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SPONSOR: |
Ruiz |
DATE TYPED: |
|
HB |
616/aHFl#1/aSCORC |
||
SHORT TITLE: |
Amend Public Works Minimum Wage Act |
SB |
|
||||
|
ANALYST: |
Gilbert |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
$0.1
See Narrative |
Recurring |
General
Fund Other
State Funds |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to HB 142, HB 580
LFC Files
New Mexico Department of Labor (DOL)
Energy Minerals and Natural Resources Department
(EMNRD)
SUMMARY
Synopsis
of SCORC Amendment
Senate Corporations and Transportation Committee
amendment to House Bill 616 deletes language permitting lawsuits for damages,
attorney fees and reasonable costs, as outlined below:
D. In addition to all other
remedies, an employee adversely affected by a violation of the Public Works
Minimum Wage Act by a contractor, subcontractor, employee or a person acting as
a contractor shall have a private right of action for damages, attorney fees
and reasonable costs."
Synopsis
of HFl#1 Amendment
House Floor amendment #1 to House Bill 616
clarifies that liquidated damages shall be as outlined below:
In
the event of any violation of the Public Works Minimum Wage Act, contractors,
subcontractors, employers or persons acting as contractors shall be liable to any affected
employee for liquidated damages equal up to three times the
actual amount of underpaid wages when the contractor, subcontractor,
employer or persons acting as a contractor has willfully required or permitted
an individual laborer or mechanic to work in violation of the provisions of the
Public Works Minimum Wage Act.
Synopsis
of Original Bill
House Bill 616 amends the Public Works Minimum
Wage Act, NMSA 1978 §13-4-11 through §13-4-14, to increase the minimum contract
value from $20.0 to $100.0 for public works projects that are subject to
minimum wage requirements. HB 616 grants more authority and duties to the Director
of the Labor and Industrial Division of the New Mexico Department of Labor
(DOL), clarifies the definition of wages and increases the liabilities for
violation of the public works minimum wage act.
The bill would also provide a private cause of action,
which greatly expands current enforcement mechanisms.
Significant
Issues
The increased threshold for public works projects
will reduce the number of projects that require use of prevailing wages.
The bill adds a new section which provides that,
in addition to all other remedies, an employee adversely affected by a
violation of the Act shall have a private right of action for damages, attorney
fees and reasonable costs and increases the potential liquidated damages to
three times the actual amount of underpaid wages.
FISCAL IMPLICATIONS
The New Mexico Commission on Higher Education
(NMCHE) stated that adoption of this
bill could save funds on many ongoing upgrade projects, especially for public
education. According to the Energy
Minerals and Natural Resources Department (EMNRD), 70% of State Park Division’s
construction projects are less than $100.0.
However, most public
sector capital projects exceed the threshold of $100.0. Consequently, most construction contracts
awarded by the institutions will continue to be covered by the Act’s prevailing
wage provisions.
The fiscal impact
would be difficult to determine for construction projects over $100.0. Under
HB616, if the state inadvertently became a party to a contract that is in
violation of the Minimum Wage Act, the state could incur new liability.
HB616 creates new
administrative responsibilities for contractors and the state. The increased burden to contractors will be
passed on to the state in the form of higher bids. Rigid monitoring of construction projects by
the state will increase administrative costs and could delay approving/analyzing
invoices submitted by the contractors.
HB 616 adds a subsection D to NMSA 1978 §
RELATIONSHIP
HB 142 would repeal the Public Works Minimum
Wage Act.
HB 580 amends the Public Works Minimum Wage Act,
NMSA 1978 §13-4-11 through §13-4-17 to permit a municipality, county or school
district, by majority vote of the governing body, to exempt itself from the
Public Works Mini-mum Wage Act.
RLG/njw