LAWRENCE J. HOGAN, JR., Governor Ch. 49
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Chapter 49
(Senate Bill 1)
AN ACT concerning
State Finance and Procurement – Prevailing Wage – Stop Work Orders
FOR the purpose of authorizing the Commissioner of Labor and Industry to issue a stop
work order for each work site where the Commissioner has made an initial
determination that a contractor or subcontractor may have violated the prevailing
wage requirements; requiring the Commissioner to follow certain procedures under
certain circumstances; authorizing a prime contractor to terminate the contract of a
subcontractor without incurring certain liability if the subcontractor has a stop work
order issued against them; authorizing the Commissioner to assess a penalty against
a contractor or subcontractor for each day the contractor or subcontractor violates
the stop work order; requiring the Commissioner to release a stop work order on a
showing that the contractor or subcontractor is properly paying the required
prevailing wage to employees and has paid all associated penalties; authorizing an
appeal from the issuance of a stop work order; authorizing the Commissioner to
impose a civil fine for each day an employer or employer’s agent knowingly fails to
comply with an investigation; granting the Maryland State Board of Contract
Appeals jurisdiction to hear a certain appeal; and generally relating to stop work
orders for the enforcement of prevailing wage laws.
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 15–211, 17–201(b), and 17–221
Section 17–221
Annotated Code of Maryland
(2021 Replacement Volume)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 17–201(a), (b), (c), (f), (g), and (h)
Annotated Code of Maryland
(2021 Replacement Volume)
BY adding to
Article – State Finance and Procurement
Section 17–201(b)
Annotated Code of Maryland
(2021 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Ch. 49 2022 LAWS OF MARYLAND
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Article – State Finance and Procurement
15–211.
(a) The Appeals Board shall have jurisdiction to hear and decide all appeals
arising from the final action of a unit:
(1) on a protest relating to the formation of a procurement contract,
including a violation of § 13–212.1 of this article; or
(2) except for a contract claim relating to a lease of real property, on a
contract claim by a contractor or a unit concerning:
(i) breach;
(ii) performance;
(iii) modification; or
(iv) termination.
(b) THE APPEALS BOARD SHALL HAVE JURI SDICTION TO HEAR AND DECIDE
AN APPEAL ARISING FR OM A DECISION OF THE COMMISSIONER OF LABOR AND
INDUSTRY TO ISSUE A S TOP WORK ORDER IN AC CORDANCE WITH § 17–221 OF THIS
ARTICLE.
(C) A decision of the Appeals Board is final, subject to any judicial review.
17–201.
(a) In this subtitle, unless the context indicates otherwise, the following words
have the meanings indicated.
(B) “APPEALS BOARD” MEANS THE MARYLAND STATE BOARD OF
CONTRACT APPEALS.
[(b)] (B–1) “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 LAWRENCE J. HOGAN, JR., Governor Ch. 49
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(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) “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.
(f) (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.
(g) (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.
(h) “Prevailing wage rate” means the hourly rate of wages paid in the locality as
determined by the Commissioner under § 17–208 of this subtitle.
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 TH IS
SUBTITLE; AND
(II) IS OTHERWISE MA DE AWARE OF A POSSIB LE VIOLATION OF
THIS SUBTITLE. Ch. 49 2022 LAWS OF MARYLAND
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(2) [The Commissioner promptly shall investigate a complaint of a
violation of this subtitle.
(3)] 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 WORKIN G 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.
[(e) (1)] (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 § 17–222(a) of this subtitle, pending a final determination.
