SCS SB 339 -- FAIRNESS IN PUBLIC CONSTRUCTION ACT

This bill establishes the Fairness in Public Construction Act to
fulfill the state's proprietary objectives by maintaining and
promoting economical, nondiscriminatory, and efficient
expenditures of public funds in connection with publicly funded
or assisted construction projects.

Public entities cannot impose certain labor requirements as a
condition for performing public works projects if the
construction project is more than 50% funded with state moneys.
Public entities contracting for public works projects must ensure
that their agreements do not bind the other parties to an
agreement with a labor organization and cannot discriminate
against other parties who refuse to adhere to agreements with
labor organizations on the same or related projects.  Public
entities cannot require other parties to enforce any agreement
that requires its employees to become a member, pay dues, or pay
fees to a labor organization in excess of costs already paid.
Any interested party has standing to challenge an agreement that
violates these provisions.

The bill specifies conditions upon which the state or a political
subdivision may enter into a union-only project labor agreement.
The intent to enter into a union-only project labor agreement
will be published in a document titled "Intent to Enter Into a
Union Project Labor Agreement."  A public hearing must be
conducted by the state or political subdivision on whether to
require a union-only project labor agreement.  A finding is
appealable to the Labor and Industrial Relations Commission, and
any aggrieved party from the commission's decision may appeal to
the circuit court of Cole County.  If the commission determines
that a complaint is frivolous or exhibits a pattern of harassment
on the part of the filing party, the commission may disallow the
party from filing further complaints for up to one year.

An employer is prohibited from directly or indirectly receiving
from another project any wage subsidies, bid supplements, or
rebates from any employee or labor organization for a
construction project or from any third party to subsidize labor
costs on a public works construction project.  An employer
lawfully receiving a wage subsidy, bid supplement, or rebate
payment must report the payment amount, within 30 days of its
receipt, to the contracting public entity.  This provision, if in
conflict with the National Labor Relations Act, will not be
enforced.  Any contractor or subcontractor who violates these
provisions will be required to pay the public body twice the
amount of the subsidy received.

The amount an employer will be penalized for paying a worker less
than the stipulated wage rate is increased from $10 per employee
per day to $100 per employee per day.  The Department of Labor
and Industrial Relations is required to investigate any violation
of the prevailing wage law and notify the offending employer of
its findings.  The employer can pay the penalty within 45 days of
the notice or seek arbitration.  The department will enforce
monetary penalties and recover the actual costs of enforcement.

The remedies specified in the bill do not prevent an employee
from pursuing an individual action against an employer.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:22 am