Fraud Prevention, Prevailing Wage, and Living Wage - Prohibitions, Penalties, and Enforcement

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0060*

SENATE BILL 60
K3 6lr0115
(PRE–FILED) CF 6lr0116
By: Chair, Finance Committee (By Request – Departmental – Labor)
Requested: September 16, 2025
Introduced and read first time: January 14, 2026
Assigned to: Finance

A BILL ENTITLED

AN ACT concerning 1

Fraud Prevention, Prevailing Wage, and Living Wage – Prohibitions, Penalties, 2
and Enforcement 3

FOR the purpose of prohibiting a person from knowingly making or using, or causing to be 4
made or used, a false record or statement resulting in underpayments of 5
unemployment insurance contributions or payment of unemployment insurance 6
benefits of more than a certain amount; requiring the Comptroller to deposit into the 7
Unemployment Insurance Fund certain civil penalties or damages collected under 8
the Maryland False Claims Act (MFCA); requiring that certain civil penalties and 9
damages be used in a certain manner if a violation of the MFCA involves the failure 10
to pay prevailing wage rates; requiring the Commissioner of Labor and Industry and 11
the Attorney General to take certain actions related to the enforcement of the MFCA, 12
workplace fraud laws, prevailing wage laws, and living wage laws; altering certain 13
enforcement mechanisms related to workplace fraud laws, prevailing wage laws, and 14
living wage laws, including authorizing the Attorney General to investigate and 15
bring suit in a certain manner; requiring a licensing authority to revoke or suspend 16
the license of a licensee for a certain workplace fraud violation under certain 17
circumstances; altering the circumstances under which a person may be debarred 18
under State procurement law; and gener ally relating to fraud prevention , 19
debarment, prevailing wages, and living wages. 20

BY repealing and reenacting, with amendments, 21
Article – General Provisions 22
Section 8–102(a) and (b)(8) and (9) and 8–109(b) and (c) 23
Annotated Code of Maryland 24
(2019 Replacement Volume and 2025 Supplement) 25

BY adding to 26
Article – General Provisions 27
Section 8–102(b)(9) 28
2 SENATE BILL 60

Annotated Code of Maryland 1
(2019 Replacement Volume and 2025 Supplement) 2

BY repealing and reenacting, with amendments, 3
Article – Labor and Employment 4
Section 3–906, 3–908 through 3–910, and 3–913 5
Annotated Code of Maryland 6
(2025 Replacement Volume) 7

BY repealing and reenacting, without amendments, 8
Article – Labor and Employment 9
Section 3–911 10
Annotated Code of Maryland 11
(2025 Replacement Volume) 12

BY adding to 13
Article – Labor and Employment 14
Section 3–912 15
Annotated Code of Maryland 16
(2025 Replacement Volume) 17

BY repealing and reenacting, with amendments, 18
Article – State Finance and Procurement 19
Section 16–203(a)(9) and (10), 17–221(g), 17–224, 18–107, and 18–109 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2025 Supplement) 22

BY adding to 23
Article – State Finance and Procurement 24
Section 18–110 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2025 Supplement) 27

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 28
That the Laws of Maryland read as follows: 29

Article – General Provisions 30

8–102. 31

(a) [This] EXCEPT AS PROVIDED IN SUBSECTION (B)(9) OF THIS SECTION , 32
THIS section does not apply to claims, records, or statements related to State or local taxes. 33

(b) A person may not: 34

(8) knowingly conceal, or knowingly and improperly avoid or decrease, an 35
obligation to pay or transmit money or other property to a governmental entity, including 36
SENATE BILL 60 3

misrepresenting the time at which a trade was made to make the transaction appear less 1
favorable; [or] 2

(9) KNOWINGLY MAKE, USE, OR CAUSE TO BE MADE OR USED, A FALSE 3
RECORD OR STATEMENT RESULTING IN: 4

(I) THE UNDERPAYMENT OF CONTRIBUTIONS OWED T O THE 5
UNEMPLOYMENT INSURANCE FUND; OR 6

(II) THE PAYMENT OF UNEMP LOYMENT INSURANCE BE NEFITS 7
OF MORE THAN $15,000 IN A CALENDAR YEAR; OR 8

[(9)] (10) knowingly make any other false or fraudulent claim against a 9
governmental entity. 10

8–109. 11

(b) (1) (I) The governmental entity shall make all reasonable efforts to 12
coordinate any investigation of an alleged violation under this title with any investigation 13
conducted by the federal government involving the same violation. 14

(II) THE COMMISSIONER OF LABOR AND INDUSTRY OR THE 15
ATTORNEY GENERAL SHALL COOPERA TE IN THE INVESTIGAT ION OF AN ALLEGED 16
VIOLATION UNDER THIS TITLE THA T IS OF UNUSUAL SCOPE OR COMPLEXITY OR 17
INVOLVES A NOVEL OR COMPLEX LEGAL ISSUE, IF: 18

1. THE GOVERNMENTAL ENT ITY WITH INVESTIGATIVE 19
AUTHORITY FOR THE ALLEGED VIOLATION IS THE COMMISSIONER OF LABOR AND 20
INDUSTRY OR THE ATTORNEY GENERAL; AND 21

2. THE ALLEGED VIOLATION IS OF A NATURE AND SCOPE 22
THAT COULD GIVE RISE TO A VIOLATION OR AN ACTION UNDER TITLE 3, SUBTITLE 23
9 OF THE LABOR AND EMPLOYMENT ARTICLE OR TITLE 16, TITLE 17, SUBTITLE 2, 24
OR TITLE 18 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 25

(2) The governmental entity’s objective shall be to avoid unnecessary 26
duplication of effort on the part of the person alleged to have committed the violation and 27
to minimize the burden of the investigation on the person. 28

(c) (1) Except as provided under paragraph (2) of this subsection, the 29
Comptroller shall deposit any civil penalty or damages coll ected by the State under this 30
title into the General Fund of the State. 31

4 SENATE BILL 60

(2) (i) If a violation of this title affects any of the following funds, the 1
Comptroller shall deposit any civil penalty or damages collected by the State under this 2
title into the affected fund: 3

1. a fund that is not subject to § 7 –302 of the State Finance 4
and Procurement Article; 5

