the American Arbitration Association orother arbitration process mutually agreed upon by the employer and thestate. If at any time prior to the department pursuing an enforcementaction to enforce the monetary penalty provisions of subsection 1 of thissection against the employer, the employer pays the back wages asdetermined by either the department or the arbitrator, the department shallbe precluded from initiating any enforcement action to impose the monetarypenalty provisions of subsection 1 of this section.
4. If the employer fails to pay all wages due as determined by thearbitrator within forty-five days following the conclusion of thearbitration process, or if the employer fails to exercise the right to seekarbitration, the department may then pursue an enforcement action toenforce the monetary penalty provisions of subsection 1 of this sectionagainst the employer. If the court orders payment of the penalties asprescribed in subsection 1 of this section, the department shall beentitled to recover its actual cost of enforcement from such penaltyamount.
5. Nothing in this section shall be interpreted as precluding anaction for enforcement filed by an aggrieved employee as otherwise providedin law.
(L. 1957 p. 574 § 4, A.L. 1969 S.B. 142, A.L. 2007 S.B. 339)