# State Finance and Procurement (GSF)

## Title 17. Special Provisions -- State and Local Subdivisions

### Subtitle 2. Prevailing Wage Rates -- Public Work Contracts

#### Section 17-201

(a) In this subtitle, unless the context indicates otherwise, the following words have the meanings indicated.

(b) "Apprentice" means an individual who:

  (1) is at least 16 years old;

  (2) has signed with an employer or employer's agent, an association of employers, an organization of employees, or a joint committee from both, an agreement including a statement of:

    (i) the trade, craft, or occupation that the individual is learning; and

    (ii) the beginning and ending dates of the apprenticeship; and

  (3) is registered in a program of the Council or the Office of Apprenticeship of the United States Department of Labor.

(c) "Apprenticeship cohort" has the meaning stated in Sec. 14-801 of this article.

(d) "Commissioner" means:

  (1) the Commissioner of Labor and Industry;

  (2) the Deputy Commissioner of Labor and Industry; or

  (3) an authorized representative of the Commissioner.

(e) "Completion rate" has the meaning stated in Sec. 14-801 of this article.

(f) "Construction" includes all:

  (1) building;

  (2) reconstructing;

  (3) improving;

  (4) enlarging;

  (5) painting and decorating;

  (6) altering;

  (7) maintaining;

  (8) repairing; and

  (9) services provided under a mechanical systems service contract.

(g) "Council" means the Apprenticeship and Training Council.

(h)

  (1) "Employee" means an apprentice or worker employed by a contractor or subcontractor under a public work contract.

  (2) "Employee" does not include an individual employed by a public body.

(i) "Group joint apprenticeship program" has the meaning stated in Sec. 14-801 of this article.

(j) "Group nonjoint apprenticeship program" has the meaning stated in Sec. 14-801 of this article.

(k) "Individual joint apprenticeship program" has the meaning stated in Sec. 14-801 of this article.

(l) "Individual nonjoint apprenticeship program" has the meaning stated in Sec. 14-801 of this article.

(m)

  (1) "Locality" means the county in which the work is to be performed.

  (2) If the public work is located within 2 or more counties, the locality includes all counties in which the public work is located.

(n) "Mechanical systems service contract" means a contract for:

#### Section 17-202

(a) This subtitle does not limit:

  (1) the hours of work an employee may work in a particular period of time; or

  (2) the right of a contractor to pay an employee under a public work contract more than the prevailing wage rate.

(b) Except as provided in subsection (e) of this section, this subtitle does not apply to:

  (1) a public work contract of less than $250,000; or

  (2) the part of a public work contract for which the federal government provides money if, as to that part, the contractor is required to pay the prevailing wage rate as determined by the United States Secretary of Labor.

(c) If this subtitle and the federal Davis-Bacon Act apply and the federal act is suspended, the Governor may declare this subtitle suspended for the same period for:

  (1) the part of that public work contract for which the United States Secretary of Labor would have been required to make a determination of a prevailing wage rate; or

  (2) that entire public work contract.

(d)

  (1) Subject to paragraph (2) of this subsection, this subtitle applies to the construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in a designated tax increment financing development district created on or after July 1, 2018, established under State or local law.

  (2) This subsection applies to the construction of a structure or work only if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince George's County authorizes that the construction of the structure or work is subject to this subtitle.

(e) This subtitle applies to a mechanical systems service contract that is part of a public work contract with a value in excess of the threshold specified in 41 U.S.C. 6702(a)(2), the McNamara-O'Hara Service Contract Act of 1965 (SCA).

#### Section 17-204

(a)

  (1) The Commissioner shall adopt regulations reasonably required to carry out this subtitle.

  (2) The regulations may include exemptions for minimum number of hours worked or workers employed.

  (3) Payroll records shall be kept in accordance with those regulations.