2. a special fund requiring the reversion of appropriated 6
funds to the special fund under § 7–304 of the State Finance and Procurement Article; 7

3. a fund under the jurisdiction of the Board of Trustees for 8
the State Retirement and Pension System; [or] 9

4. a fund under the jurisdiction of the State Employee and 10
Retiree Health and Welfare Benefits Program; OR 11

5. THE UNEMPLOYMENT INSURANCE FUND. 12

(ii) If more than one fund is affected by a violation of this title, the 13
Comptroller shall deposit any civil penalty or damages collected by the State into the 14
appropriate fund or the General Fund of the State on a pro rata basis. 15

(III) IF A VIOLATION OF THIS TITLE INVOLVED THE FAILURE TO 16
PAY PREVAILING WAGE RATES IN ACCORDANCE WITH TITLE 17, SUBTITLE 2 OF THE 17
STATE FINANCE AND PROCUREMENT ARTICLE, CIVIL PENALTIES AND DAMAGES 18
COLLECTED UNDER THIS TITLE MAY BE USED TO PAY RESTI TUTION TO AFFECTED 19
WORKERS. 20

Article – Labor and Employment 21

3–906. 22

(a) [After] WITHIN 90 DAYS AFTER the employer has provided all the records 23
requested under § 3–905(d) of this subtitle, the Commissioner shall: 24

(1) issue a citation to the employer; 25

(2) REFER THE MATTER TO THE ATTORNEY GENERAL IN 26
ACCORDANCE WITH § 3–910 OF THIS SUBTITLE; or 27

(3) close the investigation [within 90 days]. 28

(b) Each citation shall: 29

(1) describe in detail the nature of the alleged violation; 30

SENATE BILL 60 5

(2) cite the provision of this subtitle or any regulation that the employer is 1
alleged to have violated; and 2

(3) state the civil penalty, if any, that the Commissioner proposes to assess. 3

(c) Within a reasonable time after issuance of a citation, the Commissioner shall 4
send by certified mail to the employer: 5

(1) a copy of the citation; and 6

(2) notice of the opportunity to request a hearing. 7

(d) Within 15 days after an employer receives a notice under subsection (c) of this 8
section, the employer may submit a written req uest for a hearing on the citation and 9
proposed penalty. 10

(e) If a hearing is not requested within 15 days, the citation, including any 11
penalties, shall become a final order of the Commissioner. 12

(f) (1) If the employer requests a hearing, the Commissioner shall delegate to 13
the Office of Administrative Hearings the authority to hold a hearing and issue findings of 14
fact, conclusions of law, and an order, and assess a penalty under § 3 –909 of this subtitle 15
in accordance with Title 10, Subtitle 2 of the State Government Article. 16

(2) The employer is entitled to a hearing within 90 days after a timely 17
request is made under this subsection, unless the employer waives that right. 18

(g) Within 15 days after a request, in accordance with Title 4 of the General 19
Provisions Article and the applicable regulations of the Department and the Office of 20
Administrative Hearings, the Commissioner shall provide copies of all relevant evidence, 21
including a list of potential witnesses, on which the Commissioner intends to rely at any 22
administrative hearing under this subtitle. 23

(h) The Commissioner has the burden of proof to show that an employer has 24
knowingly failed to properly classify an individual as an employee. 25

(i) A decision of an administrative law judge issued in accordance with Title 10, 26
Subtitle 2 of the State Government Article shall become a final order of the Commissioner. 27

(j) Any party aggrieved by a final order of the Commissioner under subsection (i) 28
of this section may seek judicial review and appeal under §§ 10–222 and 10–223 of the State 29
Government Article. 30

(K) A GENERAL CONTRACTOR O N A PROJECT FOR CONS TRUCTION 31
SERVICES, INCLUDING A PROJECT CONTRACTED FOR BY A PUBLIC BODY, IS SUBJECT 32
TO CITATION AND JOIN TLY AND SEVERALLY LI ABLE FOR A VIOLATION OF THIS 33
SUBTITLE THAT IS COMMITTED BY A SUBCONTRACTOR, REGARDLESS OF WHETHER 34
6 SENATE BILL 60

THE SUBCONTRACTOR IS IN A DIRECT CONTRACTUAL RELATIONSHIP WITH TH E 1
GENERAL CONTRACTOR. 2

3–908. 3

(a) An employer in violation of § 3 –903 of this subtitle who comes into timely 4
compliance with all applicable labor laws as required by § 3–907(b) of this subtitle may not 5
be assessed a civil penalty. 6

(b) (1) An employer in violation of § 3 –903 of this subtitle who fails to come 7
into timely compliance with all applicable labor laws as required by § 3 –907(b) of this 8
subtitle shall be assessed a civil p enalty of up to $1,000 for each employee for whom the 9
employer is not in compliance , ONE–THIRD OF WHICH IS PAYABLE DIRECTLY TO THE 10
INDIVIDUAL AFFECTED BY THE EMPLOYER ’S VIOLATION , IN ADDITION TO ANY 11
OTHER RESTITUTION OR BENEFIT TO WHICH THE INDIVIDUAL MAY BE ENTITLED 12
UNDER THIS SUBTITLE. 13

(2) In determining the amount of the penalty, the Commissioner shall 14
consider the factors set forth in § 3–909(b) of this subtitle. 15

(c) (1) An employer may be assessed civil penalties under this section by only 16
one final order of a court or administrative unit for the same actions constituting 17
noncompliance with applicable labor laws as required by § 3–907(b) and (c) of this subtitle. 18

(2) Notwithstanding paragraph (1) of this subsection, an employer may be 19
ordered to make restitution, pay any interest due, and otherwise comply with all applicable 20
laws and regulations by multiple final orders of a court and all relevant administrative 21
units, including the Comptroller, the Office of Unemployment Insurance, the Insu rance 22
Administration, and the Workers’ Compensation Commission. 23

(d) Any penalty issued under this section against an employer shall be in effect 24
against any successor corporation or business entity that: 25

(1) has one or more of the same principals or officers as the employer 26
against whom the penalty was assessed; and 27

