Employers are banned from misclassifying employers as independent contractors in an attempt to avoid tax liability or reporting requirements and provides fines for doing so. Under the act, employers shall not retaliate against an employer who seeks reclassification as an employer or has communicated intent to file an action against an employer alleging a classification violation.

This act prohibits the state, or any agency or instrumentality of the state from requiring, or prohibiting, bidders from entering into agreements with labor organizations when entering into contracts for the construction of public projects funded by more than fifty percent by the state. Discrimination against bidders for such contracts based upon a bidder's affiliation with a labor organization is also prohibited. The state or any agency or instrumentality of the state may not issue grants or enter into cooperative agreements for construction projects, a condition of which requires any of the above elements.

The act provides conditions upon which the state or a political subdivision may enter into a union-only project labor agreement. The intent to enter into a union-only project labor agreement shall be published in a document titled "Intent to Enter Into a Project Labor Agreement." A public hearing must be conducted on whether to require a union-only project labor agreement. The finding is appealable to the Labor and Industrial Relations Commission. The finding of the Labor and Industrial Relations Commission is appealable to the circuit court of Cole County.

The act bars contractors and subcontractors from receiving subsidies, supplements, or rebates if the practice reduces the wage rates paid by the employer on a given occupational title below the prevailing wage rate. If a subsidy, supplement, or rebate is legally provided the entity providing and receiving the subsidy, supplement, or rebate shall report the date and amount of each. The disclosure report is a matter of public record.

Interested persons may file a complaint with the division against individuals who illegally receive subsidies, supplements, or rebates. Violators shall pay the public body double the dollar amount per hour the subsidy has reduced the wage rate below the prevailing wage for each hour the work was performed. The division may estop individuals who file frivolous complaints or exhibit harassing behavior from filing complaints against the charged party for a period of up to one year.

This act is similar to SB 291 (2005), SB 928 (2006), and SS/SB 849 (2006).

CHRIS HOGERTY