Bill Text: NY S00126 | 2013-2014 | General Assembly | Introduced
Bill Title: Broadens scope of prevailing wage requirements for service employees and establishes criminal penalties for violations.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-01-08 - REFERRED TO LABOR [S00126 Detail]
Download: New_York-2013-S00126-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 126 2013-2014 Regular Sessions I N S E N A T E (PREFILED) January 9, 2013 ___________ Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to prevailing wages for service workers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. The article heading of article 9 of the labor law, as added 2 by chapter 777 of the laws of 1971, is amended to read as follows: 3 PREVAILING WAGE FOR [BUILDING] SERVICE EMPLOYEES 4 S 2. Subdivisions 1, 2, 3, 4, 6, 8, 9 and 10 of section 230 of the 5 labor law, subdivision 1 as amended and subdivision 9 as added by chap- 6 ter 542 of the laws of 1984, subdivisions 2, 3, 6 and 8 as added by 7 chapter 777 of the laws of 1971, subdivision 4 as amended by chapter 678 8 of the laws of 2007 and subdivision 10 as added by chapter 547 of the 9 laws of 1998, are amended and a new subdivision 15 is added to read as 10 follows: 11 1. "[Building service] SERVICE employee" or "employee" means any 12 person performing JANITORIAL, FOOD OR SECURITY SERVICE WORK FOR A 13 CONTRACTOR UNDER CONTRACT WITH A PUBLIC AGENCY WHICH IS IN EXCESS OF ONE 14 THOUSAND FIVE HUNDRED DOLLARS AND THE PRINCIPAL PURPOSE OF WHICH IS TO 15 FURNISH SERVICES THROUGH THE USE OF SERVICE EMPLOYEES, OR ANY OTHER 16 PERSON PERFORMING work in connection with the care or maintenance of an 17 existing building, or in connection with the transportation of office 18 furniture or equipment to or from such building, or in connection with 19 the transportation and delivery of fossil fuel to such building, for a 20 contractor under a contract with a public agency which is in excess of 21 one thousand five hundred dollars and the principal purpose of which is 22 to furnish services through the use of [building] service employees. 23 "[Building service] SERVICE employee" or "employee" includes, but is 24 not limited, to, watchman, guard, doorman, building cleaner, porter, EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00340-01-3 S. 126 2 1 handyman, janitor, gardener, groundskeeper, stationary fireman, elevator 2 operator and starter, window cleaner, FOOD SERVICE WORKER, COOK, BAKER, 3 DISHWASHER, MEAT CUTTER, WAITER, DRIVER and occupations relating to the 4 collection of garbage or refuse, and to the transportation of office 5 furniture and equipment, and to the transportation and delivery of 6 fossil fuel but does not include clerical, sales, professional, techni- 7 cian and related occupations. 8 "[Building service] SERVICE employee" or "employee" also does not 9 include any employee to whom the provisions of articles eight and 10 [eight-a] EIGHT-A of this chapter are applicable. 11 2. "[Building service] SERVICE work" [or "service work"] means work 12 performed by a [building] service employee, but does not include work 13 performed for a contractor under a contract for the furnishing of 14 services by radio, telephone, telegraph or cable companies[; and any 15 contract for public utility services, including electric light and 16 power, water, steam and gas]. "SERVICE WORK" SHALL ALSO INCLUDE WORK 17 PERFORMED UNDER A CONTRACT FOR THE BENEFIT OF A PUBLIC AGENCY WITH ANY 18 THIRD PARTY PERSON OR ENTITY ACTING IN PLACE OF, ON BEHALF OF OR FOR THE 19 BENEFIT OF SUCH PUBLIC AGENCY