(2) is engaged in the same or equivalent trade or activity. 28

3–909. 29

(a) An employer found to have knowingly failed to properly classify an individual 30
in violation of § 3–904 of this subtitle shall be assessed a civil penalty of up to $ 10,000 for 31
each employee who was not properly classified , ONE–THIRD OF WHICH IS PAYABLE 32
DIRECTLY TO THE INDIVIDUAL AFFECTED BY THE EMPLOYER’S VIOLATION, IN 33
ADDITION TO ANY OTHER RESTITUTION OR BENEFIT TO WHICH THE INDIVIDUAL MAY 34
BE ENTITLED UNDER THIS SUBTITLE. 35
SENATE BILL 60 7

(b) In determining the amount of the penalty, the Commissioner or the 1
administrative law judge shall consider: 2

(1) the gravity of the violation; 3

(2) the size of the employer’s business; 4

(3) the employer’s good faith; 5

(4) the employer’s history of violations under this subtitle; and 6

(5) whether the employer: 7

(i) has been found, by a court or an administrative unit, to have 8
deprived the employee of any rights to which the employee would have been entitled under 9
a State protective labor law, including but not limited to: 10

1. any provision of this article; 11

2. the State prevailing wage law, under §§ 17 –221 and 12
17–222 of the State Finance and Procurement Article; or 13

3. the living wage law, under § 18 –108 of the State Finance 14
and Procurement Article; and 15

(ii) has made restitution and come into compliance with all such 16
State protective labor laws with respect to the employee. 17

(c) If the court or an administrative unit determines that an individual or class 18
of individuals is entitled to restitution as a result of the employer ’s violation of § 3 –904 of 19
this subtitle, the court or administrative unit: 20

(1) shall award each individual any restitution to which the individual may 21
be entitled; and 22

(2) may award each individual an additional amount up to three times the 23
amount of such restitution. 24

(d) An employer in violation of § 3–904 of this subtitle may be assessed double the 25
administrative penalties set forth in subsection (a) of this section if the employer has been 26
found previously to have violated this subtitle by a final order of a court or an 27
administrative unit. 28

(e) An employer who has been found by a final order of a court or an 29
administrative unit to have violated § 3 –904 of this subtitle three or more times may be 30
assessed an administrative penalty of up to $20,000 for each employee. 31
8 SENATE BILL 60

(f) (1) An employer may be assessed civil penalties under this se ction or § 1
8–201.1 or § 9–402.1 of this article by only one final order of a court or administrative unit 2
for the same actions constituting a violation of this subtitle. 3

(2) Notwithstanding paragraph (1) of this subsection, an employer may be 4
ordered to make restitution, pay any interest due, and otherwise comply with all applicable 5
laws and regulations by orders of a court and all relevant administrative units, including 6
the Comptroller, the Office of Unemployment Insurance, the Insurance Administratio n, 7
and the Workers’ Compensation Commission. 8

(g) Any penalty issued under this section against an employer shall be in effect 9
against any successor corporation or business entity that: 10

(1) has one or more of the same principals or officers as the empl oyer 11
against whom the penalty was assessed, unless the principal or officer did not or with the 12
exercise of reasonable diligence could not know of the violation for which the penalty was 13
imposed; and 14

(2) is engaged in the same or equivalent trade or activity. 15

3–910. 16

(a) As authorized by State and federal law, units within the Maryland 17
Department of Labor and the Department of Budget and Management, the Secretary of 18
State, the Comptroller, the Maryland Insurance Administration, THE OFFICE OF THE 19
ATTORNEY GENERAL, and other State agencies shall cooperate and share information 20
concerning any suspected failure to properly classify an individual as an employee. 21

(b) On a showing by clear and convincing evidence that a violation of § 3 –904 of 22
this subtitle has occurred and as authorized by federal and State law, the Commissioner 23
shall refer any complaint that alleges a violation of § 13 –1007 or § 13 –1024 of the Tax – 24
General Article to the: 25

(1) Comptroller; 26

(2) State’s Attorney with jurisdiction over the alleged violation; 27

(3) U.S. Department of Justice; 28

(4) U.S. Department of Labor; and 29

(5) U.S. Department of the Treasury. 30

(C) (1) TO ASSIST IN THE ENFORC EMENT OF THIS SUBTITLE, THE 31
COMMISSIONER AND THE ATTORNEY GENERAL, OR THEIR DESIGNEES, SHALL MEET 32
AT LEAST MONTHLY TO SHARE INFORMATION CO NCERNING MATTERS ARI SING 33
SENATE BILL 60 9

UNDER THIS SUBTITLE, TITLE 8 OF THE GENERAL PROVISIONS ARTICLE, AND 1
TITLES 16 AND 18 AND TITLE 17, SUBTITLE 2 OF THE STATE FINANCE AND 2
PROCUREMENT ARTICLE, INCLUDING AT A MINIMUM: 3

(I) THE CONTENT OF COMPL AINTS OR REFERRALS R ECEIVED 4
CONCERNING POTENTIAL VIOLATIONS AND ACTIONS TAKEN; AND 5

(II) THE STATUS OF INVEST IGATIONS INITIATED , INCLUDING 6
ANY DETERMINATION OF MERIT OR RECOVERY SOUGHT OR OBTAINED. 7

(2) THE COMMISSIONER SHALL REFER TO THE ATTORNEY GENERAL 8
ANY COMPLAINT OR REF ERRAL ARISING UNDER THIS S UBTITLE FOR WHICH THE 9
COMMISSIONER HAS: 10

(I) NOT INITIATED AN INV ESTIGATION WITHIN 6 MONTHS 11
AFTER RECEIPT; 12

(II) DECLINED TO INVESTIGATE; OR 13

(III) NOT ISSUED A CITATION OR HAS CLOSED AN INVESTIGATION 14
IN ACCORDANCE WITH § 3–906(A) OF THIS SUBTITLE DUE TO A FINDING OF NO 15
MERIT. 16

(3) (I) IN A MATTER REFERRED TO THE ATTORNEY GENERAL 17
UNDER PARAGRAPH (2) OF THIS SUBSECTION, THE ATTORNEY GENERAL MAY 18
EXERCISE THE COMMISSIONER’S INVESTIGATIVE POWERS, INCLUDING SUBPOENA 19
POWERS, PROVIDED UNDER THIS SUBTITLE. 20

