A business that is awarded a contract is required to include in the contact for subcontractor that it uses to fulfill the terms of the contract that the subcontractor is in compliance with the equal pay standards specified in the bill.
All businesses that are awarded contracts by a governmental body or that are subcontractors for a business that was awarded a contract by a governmental body are required to keep and maintain certain information related to their employees, broken down into categories by race, sex, and national origin, for the term of the contract with the governmental body.
The department of labor and employment (department) may receive complaints about a contractor or subcontractor's potential violation of the equal pay requirements specified in the bill and may investigate the records that the contractor or subcontractor, as applicable, is required to keep. If the department determines that the contractor or subcontractor, as applicable, has knowingly violated the equal pay standards, the department may impose a specified fine on the contractor or subcontractor.
If, after awarding a contract to a business, a governmental body determines that the business was knowingly not in compliance with the equal pay standards required by the bill, the governmental body may terminate the contract.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)