PURSUANT TO ANY LEASE, PERMIT OR OTHER 20 AGREEMENT BETWEEN SUCH THIRD PARTY PERSON OR ENTITY AND THE PUBLIC AGEN- 21 CY. 22 3. "Public agency" means the state, any of its political subdivisions, 23 a public benefit corporation, a public authority, INCLUDING A PUBLIC 24 AUTHORITY PROVIDING PUBLIC UTILITY SERVICES, or commission or special 25 purpose district board appointed pursuant to law, [and] a board of 26 education, A BUSINESS IMPROVEMENT DISTRICT WITH MORE THAN ONE MILLION 27 DOLLARS PER YEAR IN TOTAL REVENUE, AND ANY PUBLIC UTILITY THAT DISTRIB- 28 UTES ELECTRIC LIGHT OR POWER, OR GAS OR STEAM SERVICES AT RETAIL RATES 29 REGULATED BY THE PUBLIC SERVICE COMMISSION PURSUANT TO A FRANCHISE 30 GRANTED UNDER THE PROVISIONS OF SECTION SIXTY-EIGHT OR EIGHTY-ONE OF THE 31 PUBLIC SERVICE LAW, AND ANY SUBSTANTIALLY-OWNED AFFILIATED ENTITY OF 32 SUCH PUBLIC UTILITY. 33 4. "Contractor" means any employer who employs employees to perform 34 [building] service work under a contract with a public agency and shall 35 include any of the contractor's subcontractors. 36 6. "Prevailing wage" means the wage determined by the fiscal officer 37 to be prevailing for the various classes of [building] service employees 38 in the locality. In no event shall the basic hourly cash rate of pay be 39 less than the statutory minimum wage established by article nineteen of 40 this chapter, or, in a city with a local law requiring a higher minimum 41 wage on city contract work, less than the minimum wage specified in such 42 local law. 43 8. "Fiscal officer" means the industrial commissioner, except for 44 [building] service work performed by or on behalf of a city, in which 45 case "fiscal officer" means the comptroller or other analogous officer 46 of such city. 47 9. "Fossil fuel" shall mean coal, petroleum products and fuel gases. 48 "Coal" shall include bituminous coal, anthracite coal and lignite. "Fuel 49 gases" shall include but not be limited to methane, natural gas, lique- 50 fied natural gas and manufactured fuel gases. "Petroleum products" shall 51 include all products refined or rerefined from synthetic or crude oil or 52 oil extracted from other sources, including natural gas liquids. 53 [Provided that nothing in this subdivision shall affect the exclusion 54 for public utility services set forth in subdivision two of this 55 section.] S. 126 3 1 10. "Substantially-owned affiliated entity" shall mean the parent 2 company of the PUBLIC UTILITY, contractor or subcontractor, any subsid- 3 iary of the PUBLIC UTILITY, contractor or subcontractor, or any entity 4 in which the parent of the PUBLIC UTILITY, contractor or subcontractor 5 owns more than fifty percent of the voting stock, or an entity in which 6 one or more of the top five shareholders of the PUBLIC UTILITY, contrac- 7 tor or subcontractor individually or collectively also owns a control- 8 ling share of the voting stock, or an entity which exhibits any other 9 indicia of control over the PUBLIC UTILITY, contractor or subcontractor 10 or over which the PUBLIC UTILITY, contractor or subcontractor exhibits 11 control, regardless of whether or not the controlling party or parties 12 have any identifiable or documented ownership interest. Such indicia 13 shall include: power or responsibility over employment decisions, access 14 to and/or use of the relevant entity's assets or equipment, power or 15 responsibility over contracts of the entity, responsibility for mainte- 16 nance or submission of certified payroll records, and influence over the 17 business decisions of the relevant entity. 