(II) IF, AFTER AN INVESTIGATI ON, THE ATTORNEY GENERAL 21
FINDS A MATTER TO BE MERITORIOUS, THE ATTORNEY GENERAL SHALL PROVIDE 22
NOTICE TO AND CONSULT WITH THE COMMISSIONER, AFTER WHICH THE ATTORNEY 23
GENERAL MAY BRING AN ACTION FOR: 24

1. THE IMPOSITION OF CIVIL PENALTIES UNDER § 3–908 25
OR § 3–909 OF THIS SUBTITLE; OR 26

2. THE RELIEF DESCRIBED UNDER § 3–911(C) OF THIS 27
SUBTITLE. 28

(4) THE COMMISSIONER AND THE ATTORNEY GENERAL SHALL 29
COOPERATE IN THE INV ESTIGATION OF ANY MA TTER ARISING UNDER THIS 30
SUBTITLE THAT IS OF UNUSUAL SCOPE OR COMPLEXITY OR INVOLVES A NOVEL OR 31
COMPLEX LEGAL ISSUE. 32
10 SENATE BILL 60

3–911. 1

(a) (1) Except as provided in paragraph (2) of this subsection, an individual 2
who has not been properly classified as an employee may bring a civil action for economic 3
damages against the employer for any violation of this subtitle. 4

(2) An individual may not bring a civi l action under this section if a final 5
order of an administrative unit or of a court has been issued under § 3–906 of this subtitle. 6

(b) An action filed under this section shall be filed within 3 years after the date 7
the cause of action accrues. 8

(c) If the court determines that an individual or class of individuals is entitled to 9
judgment in an action against an employer filed in accordance with this section, the court 10
may award each individual: 11

(1) any damages to which the individual may be entitled under subsection 12
(a) of this section; 13

(2) an additional amount up to three times the amount of any such 14
damages, if the employer knowingly failed to properly classify the individual; 15

(3) reasonable counsel fees and other costs of the action; and 16

(4) any other appropriate relief. 17

3–912. 18

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20

(2) “LICENSE” MEANS A LICENSE , CERTIFICATE, REGISTRATION, 21
PERMIT, OR OTHER AUTHORIZATION THAT: 22

(I) IS ISSUED BY A LICENSING AUTHORITY; 23

(II) IS SUBJECT TO SUSPEN SION, REVOCATION, FORFEITURE, 24
OR TERMINATION BY A LICENSING AUTHORITY; AND 25

(III) IS NECESSARY FOR A P ERSON TO PRACTICE OR ENGAGE IN 26
A PARTICULAR BUSINESS, OCCUPATION, OR PROFESSION. 27

(3) “LICENSEE” MEANS AN EMPLOYER HOLDING A VALID LICENSE. 28

SENATE BILL 60 11

(4) (I) “LICENSING AUTHORITY” MEANS A UNIT OF THE DIVISION 1
OF OCCUPATIONAL AND PROFESSIONAL LICENSING IN THE MARYLAND 2
DEPARTMENT OF LABOR. 3

(II) “LICENSING AUTHORITY” INCLUDES: 4

1. THE ELEVATOR SAFETY REVIEW BOARD; 5

2. THE MARYLAND HOME IMPROVEMENT COMMISSION; 6

3. THE STATE BOARD OF ELECTRICIANS; 7

4. THE STATE BOARD OF HEATING, VENTILATION, 8
AIR–CONDITIONING, AND REFRIGERATION CONTRACTORS; 9

5. THE STATE BOARD OF PLUMBING; 10

6. THE MARYLAND BOARD OF PUBLIC ACCOUNTANCY; 11
AND 12

7. THE MARYLAND BOARD OF INDIVIDUAL TAX 13
PREPARERS. 14

(B) (1) THE COMMISSIONER SHALL NOTIFY THE APPLICABLE LICENSING 15
AUTHORITY WHEN A LIC ENSEE IS FOUND IN VI OLATION OF § 3–903 OF THIS 16
SUBTITLE BY A FINAL ORDER OF A COURT OR AN ADMINISTRATIVE UNIT AND THE 17
LICENSEE: 18

(I) HAS NOT PAID ALL PENALTIES ASSESS ED UNDER THIS 19
SUBTITLE FOR A VIOLATION OF § 3–903 OF THIS SUBTITLE; AND 20

(II) WITHIN 45 DAYS AFTER ISSUANCE OF THE FINAL ORDER OF 21
A COURT OR ADMINISTR ATIVE UNIT , HAS FAILED TO COMPLY WITH THE FINAL 22
ORDER ISSUED , INCLUDING PAYMENT OF RESTITUTION OWED , IN ACCORDANCE 23
WITH § 3–907 OF THIS SUBTITLE FOR FAILING TO PROPERLY CLASSIFY AN 24
EMPLOYEE. 25

(2) THE COMMISSIONER SHALL NOTIFY THE APPLICABLE LICENSING 26
AUTHORITY WHEN A LIC ENSEE IS FOUND IN VI OLATION OF § 3–904 OR § 3–915 OF 27
THIS SUBTITLE BY A FINAL ORDER OF A COURT OR AN ADMINISTRATIVE UNIT. 28

(C) SUBJECT TO SUBSECTION (D) OF THIS SECTI ON, IF A LICENSING 29
AUTHORITY RECEIVES A NOTIFICATION MADE UN DER SUBSECTION (B) OF THIS 30
12 SENATE BILL 60

SECTION, THE LICENSING AUTHORITY SHALL SUSPEND OR REVOKE THE LICENSE OF 1
THE LICENSEE. 2

(D) (1) BEFORE SUSPENDING OR REVOKING A LICENSE U NDER 3
SUBSECTION (C) OF THIS SECTION, A LICENSING AUTHORITY SHALL SEND WRITTEN 4
NOTICE OF THE PROPOSED ACTION TO THE LIC ENSEE WHOSE LICENSE IS SUBJECT 5
TO SUSPENSION OR REVOCATION, INCLUDING NOTICE OF THE LICENSEE’S RIGHT TO 6
CONTEST THE IDENTITY OF THE LICENSEE WHOSE LICENSE IS TO BE SUSPENDED OR 7
REVOKED. 8

(2) (I) A LICENSEE MAY APPEAL A DECISION OF A LICE NSING 9
AUTHORITY TO SUSPEND OR REVOKE THE LICENSE IN ACCORDANCE WITH TITLE 10, 10
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 11

