Maryland 2025 Regular Session

Maryland Senate Bill SB938 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0938
6	6
7	7	SENATE BILL 938
8	8	K3, P1, P2 5lr3237
9	9	CF HB 1096
10	10	By: The President (By Request – Office of the Attorney General)
11	11	Introduced and read first time: January 28, 2025
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Fraud Prevention and Worker Protections – Prohibitions, Penalties, and 2
19	19	Enforcement 3
20	20
21	21	FOR the purpose of altering the claims to which the Maryland False Claim Act (MFCA) 4
22	22	applies; prohibiting a person from knowingly making or using, or causing to be made 5
23	23	or used, a false record or statement resulting in underpayments of unemployment 6
24	24	insurance contributions or payment of unemployment insurance benefits of more 7
25	25	than a certain amount; requiring the Comptroller to deposit into the Unemployment 8
26	26	Insurance Fund certain civil penalties or damages collected under the MFCA; 9
27	27	requiring that certain civil penalties and damages be used in a certain manner if a 10
28	28	violation of the MFCA involves the failure to pay prevailing wage rates; altering the 11
29	29	enforcement mechanisms of the Maryland Wage and Hour Law, the Maryland Wage 12
30	30	Payment and Collection Law, workplace fraud laws, living wage laws, and prevailing 13
31	31	wage laws; altering the circumstances under which a person may be debarred under 14
32	32	State procurement law; altering the application of certain provisions of law 15
33	33	governing workplace fraud; providing that general contractors and higher–tiered 16
34	34	contracts are considered to be employers of certain workers under the workplace 17
35	35	fraud laws; altering the test used to determine if an employer–employee relationship 18
36	36	is created for purposes of workplace fraud; providing that workplace fraud laws 19
37	37	cannot be waived or set aside by private agreement; establishing that a certain 20
38	38	agreement is not a defense to a citation or in a civil action brought under the 21
39	39	workplace fraud laws; requiring a licensing authority to revoke or suspend the 22
40	40	license of a licensee for a certain workplace fraud violation under certain 23
41	41	circumstances; establishing the Worker Protection Unit in the Office of the Attorney 24
42	42	General to protect workers’ rights in the State and enforce certain worker protection 25
43	43	laws; and generally relating to fraud prevention and workers’ protections. 26
44	44
45	45	BY repealing 27
46	46	Article – Labor and Employment 28
47	47	Section 3–903.1 and 3–904 through 3–909 29
48	48	Annotated Code of Maryland 30 2 SENATE BILL 938
49	49
50	50
51	51	(2016 Replacement Volume and 2024 Supplement) 1
52	52
53	53	BY renumbering 2
54	54	Article – Labor and Employment 3
55	55	Section 3–903, 3–910, 3–911, 3–913 through 3–915, and 3–917 through 3–920 4
56	56	to be Section 3–904, 3–912, 3–913, 3–915 through 3–917, and 3–918 through 3–921, 5
57	57	respectively 6
58	58	Annotated Code of Maryland 7
59	59	(2016 Replacement Volume and 2024 Supplement) 8
60	60
61	61	BY repealing and reenacting, without amendments, 9
62	62	Article – General Provisions 10
63	63	Section 8–101(a) and 8–102(c) 11
64	64	Annotated Code of Maryland 12
65	65	(2019 Replacement Volume and 2024 Supplement) 13
66	66
67	67	BY repealing and reenacting, with amendments, 14
68	68	Article – General Provisions 15
69	69	Section 8–101(b), 8–102(a) and (b)(8) and (9), and 8–109(c) 16
70	70	Annotated Code of Maryland 17
71	71	(2019 Replacement Volume and 2024 Supplement) 18
72	72
73	73	BY adding to 19
74	74	Article – General Provisions 20
75	75	Section 8–102(b)(9) 21
76	76	Annotated Code of Maryland 22
77	77	(2019 Replacement Volume and 2024 Supplement) 23
78	78
79	79	BY repealing and reenacting, with amendments, 24
80	80	Article – Labor and Employment 25
81	81	Section 3–101, 3–427, 3–507.2, 3–901, and 3–902 26
82	82	Annotated Code of Maryland 27
83	83	(2016 Replacement Volume and 2024 Supplement) 28
84	84
85	85	BY adding to 29
86	86	Article – Labor and Employment 30
87	87	Section 3–903, 3–905 through 3–911, and 3–914 31
88	88	Annotated Code of Maryland 32
89	89	(2016 Replacement Volume and 2024 Supplement) 33
90	90
91	91	BY repealing and reenacting, with amendments, 34
92	92	Article – Labor and Employment 35
93	93	Section 3–904, 3–912, 3–913, and 3–915(a) 36
94	94	Annotated Code of Maryland 37
95	95	(2016 Replacement Volume and 2024 Supplement) 38
96	96	(As enacted by Section 2 of this Act) 39
97	97	SENATE BILL 938 3
98	98
99	99
100	100	BY repealing and reenacting, with amendments, 1
101	101	Article – State Finance and Procurement 2
102	102	Section 16–203(a)(9) and (10), 17–224, and 18–109 3
103	103	Annotated Code of Maryland 4
104	104	(2021 Replacement Volume and 2024 Supplement) 5
105	105
106	106	BY adding to 6
107	107	Article – State Government 7
108	108	Section 6–1001 through 6–1010 to be under the new subtitle “Subtitle 10. Worker 8
109	109	Protection Unit” 9
110	110	Annotated Code of Maryland 10
111	111	(2021 Replacement Volume and 2024 Supplement) 11
112	112
113	113	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MAR YLAND, 12
114	114	That Section(s) 3–903.1 and 3–904 through 3–909 of Article – Labor and Employment of 13
115	115	the Annotated Code of Maryland be repealed. 14
116	116
117	117	SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 3 –903, 3–910, 15
118	118	3–911, 3–913 through 3–915, and 3–917 through 3–920 of Article – Labor and Employment 16
119	119	of the Annotated Code of Maryland be renumbered to be Section(s) 3–904, 3–912, 3–913, 17
120	120	3–915 through 3–917, and 3–918 through 3–921, respectively. 18
121	121
122	122	SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19
123	123	as follows: 20
124	124
125	125	Article – General Provisions 21
126	126
127	127	8–101. 22
128	128
129	129	(a) In this title the following words have the meanings indicated. 23
130	130
131	131	(b) (1) “Claim” means a request or demand, under a contract or otherwise, for 24
132	132	money or other property, whether or not the governmental entity has title to the money or 25
133	133	property, that is: 26
134	134
135	135	(i) presented to an officer, employee, or agent of a governmental 27
136	136	entity; or 28
137	137
138	138	(ii) made to a contractor, a grantee, or another recipient, if the 29
139	139	money or other property is to be spent or used on a governmental entity’s behalf or to 30
140	140	advance an interest of a governmental entity, and the governmental entity: 31
141	141
142	142	1. provides or has provided any portion of the money or other 32
143	143	property requested or demanded; or 33
144	144
145	145	2. will reimburse the contractor, grantee, or other recipient 34
146	146	for any portion of the money or other property that is requested or demanded. 35 4 SENATE BILL 938
147	147
148	148
149	149
150	150	(2) “Claim” does not include requests or demands for money or other 1
151	151	property MADE BY AN INDIVIDUA L BENEFICIARY that a governmental entity has paid to 2
152	152	[an] THE individual as compensation for employment or as an income subsidy with no 3
153	153	restrictions on that individual’s use of the money or other property. 4
154	154
155	155	8–102. 5
156	156
157	157	(a) [This] EXCEPT AS PROVIDED IN SUBSECTION (B)(9) OF THIS SECTION , 6
158	158	THIS section does not apply to claims, records, or statements related to State or local taxes. 7
159	159
160	160	(b) A person may not: 8
161	161
162	162	(8) knowingly conceal, or knowingly and improperly avoid or decrease, an 9
163	163	obligation to pay or transmit money or other property to a governmental entity, including 10
164	164	misrepresenting the time at which a trade was made to make the transaction appear less 11
165	165	favorable; [or] 12
166	166
167	167	(9) KNOWINGLY MAKE , USE, OR CAUSE TO BE MADE OR USED A FALSE 13
168	168	RECORD OR STATEMENT RESULTING IN: 14
169	169
170	170	(I) THE UNDERPAYMENT OF CONTRIBUTIONS OWED TO THE 15
171	171	UNEMPLOYMENT INSURANCE FUND; OR 16
172	172
173	173	(II) THE PAYMENT OF UNEMP LOYMENT INSURANCE BE NEFITS 17
174	174	OF MORE THAN $15,000 IN A CALENDAR YEAR ; OR 18
175	175
176	176	[(9)] (10) knowingly make any other false or fraudulent claim against a 19
177	177	governmental entity. 20
178	178
179	179	(c) (1) A person that is found to have violated subsection (b) of this section is 21
180	180	liable to the governmental entity for: 22
181	181
182	182	(i) a civil penalty of not more than $10,000 for each violation; and 23
183	183
184	184	(ii) an additional amount of not more than three times the amount 24
185	185	of damages that the governmental entity sustains as a result of the acts of that person in 25
186	186	violation of subsection (b) of this section. 26
187	187
188	188	(2) The total amount owed by a person under paragraph (1) of this 27
189	189	subsection may not be less than the amount of the actual damages the governmental entity 28
190	190	incurs as a result of the person’s violation of subsection (b) of this section. 29
191	191
192	192	8–109. 30
193	193	SENATE BILL 938 5
194	194
195	195
196	196	(c) (1) Except as provided under paragraph (2) of this subsection, the 1
197	197	Comptroller shall deposit any civil penalty or damages collected by the State under this 2
198	198	title into the General Fund of the State. 3
199	199
200	200	(2) (i) If a violation of this title affects any of the following funds, the 4
201	201	Comptroller shall deposit any civil penalty or damages collected by the State under this 5
202	202	title into the affected fund: 6
203	203
204	204	1. a fund that is not subject to § 7–302 of the State Finance 7
205	205	and Procurement Article; 8
206	206
207	207	2. a special fund requiring the reversion of appropriated 9
208	208	funds to the special fund under § 7–304 of the State Finance and Procurement Article; 10
209	209
210	210	3. a fund under the jurisdiction of the Board of Trustees for 11
211	211	the State Retirement and Pension System; [or] 12
212	212
213	213	4. a fund under the jurisdiction of the State Employee and 13
214	214	Retiree Health and Welfare Benefits Program; OR 14
215	215
216	216	5. THE UNEMPLOYME NT INSURANCE FUND. 15
217	217
218	218	(ii) If more than one fund is affected by a violation of this title, the 16
219	219	Comptroller shall deposit any civil penalty or damages collected by the State into the 17
220	220	appropriate fund or the General Fund of the State on a pro rata basis. 18
221	221
222	222	(III) IF A VIOLATION OF THI S TITLE INVOLVES THE FAILURE TO 19
223	223	PAY PREVAILING WAGE RATES IN ACCORDANCE WITH TITLE 17, SUBTITLE 2 OF THE 20
224	224	STATE FINANCE AND PROCUREMENT ARTICLE, CIVIL PENALTIES AND DAMAGES 21
225	225	COLLECTED UNDER THIS TITLE SHALL BE USED TO PAY RESTITU TION DIRECTLY TO 22
226	226	AFFECTED WORKERS . 23