(b) On or before January 1 of each year, the Commissioner shall submit to the Governor and to the Secretary of Labor an annual report that:

  (1) describes the activities of the Commissioner under this subtitle during the preceding calendar year; and

  (2) includes:

    (i) full information about the operation of this subtitle; and

    (ii) other information about prevailing wage rates, as the Commissioner desires.

#### Section 17-205

(a) A contractor or subcontractor under a public work contract subject to this subtitle:

  (1) shall employ only competent workers and apprentices who qualify under subsection (b) of this section;

  (2) may not employ any individual classified as a helper or trainee; and

  (3) may refuse to employ a worker who is a resident of another state if the Commissioner finds that the other state enforces a law that prohibits a resident of this State from employment as a worker under a public work contract in that state, unless:

    (i) the refusal is in conflict or otherwise inconsistent with a federal law applicable to the public work;

    (ii) the federal government is to pay wholly or partly for the public work; and

    (iii) the inconsistency with federal law jeopardizes the availability of federal funds for the public work.

(b) An apprentice under a public work contract shall be part of and used in accordance with an apprenticeship program that:

  (1) is registered with the Council and approved by the Office of Apprenticeship of the United States Department of Labor; and

  (2) if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as determined by the Maryland Department of Labor.

#### Section 17-208

(a)

  (1) For each public work to which this subtitle applies, the Commissioner shall determine the prevailing wage rate for each classification of worker engaged in work of the same or a similar character.

  (2) The Commissioner shall determine the prevailing wage rates for both straight time and overtime.

  (3) These determinations shall be made in accordance with:

    (i) the applicable provisions of Title 10, Subtitles 1 through 3 of the State Government Article; and

    (ii) to the extent not inconsistent with those provisions, the requirements of this section.

(b)

  (1) Except as provided in subsection (c) of this section, the prevailing wage rate for straight time for a worker is the rate paid:

    (i) in the locality;

    (ii) on projects similar to the proposed public work;

    (iii) for work of the same or a similar character as that to be performed on the public work; and

    (iv) to 50% or more of the workers in the worker's occupational classification.

  (2) The prevailing wage rate for overtime for a worker shall be at least time and a half the prevailing wage rate for straight time for that worker.

(c)

  (1) If fewer than 50% of the workers in the locality working in the same classification receive the same wage rate:

    (i) the prevailing wage rate shall be the rate paid to at least 40% of those workers; or

    (ii) if fewer than 40% receive the same wage rate, the rate shall be a weighted average rate obtained by:

      (1) adding the products obtained by multiplying each hourly rate paid to workers in the classification by the number of workers receiving that rate; and

      (2) dividing that sum by the total number of workers in the classification.

  (2) If the Commissioner determines that there is not a substantial number of competent workers engaged in similar work in the locality, the Commissioner shall determine the prevailing wage rate based on the nearest locality within the State that most closely approximates that locality in:

    (i) population;

    (ii) degree of industrialization; and

    (iii) skill of work force.

(d) The calculation of the rate paid in the locality shall include the basic hourly rate of pay and either:

  (1) if a contractor is not required by law to provide fringe benefits, the hourly rate of contribution irrevocably made by a contractor or subcontractor to a third person under a fund, plan, or program that provides:

    (i) medical, surgical, or hospital care;

    (ii) retirement, disability, or death benefits, including a profit sharing plan that provides benefits on retirement;

    (iii) unemployment, life, or accident insurance or compensation;

    (iv) insurance or compensation for injury or illness resulting from occupational activity;

    (v) vacation and holiday pay;

    (vi) subsidies to defray costs of apprenticeship or other similar programs; or

    (vii) other bona fide fringe benefits; or

  (2) the hourly rate of costs to the contractor or subcontractor that reasonably may be anticipated in providing the fringe benefits specified in item (1) of this subsection under an enforceable commitment to carry out a financially responsible plan or program that is communicated in writing to the workers.

(e) An apprentice under a public work contract shall be paid at least the percentage, set by the Council, of the prevailing wage rate for a mechanic in the trade in which the apprentice is employed.