(II) AT A HEARING INITIATE D UNDER SUBPARAGRAPH (I) OF 12
THIS PARAGRAPH, THE ISSUE SHALL BE LIMITED TO WHETHER THE COMMISSIONER 13
HAS MISTAKEN THE IDE NTITY OF THE LICENSE E WHOSE LICENSE HAS BEEN 14
SUSPENDED OR REVOKED. 15

(E) (1) A LICENSING AUTHORITY MAY NOT REINSTATE A LICENSE THAT 16
HAS BEEN SUSPENDED O R REVOKED UNDER SUBSECTION (C) OF THIS SECTION 17
BASED ON A NOTIFICAT ION MADE UNDER SUBSECTION (B)(1) OF THIS SECTION 18
UNTIL THE COMMISSIONER PROVIDES NOTICE TO THE LICENS ING AUTHORITY IN 19
ACCORDANCE WITH PARAGRAPH (2) OF THIS SUBSECTION. 20

(2) THE COMMISSIONER SHALL NOTIFY THE LICENSING AUTHORITY 21
WITHIN 10 DAYS AFTER THE COMMISSIONER FIRST RECEIVES: 22

(I) A COURT ORDER TO REINSTATE THE LICENSE; OR 23

(II) WITH RESPECT TO A LICENSEE WHO IS SUBJECT TO A FINAL 24
ORDER OF A COURT OR AN ADMINISTRATIVE UN IT TO PAY PENALTIES OR 25
RESTITUTION FOR A VIOL ATION OF § 3–903 OF THIS SUBTITLE , NOTICE THAT THE 26
LICENSEE HAS COMPLIE D WITH THE ORDER AND PAID ALL PENALTIES A ND 27
RESTITUTION IN FULL. 28

(3) A LICENSING AUTHORITY SHALL IMMEDIATELY RE INSTATE ANY 29
LICENSE SUSPENDED OR REVOKED UNDER SUBSECTION (C) OF THIS SECTION IF: 30

(I) NOTIFIED BY THE COMMISSIONER THAT THE LICENSE 31
SHOULD BE REINSTATED; AND 32

(II) THE LICENSEE OTHERWISE QUALIFIES FOR THE LICENSE. 33
SENATE BILL 60 13

(4) A LICENSING AUTHORITY MAY NOT REINSTATE A LICENSE THAT 1
HAS BEEN SUSPENDED OR REVOKED UNDER SUB SECTION (C) OF THIS SECTION 2
BASED ON A NOTIFICATION UNDER SUBSECTION (B)(2) OF THIS SECTION UNTIL: 3

(I) THE INDIVIDUAL WHOSE LICENSE HAS BEEN REV OKED OR 4
SUSPENDED SUBMITS A WRITTEN REQUEST TO THE LICENSING AUTHORITY; 5

(II) THE LI CENSING AUTHORITY HO LDS A HEARING ON THE 6
REQUEST; 7

(III) THE LICENSING AUTHORITY, BY AN AFFIRMATIVE VO TE OF 8
A MAJORITY OF ITS MEMBERS: 9

1. DETERMINES THAT THE INDIVIDUAL HAS 10
DEMONSTRATED BY A PREPONDERANCE OF THE EVIDENCE THAT ANY CONDITIONS 11
OF THE SUSPENSION OR REVOCATION HAVE BEEN FULFILLED; AND 12

2. VOTES TO REINSTATE THE LICENSE; AND 13

(IV) THE INDIVIDUAL PAYS TO THE LICENSING AUT HORITY ANY 14
REINSTATEMENT FEE SET BY THE LICENSING AUTHORITY. 15

(F) (1) ADVERSE LICENSING ACTIONS TAKEN UNDER THIS SECTION MAY 16
BE IMPOSED IN ADDITION TO ANY OTHER ACTIONS TAKEN IN THE ENFORCEMENT OF 17
THIS SUBTITLE. 18

(2) ADVERSE LICENSING ACT IONS TAKEN UNDER THI S SECTION 19
SHALL BE IN EFFECT AGAINST: 20

(I) ANY SUCCESSOR CORPORATION OR BUSINESS ENTITY THAT: 21

1. HAS ONE OR MORE OF T HE SAME PRINCIPALS O R 22
OFFICERS AS THE LICE NSEE AGAINST WHOM TH E ADVERSE ACTION WAS TAKEN 23
UNLESS THE PRINCIPAL OR OFFICER DID NOT O R, WITH THE EXERCISE OF 24
REASONABLE DILIGENCE, COULD NOT HAVE KNOWN OF THE VIOLATION FOR WHICH 25
THE ADVERSE ACTION WAS TAKEN; AND 26

2. IS ENGAGED IN OR INTENDS TO ENGAGE IN THE SAME 27
OR EQUIVALENT TRADE OR ACTIVITY; AND 28

(II) ANY INDIVIDUAL LICEN SEE THAT WAS AN OFFI CER, A 29
DIRECTOR, A CONTROLLING SHAREHOLDER, A PARTNER, OR A MANAGER OF THE 30
14 SENATE BILL 60

EMPLOYER AGAINST WHOM THE ADVERSE ACT ION WAS TAKEN UNLESS THE 1
OFFICER, DIRECTOR, CONTROLLING SHAREHOLDER, PARTNER, OR MANAGER DID 2
NOT OR, WITH THE EXERCISE OF REASONABLE DILIGENCE, COULD NOT HAVE KNOWN 3
OF THE VIOLATION FOR WHICH THE ADVERSE ACTION WAS TAKEN. 4

3–913. 5

(a) Where, after investigation, the Commissioner issues a citation for a knowing 6
violation of this subtitle or regulations adopted under this subtitle by an employer engaged 7
in work on a contract with a public body, the Commissioner shall promptly notify the public 8
body AND THE GENERAL CONTRACTOR. 9

(b) (1) On notification, the public body shall withhold from payment due the 10
employer an amount that is sufficient to: 11

(i) pay restitution to each employee for the full amount of wages 12
due; and 13

(ii) pay any benefits, taxes, or other contributions that are required 14
by law to be paid on behalf of the employee. 15

(2) The public body shall release: 16

(i) on issuance of a favorable final order of a court or an 17
administrative unit, the full amount of the withheld funds; and 18