227	227
228	228	Article – Labor and Employment 24
229	229
230	230	3–101. 25
231	231
232	232	(a) In this title the following words have the meanings indicated. 26
233	233
234	234	(b) “ATTORNEY GENERAL” MEANS THE ATTORNEY GENERAL OF 27
235	235	MARYLAND, OR THE ATTORNEY GENERAL’S AUTHORIZED REPRESE NTATIVE. 28
236	236
237	237	(C) “Commissioner” means the Commissioner of Labor and Industry, OR THE 29
238	238	COMMISSIONER ’S AUTHORIZED REPRESE NTATIVE. 30
239	239
240	240	[(c)] (D) (1) “Employ” means to engage an individual to work. 31
241	241	6 SENATE BILL 938
242	242
243	243
244	244	(2) “Employ” includes: 1
245	245
246	246	(i) allowing an individual to work; and 2
247	247
248	248	(ii) instructing an individual to be present at a work site. 3
249	249
250	250	3–427. 4
251	251
252	252	(a) (1) If an employer pays an employee less than the wage required under this 5
253	253	subtitle, the employee may bring an action against the employer to recover: 6
254	254
255	255	[(1)] (I) the difference between the wage paid to the employee and the 7
256	256	wage required under this subtitle; 8
257	257
258	258	[(2)] (II) an additional amount equal to the difference between the wage 9
259	259	paid to the employee and the wage required under this subtitle as liquidated damages; and 10
260	260
261	261	[(3)] (III) counsel fees and other costs. 11
262	262
263	263	[(b)] (2) On the written request of an employee who is entitled to bring an action 12
264	264	under this section, the Commissioner may: 13
265	265
266	266	[(1)] (I) take an assignment of the claim in trust for the employee; 14
267	267
268	268	[(2)] (II) ask the Attorney General to bring an action in accordance with 15
269	269	this section on behalf of the employee; and 16
270	270
271	271	[(3)] (III) consolidate [2] TWO or more claims against an employer. 17
272	272
273	273	(3) (I) IF A COURT DETERMINES THAT AN EMPLOYEE IS ENTITLED 18
274	274	TO RECOVERY IN AN AC TION UNDER THIS SECT ION, THE COURT SHALL AWAR D TO 19
275	275	THE EMPLOYEE : 20
276	276
277	277	1. THE DIFFERENCE BETWE EN THE WAGE PAID TO THE 21
278	278	EMPLOYEE AND THE WAG E REQUIRED UNDER THI S SUBTITLE; 22
279	279
280	280	2. EXCEPT AS PROVIDED I N SUBPARAGRAPH (II) OF THIS 23
281	281	PARAGRAPH , AN ADDITIONAL AMOUNT EQUAL TO THE DIFFERE NCE BETWEEN THE 24
282	282	WAGE PAID TO THE EMP LOYEE AND THE WAGE R EQUIRED UNDER THIS S UBTITLE AS 25
283	283	LIQUIDATED DAMAGES ; AND 26
284	284
285	285	3. REASONABLE COUNSEL F EES AND OTHER COSTS. 27
286	286
287	287	(II) IF AN EMPLOYER SHOWS TO THE SATISFACTION OF THE 28
288	288	COURT THAT THE EMPLO YER ACTED IN GOOD FA ITH AND REASONABLY B ELIEVED 29 SENATE BILL 938 7
289	289
290	290
291	291	THAT THE WAGES PAID TO THE EMPLOYEE WERE NOT LESS THAN THE WA GE 1
292	292	REQUIRED UNDER THIS SUBTITLE, THE COURT SHALL : 2
293	293
294	294	1. DETERMINE THAT LIQUI DATED DAMAGES SHOULD 3
295	295	NOT BE AWARDED ; OR 4
296	296
297	297	2. AWARD AS LIQUIDATED DAMAGES ANY AMOUNT L ESS 5
298	298	THAN THE AMOUNT SPEC IFIED IN SUBPARAGRAP H (I)2 OF THIS PARAGRAPH . 6
299	299
300	300	(B) (1) THE ATTORNEY GENERAL MAY BRING AN ACTION AGAINST AN 7
301	301	EMPLOYER ON BEHALF OF AN EMPLOYE E IF: 8
302	302
303	303	(I) THE EMPLOYER PAYS 10 OR MORE EMPLOYEES LE SS THAN 9
304	304	THE WAGE REQUIRED UN DER THIS SUBTITLE ; OR 10
305	305
306	306	(II) THE TOTAL AMOUNT OF WAGES UNDERPAID FOR ALL 11
307	307	AFFECTED EMPLOYEES I S $25,000 OR GREATER. 12
308	308
309	309	(2) IN AN ACTION BROUGHT UNDER PARAGRAPH (1) OF THIS 13
310	310	SUBSECTION, THE ATTORNEY GENERAL MAY RECOVER : 14
311	311
312	312	(I) THE DIFFERENCE BETWE EN THE WAGES PAID TO THE 15
313	313	EMPLOYEES AND THE WA GE REQUIRED UNDER TH IS SUBTITLE; 16
314	314
315	315	(II) AN ADDITIONAL AMOUNT EQUAL TO THE DIFFERE NCE 17
316	316	BETWEEN THE WAGES PA ID TO THE EMPLOYEES AND THE WAGE REQUIRED UNDER 18
317	317	THIS SUBTITLE AS LIQ UIDATED DAMAGES ; 19
318	318
319	319	(III) A CIVIL PENALTY OF $5,000 FOR EACH VIOLATION P AYABLE 20
320	320	INTO THE GENERAL FUND OF THE STATE; 21
321	321
322	322	(IV) REASONABLE ATTORNEY ’S FEES AND OTHER COS TS 22
323	323	PAYABLE TO THE ATTORNEY GENERAL; AND 23
324	324
325	325	(V) ANY OTHER APPROPRIAT E RELIEF. 24
326	326
327	327	(3) BEFORE INITIATING AN ACTION UNDER THIS SE CTION, THE 25
328	328	ATTORNEY GENERAL MAY CONDUCT A N INVESTIGATION . 26
329	329
330	330	(c) The agreement of an employee to work for less than the wage to which the 27
331	331	employee is entitled under this subtitle is not a defense to an action under this section. 28
332	332
333	333	[(d) (1) If a court determines that an employee is entitled to recovery in an 29
334	334	action under this section, the court shall award to the employee: 30 8 SENATE BILL 938
335	335
336	336
337	337
338	338	(i) the difference between the wage paid to the employee and the 1
339	339	wage required under this subtitle; 2
340	340
341	341	(ii) except as provided in paragraph (2) of this subsection, an 3
342	342	additional amount equal to the difference between the wage paid to the employee and the 4
343	343	wage required under this subtitle as liquidated damages; and 5
344	344
345	345	(iii) reasonable counsel fees and other costs. 6
346	346
347	347	(2) If an employer shows to the satisfaction of the court that the employer 7
348	348	acted in good faith and reasonably believed that the wages paid to the employee were not 8
349	349	less than the wage required under this subtitle, the court shall: 9
350	350
351	351	(i) determine that liquidated damages should not be awarded; or 10
352	352
353	353	(ii) award, as liquidated damages, any amount less than the amount 11
354	354	specified in paragraph (1)(ii) of this subsection.] 12
355	355
356	356	3–507.2. 13
357	357
358	358	(a) (1) Notwithstanding any remedy available under § 3–507 of this subtitle[,]: 14
359	359
360	360	(I) if an employer fails to pay an employee in accordance with § 15
361	361	3–502 or § 3–505 of this subtitle, after 2 weeks have elapsed from the date on which the 16
362	362	employer is required to have paid the wages, the employee may bring an action against the 17
363	363	employer to recover the unpaid wages; OR 18
364	364
365	365	(II) THE ATTORNEY GENERAL MAY BRING AN ACTION ON 19
366	366	BEHALF OF EMPLOYEES TO RECOVER UNPAID WA GES IF, AFTER 2 WEEKS HAVE 20
367	367	ELAPSED FROM THE DAT E ON WHICH AN EMPLOYER IS REQUIRED TO HAVE PAID THE 21
368	368	WAGES: 22
369	369
370	370	1. THE EMPLOYER FAILS T O PAY 10 OR MORE 23
371	371	EMPLOYEES IN ACCORDA NCE WITH § 3–502 OR § 3–505 OF THIS SUBTITLE; OR 24
372	372
373	373	2. IN ACCORDANCE WITH § 3–502 OR § 3–505 OF THIS 25
374	374	SUBTITLE, THE TOTAL AMOUNT OF UNPAID WAGES FOR ALL AFFECTED EMPLOYEES 26
375	375	IS $25,000 OR GREATER . 27
376	376
377	377	(2) BEFORE BRINGING AN AC TION UNDER PARAGRAPH (1)(II) OF THIS 28
378	378	SUBSECTION, THE ATTORNEY GENERAL MAY CONDUCT A N INVESTIGATION IN 29
379	379	ACCORDANCE WITH § 6–1006 OF THE STATE GOVERNMENT ARTICLE. 30
380	380	SENATE BILL 938 9
381	381
382	382
383	383	(b) If, in an action under subsection (a) of this section, a court finds that an 1
384	384	employer withheld the wage of an employee in violation of this subtitle and not as a result 2
385	385	of a bona fide dispute, the court may award the employee an amount not exceeding 3 times 3
386	386	the wage, and reasonable counsel fees and other costs. 4
387	387
388	388	(c) (1) (I) In this subsection[, “construction services” has the meaning 5
389	389	stated in § 3–901 of this title] THE FOLLOWING WORDS HAVE THE MEANINGS 6
390	390	INDICATED. 7
391	391
392	392	(II) “CONSTRUCTION SERVICES ” INCLUDES THE FOLLOWING 8
393	393	SERVICES PROVIDED IN CONNECTION WITH REAL PROPERTY: 9
394	394
395	395	1. BUILDING; 10
396	396
397	397	2. RECONSTRUCTING ; 11
398	398
399	399	3. IMPROVING; 12
400	400
401	401	4. ENLARGING; 13
402	402
403	403	5. PAINTING; 14
404	404
405	405	6. ALTERING; 15
406	406
407	407	7. MAINTAINING; AND 16
408	408
409	409	8. REPAIRING. 17
410	410
411	411	(III) “GENERAL CONTRACTOR ” HAS THE MEANING STAT ED IN § 18
412	412	3–901 OF THIS TITLE. 19
413	413
414	414	(2) In an action brought under subsection (a) of this section, a general 20
415	415	contractor on a project for construction services is jointly and severally liable for a violation 21
416	416	of this subtitle that is committed by a subcontractor, regardless of whether the 22
417	417	subcontractor is in a direct contractual relationship with the general contractor. 23
418	418
419	419	(3) A subcontractor shall indemnify a general contractor for any wages, 24
420	420	damages, interest, penalties, or attorney’s fees owed as a result of the subcontractor’s 25
421	421	violation unless: 26
422	422
423	423	(i) indemnification is provided for in a contract between the general 27
424	424	contractor and the subcontractor; or 28
425	425	10 SENATE BILL 938
426	426
427	427
428	428	(ii) a violation of the subtitle arose due to a lack of prompt payment 1
429	429	in accordance with the terms of the contract between the general contractor and the 2
430	430	subcontractor. 3
431	431
432	432	3–901. 4
433	433
434	434	(a) In this subtitle the following words have the meanings indicated. 5
435	435
436	436	[(b) “Construction services” includes the following services provided in connection 6
437	437	with real property: 7
438	438
439	439	(1) building; 8
440	440
441	441	(2) reconstructing; 9
442	442
443	443	(3) improving; 10
444	444
445	445	(4) enlarging; 11
446	446
447	447	(5) painting; 12
448	448
449	449	(6) altering; 13
450	450
451	451	(7) maintaining; and 14
452	452
453	453	(8) repairing.] 15
454	454
455	455	(B) (1) “ECONOMIC DAMAGES ” MEANS A FINANCIAL LO SS INCURRED BY 16
456	456	AN EMPLO YEE AS A RESULT OF B EING MISCLASSIFIED B Y AN EMPLOYER IN 17
457	457	VIOLATION OF THIS SU BTITLE. 18
458	458
459	459	(2) “ECONOMIC DAMAGES ” INCLUDES: 19
460	460
461	461	(I) UNPAID WAGES ; 20
462	462
463	463	(II) LOST BENEFITS; AND 21
464	464
465	465	(III) REIMBURSEMENT FOR EX PENSES THAT, BY AGREEMENT OR 22
466	466	PRACTICE, THE EMPLOYER PAID TO WORKERS CLAS SIFIED AS EMPLOYEES . 23
467	467
468	468	(C) “EMPLOYEE” MEANS AN INDIVIDUAL WHO: 24
469	469
470	470	(1) PERFORMS WORK FOR RE MUNERATION PAID BY A PERSON; AND 25
471	471	SENATE BILL 938 11
472	472
473	473
474	474	(2) IS ENTITLED TO ALL T HE RIGHTS AND PROTEC TIONS AFFORDED 1
475	475	TO EMPLOYEES UNDER F EDERAL AND STATE LAW, INCLUDING WAGE AND HOUR 2
476	476	LAWS, ANTIDISCRIMINATION L AWS, AND, AS APPLICABLE , WORKERS’ 3
477	477	COMPENSATION AND UNE MPLOYMENT INSURANCE BENEFITS. 4
478	478
479	479	[(c)] (D) “Employer” means any person, OR A SUCCESSOR OF TH E PERSON, 5
480	480	that employs an [individual] EMPLOYEE in the State. 6
481	481
482	482	[(d) “Exempt person” means an individual who: 7
483	483
484	484	(1) performs services in a personal capacity and employs no individuals 8
485	485	other than: 9
486	486