#### Section 17-209

(a) One time per year, the Commissioner shall determine the prevailing wage rate for a classification of worker in a locality by considering among other things:

  (1) any other payroll information relevant to the determination; and

  (2) wage rates established by collective bargaining agreements.

(b) The Commissioner shall mail notice as provided in Sec. 17-210(b)(2) of this subtitle at least 60 days before making a determination under this section.

(c)

  (1) The determination, as issued under this section or modified in a proceeding under Sec. 17-211 of this subtitle, is effective for 1 year from the date upon which the Commissioner issued the determination under this section.

  (2) The Commissioner shall show on the determination the date upon which it expires.

  (3) Upon expiration of the prevailing wage determination for a locality, the Commissioner shall issue a new determination for the locality.

  (4) A determination applies to a public work covered by this subtitle that is the subject of a call for bids or proposals published on or before the date upon which it expires.

#### Section 17-210

(a) Before a public body advertises for bids or proposals for a public work contract, it shall request the Commissioner to determine the prevailing wage rate for each classification of worker required to perform the public work contract.

(b)

  (1) The Commissioner shall give notice of each prevailing wage rate determination for a public work contract under this subtitle.

  (2) On written request, the Commissioner shall mail to any representative of any classification, any employer, or any representative of any group of employers notice:

    (i) that a determination will be made, at least 60 days before making the determination; and

    (ii) of the determination, after making the determination.

(c) After a determination has been made, the public body shall include each prevailing wage rate for straight time and overtime:

  (1) in any call for bids or proposals;

  (2) in the specifications for the public work contract; and

  (3) in the public work contract.

#### Section 17-211

(a) A determination of a prevailing wage rate issued under Sec. 17-209 of this subtitle is subject to review when a public body publishes a call for bids or proposals in which the determination is used for the first time following its issuance under Sec. 17-209 of this subtitle.

(b)

  (1) Within 10 days after a public body publishes any call for bids or proposals, as described in subsection (a) of this section, a petition for review of a determination of a prevailing wage rate may be submitted to the Commissioner by:

    (i) the public body;

    (ii) a prospective bidder or offeror or a representative of a prospective bidder or offeror;

    (iii) a representative of a group of employers engaged in the type of construction for which the prevailing wage rate was determined; or

    (iv) a representative of a classification of worker for which the prevailing wage rate was determined.

  (2) A petition under this subsection shall be verified and shall set forth the facts on which it is based.

  (3) If a petition is not filed within the period set under paragraph (1) of this subsection, the determination is final and is the rate applicable in the locality for the remainder of the 1-year period for which it was issued under Sec. 17-209 of this subtitle.

(c)

  (1) Within 2 days after a petition is submitted under this section, the petitioner shall send a copy to the public body.

  (2) On receipt of a copy of the petition, the public body shall extend the closing date for bids or proposals until 5 days after the Commissioner publishes the final determination under subsection (f) of this section.

(d)

  (1) Within 20 days after a petition is submitted, the Commissioner shall:

    (i) after giving the notice required under paragraph (3) of this subsection, conduct an investigation; and

    (ii) hold a public hearing to review the petition.

  (2) If more than 1 petition is submitted, the Commissioner may consolidate the hearings on any of the petitions.

  (3) The Commissioner shall notify the petitioner, public body, recognized collective bargaining representative for the classification for which a review is requested, and any other person entitled to receive notice under Sec. 17-210(b)(2) of this subtitle.

(e) At the hearing:

  (1) the Commissioner shall introduce as evidence the investigation conducted under subsection (d) of this section and the other facts that formed the basis of the Commissioner's original determination; and

  (2) any interested party, including the Commissioner, may introduce other evidence material to the issue.

(f) Within 10 days after the conclusion of a review hearing, the Commissioner shall send to the public body and each interested party, a determination of the prevailing wage rate. This determination is final and is the rate applicable in the locality for the remainder of the 1-year period for which it was issued under Sec. 17-209 of this subtitle.

