BE IT ENACTED BY THE PEOPLE OF
GUAM:
Section 1. Legislative
Findings and Intent. I
Liheslaturan GuÂhan finds that there are no prevailing wages, or set
benefits, established for employees of private contractors awarded service and
other contracts by the government of Guam, except
to the extent that the minimum wage law applies, and specifically to the
extent that the Federal prevailing wage applies to construction contractors.
This lack of
minimum standards sets an insecure and uneven playing field for businesses
wishing to do business with the government of
Guam in the service area. Moreover,
and more critically, it forcefully
depresses wages and benefits among employees of firms doing business with the
government of Guam, as firms are compelled to reduce bids in order to remain
competitive with other bidders. I
Liheslaturan GuÂhan finds this to be inequitable and detrimental for the
employees of these private firms.
Section 2. Article 13 is hereby added to Chapter 5 of Title 5 of the
Guam Code Annotated to read as follows:
ìARTICLE 13.
WAGE AND BENEFIT DETERMINATION.
Section 5801. Wage Determination Established. In such cases where the government of Guam enters
into contractual arrangements with a sole proprietorship, a partnership or a
corporation (ëcontractorí) for the provision of a service to the government of
Guam, and in such cases where the contractor employs a person(s) whose purpose,
in whole or in part, is the direct delivery of service contracted by the
government of Guam, then the contractor shall pay such employee(s) in
accordance with the Wage Determination for Guam and the Northern Mariana
Islands issued and promulgated by the U.S. Department of Labor for such labor
as is employed in the direct delivery of contract deliverables to the government
of Guam.
The
Wage Determination most recently issued by the U.S. Department of Labor at the
time a contract is awarded to a contractor by the government of
Guam shall be used to determine wages, which shall be paid to employees
pursuant to this Article. Should any
contract contain a renewal clause, then at the time of renewal adjustments,
there shall be made stipulations contained in that contract for applying the
Wage Determination, as required by this Article, so that the Wage Determination
promulgated by the U.S. Department of Labor on a date most recent to the
renewal date shall apply.
Section 5802. Benefits. In addition to the Wage Determination
detailed in this Article, any contract to which this Article applies shall also
contain provisions mandating health and similar benefits for employees covered
by this Article, such benefits having a minimum value as detailed in the Wage
Determination issued and promulgated by the U.S. Department of Labor, and shall
contain provisions guaranteeing a minimum
of ten (10) paid holidays per annum per employee.
Section 5803. Department of Labor Monitoring and Penalizing Authority. The
Guam Department of Labor, or its successor, shall monitor compliance with the
provisions of this Article. The Director
of the Department of Labor, or that personís successor, shall investigate
possible or reported violations of the provisions of this Article, and shall
forward such findings to the Chief Procurement Officer of the General Services
Agency, or that personís successor.
The
Department of Labor, or its successor, shall promulgate rules and regulations,
pursuant to the Administrative Adjudication Law, as needed to ensure the
equitable investigation of violations and the maintenance of due process, as
well as the assessment of monetary penalties in the event of a violation,
providing that such monetary penalties shall be limited to the assessment of
daily penalties of no less than One
Hundred Dollars ($100.00) per day, and no
more than One Thousand Dollars ($1,000.00) per day, until such time as a
violation has been corrected, as well as the payment of all back wages and
benefits due.
Section 5804. Probation and Appeal. A contractor who violates the provisions of this
Article, as determined by the process authorized in ß 5803 of this Article, may
be placed on a probationary status by the Chief Procurement Officer of the
General Services Agency, or its successor, for a period of one (1) year. During such probationary status, a contractor
shall not be awarded any contract by
any instrumentality of the government of
Guam. A contractor who has been
placed on probationary status pursuant to this Article, or who has been
assessed a monetary penalty pursuant to this Article, may appeal such penalty
or probationary status to the Superior Court of Guam.î