487	487	(i) a spouse of the exempt person; 10
488	488
489	489	(ii) children of the exempt person; or 11
490	490
491	491	(iii) parents of the exempt person; 12
492	492
493	493	(2) performs services free from direction and control over the means and 13
494	494	manner of providing the services, subject only to the right of the person or entity for whom 14
495	495	services are provided to specify the desired result; 15
496	496
497	497	(3) furnishes the tools and equipment necessary to provide the service; 16
498	498
499	499	(4) operates a business that is considered inseparable from the individual 17
500	500	for purposes of taxes, profits, and liabilities: 18
501	501
502	502	(i) in which the individual: 19
503	503
504	504	1. owns all of the assets and profits of the business; and 20
505	505
506	506	2. has sole, unlimited, personal liability for all of the debts 21
507	507	and liabilities of the business, unless the business is organized as a single–owned corporate 22
508	508	entity, to which sole, unlimited personal liability does not apply; and 23
509	509
510	510	(ii) for which: 24
511	511
512	512	1. the individual does not pay taxes for the business 25
513	513	separately but reports business income and losses on the individual’s personal tax return; 26
514	514	and 27
515	515
516	516	2. if the business is organized as a corporate entity and the 28
517	517	individual otherwise qualifies as an exempt person under this subsection, the individual 29
518	518	files a separate federal informational tax return for the entity as required by law; 30
519	519	12 SENATE BILL 938
520	520
521	521
522	522	(5) exercises complete control over the management and operations of the 1
523	523	business; and 2
524	524
525	525	(6) exercises the right and opportunity on a continuing basis to perform the 3
526	526	services of the business for multiple entities at the individual’s sole choice and discretion.] 4
527	527
528	528	(E) “GENERAL CONTRACTOR ” MEANS A PERSON THAT ENTERS INTO AN 5
529	529	AGREEMENT WITH AN OW NER TO OVERSEE AND C OORDINATE THE ENTIRE SCOPE OF 6
530	530	A PROJECT, INCLUDING ENSURING T HAT THE WORK MEETS T HE TERMS OF THE 7
531	531	AGREEMENT . 8
532	532
533	533	(F) “HIGHER–TIERED CONTRACTOR ” MEANS A PERSON THAT ENTERS INTO 9
534	534	AN AGREEMENT WITH A GENERAL CONTRACTOR T O PERFORM SERVICES O N A 10
535	535	PROJECT AND WHO SUB CONTRACTS ANY PORTIO N OF THE WORK TO ANO THER 11
536	536	PERSON. 12
537	537
538	538	[(e)] (G) “Knowingly” means having actual knowledge[,] OF OR deliberate 13
539	539	[ignorance, or reckless] disregard for the [truth] REQUIREMENTS OF THIS SUBTITLE. 14
540	540
541	541	[(f) “Landscaping services” includes the following services: 15
542	542
543	543	(1) garden maintenance and planting; 16
544	544
545	545	(2) lawn care including fertilizing, mowing, mulching, seeding, and 17
546	546	spraying; 18
547	547
548	548	(3) seeding and mowing of highway strips; 19
549	549
550	550	(4) sod laying; 20
551	551
552	552	(5) turf installation, except artificial; 21
553	553
554	554	(6) ornamental bush planting, pruning, bracing, spraying, and removal; 22
555	555	and 23
556	556
557	557	(7) ornamental tree planting, pruning, bracing, spraying, and removal. 24
558	558
559	559	(g) (1) “Place of business” means the office or headquarters of the employer. 25
560	560
561	561	(2) “Place of business” does not include a work site at which the employer 26
562	562	has been contracted to perform services.] 27
563	563
564	564	(h) “Public body” means: 28
565	565
566	566	(1) the State; 29
567	567	SENATE BILL 938 13
568	568
569	569
570	570	(2) a unit of State government or an instrumentality of the State; or 1
571	571
572	572	(3) any political subdivision, agency, person, or entity that is a party to a 2
573	573	contract for which 50% or more of the money used is State money. 3
574	574
575	575	(I) “SUBCONTRACTOR ” MEANS A PERSON THAT ENTERS INTO AN 4
576	576	AGREEMENT WITH A GEN ERAL CONTRACTOR OR H IGHER–TIERED CONTRACTOR TO 5
577	577	PERFORM A SPECIFIC P ORTION OF WOR K OR SERVICES AS PAR T OF A LARGER 6
578	578	PROJECT OR CONTRACT . 7
579	579
580	580	(J) “SUCCESSOR” MEANS AN EMPLOYER THAT : 8
581	581
582	582	(1) ACQUIRES, THROUGH ANY FORM OF TRANSACTION , THE BUSINESS 9
583	583	OPERATIONS, ASSETS, WORKFORCE , OR OTHER SIGNIFICANT ELEMENTS OF 10
584	584	ANOTHER EMPLOYER ; AND 11
585	585
586	586	(2) CONTINUES TO OPERATE THE BUSINESS IN ESSE NTIALLY THE 12
587	587	SAME MANNER AS THE P REVIOUS EMPLOYER . 13
588	588
589	589	(K) (1) “WORKER” MEANS AN INDIVIDUAL PERFORMING SERVICES FOR 14
590	590	REMUNERATION . 15
591	591
592	592	(2) “WORKER” INCLUDES EMPLOYEES A ND INDIVIDUALS CLASS IFIED 16
593	593	OR ALLEGED TO BE IND EPENDENT CONTRACTORS , REGARDLESS OF THE LE GAL 17
594	594	RELATIONSHIP BETWEEN THE PARTIES. 18
595	595
596	596	3–902. 19
597	597
598	598	This subtitle applies [only] to [the following industries] ALL: 20
599	599
600	600	(1) [construction services] INDUSTRIES AND SECTO RS WITHIN THE 21
601	601	STATE; and 22
602	602
603	603	(2) [landscaping services] EMPLOYERS , GENERAL CONTRACTORS , 23
604	604	HIGHER–TIERED CONTRACTORS , SUBCONTRACTORS , AND OTHER PERSONS 24
605	605	ENGAGING WORKERS IN THE STATE. 25
606	606
607	607	3–903. 26
608	608
609	609	(A) (1) FOR PURPOSES OF THIS SUBTITLE, A GENERAL CONTRACTOR 27
610	610	SHALL BE CONSIDERED TO BE AN EMPLOYER OF A WORKER WHO A HIGHE R–TIERED 28
611	611	CONTRACTOR OR SUBCON TRACTOR HAS FAILED T O PROPERLY CLASSIFY AS AN 29
612	612	EMPLOYEE ON A PROJEC T OVER WHICH THE GEN ERAL CONTRACTOR HAS 30 14 SENATE BILL 938
613	613
614	614
615	615	RESPONSIBILITY FOR O VERSIGHT AND COORDIN ATION, INCLUDING ENSURING T HAT 1
616	616	THE WORK MEETS THE T ERMS OF THE AGREEMEN T. 2
617	617
618	618	(2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 3
619	619	TO AFFECT THE EMPLOY ER STATUS OF THE HIG HER–TIERED CONTRACTOR OR 4
620	620	SUBCONTRACTOR WITH R ESPECT TO THE MISCLA SSIFIED EMPLOYEE . 5
621	621
622	622	(B) (1) FOR PURPOSES OF THIS SUBTITLE, A HIGHER –TIERED 6
623	623	CONTRACTOR SHALL BE CONSIDERED AN EMPLOYE R OF A WORKER WHO A 7
624	624	SUBCONTRACTOR OF THE HIGHER–TIERED CONTRACTOR HA S FAILED TO PROPERLY 8
625	625	CLASSIFY AS AN EMPLO YEE. 9
626	626
627	627	(2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 10
628	628	TO AFFECT THE EMPLOY ER STATUS OF THE SUB CONTRACTOR WITH RESP ECT TO 11
629	629	THE MISCLASSIFIED EM PLOYEE. 12
630	630
631	631	3–904. 13
632	632
633	633	(a) An employer may not fail to properly classify an individual who performs work 14
634	634	for remuneration paid by the employer. 15
635	635
636	636	(b) An employer has failed to properly classify an individual when an 16
637	637	employer–employee relationship exists as determined under subsection (c) of this section 17
638	638	but the employer has not classified the individual as an employee. 18
639	639
640	640	[(c) (1) Except as provided in § 3–903.1 of this subtitle, for purposes of 19
641	641	enforcement of this subtitle only, work performed by an individual for remuneration paid 20
642	642	by an employer shall be presumed to create an employer–employee relationship, unless: 21
643	643
644	644	(i) the individual is an exempt person; or 22
645	645
646	646	(ii) an employer demonstrates that: 23
647	647
648	648	1. the individual who performs the work is free from control 24
649	649	and direction over its performance both in fact and under the contract; 25
650	650
651	651	2. the individual customarily is engaged in an independent 26
652	652	business or occupation of the same nature as that involved in the work; and 27
653	653
654	654	3. the work is: 28
655	655
656	656	A. outside of the usual course of business of the person for 29
657	657	whom the work is performed; or 30
658	658
659	659	B. performed outside of any place of business of the person 31
660	660	for whom the work is performed. 32 SENATE BILL 938 15
661	661
662	662
663	663
664	664	(2) Work is outside of the usual course of business of the person for whom 1
665	665	it is performed under paragraph (1) of this subsection if: 2
666	666
667	667	(i) the individual performs the work off the employer’s premises; 3
668	668
669	669	(ii) the individual performs work that is not integrated into the 4
670	670	employer’s operation; or 5
671	671
672	672	(iii) the work performed is unrelated to the employer’s business. 6
673	673
674	674	(3) By contract, an employer may engage another business entity, which 7
675	675	may have its own employees, to do the same type of work in which the employer engages, 8
676	676	at the same location where th e employer is working, without establishing an 9
677	677	employer–employee relationship between the two contracting entities.] 10
678	678
679	679	(C) (1) AN EMPLOYER–EMPLOYEE RELATIONSHI P IS PRESUMED TO EXI ST 11
680	680	WHEN WORK IS PERFORM ED BY A WORKER FOR R EMUNERATION PAID BY A PERSON, 12
681	681	UNLESS THE PERSON PROV IDING THE REMUNERATI ON DEMONSTRATES THAT : 13
682	682
683	683	(I) THE WORKER IS FREE F ROM CONTROL AND DIRE CTION 14
684	684	OVER THE PERFORMANCE OF SERVICES, SUBJECT ONLY TO THE RIGHT OF THE 15
685	685	PERSON FOR WHICH SER VICES ARE PROVIDED T O SPECIFY THE DESIRE D RESULT, 16
686	686	BOTH IN FACT AND UNDER THE CONTRACT ; 17
687	687
688	688	(II) THE WORKER CUSTOMARI LY IS ENGAGED IN AN 18
689	689	INDEPENDENTLY ESTABL ISHED TRADE, OCCUPATION , PROFESSION, OR BUSINESS 19
690	690	THAT IS OF THE SAME NATURE AS THAT INVOL VED IN THE WORK BEIN G PERFORMED 20
691	691	BY THE WORKER FOR TH E PERSON; AND 21
692	692
693	693	(III) THE WORK IS: 22
694	694
695	695	1. OUTSIDE THE USUAL CO URSE OF BUSINESS OF THE 23
696	696	PERSON FOR WHICH THE WORK IS PERFORMED ; OR 24
697	697
698	698	2. PERFORMED OUTSIDE AN Y PLACE OF BUSINESS OF 25
699	699	THE PERSON FOR WHICH THE WORK IS PERFORME D. 26
700	700
701	701	(2) WORK IS OUTSIDE THE U SUAL COURSE OF BUSINESS OF THE 27
702	702	PERSON FOR WHICH IT IS PERFORMED UNDER P ARAGRAPH (1)(III)1 OF THIS 28
703	703	SUBSECTION IF: 29
704	704
705	705	(I) THE INDIVIDUAL PERFO RMS THE WORK OFF THE 30
706	706	EMPLOYER’S PREMISES; 31 16 SENATE BILL 938
707	707
708	708
709	709
710	710	(II) THE INDIVIDUAL PERFO RMS WORK THAT IS NOT 1
711	711	INTEGRATED INTO THE EMPLOYER’S OPERATION; OR 2
712	712
713	713	(III) THE WORK PERFORMED I S UNRELATED TO THE 3
714	714	EMPLOYER’S BUSINESS. 4
715	715
716	716	(3) AN EMPLOYER MAY ENGAG E BY CONTRACT ANOTHE R BUSINESS 5
717	717	ENTITY, WHICH MAY HAVE ITS O WN EMPLOYEES , TO DO THE SAME TYPE OF WORK IN 6
718	718	WHICH THE EMPLOYER E NGAGES AT THE SAME L OCATION WHERE THE EMPLO YER 7
719	719	IS WORKING WITHOUT E STABLISHING AN EMPLO YER–EMPLOYEE RELATIONSHI P 8
720	720	BETWEEN THE TWO CONT RACTING ENTITIES . 9
721	721
722	722	(d) The Commissioner shall adopt regulations to explain further and provide 10
723	723	specific examples of the application of subsection (c) of this section. 11
724	724