#### Section 17-212

A member of a public body may not vote for the award of a public work contract or vote to disburse money for the construction of a public work unless:

(1) the public body has asked the Commissioner to determine the prevailing wage rates in the locality for each classification of worker required to perform the public work contract; and

(2) the determination has been made part of the specifications and public work contract for the public work.

#### Section 17-213

(a) Before entering into a public work contract, a public body shall require that the public work contract include a clause for payment:

  (1) to a worker, of at least the prevailing wage rate; and

  (2) to an apprentice, of at least the rate that the Council sets for an apprentice based on a percentage of the prevailing wage rate for a mechanic in that trade.

(b) A public body shall require bonds on public work contracts to guarantee the faithful performance of the prevailing wage rate clause of the public work contract.

#### Section 17-214

(a) Except as provided in subsection (b) of this section, each contractor and subcontractor under a public work contract shall pay not less than the prevailing wage rate of straight time to an employee for each hour that the employee works.

(b) A contractor and subcontractor shall pay an employee the prevailing wage rate of overtime for each hour that the employee works:

  (1) in excess of 10 hours in any single calendar day;

  (2) in excess of 40 hours per each workweek; or

  (3) on Sunday or a legal holiday.

#### Section 17-215

(a) Each contractor and subcontractor subject to this subtitle shall pay each employee not less than the prevailing wage rate required under this subtitle:

  (1) unconditionally;

  (2) without subsequent rebate; and

  (3) except as provided in subsection (b) of this section, without deductions for:

    (i) food;

    (ii) sleeping accommodations;

    (iii) transportation;

    (iv) use of small tools; or

    (v) any other thing of any kind.

(b) A contractor or subcontractor may make deductions that are:

  (1) required by law;

  (2) required or allowed by a collective bargaining agreement between a bona fide labor organization and the contractor or subcontractor; or

  (3) contained in a written agreement between an employee and an employer undertaken at the beginning of employment, if the agreement:

    (i) concerns food, sleeping accommodations, or other similar items;

    (ii) is submitted by the employer to the public body awarding the public work contract; and

    (iii) is approved by the public body as fair and reasonable.

#### Section 17-216

(a) A laborer may perform any work that is not ordinarily performed by a mechanic or mechanic's apprentice, but shall be paid the prevailing wage rate for the work performed.

(b)

  (1) A laborer receiving the prevailing wage rate for laborers may not perform work ordinarily performed by a mechanic or mechanic's apprentice.

  (2) If a laborer performs work ordinarily performed by any mechanic or mechanic's apprentice, the contractor or subcontractor shall pay the laborer for the entire time of performance of that work at the prevailing wage rate for a mechanic.

#### Section 17-219

(a) Each contractor under a public work contract subject to this subtitle shall:

  (1) post a clearly legible statement of each prevailing wage rate to be paid under the public work contract; and

  (2) keep the statement posted during the full time that any employee is employed on the public work contract.

(b) The statement of prevailing wage rates shall be posted in a prominent and easily accessible place at the site of the public work.

(c) Subject to Sec. 10-1001 of the State Government Article, the Commissioner may impose on a person that violates this section a civil penalty of up to $50 per violation.

#### Section 17-220

(a) Each contractor required to pay the prevailing wage rate shall:

  (1) keep payroll records covering work performed directly at the work site in accordance with regulations adopted by the Commissioner; and

  (2) allow the Commissioner or the public body to inspect the records at any reasonable time and as often as necessary.

(b)

  (1) Each contractor shall submit a complete copy of the payroll records of the contractor and, for work performed at the work site, of the subcontractors in the form that the Commissioner specifies by regulation to:

    (i) the public body; and

    (ii) the Commissioner.

  (2) The Commissioner and the public body shall make payroll records available for public inspection during regular business hours.

(c) Each copy of the payroll records shall be accompanied by a statement that is signed by the contractor or, for the subcontractor's records, by the subcontractor and indicates that:

  (1) the payroll records are correct;

  (2) the wage rates paid are not less than those established by the Commissioner as set forth in the public work contract;

  (3) the classification set forth for each employee conforms with the work performed by that employee; and

  (4) the contractor or subcontractor has complied with each requirement of this subtitle.