18 15. "PERSON" SHALL MEAN A HUMAN BEING AND SHALL INCLUDE AN "ENTITY" AS 19 DEFINED IN THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO A CONTRACTOR OR 20 SUBCONTRACTOR. 21 S 3. Subdivisions 1, 3, 4 and 5 of section 231 of the labor law, 22 subdivisions 1, 3 and 4 as added by chapter 777 of the laws of 1971 and 23 subdivision 5 as amended by chapter 678 of the laws of 2007, are amended 24 and a new subdivision 8 is added to read as follows: 25 1. Every contractor shall pay a service employee under a contract for 26 [building] service work a wage of not less than the prevailing wage in 27 the locality for the craft, trade or occupation of the service employee. 28 3. Each contract for [building] service work shall contain as part of 29 the specifications thereof a schedule of the wages required to be paid 30 to the various classes of service employees on such work, and each such 31 contract shall further contain a provision obligating the contractor to 32 pay each employee on such work not less than the wage specified for his 33 craft, trade or occupation in such schedule. 34 4. The public agency, or appropriate officer or agent thereof, whose 35 responsibility it is to prepare or direct the preparation of the plans 36 and specifications for a contract for [building] service work, shall 37 ascertain from such plans and specifications the classifications of 38 employees to be employed on such work and shall file a list of such 39 classifications with the fiscal officer, together with a statement of 40 the work to be performed. The fiscal officer shall determine the crafts, 41 trades and occupations required for such work and shall make a determi- 42 nation of the wages required to be paid in the locality for each such 43 craft, trade or occupation. A schedule of such wages shall be annexed to 44 and form a part of the specifications for the contract prior to the time 45 of the advertisement for bids on such contract and shall constitute the 46 schedule of wages referred to in subdivision three of this section. 47 5. Upon the award of a contract for [building] service work by a 48 public agency other than a city, the contracting public agency shall 49 immediately furnish to the commissioner: (a) the name and address of the 50 contractor to whom the contract was awarded; (b) the date when the 51 contract was awarded; and (c) the approximate consideration stipulated 52 for in the contract. 53 8. THE REQUIREMENTS OF THIS SECTION SHALL APPLY TO ANY PERSON OR ENTI- 54 TY THAT ENTERS INTO ANY LEASE, PERMIT OR OTHER AGREEMENT WITH A PUBLIC 55 AGENCY THAT INCLUDES THE PROVISION OF SERVICE WORK BY EMPLOYEES WHO 56 WOULD BE REQUIRED TO BE PAID SCHEDULED WAGES PURSUANT TO THIS SECTION IN S. 126 4 1 THE ABSENCE OF SUCH AGREEMENT. ANY THIRD PARTY PERSON OR ENTITY THAT 2 CONTRACTS FOR OR OTHERWISE ARRANGES FOR THE PAYMENT FOR OR PERFORMANCE 3 OF SERVICE WORK FOR THE BENEFIT OF A PUBLIC AGENCY PURSUANT TO ANY SUCH 4 AGREEMENT SHALL DO SO AS AN AGENT OF THE PUBLIC AGENCY. NO PUBLIC AGEN- 5 CY SHALL ENTER INTO ANY SUCH AGREEMENT WITH ANY PERSON OR ENTITY WITHOUT 6 (A) PREPARATION OF AN AGREEMENT BETWEEN THE PUBLIC AGENCY AND THE THIRD 7 PARTY PERSON OR ENTITY THAT CLEARLY DELINEATES THE RESPONSIBILITIES OF 8 EACH WITH RESPECT TO REPORTING, FILING AND RETENTION OF PAYROLLS AND 9 OTHER DOCUMENTS, AND ANY OTHER ACTIONS REQUIRED PURSUANT TO THIS ARTI- 10 CLE, AND (B) RECEIPT BY THE PUBLIC AGENCY OF A WRITTEN ACKNOWLEDGEMENT 11 FROM SUCH THIRD PARTY PERSON OR ENTITY THAT THE PERSON OR ENTITY AGREES 12 TO UNDERTAKE THOSE RESPONSIBILITIES AS THE AGENT OF THE PUBLIC AGENCY, 13 AND AFFIRMING SUCH PERSON OR ENTITY'S NONDELEGABLE OBLIGATION TO PAY NOT 14 LESS THAN THE WAGES SPECIFIED IN EACH APPLICABLE SCHEDULE. SUCH DOCU- 15 MENTS SHALL BE IN A FORM SATISFACTORY TO THE FISCAL OFFICER AND SHALL BE 16 SUBSCRIBED AND CONFIRMED AS REQUIRED BY SUCH OFFICER. SUCH DOCUMENTS 17 SHALL BE RETAINED AS PROVIDED IN SECTION TWO HUNDRED THIRTY-THREE OF 18 THIS ARTICLE, AND A COPY OF EACH SUCH DOCUMENT SHALL BE FILED BY THE 19 PUBLIC AGENCY WITH THE FISCAL OFFICER WITHIN TEN DAYS OF ITS EXECUTION. 