725	725	3–905. 12
726	726
727	727	(A) THIS SUBTITLE MAY NOT BE WAIVED OR SET ASI DE BY PRIVATE 13
728	728	AGREEMENT . 14
729	729
730	730	(B) AN AGREEMENT MADE BET WEEN AN EMPLOYER AND EMPLOYEE IN 15
731	731	WHICH THE EMPLOYEE A GREES TO BE CLASSIFI ED AS AN INDEPENDENT 16
732	732	CONTRACTOR IS NOT A DEFENSE TO A CITATION OR IN A CIV IL ACTION BROUGHT 17
733	733	UNDER THIS SUBTITLE . 18
734	734
735	735	3–906. 19
736	736
737	737	(A) THE COMMISSIONER , ON THE COMMISSIONER ’S OWN INITIATIVE OR ON 20
738	738	RECEIPT OF A COMPLAI NT, SHALL INVESTIGATE TO DETERMINE COMPLIANCE WITH 21
739	739	THIS SUBTITLE. 22
740	740
741	741	(B) (1) IN CONDUCTING AN INVESTIGATION UNDER THIS SECTION, THE 23
742	742	COMMISSIONER MAY : 24
743	743
744	744	(I) ENTER AND INSPECT A PERSON’S PLACE OF BUSINESS OR 25
745	745	PLACE OF WORK TO : 26
746	746
747	747	1. OBSERVE WORK BEING P ERFORMED ; AND 27
748	748
749	749	2. EXAMINE AND COPY : 28
750	750
751	751	A. RECORDS THAT THE PER SON IS REQUIRED TO K EEP IN 29
752	752	ACCORDANCE WITH THIS TITLE; 30 SENATE BILL 938 17
753	753
754	754
755	755
756	756	B. BOOKS, REGISTERS, PAYROLL RECORDS , RECORDS OF 1
757	757	WAGE WITHHOLDINGS , RECORDS OF WORK ACTI VITY AND HOURS OF WO RK, AND 2
758	758	RECORDS OR INDICIA O F THE EMPLOYMENT STA TUS OF WORKERS PERFO RMING 3
759	759	WORK FOR THE PERSON ; AND 4
760	760
761	761	C. ANY OTHE R RECORDS RELATING T O COMPLIANCE 5
762	762	WITH THIS SUBTITLE O R REGULATIONS ADOPTE D UNDER THIS SUBTITL E; 6
763	763
764	764	(II) REQUIRE A PERSON TO PRODUCE WITHIN 15 CALENDAR 7
765	765	DAYS A TRUE AND CORR ECT COPY OF AN ITEM DESCRIBED UNDER ITEM (I)2 OF THIS 8
766	766	PARAGRAPH ; 9
767	767
768	768	(III) DETERMINE THE IDENTITY AND ACT IVITIES OF A WORKER 10
769	769	RECEIVING REMUNERATI ON FROM THE PERSON ; OR 11
770	770
771	771	(IV) CONDUCT CONFIDENTIAL INTERVIEWS AND OBTAI N ORAL 12
772	772	OR WRITTEN STATEMENT S FROM A WORKER RELA TING TO INFORMATION 13
773	773	CONCERNING THE REMUN ERATION OF WORKERS A ND THE NATURE A ND EXTENT OF 14
774	774	THE SERVICES PERFORM ED. 15
775	775
776	776	(2) THE COMMISSIONER MAY COND UCT THE ACTIVITIES D ESCRIBED 16
777	777	IN PARAGRAPH (1) OF THIS SUBSECTION A T: 17
778	778
779	779	(I) A LOCATION WHERE WOR KERS ARE ENGAGED TO PERFORM 18
780	780	WORK FOR THE PERSON ; AND 19
781	781
782	782	(II) ANY OTHER LOCATION W HERE THE ITEMS DESCRIBED IN 20
783	783	PARAGRAPH (1)(I) OF THIS SUBSECTION A RE MAINTAINED BY THE PERSON OR AN 21
784	784	AGENT OF THE PERSON . 22
785	785
786	786	3–907. 23
787	787
788	788	(A) SUBJECT TO SUBSECTION (C) OF THIS SECTION, IF THE COMMISSIONER 24
789	789	IS DENIED ACCESS TO A PLACE OF BUSINESS OR PLACE OF WORK AFT ER MAKING A 25
790	790	PROPER REQUEST TO TH E OWNER, LESSEE, EMPLOYER, OR OTHER PERSON IN 26
791	791	CHARGE OF ACCESS TO THE PLACE OF BUSINES S OR PLACE OF WORK , THE 27
792	792	COMMISSIONER MAY APPL Y TO THE DISTRICT COURT FOR AN ADMINIST RATIVE 28
793	793	SEARCH WARRANT UNDER THIS SECTION. 29
794	794
795	795	(B) EACH APPLICA TION UNDER THIS SECT ION SHALL: 30
796	796	18 SENATE BILL 938
797	797
798	798
799	799	(1) STATE THE NATURE , PURPOSE, AND SCOPE OF THE INS PECTION; 1
800	800	AND 2
801	801
802	802	(2) SHOW THAT: 3
803	803
804	804	(I) THE APPLICANT IS AUT HORIZED BY LAW TO IN SPECT THE 4
805	805	PLACE OF BUSINESS OR PLACE OF WORK TO WHI CH ACCESS WAS DENIED ; 5
806	806
807	807	(II) THE APPLIC ANT REQUESTED ACCESS AT A REASONABLE 6
808	808	TIME AND THE ACCESS WAS DENIED; AND 7
809	809
810	810	(III) THE INSPECTION IS FO R A PURPOSE RELATED TO THIS 8
811	811	SUBTITLE. 9
812	812
813	813	(C) THE COMMISSIONER MAY NOT SUBMIT AN APPLICATIO N UNDER 10
814	814	SUBSECTION (A) OF THIS SECTION UNLE SS THE SUBMISSION IS APPROVED BY THE 11
815	815	ATTORNEY GENERAL. 12
816	816
817	817	(D) ON A SHOWING OF PROBA BLE CAUSE, THE DISTRICT COURT SHALL 13
818	818	ISSUE THE ADMINISTRA TIVE SEARCH WARRANT AUTHORIZING THE COMMISSIONER 14
819	819	OR AUTHORIZED REPRES ENTATIVE TO ENTER AN D INSPECT THE PLACE OF 15
820	820	BUSINESS OR PLACE OF WORK, EXAMINE AND COPY REC ORDS, AND TAKE OTHER 16
821	821	NECESSARY ACTIONS TO ENFORCE COMPLIANCE W ITH THIS SUBTITLE. 17
822	822
823	823	3–908. 18
824	824
825	825	(A) IN ENFORCING THIS SUB TITLE, THE COMMISSIONER MAY : 19
826	826
827	827	(1) ADMINISTER OATHS AND QUESTION WITNESSES O N RECORD AND 20
828	828	UNDER OATH ; AND 21
829	829
830	830	(2) ISSUE A SUBPOENA FOR : 22
831	831
832	832	(I) THE PRODUCTION OF A PERSON’S BOOKS, DOCUMENTS , 23
833	833	PAPERS, AND RECORDS ; AND 24
834	834
835	835	(II) THE ATTENDANCE OF A WITNESS TO TESTIFY . 25
836	836
837	837	(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION, IF A PERSON FAILS TO 26
838	838	COMPLY WITH A SUBPOE NA ISSUED UNDER SUBS ECTION (A)(2) OF THIS SECTION OR 27
839	839	FAILS TO TESTIFY ON A MATTER ON WHICH TH E PERSON MAY LAWFULL Y BE 28
840	840	INTERROGATED , ON A COMPLAINT FILED BY THE COMMISSIONER , THE CIRCUIT 29
841	841	COURT FOR THE COUNTY IN WHICH THE PERSON RESIDES OR IS PRESEN T MAY PASS 30 SENATE BILL 938 19
842	842
843	843
844	844	AN ORDER DIRECTING C OMPLIANCE WITH THE S UBPOENA OR COMPELLIN G 1
845	845	TESTIMONY. 2
846	846
847	847	(C) THE COMMISSIONER MAY NOT FILE A COMPLAINT TO ENFORCE A 3
848	848	SUBPOENA UNLESS THE FILING IS APPROVED B Y THE ATTORNEY GENERAL. 4
849	849
850	850	(D) (1) A PERSON MAY NOT BE EX CUSED, ON THE GROUNDS THAT THE 5
851	851	TESTIMONY OR EVIDENCE MAY INCRIMI NATE THE PERSON OR S UBJECT THE PERSON 6
852	852	TO A PENALTY OR FORF EITURE, FROM: 7
853	853
854	854	(I) ATTENDING AND TESTIF YING AS REQUIRED UND ER THIS 8
855	855	SECTION; OR 9
856	856
857	857	(II) PRODUCING ANY DOCUME NT OR RECORD BEFORE THE 10
858	858	COMMISSIONER OR IN A PROCEEDING INITIATED BY THE COMMISSIONER . 11
859	859
860	860	(2) EXCEPT IN CASES OF PE RJURY OR CONTEMPT DU RING 12
861	861	TESTIMONY, TESTIMONY AND EVIDEN CE GIVEN IN ACCORDAN CE WITH THIS SECTION 13
862	862	MAY NOT BE USED TO C RIMINALLY PROSECUTE AN INDIVIDUAL FOR TH E SPECIFIC 14
863	863	SUBJECT THE INDIVIDU AL WAS COMPELLED TO TESTIFY OR PRODUCE E VIDENCE 15
864	864	ABOUT. 16
865	865
866	866	3–909. 17
867	867
868	868	(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , AN 18
869	869	EMPLOYER THAT FAILS TO PROPERLY CLASSIFY AN EMPLOYEE SHALL BE SUBJECT 19
870	870	TO A CIVIL PENALTY O F NOT LESS THAN $5,000 AND NOT MORE THAN $10,000 FOR 20
871	871	EACH EMPLOYEE NOT PROPERL Y CLASSIFIED. 21
872	872
873	873	(B) AN EMPLOYER THAT KNOW INGLY FAILS TO PROPE RLY CLASSIFY AN 22
874	874	EMPLOYEE SHALL BE SU BJECT TO A CIVIL PEN ALTY OF NOT LESS THA N $10,000 AND 23
875	875	NOT MORE THAN $25,000 FOR EACH EMPLOYEE NO T PROPERLY CLASSIFIE D. 24
876	876
877	877	(C) A PERSON HAS V IOLATED THIS SUBTITL E AND IS SUBJECT TO A CIVIL 25
878	878	PENALTY OF $5,000 PER OCCURRENCE IF TH E PERSON: 26
879	879
880	880	(1) HINDERS OR DELAYS TH E COMMISSIONER ’S INVESTIGATION 27
881	881	UNDER THIS SUBTITLE ; 28
882	882
883	883	(2) REFUSES TO ADMIT , AT REASONABLE TIMES , THE COMMISSIONER 29
884	884	TO A PLACE OF BUSI NESS OR WORK ; 30
885	885	20 SENATE BILL 938
886	886
887	887
888	888	(3) FAILS TO GIVE INFORM ATION LAWFULLY REQUI RED FOR THE 1
889	889	PROPER ENFORCEMENT O F THIS SUBTITLE, ON DEMAND OF THE COMMISSIONER ; 2
890	890
891	891	(4) FAILS OR REFUSES TO MAKE RECORDS RELATIN G TO WORKERS 3
892	892	ACCESSIBLE TO THE COMMISSIONER ; OR 4
893	893
894	894	(5) FALSIFIES RECORDS RELATING TO WO RKERS. 5
895	895
896	896	(D) THE COMMISSIONER SHALL DE TERMINE THE AMOUNT O F A PENALTY 6
897	897	FOR MISCLASSIFICATIO N OF EMPLOYEES BASED ON: 7
898	898
899	899	(1) THE NUMBER OF MISCLA SSIFIED EMPLOYEES ; 8
900	900
901	901	(2) THE DURATION OF THE MISCLASSIFICATION ; 9
902	902
903	903	(3) THE SEVERITY OF THE VIOLATION; 10
904	904
905	905	(4) THE IMPACT ON THE AF FECTED EMPLOYEES , INCLUDING UNPAID 11
906	906	WAGES, BENEFITS, AND TAXES; AND 12
907	907
908	908	(5) WHETHER THE EMPLOYER HAS PREVIOUSLY VIOLA TED THIS 13
909	909	SUBTITLE. 14
910	910
911	911	(E) IN ADDITION TO THE PE NALTIES PROVIDED IN SUBSECTIONS (A) 15
912	912	THROUGH (C) OF THIS SECTION, AN EMPLOYER MAY BE O RDERED BY THE 16
913	913	COMMISSIONER TO : 17
914	914
915	915	(1) PAY RESTITUTION FOR ECONOMIC DAMAGES SUF FERED BY AN 18
916	916	EMPLOYEE AS A RESULT OF THE EMPLOYER ’S FAILURE TO PROPERL Y CLASSIFY THE 19
917	917	EMPLOYEE; AND 20
918	918
919	919	(2) COME INTO COMPLIANCE WITH THIS SUBTITLE . 21
920	920
921	921	(F) IN ADDITION TO ANY OT HER RESTITUTION OR B ENEFIT TO WHICH AN 22
922	922	EMPLOYEE MAY BE ENTI TLED UNDER THIS SUBT ITLE, ONE–THIRD OF THE AMOUNT 23
923	923	OF A CIVIL PENALTY I MPOSED UNDER THIS SE CTION FOR A KNOWING VIOLATION 24
924	924	SHALL BE PAYABLE DIR ECTLY TO THE AFFECTE D EMPLOYEE. 25
925	925
926	926	3–910. 26
927	927
928	928	(A) IF, AFTER AN INVESTIGATI ON, THE COMMISSIONER DETERMIN ES THAT 27
929	929	A PERSON HAS VIOLATE D OR FAILED TO COMPL Y WITH THE REQUIREME NTS OF THIS 28
930	930	SUBTITLE, THE COMMISSIONER SHALL IS SUE A CITATION WITH REASONABLE 29
931	931	PROMPTNESS . 30 SENATE BILL 938 21
932	932
933	933
934	934
935	935	(B) EACH CITATION ISSUED UNDER SUBSECTION (A) OF THIS SECTION 1
936	936	SHALL: 2
937	937
938	938	(1) BE IN WRITING; 3
939	939
940	940	(2) IDENTIFY EACH PERSON ALLEGED TO HAVE VIOL ATED THIS 4
941	941	SUBTITLE AS A RESPON DENT TO THE CITATION ; 5
942	942
943	943	(3) DESCRIBE, WITH PARTICULARITY , THE NATURE OF THE AL LEGED 6
944	944	VIOLATION; 7
945	945
946	946	(4) REFERENCE THE PROVISION OF THIS SU BTITLE OR REGULATION 8
947	947	ADOPTED UNDER THIS S UBTITLE THAT THE PER SON IS ALLEGED TO HA VE 9
948	948	VIOLATED; 10
949	949
950	950	(5) STATE THE CIVIL PENA LTY, IF ANY, THE COMMISSIONER 11
951	951	PROPOSES TO ASSESS U NDER THIS SUBTITLE ; 12
952	952
953	953	(6) STATE THE AMOUNT OF RESTITUTION, IF ANY, ORDERED BY THE 13
954	954	COMMISSIONER TO BE PA ID TO AN EMPLOYEE UN DER § 3–909(E) OF THIS SUBTITLE; 14
955	955
956	956	(7) STATE ALL ACTIONS NE CESSARY TO COME INTO COMPLIANCE 15
957	957	WITH THIS SUBTITLE A ND SET A REASONABLE PERIOD FOR THE RESPO NDENT TO 16
958	958	TAKE CORRECTIVE ACTI ON; 17
959	959
960	960	(8) NOTIFY THE RESPONDENT THAT, WITHIN 30 DAYS AFTER RECEIPT 18
961	961	OF THE CITATION , THE RESPONDENT MAY R EQUEST AN ADMINISTRA TIVE HEARING 19
962	962	ON THE CITATION AND PENALTY AND THAT THE HEARING WILL BE COND UCTED IN 20
963	963	ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE; 21
964	964	AND 22
965	965
966	966	(9) NOTIFY THE RESPONDEN T THAT IF A HEARING IS NOT REQUESTED 23
967	967	WITHIN 30 DAYS OF MAILING THE CITATION, THE CITATION BECOMES A FINAL 24
968	968	ORDER OF THE COMMISSIONER . 25
969	969
970	970	(C) THE COMMISSIONER SHALL SE ND A CITATION ISSUED UNDER 26
971	971	SUBSECTION (A) OF THIS SECTION BY CERTIFIED AND FIRST–CLASS MAIL. 27
972	972
973	973	3–911. 28
974	974
975	975	(A) WITHIN 30 DAYS AFTER THE COMMISSIONER MAILS A CITATION ISSUED 29