(ii) on an adverse final order of a court or an administrative unit, the 19
balance of the withheld funds after all obligations are satisfied under paragraph (1) of this 20
subsection. 21

Article – State Finance and Procurement 22

16–203. 23

(a) A person may be debarred from entering into a contract with the State if the 24
person, an officer, partner, controlling stockholder or principal of that person, or any other 25
person substantially involved in that person’s contracting activities has: 26

(9) been found to have REPEATEDLY OR willfully or knowingly violated 27
Title 17, Subtitle 2 or Title 18 of this article if: 28

(i) 1. the finding was made by a court; and 29

2. the decision of the court became final; or 30

SENATE BILL 60 15

(ii) 1. the finding was made IN ACCORDANCE WITH A FINAL 1
ADMINISTRATIVE ORDER OR in a contested case under the Administrative Procedure Act; 2
and 3

2. IF MADE IN A CONTEST ED CASE , the finding was not 4
overturned on judicial review; 5

(10) been found to have REPEATEDLY OR willfully or knowingly violated 6
Title 3, Subtitle 3, Subtitle 4, [or] Subtitle 5, OR SUBTITLE 9 or Title 5 of the Labor and 7
Employment Article if: 8

(i) 1. the finding was made by a court; and 9

2. the decision of the court became final; or 10

(ii) 1. the finding was made IN ACCORDANCE WITH A FINAL 11
ADMINISTRATIVE ORDER OR in a contested case under the Administrative Procedure Act; 12
and 13

2. IF MADE IN A CONTEST ED CASE , the finding was not 14
overturned on judicial review; 15

17–221. 16

(g) If after investigation, the Commissioner determines that a provision of this 17
subtitle may have been violated and has not issued a stop work order in accordance with 18
subsection (e) of this section, the Commissioner: 19

(1) shall: 20

[(1)] (I) issue an order for a hearing within 30 days after completing an 21
investigation; and 22

[(2)] (II) expeditiously conduct the hearing; OR 23

(2) MAY REFER THE MATTER TO THE ATTORNEY GENERAL TO FILE A 24
CIVIL ACTION IN ACCORDANCE WITH § 17–224 OF THIS SUBTITLE. 25

17–224. 26

(a) (1) If an employee under a public work contract is paid less than the 27
prevailing wage rate for that employee’s classification for the work performed, the employee 28
may file a complaint with the Commissioner. 29

(2) Except as otherwise provided in this section, a complaint filed under 30
this section shall be subject to the provisions of § 17–221 of this subtitle. 31
16 SENATE BILL 60

(3) If the Commissioner ’s investigation determines that the employer 1
violated provisions of this subtitle, the Commissioner shall try to resolve the issu e 2
informally. 3

(4) (i) If the Commissioner is unable to resolve the matter informally, 4
the Commissioner [shall] MAY: 5

1. issue an order for a hearing in accordance with § 6
17–221 of this subtitle; OR 7

2. REFER THE MATTER TO THE ATTORNEY GENERAL TO 8
FILE A CIVIL ACTION IN ACCORDANCE WITH THIS SECTION. 9

(ii) If, at the conclusion of a hearing ordered under subparagraph 10
[(i)] (I)1 of this paragraph, the Commissioner determines that the employee is entitled to 11
restitution under this subtitle, the Commissioner shall issue an order in accordance with § 12
17–221 of this subtitle. 13

(iii) If an employer of an employee found to be entitl ed to restitution 14
under subparagraph (ii) of this paragraph is no longer working under a contract with a 15
public body, the Commissioner may order that restitution be paid directly by the employer 16
to the employee within a reasonable period of time, as determined by the Commissioner. 17

(5) If an employer fails to comply with an order to pay restitution to an 18
employee under paragraph (4)(iii) of this subsection, the Commissioner or the employee 19
may bring a civil action to enforce the order in the circuit court in the county where the 20
employee or employer is located. 21

(b) (1) If an employee under a public work contract is paid less than the 22
prevailing wage rate for that employee ’s classification for the work performed, the 23
employee, OR THE COMMISSIONER ON BEHALF OF THE EMPLOYEE, is entitled to sue to 24
recover the difference between the prevailing wage rate and the amount received by the 25
employee. 26

(2) AN EMPLOYEE BRINGING SUIT UNDER THIS SUBSECTIO N SHALL 27
SERVE A COPY OF THE COMPLAINT ON THE COMMISSIONER. 28

(3) A determination by the Commissioner that a contractor is required to 29
make restitution under subsection (a)(4) of this section does not preclude an employee from 30
filing an action under this subsection. 31

(c) (1) An action under this section is considered to be a suit for wages. 32

(2) A judgment in an action under this section shall have the same force 33
and effect as any other judgment for wages. 34
SENATE BILL 60 17

(3) An action brought under this section for a violation of this subtitle shall 1
be filed within 3 years from the date the affected employee knew or should have known of 2
the violation. 3

(d) (1) The failure of an employee to protest orally or in writing the payment 4
of a wage that is less than the prevailing wage rate is not a bar to recovery in an actio n 5
under this section. 6

(2) A contract or other written document in which an employee states that 7
the employee shall be paid less than the amount required by this subtitle does not bar the 8
recovery of any remedy required under this subtitle. 9

(e) (1) Except as provided in paragraph (3) of this subsection, if the court in an 10
action filed under this section finds that an employer paid an employee less than the 11
requisite prevailing wage, the court shall award the affected employee the difference 12
between the wage actually paid and the prevailing wage at the time that the services were 13
rendered. 14

(2) (i) Subject to subparagraph (ii) of this paragraph, unpaid fringe 15
benefit contributions owed for an employee in accordance with this section shall be paid to 16
the appropriate benefit fund, plan, or program. 17

(ii) In the absence of an appropriate benefit fund, plan, or program, 18
the amount owed for fringe benefits for an employee shall be paid directly to the employee. 19

(3) The court may order the payment of double damages or treble damages 20
under this section if the court finds that the employer withheld wages or fringe benefits 21
willfully and knowingly or with deliberate ignorance or reckless disregard of the employer’s 22
obligations under this subtitle. 23