20 NOTWITHSTANDING ANY SUCH AGREEMENT, NOTHING IN THIS SUBDIVISION SHALL BE 21 DEEMED TO RELIEVE THE PUBLIC AGENCY OF ITS RESPONSIBILITIES TO ENSURE 22 COMPLIANCE WITH THIS ARTICLE. ANY LEASE, PERMIT OR AGREEMENT MADE IN 23 CONTRAVENTION OF THIS SUBDIVISION SHALL BE VOID AS A MATTER OF PUBLIC 24 POLICY. THE FISCAL OFFICER MAY TAKE ALL ACTIONS NECESSARY TO ENSURE 25 COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE AGAINST THE PUBLIC AGEN- 26 CY, ANY THIRD PARTY ACTING IN PLACE OF, ON BEHALF OF OR FOR THE BENEFIT 27 OF SUCH PUBLIC AGENCY PURSUANT TO ANY LEASE, PERMIT OR OTHER AGREEMENT 28 BETWEEN SUCH THIRD PARTY PERSON OR ENTITY AND THE PUBLIC AGENCY, OR BOTH 29 THE PUBLIC AGENCY AND THIRD PARTY JOINTLY. 30 S 4. Paragraphs a and c of subdivision 2 and subdivision 7 of section 31 235 of the labor law, paragraph a of subdivision 2 and subdivision 7 as 32 amended and paragraph c of subdivision 2 as added by chapter 547 of the 33 laws of 1998, are amended and subdivision 2 is amended by adding a new 34 paragraph g to read as follows: 35 a. At the start of such investigation the fiscal officer may notify 36 the financial officer of the public agency interested who shall, at the 37 direction of the fiscal officer, forthwith withhold from any payment due 38 to the contractor executing the contract sufficient money to safeguard 39 the rights of the service employees and to cover the civil penalty that 40 may be assessed as provided herein, or, if there are insufficient moneys 41 still due or earned to the contractor or subcontractor to safeguard the 42 rights of the service employees and to cover the civil penalty that may 43 be assessed as provided herein, the financial officer of another civil 44 division which has entered or subsequently enters into a [building] 45 service work contract with the contractor or subcontractor, who shall 46 withhold from any payment due the contractor or subcontractor executing 47 any [building] service work, sufficient moneys to safeguard the rights 48 of the service employees and to cover the civil penalty that may be 49 assessed as provided herein. 50 c. The notice of withholding shall provide that the fiscal officer 51 intends to instruct the financial officer, not less than ten days 52 following service of the notice by mail, to withhold sufficient moneys 53 to safeguard the rights of the service employees and to cover the civil 54 penalty that may be assessed as provided herein, from any payment due 55 the notified party under any [building] service work contract pending 56 final determination. The notice of withholding shall provide that within S. 126 5 1 thirty days following the date of the notice of withholding the notified 2 party may, contest the withholding on the basis that the notified party 3 is not a partner or one of the five largest shareholders of the subcon- 4 tractor or contractor, an officer of the contractor or subcontractor who 5 knowingly participated in the violation of this article, a substantial- 6 ly-owned affiliated entity or successor. If the notified