976	976	UNDER § 3–910(A) OF THIS SUBTITLE , THE RESPONDENT MAY S UBMIT A WRITTEN 30 22 SENATE BILL 938
977	977
978	978
979	979	REQUEST FOR A HEARIN G ON THE CITATION AN D PROPOSED PENALTY A ND 1
980	980	RESTITUTION, IF ANY. 2
981	981
982	982	(B) THE CITATION AND PROP OSED PENALTY AND RES TITUTION WILL BE 3
983	983	CONVERTED TO A FINAL ORDER OF THE COMMISSIONER IF AN AD MINISTRATIVE 4
984	984	HEARING IS NOT REQUE STED BY THE RESPONDE NT WITHIN 30 DAYS AFTER THE 5
985	985	RECEIPT OF THE CITAT ION. 6
986	986
987	987	(C) IF THE RESPONDENT REQUESTS A HEARING, THE COMMISSIONER 7
988	988	SHALL DELEGATE TO TH E OFFICE OF ADMINISTRATIVE HEARINGS THE AUTHORIT Y 8
989	989	TO HOLD A HEARING IN ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE 9
990	990	GOVERNMENT ARTICLE. 10
991	991
992	992	(D) AN ADMINISTRATIVE LAW JUDGE SHALL ISSUE F INDINGS OF FACT , 11
993	993	CONCLUSIONS OF LAW , AND A FINAL ORDER AF FIRMING, MODIFYING, OR VACATING 12
994	994	ALL OR PART OF THE C ITATION AND ANY PROP OSED PENALTY OR REST ITUTION. 13
995	995
996	996	(E) THE COMMISSIONER HAS THE BURDEN OF PROOF , BY A 14
997	997	PREPONDERANCE OF THE EVIDENCE, TO SHOW THAT : 15
998	998
999	999	(1) THE RESPONDENT HAS V IOLATED THIS SUBTITL E; AND 16
1000	1000
1001	1001	(2) ANY PROPOSED PENALTY , RESTITUTION, AND ORDER FOR 17
1002	1002	COMPLIANCE IS APPROP RIATE. 18
1003	1003
1004	1004	(F) WITHIN 30 DAYS AFTER THE ISSUA NCE OF A FINAL ORDER UNDER 19
1005	1005	SUBSECTION (D) OF THIS SECTION , A RESPONDENT FOUND I N VIOLATION OF THIS 20
1006	1006	SUBTITLE SHALL : 21
1007	1007
1008	1008	(1) PAY ANY ASSESSED PEN ALTIES TO THE COMMISSIONER ; 22
1009	1009
1010	1010	(2) PAY ANY ORDERED REST ITUTION TO OR ON BEH ALF OF AN 23
1011	1011	EMPLOYEE WHOM THE RE SPONDENT FAILED TO P ROPERLY CLASSIFY ; AND 24
1012	1012
1013	1013	(3) TAKE ALL OTHER ACTIO NS SPECIFIED AS NECE SSARY TO COME 25
1014	1014	INTO COMPLIANCE WITH THIS SUBTITLE. 26
1015	1015
1016	1016	(G) (1) A PARTY AGGRIEVED BY A FINAL ORDER OF THE COMMISSIONER 27
1017	1017	UNDER SUBSECTION (I) OF THIS SECTION MAY SEEK JUDICIAL REVIEW AND APPEAL 28
1018	1018	UNDER §§ 10–222 AND 10–223 OF THE STATE GOVERNMENT ARTICLE. 29
1019	1019	SENATE BILL 938 23
1020	1020
1021	1021
1022	1022	(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 1
1023	1023	FINAL ORDER OF THE COMMISSIONER IS STAYE D UNTIL THE TIME FOR SEEKING 2
1024	1024	JUDICIAL REVIEW EXPI RES. 3
1025	1025
1026	1026	(II) IF A TIMELY APPEAL IS FILED, THE ORDER IS STAYED UNTIL 4
1027	1027	FINAL DISPOSITION BY THE COURT. 5
1028	1028
1029	1029	(3) THE COMMISSIONER MAY SEEK JUDICIAL ENFORCEMENT OF A 6
1030	1030	FINAL ORDER. 7
1031	1031
1032	1032	(H) A FINAL ORDER OF THE COMMISSIONER SHALL RE MAIN IN EFFECT 8
1033	1033	AGAINST A SUCCESSOR OF THE PERSON AGAINS T WHICH THE FINAL OR DER WAS 9
1034	1034	ISSUED. 10
1035	1035
1036	1036	(I) A PREVIOUS FINAL ORDER FINDING A VIOLATION OF THIS SUBTITLE BY 11
1037	1037	AN EMPLOYER SHALL ES TABLISH THAT THE EMP LOYER’S OR SUCCESSOR ’S 12
1038	1038	SUBSEQUENT VIOLATION S WERE COMMITTED KNO WINGLY. 13
1039	1039
1040	1040	(J) THE REMEDIES INCLUDED IN A FINAL ORDER OF A COURT OR AN 14
1041	1041	ADMINISTRATIVE UNIT REGARDING THE FAILURE OF AN EM PLOYER TO PROPERLY 15
1042	1042	CLASSIFY AN INDIVIDU AL AS AN EMPLOYEE IS IN ADDITION TO ANY O THER REMEDY 16
1043	1043	AVAILABLE TO THE EMP LOYEE FOR A VIOLATIO N OF ANOTHER STATE LAW, 17
1044	1044	INCLUDING THE MARYLAND WAGE AND HOUR LAW, TITLE 17, SUBTITLE 2 OF THE 18
1045	1045	STATE FINANCE AND PROCUREMENT ARTICLE, OR TITLE 18 OF THE STATE 19
1046	1046	FINANCE AND PROCUREMENT ARTICLE, THAT RESULTED FROM T HE 20
1047	1047	MISCLASSIFICATION . 21
1048	1048
1049	1049	3–912. 22
1050	1050
1051	1051	(a) As authorized by State and federal law, units within the Maryland 23
1052	1052	Department of Labor and the Department of Budget and Management, the Secretary of 24
1053	1053	State, the Comptroller, the Maryland Insurance Administration, THE OFFICE OF THE 25
1054	1054	ATTORNEY GENERAL, and [other State agencies] THE STATE DEPARTMENT OF 26
1055	1055	ASSESSMENTS AND TAXATION shall cooperate and share information concerning any 27
1056	1056	suspected failure to properly classify [an individual] A WORKER as an employee. 28
1057	1057
1058	1058	(b) [On a showing by clear and convincing evidence that a violation of § 3–904 of 29
1059	1059	this subtitle has occurred and as authorized by federal and State law, the] THE 30
1060	1060	Commissioner shall refer [any complaint that alleges] a SUSPECTED violation of § 13–1007 31
1061	1061	or § 13–1024 of the Tax – General Article to the: 32
1062	1062
1063	1063	(1) Comptroller; 33
1064	1064
1065	1065	(2) State’s Attorney with jurisdiction over the alleged violation; 34 24 SENATE BILL 938
1066	1066
1067	1067
1068	1068
1069	1069	(3) U.S. Department of Justice; 1
1070	1070
1071	1071	(4) U.S. Department of Labor; and 2
1072	1072
1073	1073	(5) U.S. Department of the Treasury. 3
1074	1074
1075	1075	(C) (1) EACH YEAR, THE COMMISSIONER SHALL DI SSEMINATE ALL FINAL 4
1076	1076	ORDERS ISSUED UNDER THIS SUBTITLE TO EAC H AGENCY LISTED IN SUBSECTION (A) 5
1077	1077	OF THIS SECTION. 6
1078	1078
1079	1079	(2) AN AGENCY LISTED UNDE R SUBSECTION (A) OF THIS SECTION 7
1080	1080	MAY NOT ISSUE OR REN EW A LICENSE TO A RE SPONDENT IN VIOLATIO N OF THIS 8
1081	1081	SUBTITLE UNTIL THE R ESPONDENT COMES INTO COMPLIANCE WITH THE FINAL 9
1082	1082	ORDER. 10
1083	1083
1084	1084	(3) THE COMMISSIONER SHALL ADOPT PRO CEDURES FOR ADVISING 11
1085	1085	THE AGENCIES LISTED UNDER SUBSECTION (A) OF THIS SECTION OF W HEN A 12
1086	1086	RESPONDENT COMES INT O COMPLIANCE WITH A FINAL ORDER ISSUED U NDER THIS 13
1087	1087	SUBTITLE. 14
1088	1088
1089	1089	3–913. 15
1090	1090
1091	1091	(a) (1) Except as provided in paragraph (2) of this subsection, an [individual] 16
1092	1092	EMPLOYEE who has not been properly classified as an employee may bring a civil action 17
1093	1093	[for economic damages] against the employer for any violation of this subtitle. 18
1094	1094
1095	1095	(2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , IF 19
1096	1096	AN EMPLOYER FAILS TO PR OPERLY CLASSIFY 10 OR MORE EMPLOYEES RE SULTING 20
1097	1097	IN ECONOMIC DAMAGES TOTALING $25,000 OR MORE, THE ATTORNEY GENERAL 21
1098	1098	MAY BRING AN ACTION AGAINST THE EMPLOYER ON BEHALF OF THE EMP LOYEES 22
1099	1099	ALLEGED TO HAVE BEEN IMPROPERLY CLASSIFIE D FOR A VIOL ATION OF THIS 23
1100	1100	SUBTITLE. 24
1101	1101
1102	1102	(3) An [individual] EMPLOYEE OR THE ATTORNEY GENERAL may not 25
1103	1103	bring a civil action [under this section if] ON THE SAME FACTS AN D ISSUES ADDRESSED 26
1104	1104	BY a final order of [an administrative unit or of a court has been issued under § 3–906 of] 27
1105	1105	THE COMMISSIONER ISSUED I N ACCORDANCE WITH this subtitle. 28
1106	1106
1107	1107	(4) (I) ON THE FILING OF AN A CTION BY AN EMPLOYEE OR THE 29
1108	1108	ATTORNEY GENERAL UNDER PARAGRA PH (1) OR (2) OF THIS SUBSECTION I N A 30
1109	1109	COURT OF COMPETENT J URISDICTION CONCERNI NG A MATTER UNDER 31
1110	1110	INVESTIGATION OR SUBJECT TO ADMINISTRATIVE PR OCEEDINGS BY THE 32
1111	1111	COMMISSIONER , THE COMMISSIONER SHALL : 33 SENATE BILL 938 25
1112	1112
1113	1113
1114	1114
1115	1115	1. STAY THE INVESTIGATI ON OR ADMINISTRATIVE 1
1116	1116	PROCEEDING UNTIL THE COURT ACTION IS RESO LVED; AND 2
1117	1117
1118	1118	2. NOTIFY THE PARTIES O F THE RESOLUTION . 3
1119	1119
1120	1120	(II) ON RESOLUTION OF THE CO URT ACTION , THE 4
1121	1121	COMMISSIONER MAY RESU ME THE INVESTIGATION OR ADMINISTRATIVE 5
1122	1122	PROCEEDINGS IF NECES SARY AND APPROPRIATE , TAKING INTO CONSIDER ATION 6
1123	1123	THE FINDINGS AND OUT COMES OF THE COURT A CTION. 7
1124	1124
1125	1125	(b) An action filed under this section shall be filed within 3 years after the date 8
1126	1126	[the cause of action accrues] ON WHICH THE MISCLAS SIFIED WORKER LAST 9
1127	1127	PERFORMED WORK FOR T HE ALLEGED EMPLOYER . 10
1128	1128
1129	1129	(c) If the court determines that an [individual] EMPLOYEE or class of 11
1130	1130	[individuals] EMPLOYEES is entitled to judgment in an action against an employer filed in 12
1131	1131	accordance with this section, the court may award each [individual] EMPLOYEE: 13
1132	1132
1133	1133	(1) [any damages to which the individual may be entitled under subsection 14
1134	1134	(a) of this section] ECONOMIC DAMAGES ; 15
1135	1135
1136	1136	(2) an additional amount up to three times the amount of any [such] 16
1137	1137	ECONOMIC damages, if the employer knowingly failed to properly classify the [individual] 17
1138	1138	EMPLOYEE ; 18
1139	1139
1140	1140	(3) reasonable counsel fees and other costs of the action; and 19
1141	1141
1142	1142	(4) any other appropriate relief. 20
1143	1143
1144	1144	(D) IF A FINAL ORDER OF T HE COURT FINDS THAT AN EMPLOYER HAS 21
1145	1145	FAILED TO PROPERLY C LASSIFY AN EMPLOYEE IN A CIVIL ACTION BR OUGHT BY THE 22
1146	1146	ATTORNEY GENERAL, THE ATTORNEY GENERAL SHALL NOTIFY THE AGENCIES 23
1147	1147	LISTED IN § 3–912(A) OF THIS SUBTITLE. 24
1148	1148
1149	1149	(E) BEFORE INITIATING AN ACTION IN ACCORDANCE WITH THIS SUBTITLE , 25
1150	1150	THE ATTORNEY GENERAL MAY CONDUCT A N INVESTIGATION . 26
1151	1151
1152	1152	3–914. 27
1153	1153
1154	1154	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 28
1155	1155	INDICATED. 29
1156	1156
1157	1157	(2) “LICENSE” MEANS A LICENSE , CERTIFICATE, REGISTRATION , 30 26 SENATE BILL 938
1158	1158
1159	1159
1160	1160	PERMIT, OR OTHER AUTHORIZATI ON THAT: 1
1161	1161
1162	1162	(I) IS ISSUED BY A LICEN SING AUTHORITY ; 2
1163	1163
1164	1164	(II) IS SUBJECT TO SUSPEN SION, REVOCATION , FORFEITURE, 3
1165	1165	OR TERMINATION BY A LICENSING AUTHORITY ; AND 4
1166	1166
1167	1167	(III) IS NECESSARY FOR A PERSON TO PRACTICE OR ENGAG E IN 5
1168	1168	A PARTICULAR BUSINES S, OCCUPATION , OR PROFESSION . 6
1169	1169
1170	1170	(3) “LICENSEE” MEANS AN EMPLOYER HO LDING A VALID LICENS E. 7
1171	1171
1172	1172	(4) (I) “LICENSING AUTHORITY ” MEANS A UNIT OF THE DIVISION 8
1173	1173	OF OCCUPATIONAL AND PROFESSIONAL LICENSING IN THE MARYLAND 9
1174	1174	DEPARTMENT OF LABOR. 10
1175	1175
1176	1176	(II) “LICENSING AUTHORITY ” INCLUDES: 11
1177	1177
1178	1178	1. THE ELEVATOR SAFETY REVIEW BOARD; 12
1179	1179
1180	1180	2. THE MARYLAND HOME IMPROVEMENT COMMISSION; 13
1181	1181
1182	1182	3. THE STATE BOARD OF ELECTRICIANS; 14
1183	1183
1184	1184	4. THE STATE BOARD OF HEATING, VENTILATION, 15
1185	1185	AIR–CONDITIONING, AND REFRIGERATION CONTRACTORS ; 16
1186	1186
1187	1187	5. THE STATE BOARD OF PLUMBING; 17
1188	1188
1189	1189	6. THE MARYLAND BOARD OF PUBLIC ACCOUNTANCY ; 18
1190	1190	AND 19
1191	1191
1192	1192	7. THE MARYLAND BOARD OF INDIVIDUAL TAX 20
1193	1193	PREPARERS. 21
1194	1194
1195	1195	(B) (1) THE COMMISSIONER SHALL NO TIFY THE APPLICABLE LICENSING 22
1196	1196	AUTHORITY WHEN A LIC ENSEE IS FOUND IN VI OLATION OF § 3–904 OF THIS 23