(d) If a contractor is late in submitting copies of the payroll records required under subsection (b) of this section:

  (1) the public body may postpone the processing of partial payment estimates under the public work contract pending receipt of the copies; and

  (2) the contractor shall be liable to the public body for liquidated damages of $10 for each calendar day the records are late.

#### Section 17-221

(a) Each public body that awards a public work contract shall:

  (1) take cognizance of a complaint of a violation of this subtitle committed in the course of performance of the public work contract; and

  (2) when making payments to the contractor, withhold any amount that the contractor owes to its employees or the public body as a result of the violation.

(b)

  (1) The Commissioner shall promptly institute an investigation as necessary to determine compliance with this subtitle and regulations adopted under this subtitle when the Commissioner:

    (i) receives a complaint of a violation of this subtitle; and

    (ii) is otherwise made aware of a possible violation of this subtitle.

  (2) Any written or oral complaint or statement made by an employee is confidential and may not be disclosed to the employer without the consent of the employee.

(c) A contractor or subcontractor subject to an investigation under this section shall allow the Commissioner, during normal working hours, to observe work being performed at the site of a public work project, to interview employees, and to review books and records, to determine:

  (1) the correctness of each classification;

  (2) the ratio of apprentices to mechanics; and

  (3) payment of straight and overtime prevailing wage rates as required under the public work contract.

(d)

  (1) If, after investigation, the Commissioner determines that a provision of this subtitle may have been violated, the Commissioner immediately shall notify the public body.

(2) On notification, the public body shall withhold from payment due the contractor or subcontractor an amount sufficient to:

  (i) pay each employee of the contractor or subcontractor the full amount of wages due under this subtitle; and

  (ii) satisfy a liability of a contractor for liquidated damages as provided in Sec. 17-222(a) of this subtitle, pending a final determination.

  (3) If a subcontractor is responsible for a violation of this subtitle, the contractor:

    (i) may withhold from payment to the subcontractor an amount equal to the amount withheld from the contractor under paragraph (2) of this subsection; or

    (ii) if payment has been made to the subcontractor, may sue to recover that amount.

(e)

  (1)

    (i) If, after investigation, the Commissioner makes an initial determination that a contractor or subcontractor may have violated the requirement to pay the prevailing wage rate under this subtitle, the Commissioner immediately may issue a stop work order to cease all business operations at every site where a violation occurred and shall:

      (1) notify the contractor or subcontractor of the violation, to include a statement of facts disclosed in the investigation;

      (2) meet with the contractor or subcontractor within 48 hours of issuing the stop work order; and

      (3) provide the contractor or subcontractor a reasonable timeframe, as determined by the Commissioner, to resolve the violation.

    (ii) The Commissioner may issue the stop work order even if the Commissioner has referred the matter to the Attorney General or another appropriate authority for investigation or prosecution.

  (2) If a stop work order is issued against a subcontractor:

    (i) the prime contractor on the contract may not terminate the contract with the subcontractor until 48 hours after the meeting between the Commissioner and the subcontractor;

    (ii) the prime contractor may not terminate the contract with the subcontractor if the violation has been resolved; and

    (iii) the prime contractor may not incur any civil liability for damages to the subcontractor whose contract was terminated, other subcontractors affected by the termination, or any public body resulting from the termination.

  (3) The Commissioner may impose a penalty of up to $5,000 per day against a contractor or subcontractor for each day the contractor or subcontractor violates a stop work order.

  (4) A stop work order issued under this subsection shall:

    (i) take effect when served on the contractor or subcontractor; and

    (ii) remain in effect until the Commissioner issues an order releasing the stop work order.