party fails to 7 contest the notice of withholding, or if the fiscal officer, after 8 reviewing the information provided by the notified party in such 9 contest, determines that the notified party is a partner or one of the 10 five largest shareholders, a substantially-owned affiliated entity, an 11 officer of the contractor or subcontractor who knowingly participated in 12 the violation of this article, or a successor, the fiscal officer may 13 instruct the financial officer to immediately withhold sufficient moneys 14 to safeguard the rights of the service employees and to cover the civil 15 penalty that may be assessed as provided herein from any payment due the 16 notified party under any [building] service work contract pending the 17 final determination. 18 G. THE FISCAL OFFICER MAY REQUIRE ANY PERSON OR CORPORATION PERFORMING 19 SUCH PUBLIC WORK TO FILE WITH THE FISCAL OFFICER WITHIN TEN DAYS OF 20 RECEIPT OF SAID REQUEST, PAYROLL RECORDS, SWORN TO AS TO THEIR VALIDITY 21 AND ACCURACY, REQUESTED BY THE FISCAL OFFICER, FOR SAID SERVICE WORK OR 22 FOR ANY PUBLIC OR PRIVATE WORK PERFORMED BY SAID PERSON OR CORPORATION 23 DURING THE SAME PERIOD OF TIME AS SAID SERVICE WORK. IN THE EVENT SAID 24 PERSON OR CORPORATION FAILS TO PROVIDE THE REQUESTED INFORMATION WITHIN 25 THE ALLOTTED TEN DAYS, THE FISCAL OFFICER SHALL, WITHIN FIFTEEN DAYS, 26 ORDER THE FINANCIAL OFFICER OF THE PUBLIC AGENCY TO IMMEDIATELY WITHHOLD 27 FROM PAYMENT TO SAID PERSON OR CORPORATION UP TO TWENTY-FIVE PERCENT OF 28 THE AMOUNT, NOT TO EXCEED FIVE HUNDRED THOUSAND DOLLARS, TO BE PAID TO 29 SAID PERSON OR CORPORATION UNDER THE TERMS OF THE CONTRACT PURSUANT TO 30 WHICH SAID SERVICE WORK IS BEING PERFORMED. SAID AMOUNT WITHHELD SHALL 31 BE IMMEDIATELY RELEASED UPON RECEIPT BY THE PUBLIC AGENCY OF A NOTICE 32 FROM THE FISCAL OFFICER INDICATING THAT THE REQUEST FOR RECORDS HAD BEEN 33 SATISFIED. 34 7. When, pursuant to the provisions of this section, two final orders 35 have been entered against a contractor, subcontractor, successor, or any 36 substantially-owned affiliated entity of the contractor or subcontrac- 37 tor, any of the partners if the contractor or subcontractor is a part- 38 nership, any of the five largest shareholders of the contractor or 39 subcontractor, any officer of the contractor or subcontractor who know- 40 ingly participated in the violation of this article within any consec- 41 utive six-year period determining that such contractor or subcontractor 42 and/or its successor, substantially-owned affiliated entity of the 43 contractor or subcontractor, any of the partners or any of the five 44 largest shareholders of the contractor or subcontractor, any officer of 45 the contractor or subcontractor who knowingly participated in the 46 violation of this article has willfully failed to pay the prevailing 47 wages in accordance with the provisions of this article, whether such 48 failures were concurrent or consecutive and whether or not such final 49 determinations concerning separate public [building] service WORK 50 contracts are rendered simultaneously, such contractor, subcontractor, 51 successor, and if the contractor, subcontractor, successor, or any 52 substantially-owned affiliated entity of the contractor or subcontrac- 53 tor, any of the partners if the contractor or subcontractor is a part- 54 nership, or any of the five largest shareholders of the contractor or 55 subcontractor, any officer of the contractor or subcontractor who know- 56 ingly participated in the violation of this article, or any successor is S. 126 6 1 a corporation, any