1197	1197	SUBTITLE BY A FINAL ORDER OF A COURT OR AN ADMINISTRATIVE UN IT AND: 24
1198	1198
1199	1199	(I) HAS NOT PAID ALL PEN ALTIES ASSESSED UNDE R THIS 25
1200	1200	SUBTITLE FOR A VIOLA TION OF § 3–904 OF THIS SUBTITLE; AND 26
1201	1201
1202	1202	(II) WITHIN 45 DAYS AFTER ISSUANCE OF THE FINAL ORDER O F 27 SENATE BILL 938 27
1203	1203
1204	1204
1205	1205	A COURT OR ADMINISTR ATIVE UNIT, HAS FAILED TO COMPLY WITH A FINAL ORDER 1
1206	1206	ISSUED UNDER § 3–907 OF THIS SUBTITLE FOR FAILING TO PROPERLY CLASSIFY AN 2
1207	1207	EMPLOYEE. 3
1208	1208
1209	1209	(2) THE COMMISSIONER SHALL NOTIFY THE APP LICABLE LICENSING 4
1210	1210	AUTHORITY WHEN A LIC ENSEE IS FOUND IN VI OLATION OF § 3–904 OR § 3–916 OF 5
1211	1211	THIS SUBTITLE BY A F INAL ORDER OF A COUR T OR AN ADMINISTRATI VE UNIT. 6
1212	1212
1213	1213	(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , IF A LICENSING 7
1214	1214	AUTHORITY RE CEIVES A NOTIFICATIO N MADE UNDER SUBSECT ION (B)(1) OF THIS 8
1215	1215	SECTION, THE LICENSING AUTHOR ITY SHALL SUSPEND OR REVOKE THE LICENSE O F 9
1216	1216	THE LICENSEE. 10
1217	1217
1218	1218	(D) (1) BEFORE SUSPENDING OR REVOKING A LICENSE U NDER 11
1219	1219	SUBSECTION (C) OF THIS SECTION, A LICENSING AUTHORIT Y SHALL SEND WRITTEN 12
1220	1220	NOTICE OF THE PROPOS ED ACTION TO THE LIC ENSEE WHOSE LICENSE IS SUBJECT 13
1221	1221	TO SUSPENSION OR REV OCATION, INCLUDING NOTICE OF THE LICENSEE’S RIGHT TO 14
1222	1222	CONTEST THE IDENTITY OF THE LICENSEE WHOS E LICENSE IS TO BE SUSPENDED OR 15
1223	1223	REVOKED. 16
1224	1224
1225	1225	(2) (I) A LICENSEE MAY APPEAL A DECISION OF A LICE NSING 17
1226	1226	AUTHORITY TO SUSPEND OR REVOKE THE LICENS E IN ACCORDANCE WITH TITLE 10, 18
1227	1227	SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 19
1228	1228
1229	1229	(II) AT A HEARING INITIATE D UNDER SUBPARAGRAPH (I) OF 20
1230	1230	THIS PARAGRAPH , THE ISSUE SHALL B E LIMITED TO WHETHER THE COMMISSIONER 21
1231	1231	HAS MISTAKEN THE IDE NTITY OF THE LICENSE E WHOSE LICENSE HAS BEEN 22
1232	1232	SUSPENDED OR REVOKED . 23
1233	1233
1234	1234	(E) (1) A LICENSING AUTHORITY MAY NOT REINSTATE A LICENSE THAT 24
1235	1235	HAS BEEN SUSPENDED O R REVOKED UNDER SUBS ECTION (C) OF THIS SECTIO N 25
1236	1236	BASED ON A NOTIFICAT ION MADE UNDER SUBSE CTION (B)(1) OF THIS SECTION 26
1237	1237	UNTIL THE COMMISSIONER PROVIDES NOTICE TO THE LICENS ING AUTHORITY 27
1238	1238	UNDER PARAGRAPH (2) OF THIS SUBSECTION . 28
1239	1239
1240	1240	(2) THE COMMISSIONER SHALL NO TIFY THE LICENSING A UTHORITY 29
1241	1241	WITHIN 10 DAYS AFTER THE COMMISSIONER FIRST RE CEIVES: 30
1242	1242
1243	1243	(I) A COURT ORDER TO REI NSTATE THE LICENSE ; OR 31
1244	1244
1245	1245	(II) WITH RESPECT TO A LI CENSEE WHO IS SUBJEC T TO A FINAL 32
1246	1246	ORDER OF A COURT OR AN ADMINISTRATIVE UN IT FOR A VIOLATION O F § 3–904 OF 33
1247	1247	THIS SUBTITLE, NOTICE THAT THE LICENSEE HAS COMPLIE D WITH THE ORDER IN 34 28 SENATE BILL 938
1248	1248
1249	1249
1250	1250	FULL. 1
1251	1251
1252	1252	(3) A LICENSING AUTHORITY SHALL REINSTATE IMME DIATELY A 2
1253	1253	LICENSE THAT WAS SUS PENDED OR REVOKED UN DER SUBSECTION (C) OF THIS 3
1254	1254	SECTION IF: 4
1255	1255
1256	1256	(I) NOTIFIED BY THE COMMISSIONER THAT THE LICENSE 5
1257	1257	SHOULD BE REINSTA TED; AND 6
1258	1258
1259	1259	(II) THE LICENSEE OTHERWI SE QUALIFIES FOR THE LICENSE. 7
1260	1260
1261	1261	(4) WITH RESPECT TO A LIC ENSE THAT HAS BEEN S USPENDED OR 8
1262	1262	REVOKED UNDER SUBSEC TION (C) OF THIS SECTION BASE D ON A NOTIFICATION 9
1263	1263	UNDER SUBSECTION (B)(2) OF THIS SECTION , A LICENSING AUTHO RITY MAY 10
1264	1264	REINSTATE THE LICENS E ONLY IF: 11
1265	1265
1266	1266	(I) THE INDIVIDUAL WHOSE LICENSE HAS BEEN REV OKED OR 12
1267	1267	SUSPENDED SUBMITS A WRITTEN REQUEST TO T HE LICENSING AUTHORI TY; 13
1268	1268
1269	1269	(II) THE LICENSING AUTHOR ITY HOLDS A HEARING ON THE 14
1270	1270	REQUEST; 15
1271	1271
1272	1272	(III) THE LICENSING AUTHOR ITY, BY AN AFFIRMATIVE VO TE OF 16
1273	1273	A MAJORITY OF ITS ME MBERS, DETERMINES THAT ANY CONDITIONS OF THE 17
1274	1274	SUSPENSION OR REVOCA TION HAVE BEEN FULFI LLED AND VOTES TO RE INSTATE 18
1275	1275	THE LICENSE; AND 19
1276	1276
1277	1277	(IV) THE INDIVIDUAL PAYS TO THE LICENSING AUT HORITY A 20
1278	1278	REINSTATEMENT FEE SE T BY THE LICENSING A UTHORITY. 21
1279	1279
1280	1280	(F) (1) ADVERSE LICENSING ACT IONS TAKEN UNDER THI S SECTION MAY 22
1281	1281	BE IMPOSED IN ADDITI ON TO ANY OTHER ACTI ONS TAKEN IN THE ENF ORCEMENT OF 23
1282	1282	THIS SUBTITLE. 24
1283	1283
1284	1284	(2) ADVERSE LICENSING ACT IONS TAKEN UNDER THI S SECTION 25
1285	1285	SHALL BE IN EFFECT A GAINST: 26
1286	1286
1287	1287	(I) A SUCCESSOR CORPORAT ION OR BUSINESS ENTI TY THAT: 27
1288	1288
1289	1289	1. HAS ONE OR MORE OF T HE SAME PRINCIPALS O R 28
1290	1290	OFFICERS AS THE LICE NSEE AGAINST WHOM TH E ADVERSE ACTION WAS TAKEN, 29
1291	1291	UNLESS THE PRINCIPAL OR OFFICER DID NOT O R, WITH THE EXERCISE OF 30
1292	1292	REASONABLE DILIGENCE , COULD NOT HAVE KNOWN OF THE VIOLATION FOR WHICH 31 SENATE BILL 938 29
1293	1293
1294	1294
1295	1295	THE ADVERSE ACTION W AS TAKEN; AND 1
1296	1296
1297	1297	2. IS ENGAGED IN OR INT ENDS TO ENGAGE IN TH E SAME 2
1298	1298	OR EQUIVALENT TRADE OR ACTIVITY; AND 3
1299	1299
1300	1300	(II) AN INDIVIDUAL LICENS EE WHO WA S AN OFFICER , A 4
1301	1301	DIRECTOR, A CONTROLLING SHAREH OLDER, A PARTNER, OR A MANAGER OF THE 5
1302	1302	EMPLOYER AGAINST WHO M THE ADVERSE ACTION WAS TAKEN UNLESS THE 6
1303	1303	OFFICER, DIRECTOR, CONTROLLING SHAREHOL DER, PARTNER, OR MANAGER DID 7
1304	1304	NOT OR, WITH THE EXERCISE OF REASONABLE DI LIGENCE, COULD NOT HAVE KNOWN 8
1305	1305	OF THE VIOLATION FOR WHICH THE ADVERSE AC TION WAS TAKEN . 9
1306	1306
1307	1307	3–915. 10
1308	1308
1309	1309	(a) [Where] IF, after AN investigation, the Commissioner issues a citation for a 11
1310	1310	knowing violation of this subtitle [or regulations adopted under this subtitle] by an 12
1311	1311	employer engaged in work on a contract with a public body, the Commissioner shall 13
1312	1312	promptly notify the public body AND THE GENERAL CONT RACTOR. 14
1313	1313
1314	1314	Article – State Finance and Procurement 15
1315	1315
1316	1316	16–203. 16
1317	1317
1318	1318	(a) A person may be debarred from entering into a contract with the State if the 17
1319	1319	person, an officer, partner, controlling stockholder or principal of that person, or any other 18
1320	1320	person substantially involved in that person’s contracting activities has: 19
1321	1321
1322	1322	(9) been found to have REPEATEDLY , willfully, or knowingly violated Title 20
1323	1323	17, Subtitle 2 or Title 18 of this article if: 21
1324	1324
1325	1325	(i) 1. the finding was made by a court; and 22
1326	1326
1327	1327	2. the decision of the court became final; or 23
1328	1328
1329	1329	(ii) 1. the finding was made in ACCORDANCE WITH A FI NAL 24
1330	1330	ADMINISTRATIVE ORDER OR a contested case under the Administrative Procedure Act; 25
1331	1331	and 26
1332	1332
1333	1333	2. the finding MADE IN A CONTESTED CASE was not 27
1334	1334	overturned on judicial review; 28
1335	1335
1336	1336	(10) been found to have REPEATEDLY , willfully, or knowingly violated Title 29
1337	1337	3, Subtitle 3, Subtitle 4, [or] Subtitle 5, OR SUBTITLE 9 or Title 5 of the Labor and 30
1338	1338	Employment Article if: 31
1339	1339	30 SENATE BILL 938
1340	1340
1341	1341
1342	1342	(i) 1. the finding was made by a court; and 1
1343	1343
1344	1344	2. the decision of the court became final; or 2
1345	1345
1346	1346	(ii) 1. the finding was made in ACCORDANCE WITH A FI NAL 3
1347	1347	ADMINISTRATIVE ORD ER OR a contested case under the Administrative Procedure Act; 4
1348	1348	and 5
1349	1349
1350	1350	2. THE FINDING WAS MADE IN A CONTESTED CASE , the 6
1351	1351	finding was not overturned on judicial review; 7
1352	1352
1353	1353	17–224. 8
1354	1354
1355	1355	(a) (1) If an employee under a public work contract is paid less than the 9
1356	1356	prevailing wage rate for that employee’s classification for the work performed, the employee 10
1357	1357	may file a complaint with the Commissioner. 11
1358	1358
1359	1359	(2) Except as otherwise provided in this section, a complaint filed under 12
1360	1360	this section shall be subject to the provisions of § 17–221 of this subtitle. 13
1361	1361
1362	1362	(3) If the Commissioner’s investigation determines that the employer 14
1363	1363	violated provisions of this subtitle, the Commissioner shall try to resolve the issue 15
1364	1364	informally. 16
1365	1365
1366	1366	(4) (i) If the Commissioner is unable to resolve the matter informally, 17
1367	1367	the Commissioner [shall] MAY: 18
1368	1368
1369	1369	1. issue an order for a hearing in accordance with § 17–221 19
1370	1370	of this subtitle; OR 20
1371	1371
1372	1372	2. REFER THE MATTER TO THE OFFICE OF THE 21
1373	1373	ATTORNEY GENERAL TO FILE A CIV IL ACTION. 22
1374	1374
1375	1375	(ii) If, at the conclusion of a hearing ordered under subparagraph 23
1376	1376	[(i)] (I)1 of this paragraph, the Commissioner determines that the employee is entitled to 24
1377	1377	restitution under this subtitle, the Commissioner shall issue an order in accordance with § 25
1378	1378	17–221 of this subtitle. 26
1379	1379
1380	1380	(iii) If an employer of an employee found to be entitled to restitution 27
1381	1381	under subparagraph (ii) of this paragraph is no longer working under a contract with a 28
1382	1382	public body, the Commissioner may order that restitution be paid directly by the employer 29
1383	1383	to the employee within a reasonable period of time, as determined by the Commissioner. 30
1384	1384
1385	1385	(5) If an employer fails to comply with an order to pay restitution to an 31
1386	1386	employee under paragraph (4)(iii) of this subsection, the Commissioner or the employee 32 SENATE BILL 938 31
1387	1387
1388	1388
1389	1389	may bring a civil action to enforce the order in the circuit court in the county where the 1
1390	1390	employee or employer is located. 2
1391	1391
1392	1392	(b) (1) If an employee under a public work contract is paid less than the 3
1393	1393	prevailing wage rate for that employee’s classification for the work performed, the employee 4
1394	1394	OR THE COMMISSIONER ON BEHAL F OF THE EMPLOYEE is entitled to sue to recover the 5
1395	1395	difference between the prevailing wage rate and the amount received by the employee. 6
1396	1396
1397	1397	(2) IN ACCORDANCE WITH TITLE 6, SUBTITLE 10 OF THE STATE 7
1398	1398	GOVERNMENT ARTICLE, THE ATTORNEY GENERAL MAY SUE TO RE COVER THE 8
1399	1399	DIFFERENCE BETWEEN T HE PREVAILING WAGE R ATE AND THE AMOUNT R ECEIVED 9
1400	1400	BY EMPLOYEES IF : 10
1401	1401
1402	1402	(I) THERE ARE 10 OR MORE AFFECTED EMP LOYEES WHO ARE 11
1403	1403	UNDER A PUBLIC WORK CONTRACT AND ARE PAI D LESS THAN THE PREV AILING 12