[(2)] (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 [(1)] (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 THE INVESTIGATION UNDER SUBSECTION (B) OF
THIS SECTION INVESTIGATION , THE COMMISSIONER MAKES AN INITIAL
DETERMINATION THAT A CONTRACTOR OR SUBCON TRACTOR MAY HAVE VIO LATED LAWRENCE J. HOGAN, JR., Governor Ch. 49
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THE REQUIREMENT TO P AY THE PREVAILING WA GE RATE UNDER THIS S UBTITLE,
THE COMMISSIONER IMMEDIAT ELY MAY ISSUE A STOP WORK ORDER T O CEASE ALL
BUSINESS OPERATIONS AT EVERY SITE WHERE A VIOLATION OCCURRED AND SHALL:
1. NOTIFY THE CONTRACTO R OR SUBCONTRACTOR O F
THE VIOLATION , TO INCLUDE A STATEME NT OF FACTS DISCLOSE D IN THE
INVESTIGATION ;
2. MEET WITH THE CONTRA CTOR OR SUBCONT RACTOR
WITHIN 48 HOURS OF ISSUING THE STOP WORK ORDER ; AND
3. PROVIDE THE CONTRACT OR OR SUBCONTRACTOR A
REASONABLE TIMEFRAME , AS DETERMINED BY THE COMMISSIONER , TO RESOLVE
THE VIOLATION.
(II) THE COMMISSIONER MAY ISSU E THE STOP WORK ORDE R
EVEN IF THE COMMISSIONER HAS REFE RRED THE MATTER TO T HE ATTORNEY
GENERAL OR ANOTHER AP PROPRIATE AUTHORITY FOR INVESTIGATION OR
PROSECUTION .
(2) IF A STOP WORK ORDER IS ISSUED AGAINST A SUBCONTRACTOR ,:
THE PRIME CONTRACTOR ON THE CONTRACT MAY TERMINATE THE CONTR ACT WITH
THE SUBCONTRACTOR WI THOUT INCURRING LIAB ILITY FOR DAMAGES RE SULTING
FROM THE TERMINATION .
(I) THE PRIME CONTRACTOR ON THE CONTRACT MAY NOT
TERMINATE THE CONTRA CT WITH THE SUBCONTR ACTOR UNTIL 48 HOURS AFTER
THE MEETING BETWEEN THE COMMISSIONER AND THE SUBCONTRACTO R;
(II) THE PRIME CONTRACTOR MAY NOT TERMINATE TH E
CONTRACT WITH THE SU BCONTRACTOR IF THE V IOLATION HAS BEEN RE SOLVED;
AND
(III) THE PRIME CONTRACTOR MAY NOT INCUR ANY CI VIL
LIABILITY FOR DAMAGE S TO THE SUBCONTRACT OR WHOSE CONTRACT WAS
TERMINATED , OTHER SUBCONTRACTORS AFFECTED BY THE TERM INATION, OR ANY
PUBLIC BODY RESULTIN G FROM THE TERMINATI ON.
(3) THE COMMISSIONER MAY IMPO SE A PENALTY OF UP T O $5,000
PER DAY AGAINST A CO NTRACTOR OR SUBCONTR ACTOR FOR EACH DAY T HE
CONTRACTOR OR SUBCONTRACT OR VIOLATES A STOP W ORK ORDER.
(4) A STOP WORK ORDER ISSU ED UNDER THIS SUBSEC TION SHALL:
Ch. 49 2022 LAWS OF MARYLAND
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(I) TAKE EFFECT WHEN SER VED ON THE CONTRACTO R OR
SUBCONTRACTOR ; AND
(II) REMAIN IN EFFECT UNT IL THE COMMISSIONER ISSUES A N
ORDER RELEASING THE STOP W ORK ORDER.
(5) THE COMMISSIONER SHALL IS SUE AN ORDER RELEASI NG A STOP
WORK ORDER ISSUED UN DER THIS SUBSECTION ON A SHOWING BY THE
CONTRACTOR OR SUBCON TRACTOR THAT THE CON TRACTOR OR SUBCONTRA CTOR:
(I) IS PROPERLY PAYING E MPLOYEES THE APPROPRIATE
PREVAILING WAGE RATE SET IN ACCORDANCE WI TH THIS SUBTITLE ; AND
(II) HAS PAID ALL PENALTI ES ASSESSED AGAINST THE
CONTRACTOR OR SUBCON TRACTOR UNDER THIS S UBTITLE.
