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<section article="gsf" article_name="State Finance and Procurement" number="17-221" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts">
  <level label="a">
    <text>Each public body that awards a public work contract shall:</text>
    <level label="1">
      <text>take cognizance of a complaint of a violation of this subtitle committed in the course of performance of the public work contract; and</text>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>The Commissioner shall promptly institute an investigation as necessary to determine compliance with this subtitle and regulations adopted under this subtitle when the Commissioner:</text>
      <level label="i">
        <text>receives a complaint of a violation of this subtitle; and</text>
      </level>
      <level label="ii">
        <text>is otherwise made aware of a possible violation of this subtitle.</text>
      </level>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
  </level>
  <level label="c">
    <text>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:</text>
    <level label="1">
      <text>the correctness of each classification;</text>
    </level>
    <level label="2">
      <text>the ratio of apprentices to mechanics; and</text>
    </level>
    <level label="3">
      <text>payment of straight and overtime prevailing wage rates as required under the public work contract.</text>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>If, after investigation, the Commissioner determines that a provision of this subtitle may have been violated, the Commissioner immediately shall notify the public body.</text>
    </level>
  </level>
  <level label="2">
    <text>On notification, the public body shall withhold from payment due the contractor or subcontractor an amount sufficient to:</text>
    <level label="i">
      <text>pay each employee of the contractor or subcontractor the full amount of wages due under this subtitle; and</text>
    </level>
    <level label="ii">
      <text>satisfy a liability of a contractor for liquidated damages as provided in § 17–222(a) of this subtitle, pending a final determination.</text>
    </level>
    <level label="3">
      <text>If a subcontractor is responsible for a violation of this subtitle, the contractor:</text>
      <level label="i">
        <text>may withhold from payment to the subcontractor an amount equal to the amount withheld from the contractor under paragraph (2) of this subsection; or</text>
      </level>
      <level label="ii">
        <text>if payment has been made to the subcontractor, may sue to recover that amount.</text>
      </level>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <level label="i">
        <text>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:</text>
        <level label="1">
          <text>notify the contractor or subcontractor of the violation, to include a statement of facts disclosed in the investigation;</text>
        </level>
        <level label="2">
          <text>meet with the contractor or subcontractor within 48 hours of issuing the stop work order; and</text>
        </level>
        <level label="3">
          <text>provide the contractor or subcontractor a reasonable timeframe, as determined by the Commissioner, to resolve the violation.</text>
        </level>
      </level>
      <level label="ii">
        <text>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.</text>
      </level>
    </level>
    <level label="2">
      <text>If a stop work order is issued against a subcontractor:</text>
      <level label="i">
        <text>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;</text>
      </level>
      <level label="ii">
        <text>the prime contractor may not terminate the contract with the subcontractor if the violation has been resolved; and</text>
      </level>
      <level label="iii">
        <text>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.</text>
      </level>
    </level>
    <level label="3">
      <text>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.</text>
    </level>
    <level label="4">
      <text>A stop work order issued under this subsection shall:</text>
      <level label="i">
        <text>take effect when served on the contractor or subcontractor; and</text>
      </level>
      <level label="ii">
        <text>remain in effect until the Commissioner issues an order releasing the stop work order.</text>
      </level>
    </level>
    <level label="5">
      <text>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:</text>
      <level label="i">
        <text>is properly paying employees the appropriate prevailing wage rate set in accordance with this subtitle; and</text>
      </level>
      <level label="ii">
        <text>has paid all penalties assessed against the contractor or subcontractor under this subtitle.</text>
      </level>
    </level>
    <level label="6">
      <text>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.</text>
    </level>
  </level>
  <level label="f">
    <level label="1">
      <level label="i">
        <text>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.</text>
      </level>
      <level label="ii">
        <text>If an appeal is not requested within 72 hours, the stop work order shall become a final order of the Commissioner.</text>
      </level>
    </level>
    <level label="2">
      <text>The Commissioner shall hold a hearing within 7 days after receiving the written appeal.</text>
    </level>
    <level label="3">
      <text>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.</text>
    </level>
    <level label="4">
      <level label="i">
        <text>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.</text>
      </level>
      <level label="ii">
        <text>The decision shall include:</text>
        <level label="1">
          <text>an explanation of why the order was upheld or released; and</text>
        </level>
        <level label="2">
          <text>the grounds on which the result was determined.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="g">
    <text>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:</text>
    <level label="1">
      <text>issue an order for a hearing within 30 days after completing an investigation; and</text>
    </level>
    <level label="2">
      <text>expeditiously conduct the hearing.</text>
    </level>
  </level>
  <level label="h">
    <level label="1">
      <text>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.</text>
    </level>
    <level label="2">
      <text>The notice shall include:</text>
      <level label="i">
        <text>a statement of the facts disclosed in the investigation; and</text>
      </level>
      <level label="ii">
        <text>the time and place of the hearing.</text>
      </level>
    </level>
  </level>
  <level label="i">
    <level label="1">
      <text>In conducting an investigation or hearing under this section, the Commissioner is deemed to be acting in a quasi–judicial capacity and may:</text>
      <level label="i">
        <text>issue subpoenas;</text>
      </level>
      <level label="ii">
        <text>administer oaths; or</text>
      </level>
      <level label="iii">
        <text>examine witnesses.</text>
      </level>
    </level>
    <level label="2">
      <text>The Commissioner shall grant each interested person an opportunity to speak at the hearing on matters relevant to the complaint.</text>
    </level>
  </level>
  <level label="j">
    <level label="1">
      <text>After the conclusion of the hearing, the Commissioner shall:</text>
      <level label="i">
        <text>file in the Commissioner’s office an order that states the Commissioner’s determination; and</text>
      </level>
      <level label="ii">
        <text>serve, personally or by mail, the public body and parties to the hearing with a copy of the order and notice of its filing.</text>
      </level>
    </level>
    <level label="2">
      <text>If the Commissioner finds a violation, the Commissioner shall determine the amount of liquidated damages and restitution to be assessed for the violation.</text>
    </level>
    <level label="3">
      <text>On the entry and service of a Commissioner’s order, the public body, from the money due the contractor or subcontractor, shall:</text>
      <level label="i">
        <text>pay the affected employees the full amount of wages due them; and</text>
      </level>
      <level label="ii">
        <text>satisfy the obligation of the contractor or subcontractor to pay liquidated damages as required under § 17–222 of this subtitle.</text>
      </level>
    </level>
  </level>
  <level label="k">
    <level label="1">
      <text>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.</text>
    </level>
    <level label="2">
      <text>Each day that a violation under paragraph (1) of this subsection continues is a separate offense.</text>
    </level>
  </level>
</section>