  (5) The Commissioner shall issue an order releasing a stop work order issued under this subsection on a showing by the contractor or subcontractor that the contractor or subcontractor:

    (i) is properly paying employees the appropriate prevailing wage rate set in accordance with this subtitle; and

    (ii) has paid all penalties assessed against the contractor or subcontractor under this subtitle.

  (6) The Commissioner may include in the order releasing a stop work order a requirement that the contractor or subcontractor submit periodic reports to the Commissioner demonstrating compliance with the requirements of this subtitle.

(f)

  (1)

    (i) Within 72 hours after a contractor or subcontractor receives a stop work order under subsection (e) of this section, the contractor or subcontractor may submit a written appeal to the Commissioner on the stop work order.

    (ii) If an appeal is not requested within 72 hours, the stop work order shall become a final order of the Commissioner.

  (2) The Commissioner shall hold a hearing within 7 days after receiving the written appeal.

  (3) If the Commissioner does not hold a hearing within 7 days after receiving the written appeal, the contractor or subcontractor may request an administrative law judge to release the order.

  (4)

    (i) Within 5 days after holding a hearing on a stop work order under this subsection, the Commissioner shall issue a written decision on the appeal.

    (ii) The decision shall include:

      (1) an explanation of why the order was upheld or released; and

      (2) the grounds on which the result was determined.

(g) If after investigation, the Commissioner determines that a provision of this subtitle may have been violated and has not issued a stop work order in accordance with subsection (e) of this section, the Commissioner shall:

  (1) issue an order for a hearing within 30 days after completing an investigation; and

  (2) expeditiously conduct the hearing.

(h)

  (1) At least 10 days before the hearing, the Commissioner shall serve, personally or by mail, written notice of the hearing on all interested persons, including the public body.

  (2) The notice shall include:

    (i) a statement of the facts disclosed in the investigation; and

    (ii) the time and place of the hearing.

(i)

  (1) In conducting an investigation or hearing under this section, the Commissioner is deemed to be acting in a quasi-judicial capacity and may:

    (i) issue subpoenas;

    (ii) administer oaths; or

    (iii) examine witnesses.

  (2) The Commissioner shall grant each interested person an opportunity to speak at the hearing on matters relevant to the complaint.

(j)

  (1) After the conclusion of the hearing, the Commissioner shall:

    (i) file in the Commissioner's office an order that states the Commissioner's determination; and

    (ii) serve, personally or by mail, the public body and parties to the hearing with a copy of the order and notice of its filing.

  (2) If the Commissioner finds a violation, the Commissioner shall determine the amount of liquidated damages and restitution to be assessed for the violation.

  (3) On the entry and service of a Commissioner's order, the public body, from the money due the contractor or subcontractor, shall:

    (i) pay the affected employees the full amount of wages due them; and

    (ii) satisfy the obligation of the contractor or subcontractor to pay liquidated damages as required under Sec. 17-222 of this subtitle.

(k)

  (1) In addition to any other penalty, the Commissioner may impose a civil fine of not more than $1,000 against a contractor or subcontractor that knowingly fails to produce records or attend a hearing or deposition as required by an investigation into a possible prevailing wage violation under subsection (b) of this section.

  (2) Each day that a violation under paragraph (1) of this subsection continues is a separate offense.

#### Section 17-222

(a)

  (1) Except as provided under paragraph (2) of this subsection, a contractor under a public work contract is liable to the public body for liquidated damages of $20 for each laborer or other employee for each day for which:

    (i) the laborer is paid less than the prevailing wage rate of a mechanic while performing a task required to be performed by a mechanic or mechanic's apprentice; or

    (ii) the employee is paid less than the prevailing wage rate.

  (2) A contractor under a public work contract that knew or reasonably should have known of the contractor's obligation to pay the prevailing wage rate and that deliberately failed or refused to pay the prevailing wage rate is liable to the public body for liquidated damages of $250 for each laborer or other employee for each day for which:

    (i) the laborer is paid less than the prevailing wage rate of a mechanic while the laborer is performing a task required to be performed by a mechanic or mechanic's apprentice; or

    (ii) the employee is paid less than the prevailing wage rate.

