Penalties to increase for violations of wage laws
STATE HOUSE – The governor has signed into law legislation passed by the General Assembly that will increase penalties for companies violating the state’s wage laws, hiking not only the monetary fines but also the amount of potential jail time.
Recently approved by the governor and taking immediate effect are companion Senate and House bills (2014-S 2673, 2014-H 7624), sponsored by Sen. Frank S. Lombardi (D-Dist. 26, Cranston) and by Rep. K. Joseph Shekarchi (D-Dist. 23, Warwick).
Violators of state laws dealing with payment of wages leave a number of victims – not only the individuals working for those companies or contractors, but also the state in regard to the appropriate collection of taxes, said Representative Shekarchi and Senator Lombardi.
Under the new law, any employer in violation of the state’s wage and labor laws will be guilty of a misdemeanor, punishable with a fine of $400 for each separate offense and/or imprisonment for up to one year (an increase from the 10 to 90 days in current law).
For employers and contractors involved in public works projects, the misdemeanor fines will remain at between $500 and $1,000 for each separate offense, but the potential prison time will increase to one year (up from the 10 to 90 days in current law).
Finally, any person, firm or corporation found to have willfully made a false or fraudulent representation on certified payroll records will be referred to the Office of the Attorney General. Under the provisions of the bill, a first violation will be considered a misdemeanor, punishable by a prison sentence of up to one year and/or a fine of $1,000. A second or subsequent violation will be considered a felony, punishable for a period of not more than three years imprisonment, a fine of $3,000, or both.
Said Attorney General Peter F. Kilmartin, whose office cooperated in the preparation of the legislation, “The changes contemplated in this act will help deter those employers who seek to defraud their employees and the State of Rhode Island.”