(4) IN ADDITION TO ANY RELIEF PROVIDED UNDER PARAGRAPHS (1) 24
THROUGH (3) OF THIS SUBSECTION, THE COMMISSIONER IS ENTITLED TO AN AWARD 25
OF LIQUIDATED DAMAGES IN ACCORDANCE WITH § 17–222 OF THIS SUBTITLE. 26

[(4)] (5) In an action under this section, the court shall award a prevailing 27
plaintiff reasonable counsel fees and costs. 28

[(5)] (6) If the court finds that an employee submitted a false or 29
fraudulent claim in an action under this section, the court may order the employee to pay 30
the employer reasonable counsel fees and costs. 31

[(6)] (7) The contractor and subcontractor shall be jointly and severally 32
liable for any violation of the subcontractor’s obligations under this section. 33

18 SENATE BILL 60

(f) (1) Subject to paragraph (2) of this subsection, an action filed in accordance 1
with this section may be brought by: 2

(I) one or more employees on behalf of: 3

1. that employee or group of employees; and [on behalf of] 4

2. other employees similarly situated; OR 5

(II) THE COMMISSIONER ON BEHALF OF: 6

1. ONE OR MORE EMPLOYEES; OR 7

2. ONE OR MORE EMPLOYEE S AND OTHER EMPLOYEE S 8
SIMILARLY SITUATED. 9

(2) An employee may not be a party plaintiff to an action brought under 10
this section unless that employee files written consent with the court in which the action is 11
brought to become a party to the action. 12

(g) (1) A person found to have made a false or fraudulent representation or 13
omission known to be false or made with deliberate ignorance or reckless disregard for its 14
truth or falsity regarding a material fa ct in connection with any prevailing wage payroll 15
record required by § 17 –220 of this subtitle is liable for a civil penalty of $1,000 for each 16
falsified record. 17

(2) The penalty shall be recoverable in a civil action filed in accordance 18
with this section and paid to the State General Fund. 19

(h) (1) An employer may not discharge, threaten, or otherwise retaliate or 20
discriminate against an employee regarding compensation or other terms and conditions of 21
employment because that employee or an organization or other person acting on behalf of 22
that employee: 23

[(1)] (I) reports or makes a complaint under this subtitle or otherwise 24
asserts the worker’s rights under this section; or 25

[(2)] (II) participates in any investigation, hearing, or inquiry held by the 26
Commissioner under § 17–221 of this subtitle. 27

(2) IF A VIOLATION OF THIS SUBSECTION IS FOUND AFTER A HEARING 28
UNDER § 17–221 OF THIS SUBTITLE, RELIEF SHALL BE AWARDED TO THE EMPLOYEE 29
AS DESCRIBED IN SUBSECTION (I)(4)(I) AND (II) OF THIS SECTION. 30

SENATE BILL 60 19

(i) (1) A contractor or subcontractor may not retaliate or discriminate against 1
an employee in violation of this section. 2

(2) If a contractor or subcontractor retaliates or discriminates against an 3
employee in violation of this section, the affected emp loyee OR THE COMMISSIONER ON 4
BEHALF OF THE EMPLOY EE may file an action in any court of competent jurisdiction 5
within 3 years from the employee’s knowledge of the action. 6

(3) AN EMPLOYEE BRINGING SUIT UNDER THIS SUBSECTIO N SHALL 7
SERVE A COPY OF THE COMPLAINT ON THE COMMISSIONER. 8

(4) If the court finds in favor of the employee in an action brought under 9
this subsection, the court shall order that the contractor or subcontractor: 10

(i) reinstate the employee or provide the employee restitution, as 11
appropriate; 12

(ii) pay the employee an amount equal to three times the amount of 13
back wages and fringe benefits calculated from the date of the violation; and 14

(iii) pay reasonable counsel fees and other costs. 15

(J) (1) TO ASSIST IN THE ENFO RCEMENT OF THIS SUBT ITLE, THE 16
COMMISSIONER AND THE ATTORNEY GENERAL, OR THEIR DESIGNEES, SHALL MEET 17
AT LEAST MONTHLY TO SHARE INFORMATION CO NCERNING MATTERS ARI SING 18
UNDER THIS SUBTITLE, TITLE 8 OF THE GENERAL PROVISIONS ARTICLE, TITLE 3, 19
SUBTITLE 9 OF THE LABOR AND EMPLOYMENT ARTICLE, AND TITLES 16 AND 18 OF 20
THIS ARTICLE, INCLUDING AT A MINIMUM: 21

(I) THE CONTENT OF COMPL AINTS OR REFERRALS R ECEIVED 22
CONCERNING POTENTIAL VIOLATIONS AND ACTIONS TAKEN; AND 23

(II) THE STATUS OF INVESTIGATIONS INITI ATED, INCLUDING 24
ANY DETERMINATION OF MERIT OR RECOVERY SOUGHT OR OBTAINED. 25

(2) THE COMMISSIONER SHALL REFER TO THE ATTORNEY GENERAL 26
ANY COMPLAINT OR REF ERRAL ARISING UNDER THIS SUBTITLE FOR WH ICH THE 27
COMMISSIONER HAS: 28

(I) NOT INI TIATED AN INVESTIGAT ION WITHIN 6 MONTHS 29
AFTER RECEIPT; 30

(II) DECLINED TO INVESTIGATE; OR 31

(III) FOUND TO BE WITHOUT MERIT. 32
20 SENATE BILL 60

(3) (I) IN A MATTER REFERRED TO THE ATTORNEY GENERAL 1
UNDER PARAGRAPH (2) OF THIS SUBSECTION , THE ATTORNEY GENERAL MAY 2
EXERCISE THE COMMISSIONER’S INVESTIGATIVE POWE RS, INCLUDING SUBPOENA 3
POWERS, PROVIDED UNDER THIS SUBTITLE. 4

(II) IF, AFTER AN INVESTIGATI ON, THE ATTORNEY GENERAL 5
FINDS A MATTER TO BE MERITORIOUS, THE ATTORNEY GENERAL SHALL PROVIDE 6
NOTICE TO AND CONSULT WITH THE COMMISSIONER, AFTER WHICH THE ATTORNEY 7
GENERAL MAY FILE A CIVIL ACTION IN THE SAME MANNER AS THE COMMISSIONER 8
UNDER THIS SECTION. 9