officer of such corporation who knowingly partic- 2 ipated in such failure, shall be ineligible to submit a bid on or be 3 awarded any public [building] service work for a period of five years 4 from the date of the second order, provided, however, that where any 5 such final order involves the falsification of payroll records or the 6 kickback of wages, the contractor, subcontractor, successor, substan- 7 tially-owned affiliated entity of the contractor or subcontractor, any 8 partner if the contractor or subcontractor is a partnership or any of 9 the five largest shareholders of the contractor or subcontractor, any 10 officer of the contractor or subcontractor who knowingly participated in 11 the violation of this article shall be ineligible to submit a bid on or 12 be awarded any public [building] service WORK contract or subcontract 13 with the state, any municipal corporation or public body for a period of 14 five years from the date of the first final order. Nothing in this 15 subdivision shall be construed as affecting any provision of any other 16 law or regulation relating to the awarding of public contracts. 17 S 5. Subdivision 2 of section 237 of the labor law, as amended by 18 chapter 698 of the laws of 1988, is amended to read as follows: 19 2. A. Before payment is made by or on behalf of a public agency of any 20 sums due on account of a contract for service work, it shall be the duty 21 of the comptroller of the state or the financial officer of such public 22 agency or other officer or person charged with the custody and disburse- 23 ment of the state or corporate funds applicable to the contract under 24 and pursuant to which payment is made, to require the contractor to file 25 a statement in writing in form satisfactory to such officer certifying 26 to the amounts then due and owing from such contractor filing such 27 statement to or on behalf of any and all service employees for daily or 28 weekly wages on account of labor performed upon the work under the 29 contract, setting forth therein the names of the persons whose wages are 30 unpaid and the amount due to or on behalf of each respectively, which 31 statement so to be filed shall be verified by the oath of the contractor 32 that he or she has read such statement subscribed by him or her and 33 knows the contents thereof, and that the same is true of his or her own 34 knowledge. THE CONTRACTOR SHALL FILE THESE PAYROLL RECORDS VERIFIED 35 UNDER OATH WITHIN NINETY DAYS AFTER ANY LABOR IS PERFORMED UPON THE WORK 36 UNDER CONTRACT, OR SUCH OTHER TIME AS THE FISCAL OFFICER MAY AUTHORIZE. 37 ANY PERSON WHO WILLFULLY FAILS TO FILE SUCH PAYROLL RECORDS WITH THE 38 PUBLIC AGENCY SHALL BE GUILTY OF A CLASS E FELONY. 39 B. EACH PUBLIC AGENCY SHALL DESIGNATE IN WRITING AN INDIVIDUAL 40 EMPLOYED BY SUCH DEPARTMENT RESPONSIBLE FOR THE RECEIPT, COLLECTION AND 41 REVIEW FOR FACIAL VALIDITY OF A CONTRACTOR'S CERTIFIED PAYROLL STATE- 42 MENT, AS SET FORTH IN THIS SUBDIVISION, BEFORE PAYMENT IS MADE. SAID 43 DESIGNATION SHALL BE FILED WITH THE FISCAL OFFICER AND POSTED IN A 44 CONSPICUOUS LOCATION AT THE WORK SITE. IF THE DESIGNATED INDIVIDUAL 45 CANNOT PERFORM THE RECEIPT, COLLECTION AND REVIEW OF CERTIFIED PAYROLLS 46 DUTIES AS INDICATED ABOVE, FOR ANY REASON, INCLUDING BUT NOT LIMITED TO 47 REASSIGNMENT, PROMOTION OR SEPARATION FROM EMPLOYMENT, THE PUBLIC AGENCY 48 MUST IMMEDIATELY DESIGNATE ANOTHER INDIVIDUAL EMPLOYED BY SUCH AGENCY TO 49 FULFILL SUCH RESPONSIBILITIES. IN THE EVENT THAT A PUBLIC AGENCY FAILS 50 TO NAME AN INDIVIDUAL RESPONSIBLE FOR THE RECEIPT, COLLECTION AND REVIEW 51 FOR FACIAL VALIDITY OF CONTRACTORS' CERTIFIED PAYROLLS, THEN THE INDI- 52 VIDUAL SO RESPONSIBLE SHALL BE THE INDIVIDUAL WHO IS THE CHIEF 53 POLICY-MAKING OFFICER OF SUCH PUBLIC AGENCY. 