1404	1404	WAGE RATE FOR THE CL ASSIFICATION FOR THE WORK PERFORMED ; AND 13
1405	1405
1406	1406	(II) THE AMOUNT OF THE TO TAL WAGES UNDERPAID FOR ALL 14
1407	1407	AFFECTED EMPLOYEES I S NOT LESS THAN $25,000. 15
1408	1408
1409	1409	(3) A determination by the Commissioner that a contractor is required to 16
1410	1410	make restitution under subsection (a)(4) of this section does not preclude an employee from 17
1411	1411	filing an action under this subsection. 18
1412	1412
1413	1413	(c) (1) An action under this section is considered to be a suit for wages. 19
1414	1414
1415	1415	(2) A judgment in an action under this section shall have the same force 20
1416	1416	and effect as any other judgment for wages. 21
1417	1417
1418	1418	(3) An action brought under this section for a violation of this subtitle shall 22
1419	1419	be filed within 3 years from the date the affected employee knew or should have known of 23
1420	1420	the violation. 24
1421	1421
1422	1422	(d) (1) The failure of an employee to protest orally or in writing the payment 25
1423	1423	of a wage that is less than the prevailing wage rate is not a bar to recovery in an action 26
1424	1424	under this section. 27
1425	1425
1426	1426	(2) A contract or other written document in which an employee states that 28
1427	1427	the employee shall be paid less than the amount required by this subtitle does not bar the 29
1428	1428	recovery of any remedy required under this subtitle. 30
1429	1429
1430	1430	(e) (1) Except as provided in paragraph (3) of this subsection, if the court in an 31
1431	1431	action filed under this section finds that an employer paid an employee less than the 32
1432	1432	requisite prevailing wage, the court shall award the affected employee the difference 33
1433	1433	between the wage actually paid and the prevailing wage at the time that the services were 34
1434	1434	rendered. 35 32 SENATE BILL 938
1435	1435
1436	1436
1437	1437
1438	1438	(2) (i) Subject to subparagraph (ii) of this paragraph, unpaid fringe 1
1439	1439	benefit contributions owed for an employee in accordance with this section shall be paid to 2
1440	1440	the appropriate benefit fund, plan, or program. 3
1441	1441
1442	1442	(ii) In the absence of an appropriate benefit fund, plan, or program, 4
1443	1443	the amount owed for fringe benefits for an employee shall be paid directly to the employee. 5
1444	1444
1445	1445	(3) The court may order the payment of double damages or treble damages 6
1446	1446	under this section if the court finds that the employer withheld wages or fringe benefits 7
1447	1447	willfully and knowingly or with deliberate ignorance or reckless disregard of the employer’s 8
1448	1448	obligations under this subtitle. 9
1449	1449
1450	1450	(4) IN ADDITION TO ANY RE LIEF PROVIDED IN ACC ORDANCE WITH 10
1451	1451	PARAGRAPHS (1) THROUGH (3) OF THIS SUBSECTION , THE COMMISSIONER SHALL 11
1452	1452	BE ENTITLED TO AN AW ARD OF LIQUIDATED DA MAGES AS PROVIDED IN § 17–222 OF 12
1453	1453	THIS SUBTITLE. 13
1454	1454
1455	1455	(5) In an action under this section, the court shall award a prevailing 14
1456	1456	plaintiff reasonable counsel fees and costs. 15
1457	1457
1458	1458	[(5)] (6) If the court finds that an employee submitted a false or 16
1459	1459	fraudulent claim in an action under this section, the court may order the employee to pay 17
1460	1460	the employer reasonable counsel fees and costs. 18
1461	1461
1462	1462	[(6)] (7) The contractor and subcontractor shall be jointly and severally 19
1463	1463	liable for any violation of the subcontractor’s obligations under this section. 20
1464	1464
1465	1465	(f) (1) Subject to paragraph (2) of this subsection, an action filed in accordance 21
1466	1466	with this section may be brought by: 22
1467	1467
1468	1468	(I) one or more employees on behalf of: 23
1469	1469
1470	1470	1. that employee or group of employees; and [on behalf of] 24
1471	1471
1472	1472	2. other employees similarly situated; OR 25
1473	1473
1474	1474	(II) THE COMMISSIONER ON BEHAL F OF: 26
1475	1475
1476	1476	1. ONE OR MORE EMPLOYEE S; OR 27
1477	1477
1478	1478	2. ONE OR MORE EMPLOYEES AND OTHER EMPLOYEES 28
1479	1479	SIMILARLY SITUATED . 29
1480	1480	SENATE BILL 938 33
1481	1481
1482	1482
1483	1483	(2) An employee may not be a party plaintiff to an action brought under 1
1484	1484	this section unless that employee files written consent with the court in which the action is 2
1485	1485	brought to become a party to the action. 3
1486	1486
1487	1487	(g) BEFORE INITIATING AN ACTION UNDER THIS SU BTITLE, THE ATTORNEY 4
1488	1488	GENERAL MAY CONDUCT A N INVESTIGATION IN A CCORDANCE WITH TITLE 6, 5
1489	1489	SUBTITLE 10 OF THE STATE GOVERNMENT ARTICLE. 6
1490	1490
1491	1491	(H) (1) A person found to have made a false or fraudulent representation or 7
1492	1492	omission known to be false or made with deliberate ignorance or reckless disregard for its 8
1493	1493	truth or falsity regarding a material fact in connection with any prevailing wage payroll 9
1494	1494	record required by § 17–220 of this subtitle is liable for a civil penalty of $1,000 for each 10
1495	1495	falsified record. 11
1496	1496
1497	1497	(2) The penalty shall be recoverable in a civil action filed in accordance 12
1498	1498	with this section and paid to the State General Fund. 13
1499	1499
1500	1500	[(h)] (I) (1) An employer may not discharge, threaten, or otherwise retaliate 14
1501	1501	or discriminate against an employee regarding compensation or other terms and conditions 15
1502	1502	of employment because that employee or an organization or other person acting on behalf 16
1503	1503	of that employee: 17
1504	1504
1505	1505	[(1)] (I) reports or makes a complaint under this subtitle or otherwise 18
1506	1506	asserts the worker’s rights under this section; or 19
1507	1507
1508	1508	[(2)] (II) participates in any investigation, hearing, or inquiry held by the 20
1509	1509	Commissioner under § 17–221 of this subtitle. 21
1510	1510
1511	1511	(2) IF A VIOLATION OF THI S SUBSECTION IS FOUN D AFTER A HEARING 22
1512	1512	UNDER § 17–221 OF THIS SUBTITLE , THE COMMISSIONER SHALL ORDER THAT THE 23
1513	1513	EMPLOYER: 24
1514	1514
1515	1515	(I) REINSTATE THE EMPLOY EE OR PROVIDE THE EM PLOYEE 25
1516	1516	RESTITUTION, AS APPROPRIATE ; AND 26
1517	1517
1518	1518	(II) PAY THE EMPLOYEE AN AMOUNT EQUAL TO THRE E TIMES 27
1519	1519	THE AMOUNT OF BACK W AGES AND FRINGE BENEFITS CALC ULATED FROM THE DATE 28
1520	1520	OF THE VIOLATION . 29
1521	1521
1522	1522	[(i)] (J) (1) A contractor or subcontractor may not retaliate or discriminate 30
1523	1523	against an employee in violation of this section. 31
1524	1524
1525	1525	(2) If a contractor or subcontractor retaliates or discriminates against an 32
1526	1526	employee in violation of this section, the affected employee OR THE COMMISSIONER ON 33 34 SENATE BILL 938
1527	1527
1528	1528
1529	1529	BEHALF OF THE EMPLOY EE may file an action in any court of competent jurisdiction 1
1530	1530	within 3 years from the employee’s knowledge of the action. 2
1531	1531
1532	1532	(3) If the court finds in favor of the employee in an action brought under 3
1533	1533	this subsection, the court shall order that the contractor or subcontractor: 4
1534	1534
1535	1535	(i) reinstate the employee or provide the employee restitution, as 5
1536	1536	appropriate; 6
1537	1537
1538	1538	(ii) pay the employee an amount equal to three times the amount of 7
1539	1539	back wages and fringe benefits calculated from the date of the violation; and 8
1540	1540
1541	1541	(iii) pay reasonable counsel fees and other costs. 9
1542	1542
1543	1543	18–109. 10
1544	1544
1545	1545	(a) (1) If an employee was paid less than the wage rate required under this 11
1546	1546	title the employee OR THE COMMISSIONER ON BEHAL F OF THE EMPLOYEE AN D OTHER 12
1547	1547	EMPLOYEES SIMILARLY SITUATED is entitled to sue to recover the amount of the 13
1548	1548	difference between the wage rate required under this title and the amount received by the 14
1549	1549	employee. 15
1550	1550
1551	1551	(2) A determination by the Commissioner that an employer is required to 16
1552	1552	make restitution does not preclude an employee from filing an action under this section. 17
1553	1553
1554	1554	(3) IN AN ACTION BROUGHT BY THE COMMISSIONER UNDER TH IS 18
1555	1555	SECTION, THE COMMISSIONER SHALL BE ENTITLED TO RECOVER LIQ UIDATED 19
1556	1556	DAMAGES AS PROVIDED IN § 18–108 OF THIS SUBTITLE. 20
1557	1557
1558	1558	(b) (1) An action under this section is considered to be a suit for wages. 21
1559	1559
1560	1560	(2) A judgment in an action under this section shall have the same force 22
1561	1561	and effect as any other judgment for wages. 23
1562	1562
1563	1563	(c) The failure of an employee to protest orally or in writing the payment of a 24
1564	1564	wage that is less than the wage rate required under this title is not a bar to recovery in an 25
1565	1565	action under this section. 26
1566	1566
1567	1567	Article – State Government 27
1568	1568
1569	1569	SUBTITLE 10. WORKER PROTECTION UNIT. 28
1570	1570
1571	1571	6–1001. 29
1572	1572
1573	1573	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 30
1574	1574	INDICATED. 31 SENATE BILL 938 35
1575	1575
1576	1576
1577	1577
1578	1578	(B) (1) “ECONOMIC DAMAGES ” MEANS ANY FINANCIAL LOSS INCURRED 1
1579	1579	BY A WORKER AS A RES ULT OF RETALIATION B Y A PERSON IN VIOLAT ION OF THIS 2
1580	1580	SUBTITLE. 3
1581	1581
1582	1582	(2) “ECONOMIC DAMAGES ” INCLUDES: 4
1583	1583
1584	1584	(I) UNPAID WAGES ; AND 5
1585	1585
1586	1586	(II) LOST BENEFITS. 6
1587	1587
1588	1588	(C) “EMPLOYER” MEANS ANY PERSON , OR A SUCCESSOR OF TH E PERSON, 7
1589	1589	EMPLOYING ONE OR MOR E INDIVIDUALS IN THE STATE. 8
1590	1590
1591	1591	(D) “SUCCESSOR” MEANS AN EMPLOYER THAT ACQ UIRES, THROUGH ANY 9
1592	1592	FORM OF TRANSACTION , THE BUSINESS OPERATI ONS, ASSETS, WORKFORCE OR 10
1593	1593	OTHER SIGNIFICANT EL EMENTS OF ANOTHER EM PLOYER, AND CONTINUES TO 11
1594	1594	OPERATE THE BUSINESS IN ESSENTIALLY THE S AME MANNER AS THE PR EVIOUS 12
1595	1595	EMPLOYER. 13
1596	1596
1597	1597	(E) “UNIT” MEANS THE WORKER PROTECTION UNIT. 14
1598	1598
1599	1599	(F) “WORKER” MEANS AN INDIVIDUAL PERFORMING SERVICES FOR 15
1600	1600	REMUNERATION , INCLUDING AN EMPLOYE E AND INDIVIDUAL CLA SSIFIED OR 16
1601	1601	ALLEGED TO BE INDEPE NDENT CONTRACTORS , REGARDLESS OF THE LE GAL 17
1602	1602	RELATIONSHIP BETWEEN THE PARTIES. 18
1603	1603
1604	1604	(G) “WORKERS’ RIGHTS LAWS” MEANS THE STATUTES A ND REGULATIONS 19
1605	1605	DESIGNED TO SAFEGUAR D THE RIGHTS OF WORK ERS, INCLUDING: 20
1606	1606
1607	1607	(1) TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND 21
1608	1608	PROCUREMENT ARTICLE; 22
1609	1609
1610	1610	(2) THE MARYLAND WAGE AND HOUR LAW; 23
1611	1611
1612	1612	(3) TITLE 3, SUBTITLE 9 OF THE LABOR AND EMPLOYMENT ARTICLE; 24
1613	1613