(b)

  (1) If a contractor or subcontractor pays an employee less than the amount the employee is entitled to receive for the work performed, the contractor shall make restitution to the employee.

  (2) The contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor's employees.

#### Section 17-223

(a) If a public body does not comply with a provision of this subtitle, the Commissioner:

  (1) shall give written notice of the noncompliance to the public body;

  (2) may require compliance within a sufficient period as determined by the Commissioner; and

  (3) after the expiration of that period, may inform the Attorney General in writing that notice has been given and that the public body has not complied with the notice.

(b) As soon as possible after being informed by the Commissioner, the Attorney General shall sue, in the name of the State, in the circuit court for the county where the public body is located to seek any remedies that the court may find appropriate to carry out the policies of this subtitle.

(c) In the action, the State and the public body each shall have the right of appeal that is provided by law in an injunction proceeding.

#### Section 17-224

(a)

  (1) If an employee under a public work contract is paid less than the prevailing wage rate for that employee's classification for the work performed, the employee may file a complaint with the Commissioner.

  (2) Except as otherwise provided in this section, a complaint filed under this section shall be subject to the provisions of Sec. 17-221 of this subtitle.

  (3) If the Commissioner's investigation determines that the employer violated provisions of this subtitle, the Commissioner shall try to resolve the issue informally.

  (4)

    (i) If the Commissioner is unable to resolve the matter informally, the Commissioner shall issue an order for a hearing in accordance with Sec. 17-221 of this subtitle.

    (ii) If, at the conclusion of a hearing ordered under subparagraph (i) of this paragraph, the Commissioner determines that the employee is entitled to restitution under this subtitle, the Commissioner shall issue an order in accordance with Sec. 17-221 of this subtitle.

    (iii) If an employer of an employee found to be entitled to restitution under subparagraph (ii) of this paragraph is no longer working under a contract with a public body, the Commissioner may order that restitution be paid directly by the employer to the employee within a reasonable period of time, as determined by the Commissioner.

  (5) If an employer fails to comply with an order to pay restitution to an employee under paragraph (4)(iii) of this subsection, the Commissioner or the employee may bring a civil action to enforce the order in the circuit court in the county where the employee or employer is located.

(b)

  (1) If an employee under a public work contract is paid less than the prevailing wage rate for that employee's classification for the work performed, the employee is entitled to sue to recover the difference between the prevailing wage rate and the amount received by the employee.

  (2) A determination by the Commissioner that a contractor is required to make restitution under subsection (a)(4) of this section does not preclude an employee from filing an action under this subsection.

(c)

  (1) An action under this section is considered to be a suit for wages.

  (2) A judgment in an action under this section shall have the same force and effect as any other judgment for wages.

  (3) An action brought under this section for a violation of this subtitle shall be filed within 3 years from the date the affected employee knew or should have known of the violation.

(d)

  (1) The failure of an employee to protest orally or in writing the payment of a wage that is less than the prevailing wage rate is not a bar to recovery in an action under this section.

  (2) A contract or other written document in which an employee states that the employee shall be paid less than the amount required by this subtitle does not bar the recovery of any remedy required under this subtitle.

(e)

  (1) Except as provided in paragraph (3) of this subsection, if the court in an action filed under this section finds that an employer paid an employee less than the requisite prevailing wage, the court shall award the affected employee the difference between the wage actually paid and the prevailing wage at the time that the services were rendered.

  (2)

    (i) Subject to subparagraph (ii) of this paragraph, unpaid fringe benefit contributions owed for an employee in accordance with this section shall be paid to the appropriate benefit fund, plan, or program.

    (ii) In the absence of an appropriate benefit fund, plan, or program, the amount owed for fringe benefits for an employee shall be paid directly to the employee.

  (3) The court may  order the payment of double damages or treble damages under this section if the court finds that the employer withheld wages or fringe benefits willfully and knowingly or with deliberate ignorance or reckless disregard of the employer's obligations under this subtitle.

