McIlhinney Will Introduce New Penalty System for Prevailing Wage Violations

HARRISBURG – Sen. Chuck McIlhinney (R-Bucks and Montgomery) announced today that he will introduce a fairer penalty system for companies that violate the state’s prevailing wage law.

Under current law, companies that violate the prevailing wage law are subject to a three-year ban on bids for public contracting projects. McIlhinney’s legislation would create a new system including fines and possible debarment for repeat offenders.

“Companies who intentionally fail to pay prevailing wage rates should absolutely be held accountable for their actions, but we need to make sure that the punishment fits the crime,” McIlhinney said. “My proposal would impose stiff financial penalties for violations of the Prevailing Wage Act and ensure that the worst repeat offenders will be banned from bidding on future public construction projects.”

Under McIlhinney’s plan, first-time offenders would be subject to fines and administrative costs up to double the amount of underpayment of wages. A second offense would result in fines and administrative costs up to ten times the amount of underpayment, while subsequent offenses would trigger a three-year debarment from public service contracts.

McIlhinney’s proposal stems from the state Department of Labor and Industry’s recent debarment of Bucks County construction firm Worth and Company for alleged violations of the prevailing wage law. The ban on public sector contracting could result in a large number of job losses for the company’s 500 employees. The company has appealed the Department’s ruling.

CONTACT:

Heather Cevasco
(215) 489-5000