1614	1614	(4) THE MARYLAND WAGE PAYMENT AND COLLECTION LAW; AND 25
1615	1615
1616	1616	(5) ANY OTHER LAW THAT T HE ATTORNEY GENERAL IS EMPOWERED 26
1617	1617	TO USE TO PROTECT WO RKERS’ RIGHTS. 27
1618	1618
1619	1619	6–1002. 28 36 SENATE BILL 938
1620	1620
1621	1621
1622	1622
1623	1623	(A) THERE IS A WORKER PROTECTION UNIT IN THE OFFICE OF THE 1
1624	1624	ATTORNEY GENERAL. 2
1625	1625
1626	1626	(B) THE PURPOSE OF THE UNIT IS TO PROTECT TH E RIGHTS OF WORKERS 3
1627	1627	WITHIN THE STATE, INCLUDING ENSURING C OMPLIANCE WITH ANY W ORKERS’ 4
1628	1628	RIGHTS LAWS BY INVES TIGATING AND PROSECU TING VIOLATIONS OF T HE WORKERS ’ 5
1629	1629	RIGHTS LAWS. 6
1630	1630
1631	1631	6–1003. 7
1632	1632
1633	1633	THIS SUBTITLE MAY N OT BE CONSTRUED TO T AKE AWAY OR LIMIT TH E 8
1634	1634	POWERS OF THE ATTORNEY GENERAL. 9
1635	1635
1636	1636	6–1004. 10
1637	1637
1638	1638	THE ATTORNEY GENERAL MAY BRING A C IVIL ACTION IN A COU RT OF 11
1639	1639	COMPETENT JURISDICTI ON AGAINST AN EMPLOY ER OR OTHER PERSON V IOLATING 12
1640	1640	A WORKERS’ RIGHTS LAW FOR RESTI TUTION OR FOR INJUNCTIVE , COMPENSATORY , 13
1641	1641	PUNITIVE, OR OTHER AUTHORIZED RELIEF FOR A WORKER , AN EMPLOYEE , OR THE 14
1642	1642	PUBLIC AT LARGE . 15
1643	1643
1644	1644	6–1005. 16
1645	1645
1646	1646	(A) THE UNIT SHALL INCLUDE : 17
1647	1647
1648	1648	(1) A FULL–TIME CHIEF COUNSEL ; AND 18
1649	1649
1650	1650	(2) STAFF, INCLUDING ASSISTANT ATTORNEYS GENERAL , 19
1651	1651	INVESTIGATORS , ADMINISTRATORS , AND ANY OTHER PERSON NEL APPOINTED BY 20
1652	1652	AND AT THE DISCRETIO N OF THE ATTORNEY GENERAL. 21
1653	1653
1654	1654	(B) SALARIES OF THE CHIEF COUNSEL AND STAFF AN D EXPENSES FOR 22
1655	1655	RENT, TRAVEL, EQUIPMENT, SUPPLIES, AND GENERAL OPERATIN G EXPENSES 23
1656	1656	NECESSARY FOR THE WO RK OF THE UNIT SHALL BE AS PROV IDED IN THE STATE 24
1657	1657	BUDGET. 25
1658	1658
1659	1659	(C) THE ATTORNEY GENERAL SHALL SET MIN IMUM SALARIES , 26
1660	1660	QUALIFICATIONS , AND STANDARDS OF TRA INING AND EXPERIENCE FOR POSITIONS 27
1661	1661	WITHIN THE UNIT. 28
1662	1662
1663	1663	6–1006. 29
1664	1664	SENATE BILL 938 37
1665	1665
1666	1666
1667	1667	THE ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS 1
1668	1668	SUBTITLE. 2
1669	1669
1670	1670	6–1007. 3
1671	1671
1672	1672	(A) ON THE ATTORNEY GENERAL’S OWN INITIATIVE OR IN RESPONSE TO A 4
1673	1673	COMPLAINT, THE ATTORNEY GENERAL MAY INVESTIGA TE AS NECESSARY TO 5
1674	1674	DETERMINE COMPLIANCE WITH THE WORKE RS’ RIGHTS LAWS. 6
1675	1675
1676	1676	(B) (1) IN CONDUCTING AN INVE STIGATION UNDER SUBS ECTION (A) OF 7
1677	1677	THIS SECTION, THE ATTORNEY GENERAL MAY: 8
1678	1678
1679	1679	(I) ENTER AND INSPECT A PERSON’S PLACE OF BUSINESS OR 9
1680	1680	PLACE OF WORK TO : 10
1681	1681
1682	1682	1. OBSERVE WORK BEING P ERFORMED ; AND 11
1683	1683
1684	1684	2. EXAMINE AND COPY: 12
1685	1685
1686	1686	A. RECORDS THAT A PERSO N IS REQUIRED TO KEE P IN 13
1687	1687	ACCORDANCE WITH TITLE 3 OF THE LABOR AND EMPLOYMENT ARTICLE OR TITLE 14
1688	1688	17, SUBTITLE 2 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 15
1689	1689
1690	1690	B. BOOKS, REGISTERS, PAYROLL RECORDS , RECORDS OF 16
1691	1691	WAGE WITHHOLDINGS , RECORDS OF WORK ACTI VITY AND HOURS OF WO RK, AND 17
1692	1692	RECORDS OR INDICIA O F THE EMPLOYMENT STA TUS OF WORKERS PERFO RMING 18
1693	1693	WORK FOR THE PERSON ; OR 19
1694	1694
1695	1695	C. ANY OTHER RECORDS RE LATING TO COMPLIANCE 20
1696	1696	WITH THE WORKERS ’ RIGHTS LAWS OR REGUL ATIONS ADOPTED UN DER THE 21
1697	1697	WORKERS’ RIGHTS LAWS; 22
1698	1698
1699	1699	(II) REQUIRE A PERSON TO PRODUCE, WITHIN 15 CALENDAR 23
1700	1700	DAYS, A TRUE AND CORRECT C OPY OF AN ITEM DESCR IBED IN ITEM (I)2 OF THIS 24
1701	1701	PARAGRAPH ; 25
1702	1702
1703	1703	(III) DETERMINE THE IDENTI TY AND ACTIVITIES OF ANY 26
1704	1704	WORKER RECEIVING REM UNERATION F ROM A PERSON ; AND 27
1705	1705
1706	1706	(IV) CONDUCT CONFIDENTIAL INTERVIEWS AND OBTAI N ORAL 28
1707	1707	OR WRITTEN STATEMENT S FROM A WORKER RELA TING TO INFORMATION 29
1708	1708	CONCERNING THE REMUN ERATION OF WORKERS A ND THE NATURE AND EX TENT OF 30
1709	1709	THE SERVICES PERFORM ED. 31 38 SENATE BILL 938
1710	1710
1711	1711
1712	1712
1713	1713	(2) THE ATTORNEY GENERAL M AY CONDUCT THE ACTIV ITIES 1
1714	1714	DESCRIBED IN PARAGRA PH (1) OF THIS SUBSECTION A T: 2
1715	1715
1716	1716	(I) A LOCATION WHERE WOR KERS ARE ENGAGED TO PERFORM 3
1717	1717	WORK FOR ANY PERSON ; AND 4
1718	1718
1719	1719	(II) ANY OTHER LOCATION W HERE THE RECORDS DES CRIBED IN 5
1720	1720	PARAGRAPH (1)(I) OF THIS SUBSECTION A RE MAINTAINED BY A PERS ON OR AN 6
1721	1721	AGENT OF THE PERSON . 7
1722	1722
1723	1723	(C) AT THE DISCRETION OF THE ATTORNEY GENERAL, THE UNIT MAY 8
1724	1724	REFER A MATTER TO A FEDERAL, STATE, OR LOCAL GOVERNMENT ENFORCEMENT 9
1725	1725	AGENCY OR UNIT . 10
1726	1726
1727	1727	6–1008. 11
1728	1728
1729	1729	(A) IF THE ATTORNEY GENERAL IS DENIED ACC ESS TO A PLACE OF WORK 12
1730	1730	OR PLACE OF BUSINESS AFTER MAKING A PROPE R REQUEST TO THE OWN ER, 13
1731	1731	LESSEE, EMPLOYER, OR OTHER PERSON IN C HARGE OF ACCESS TO T HE PLACE OF 14
1732	1732	BUSINESS OR PLACE OF WORK, THE ATTORNEY GENERAL MAY APPLY TO THE 15
1733	1733	DISTRICT COURT FOR AN ADMINIST RATIVE SEA RCH WARRANT UNDER TH IS 16
1734	1734	SECTION. 17
1735	1735
1736	1736	(B) EACH APPLICATION UNDE R THIS SECTION SHALL : 18
1737	1737
1738	1738	(1) STATE THE NATURE , PURPOSE, AND SCOPE OF THE INS PECTION; 19
1739	1739	AND 20
1740	1740
1741	1741	(2) SHOW THAT: 21
1742	1742
1743	1743	(I) THE APPLICANT IS AUT HORIZED BY LAW TO IN SPECT THE 22
1744	1744	PLACE OF BUSINESS OR PLACE OF WO RK TO WHICH ACCESS W AS DENIED; 23
1745	1745
1746	1746	(II) REQUESTED ACCESS WAS AT A REASONABLE TIME ; 24
1747	1747
1748	1748	(III) ACCESS WAS DENIED ; AND 25
1749	1749
1750	1750	(IV) THE INSPECTION IS FO R A PURPOSE RELATED TO THIS 26
1751	1751	SUBTITLE. 27
1752	1752
1753	1753	(C) ON A SHOWING OF PROBA BLE CAUSE, THE DISTRICT COURT SHALL 28
1754	1754	ISSUE THE ADMINISTRATIVE SEARC H WARRANT AUTHORIZIN G THE ATTORNEY 29 SENATE BILL 938 39
1755	1755
1756	1756
1757	1757	GENERAL OR AUTHORIZED REPRESENTATIVE TO EN TER AND INSPECT THE PLACE 1
1758	1758	OF BUSINESS OR PLACE OF WORK, EXAMINE AND COPY REC ORDS, AND TAKE OTHER 2
1759	1759	NECESSARY ACTIONS TO ENFORCE THIS SUBTITL E. 3
1760	1760
1761	1761	6–1009. 4
1762	1762
1763	1763	(A) TO CARRY OUT A DUTY OR EXERCISE A POWER UND ER THIS SUBTITLE , 5
1764	1764	THE ATTORNEY GENERAL OR AUTHORIZED REPRESENTATIVE OF TH E ATTORNEY 6
1765	1765	GENERAL MAY ADMINISTE R OATHS AND QUESTION WITNESSES ON RECORD AND 7
1766	1766	UNDER OATH . 8
1767	1767
1768	1768	(B) (1) TO ADMINISTER OR ENFO RCE THIS TITLE , THE ATTORNEY 9
1769	1769	GENERAL OR AN AUTHORI ZED REPRESENTATIVE M AY ISSUE A SUBPOENA FOR THE 10
1770	1770	ATTENDANCE OF A WITN ESS TO TESTIFY OR TH E PRODUCTION OF BOOK S, 11
1771	1771	DOCUMENTS , PAPERS, AND RECORDS . 12
1772	1772
1773	1773	(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 13
1774	1774	PARAGRAPH (1) OF THIS SUBSECTION OR FAILS TO TESTIFY ON A MATT ER ON WHICH 14
1775	1775	THE PERSON LAWFULLY MAY BE INTERROGATED , ON A COMPLAINT FILED BY THE 15
1776	1776	ATTORNEY GENERAL, THE CIRCUIT COURT FO R THE COUNTY IN WHIC H THE PERSON 16
1777	1777	RESIDES OR IS PRESEN T MAY PASS AN ORDER DIRECTING COMPLIANCE WITH THE 17
1778	1778	SUBPOENA OR COMPELLI NG TESTIMONY . 18
1779	1779
1780	1780	(C) A PERSON MAY NOT BE EX CUSED FROM : 19
1781	1781
1782	1782	(1) ATTENDING AND TESTIF YING; OR 20
1783	1783
1784	1784	(2) PRODUCING A DOCUMENT OR RECORD BEFORE THE ATTORNEY 21
1785	1785	GENERAL OR IN A PROCE EDING INITIATED BY T HE ATTORNEY GENERAL ON THE 22
1786	1786	GROUNDS THAT THE TES TIMONY OR EVIDENCE M AY INCRIMINATE THE P ERSON OR 23
1787	1787	SUBJECT THE PERSON T O A PENALTY OR FORFE ITURE. 24
1788	1788
1789	1789	(D) EXCEPT IN CASE S OF PERJURY OR CONT EMPT, TESTIMONY OR 25
1790	1790	EVIDENCE OBTAINED UN DER SUBSECTION (B)(1) OF THIS SECTION MAY NOT BE 26
1791	1791	USED TO CRIMINALLY P ROSECUTE THE INDIVID UAL FOR THE SPECIFIC SUBJECT 27
1792	1792	THEY WERE COMPELLED TO TESTIFY OR PRODUC E EVIDENCE ABOUT . 28
1793	1793
1794	1794	6–1010. 29
1795	1795
1796	1796	(A) IN THIS SECTION, “RETALIATION” INCLUDES: 30
1797	1797	40 SENATE BILL 938
1798	1798
1799	1799
1800	1800	(1) ADVERSE ACTIONS AFFE CTING THE TERMS AND CONDITIONS OF 1
1801	1801	WORK OR EMPLOYMENT , SUCH AS TERMINATION , DEMOTION, REASSIGNMENT , 2
1802	1802	RELOCATION , CHANGE OF SCHEDULE , OR SUSPENSION ; 3
1803	1803
1804	1804	(2) HARASSMENT OR INTIMI DATION IN THE WORKPL ACE; AND 4
1805	1805
1806	1806	(3) AN ACTION THAT WOULD DISCOURAGE A WORKER FROM 5
1807	1807	PARTICIPATING IN AN INVESTIGATION OR A P ROCEEDING UNDER THIS TITLE OR 6
1808	1808	OTHERWISE EXERCISE A NY RIGHT AFFORDED BY THIS TITLE. 7
1809	1809
1810	1810	(B) AN EMPLOYER OR ANOTHE R PERSON MAY NOT DIS CHARGE, DEMOTE, 8
1811	1811	HARASS, OR OTHERWISE RETALIAT E AGAINST A WORKER W HO: 9
1812	1812
1813	1813	(1) REPORTS OR MAKES A C OMPLAINT TO THE ATTORNEY GENERAL 10
1814	1814	OF A VIOLATION OF WORKERS’ RIGHTS LAWS; 11
1815	1815
1816	1816	(2) PARTICIPATES IN AN I NVESTIGATION OR PROC EEDING UNDER 12
1817	1817	THIS SUBTITLE; OR 13
1818	1818
1819	1819	(3) OTHERWISE EXERCISES ANY RIGHT AFFORDED BY TH IS SUBTITLE. 14
1820	1820
1821	1821	(C) (1) A WORKER WHO BELIEVES THAT THE WORKER HAS BEEN 15
1822	1822	RETALIATED AGAINST I N VIOLATION OF SUBSE CTION (B) OF THIS SECTION MAY FILE 16
1823	1823	A COMPLAINT WITH THE ATTORNEY GENERAL. 17
1824	1824
1825	1825	(2) THE ATTORNEY GENERAL MAY INVESTIGA TE A COMPLAINT IN 18
1826	1826	ACCORDANCE WITH § 6–1007 OF THIS SUBTITLE. 19
1827	1827
1828	1828	(D) THE ATTORNEY GENERAL MAY FILE AN A CTION ON BEHALF OF A NY 20
1829	1829	WORKER FOUND BY THE ATTORNEY GENERAL TO HAVE BEEN RETALIATED AGAINST 21
1830	1830	IN VIOLATION OF THIS SUBTITLE IN ANY COUR T OF COMPETENT JURIS DICTION 22
1831	1831	WITHIN 3 YEARS FROM THE LAST INSTANCE OF RETALIAT ION. 23
1832	1832
1833	1833	(E) IF THE COURT FINDS IN FAVOR OF THE WORKER IN AN ACTION BROUGHT 24
1834	1834	UNDER SUBSECTION (D) OF THIS SECTION , THE COURT SHALL ORDE R, AS 25
1835	1835	APPROPRIATE , THAT THE EMPLOYER OR OTHER PERSON : 26
1836	1836
1837	1837	(1) REINSTATE THE WORKER OR PROVIDE TH E WORKER 27
1838	1838	RESTITUTION; AND 28
1839	1839
1840	1840	(2) PAY: 29
1841	1841
1842	1842	(I) ECONOMIC DAMAGES ; 30 SENATE BILL 938 41
1843	1843
1844	1844
1845	1845
1846	1846	(II) AN AMOUNT TO THE WOR KER THAT IS EQUAL TO THREE 1
1847	1847	TIMES THE AMOUNT OF ECONOMIC DAMAGES CAL CULATED FROM THE DAT E OF THE 2
1848	1848	VIOLATION; 3
1849	1849
1850	1850	(III) COMPENSATORY AND PUN ITIVE DAMAGES; OR 4
1851	1851
1852	1852	(IV) REASONABLE COUNSEL F EES AND OTHER COSTS TO THE 5
1853	1853	ATTORNEY GENERAL. 6
1854	1854
1855	1855	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
1856	1856	October 1, 2025. 8
1857	1857