54 S 6. Subdivision 2 of section 238 of the labor law, as added by chap- 55 ter 777 of the laws of 1971, is amended to read as follows: S. 126 7 1 2. A. When a contract for service work contains as part thereof a 2 schedule of wages as provided for in this article, any [contractor] 3 PERSON who, after entering into such contract[, and any subcontractor of 4 such contractor who] WILLFULLY fails to pay to any service employee the 5 wages stipulated in such wage schedule [is guilty of a misdemeanor and 6 upon conviction shall be punished for a first offense by a fine of five 7 hundred dollars or by imprisonment for not more than thirty days or by 8 both fine and imprisonment; for a second offense by a fine of one thou- 9 sand dollars], and [in]: 10 (I) SUCH FAILURE RESULTS IN UNDERPAYMENTS WHICH IN THE AGGREGATE 11 AMOUNT TO ALL WORKERS EMPLOYED BY THE CONTRACTOR OR SUBCONTRACTOR 12 RESULTS IN AN AMOUNT LESS THAN TWENTY-FIVE THOUSAND DOLLARS, THE 13 CONTRACTOR OR SUBCONTRACTOR SHALL BE GUILTY OF A CLASS A MISDEMEANOR; 14 (II) SUCH FAILURE RESULTS IN UNDERPAYMENTS, WHICH IN THE AGGREGATE 15 AMOUNT TO ALL WORKERS EMPLOYED BY SUCH CONTRACTOR OR SUBCONTRACTOR, 16 RESULTS IN AN AMOUNT GREATER THAN TWENTY-FIVE THOUSAND DOLLARS, THE 17 CONTRACTOR OR SUBCONTRACTOR SHALL BE GUILTY OF A CLASS E FELONY; 18 (III) SUCH FAILURE RESULTS IN UNDERPAYMENTS, WHICH IN THE AGGREGATE 19 AMOUNT TO ALL WORKERS EMPLOYED BY SUCH CONTRACTOR OR SUBCONTRACTOR, 20 RESULTS IN AN AMOUNT GREATER THAN ONE HUNDRED THOUSAND DOLLARS, THE 21 CONTRACTOR OR SUBCONTRACTOR SHALL BE GUILTY OF A CLASS D FELONY; OR 22 (IV) SUCH FAILURE RESULTS IN UNDERPAYMENTS, WHICH IN THE AGGREGATE 23 AMOUNT TO ALL WORKERS EMPLOYED BY SUCH CONTRACTOR OR SUBCONTRACTOR, 24 RESULTS IN AN AMOUNT GREATER THAN FIVE HUNDRED THOUSAND DOLLARS, THE 25 CONTRACTOR OR SUBCONTRACTOR SHALL BE GUILTY OF A CLASS C FELONY. 26 B. IN addition thereto the contract on which the violation has 27 occurred shall be forfeited; and no such contractor shall be entitled to 28 receive any sum, nor shall any officer, agent or employee of the 29 contracting public agency pay any such sum or authorize its payment from 30 the funds under his charge or control to such contractor for work done 31 upon the contract on which the contractor has been convicted of a second 32 offense. If the contractor or subcontractor is a corporation, any offi- 33 cer of such corporation who knowingly permits the corporation to fail to 34 make such payment shall also be guilty of [a misdemeanor] THE OFFENSE 35 DEFINED IN PARAGRAPH A OF THIS SUBDIVISION and the criminal and civil 36 penalties [herein] OF THIS SUBDIVISION shall attach to such officer upon 37 conviction. 38 S 7. Severability. If any clause, sentence, paragraph, section or part 39 of this act be adjudged by any court of competent jurisdiction to be 40 invalid and after exhaustion of all further judicial review, the judg- 41 ment shall not affect, impair or invalidate the remainder thereof, but 42 shall be confined in its operation to the clause, sentence, paragraph, 43 section or part of this act directly involved in the controversy in 44 which the judgment shall have been rendered. 45 S 8. This act shall take effect on the ninetieth day after it shall 46 have become a law, and shall apply to all contracts or other agreements 47 entered into, renewed, or extended on or after such date.