(6) THE COMMISSIONER MAY INCL UDE IN THE ORDER REL EASING A
STOP WORK ORDE R A REQUIREMENT THAT THE CONTRACTOR OR SU BCONTRACTOR
SUBMIT PERIODIC REPO RTS TO THE COMMISSIONER DEMONSTR ATING
COMPLIANCE WITH THE REQUIREMENTS OF THIS SUBTITLE.
(F) (1) (I) WITHIN 72 HOURS AFTER A CONTRA CTOR OR
SUBCONTRACTOR RECEIV ES A STOP WORK ORDER UNDER SUBSECTION (E) OF THIS
SECTION, THE CONTRACTOR OR SU BCONTRACTOR MAY SUBM IT A WRITTEN APPEAL
TO THE APPEALS BOARD COMMISSIONER ON THE STOP WORK ORD ER.
(II) IF AN APPEAL IS NOT R EQUESTED WITHIN 72 HOURS, THE
STOP WORK ORDER SHAL L BECOME A FINAL ORD ER OF THE COMMISSIONER .
(2) THE APPEALS BOARD COMMISSIONER SHALL HOLD A HEARING
WITHIN 7 DAYS AFTER RECEIVING THE WRITTEN APPEAL .
(3) IF THE APPEALS BOARD COMMISSIONER DOES NOT HOLD A
HEARING WITHIN 7 DAYS AFTER RECEIVING THE WRITTEN APPEAL , THE
CONTRACTOR OR SUBCON TRACTOR MAY REQUEST AN ADMINISTRATIVE LA W JUDGE
TO RELEASE THE ORDER .
(4) (I) WITHIN 5 DAYS AFTER HOLDING A HEARING ON A STOP
WORK ORDER UNDER THI S SUBSECTION , THE APPEALS BOARD COMMISSIONER
SHALL ISSUE A WRITTE N DECISION ON THE AP PEAL.
(II) THE DECISION SHALL IN CLUDE:
LAWRENCE J. HOGAN, JR., Governor Ch. 49
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1. AN EXPLANATION OF WH Y THE ORDER WAS UPHE LD
OR RELEASED ; AND
2. THE GROUNDS ON WHICH THE RESULT WAS
DETERMINED . A DETERMINATION AS T O WHETHER A VIOLATIO N OCCURRED; AND
2. WHETHER A STOP WORK ORDER SHOULD BE ISSU ED,
INCLUDING THE CONDIT IONS ON WHICH IT MAY BE RELEASED.
(III) A DETERMINATION UNDER THIS PARAGRAPH SHALL BE THE
FINAL ORDER OF THE COMMISSIONER .
1. AN EXPLANATION OF WH Y THE ORDER WAS UPHELD
OR RELEASED; AND
2. THE GROUNDS ON WHICH THE RESULT WAS
DETERMINED .
[(f)] (G) The IF AFTER INVESTIGATIO N, THE COMMISSIONER DETERMIN ES
THAT A PROVISION OF THIS SUBTITLE MAY HA VE BEEN VIOLATED AND HAS NOT
ISSUED A STOP WORK O RDER IN ACCORDANCE WITH SUBS ECTION (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.
[(g)] (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.
[(h)] (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
Ch. 49 2022 LAWS OF MARYLAND
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(iii) examine witnesses.
(2) The Commissioner shall grant each interested person an opportunity to
speak at the hearing on matters relevant to the complaint.
[(i)] (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 § 17–222 of this subtitle.
(K) (1) IN ADDITION TO ANY OT HER PENALTY , THE COMMISSIONER MAY
IMPOSE A CIVIL FINE OF NOT LESS MORE THAN $1,000 AGAINST A CONTRACTOR OR
SUBCONTRACTOR THAT K NOWINGLY FAILS TO PR ODUCE RECORDS OR ATT END A
HEARING OR DEPOSITIO N AS REQUIRED BY AN INVESTIGATION INTO A POSSIBLE
PREVAILING WAGE VIOL ATION UNDER SUBSECTI ON (B) OF THIS SECTION.
(2) EACH DAY THAT A VIOLA TION UNDER PARAGRAPH (1) OF THIS
SUBSECTION CONTINUES IS A SEPARATE OFFENS E.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Gubernatorial Veto Override, April 9, 2022.