  (4) In an action under this section, the court shall award a prevailing plaintiff reasonable counsel fees and costs.

  (5) If the court finds that an employee submitted a false or fraudulent claim in an action under this section, the court may order the employee to pay the employer reasonable counsel fees and costs.

  (6) The contractor and subcontractor shall be jointly and severally liable for any violation of the subcontractor's obligations under this section.

(f)

  (1) Subject to paragraph (2) of this subsection, an action filed in accordance with this section may be brought by one or more employees on behalf of that employee or group of employees and on behalf of other employees similarly situated.

  (2) An employee may not be a party plaintiff to an action brought under this section unless that employee files written consent with the court in which the action is brought to become a party to the action.

(g)

  (1) A person found to have made a false or fraudulent representation or omission known to be false or made with deliberate ignorance or reckless disregard for its truth or falsity regarding a material fact in connection with any prevailing wage payroll record required by Sec. 17-220 of this subtitle is liable for a civil penalty of $1,000 for each falsified record.

  (2) The penalty shall be recoverable in a civil action filed in accordance with this section and paid to the State General Fund.

(h) An employer may not discharge, threaten, or otherwise retaliate or discriminate against an employee regarding compensation or other terms and conditions of employment because that employee or an organization or other person acting on behalf of that employee:

  (1) reports or makes a complaint under this subtitle or otherwise asserts the worker's rights under this section; or

  (2) participates in any investigation, hearing, or inquiry held by the Commissioner under Sec. 17-221 of this subtitle.

(i)

  (1) A contractor or subcontractor may not retaliate or discriminate against an employee in violation of this section.

  (2) If a contractor or subcontractor retaliates or discriminates against an employee in violation of this section, the affected employee may file an action in any court of competent jurisdiction within 3 years from the employee's knowledge of the action.

  (3) If the court finds in favor of the employee in an action brought under this subsection, the court shall order that the contractor or subcontractor:

    (i) reinstate the employee or provide the employee restitution, as appropriate;

    (ii) pay the employee an amount equal to three times the amount of back wages and fringe benefits calculated from the date of the violation; and

    (iii) pay reasonable counsel fees and other costs.

#### Section 17-225

(a) A person may not:

  (1) violate the wage provisions of a public work contract;

  (2) allow or require an employee to work for less than the applicable prevailing wage rate;

  (3) except as provided in subsection (b) of this section, ask an employee or prospective employee to give anything of value to that person or any other person on a statement, representation, or understanding that failure to comply with the request or demand will prevent the employee from procuring or retaining employment; or

  (4) directly or indirectly, authorize a violation of this subtitle by any other person.

(b) Subsection (a) of this section does not apply to any agent of a collective bargaining organization acting in collection of sums as allowed by the National Labor Relations Act.

#### Section 17-226

(a)

  (1) After investigation and entry of an order in accordance with Sec. 17-221 of this subtitle, the Commissioner shall file with the Secretary of State a list of the contractors and any subcontractors who persistently and willfully violate the provisions of this subtitle.

  (2) Filing under this subsection shall be notice to a public body and its representatives.

(b)

  (1) If the name of a contractor or any subcontractor appears on the list, that contractor or subcontractor shall be prohibited from entering into a contract for construction of a public work directly or indirectly for 2 years from the day on which the list is filed.

  (2) A public body may not award a contract for construction of a public work to a person who is prohibited from entering into a contract under this section.

#### Section 17-227

On a showing by clear and convincing evidence that a violation of this subtitle has occurred, the Commissioner shall refer any complaint that alleges a violation of Sec. 13-1007 or Sec. 13-1024 of the Tax - General Article to the:

(1) Comptroller;

(2) State's Attorney with jurisdiction over the alleged violation;

(3)

  (U)

    (S) Department of Justice;

(4)

  (U)

    (S) Department of Labor; and

(5)

  (U)

    (S) Department of the Treasury.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)