(4) THE COMMISSIONER AND THE ATTORNEY GENERAL SHALL 10
COOPERATE IN THE INV ESTIGATION OF ANY MA TTER ARISING UNDER T HIS 11
SUBTITLE THAT IS OF UNUSUAL SCOPE OR COMPLEXITY OR INVOLVES A NOVEL OR 12
COMPLEX LEGAL ISSUE. 13

18–107. 14

(a) Within 30 days after a complaint is filed, the Commissioner shall investigate 15
the complaint in accordance with this title. 16

(b) A written or oral complaint or statement made by an employee under this title 17
is confidential and may not be disclosed to the employer without the consent of the 18
employee. 19

(c) An employer subject to this title shall allow the Commissioner or the 20
Commissioner’s designee access to a work site and payroll records, and allow an 21
opportunity to interview employees for purposes of enforcing this title. 22

(d) (1) Within 30 days after completing an investigation, the Commissioner 23
shall: 24

(I) issue an order for a hearing; OR 25

(II) REFER THE MATTER TO THE ATTORNEY GENERAL TO FILE 26
A CIVIL ACTION IN ACCORDANCE WITH § 18–109 OF THIS TITLE. 27

(2) Within 30 days before the hearing, the Commissioner shall serve, 28
personally or by mail, written notice of the hearing on all interested parties. 29

(3) The notice shall include: 30

(i) a statement of facts disclosed in the investigation; and 31

SENATE BILL 60 21

(ii) the time and place of the hearing. 1

(4) In conducting a hearing, the Commissioner may: 2

(i) subpoena witnesses; 3

(ii) administer oaths; and 4

(iii) compel the production of records, books, papers, and other 5
evidence. 6

(e) (1) Within 30 days after the conclusion of the he aring, the Commissioner 7
shall: 8

(i) issue a determination; and 9

(ii) serve, personally or by mail, each interested party with a copy of 10
the determination. 11

(2) If the Commissioner finds a violation of this title, the Commissioner 12
shall determine the amount of restitution and liquidated damages to be assessed under § 13
18–108 of this title. 14

(3) On receipt of the determination, the employer shall pay the affected 15
employees the amount due in accordance with the Commissioner’s determination. 16

18–109. 17

(a) (1) If an employee was paid less than the wage rate required under this 18
title the employee, OR THE COMMISSIONER ON BEHALF OF THE EMPLOYEE AND ANY 19
OTHER EMPLOYEES SIMILARLY SITUATED, is entitled to sue to recover the amount of 20
the difference between the wage rate required under this title and the amount received by 21
the employee. 22

(2) A determination by the Commissioner that an employer is required to 23
make restitution does not preclude an employee from filing an action under this section. 24

(3) IN AN ACTION BROUGHT BY THE COMMISSIONER, THE 25
COMMISSIONER IS ENTITLED TO RECOVER LIQUIDATED DAMAGES AS PROVIDED IN 26
§ 18–108 OF THIS TITLE. 27

(4) AN EMPLOYEE BRINGING SUIT UNDER THIS SECTION SHALL 28
SERVE A COPY OF THE COMPLAINT ON THE COMMISSIONER. 29

(b) (1) An action under this section is considered to be a suit for wages. 30

22 SENATE BILL 60

(2) A judgment in an action under this section shall have the same force 1
and effect as any other judgment for wages. 2

(c) The failure of an employee to protest orally or in writing the payment of a 3
wage that is less than the wage rate required under this title is not a bar to recovery in an 4
action under this section. 5

18–110. 6

(A) TO ASSIST IN THE ENFO RCEMENT OF THIS TITLE, THE COMMISSIONER 7
AND THE ATTORNEY GENERAL, OR THEIR DESIGNE ES, SHALL MEET AT LEAST 8
MONTHLY TO SHARE INF ORMATION CONCERNING MATTERS ARISING UNDE R THIS 9
TITLE, TITLE 8 OF THE GENERAL PROVISIONS ARTICLE, TITLE 3, SUBTITLE 9 OF 10
THE LABOR AND EMPLOYMENT ARTICLE, AND TITLE 16 AND TITLE 17, SUBTITLE 2 11
OF THIS ARTICLE, INCLUDING AT A MINIMUM: 12

(1) THE CONTENT OF COMPL AINTS OR REFERRALS R ECEIVED 13
CONCERNING POTENTIAL VIOLATIONS AND ACTIONS TAKEN; AND 14

(2) THE STATUS OF INVEST IGATIONS INITIATED , INCLUDING ANY 15
DETERMINATION OF MERIT OR RECOVERY SOUGHT OR OBTAINED. 16

(B) THE COMMISSIONER SHALL REFER TO THE ATTORNEY GENERAL ANY 17
MATTER INVOLVING A POSSIBLE VIOLATION UNDER THIS TITLE FOR WHICH THE 18
COMMISSIONER HAS DECLINED TO INVE STIGATE AND WAS NOT OTHERWISE 19
REQUIRED TO INVESTIGATE UNDER § 18–107(A) OF THIS TITLE. 20

(C) (1) IN A MATTER REFERRED TO THE ATTORNEY GENERAL UNDER 21
SUBSECTION (B) OF THIS SECTION , THE ATTORNEY GENERAL MAY EXERCISE THE 22
COMMISSIONER’S INVESTIGATIVE POWE RS, INCLUDING SUBPOENA P OWERS, 23
PROVIDED UNDER THIS TITLE. 24

(2) IF, AFTER AN INVESTIGATION, THE ATTORNEY GENERAL FINDS A 25
MATTER TO BE MERITOR IOUS, THE ATTORNEY GENERAL SHALL PROVIDE NOTICE 26
TO AND CONSULT WITH THE COMMISSIONER, AFTER WHICH THE ATTORNEY 27
GENERAL MAY FILE AN A CTION IN THE SAME MA NNER AS THE COMMISSIONER 28
UNDER § 18–109 OF THIS TITLE. 29

(3) THE COMMISSIONER AND THE ATTORNEY GENERAL SHALL 30
COOPERATE IN THE INV ESTIGATION OF ANY MA TTER ARISING UNDER T HIS TITLE 31
THAT IS OF UNUSUAL SCOPE OR COMPLEXITY OR INVOLVES A NOVEL OR COMPLEX 32
LEGAL ISSUE. 33

SENATE BILL 60 23

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2026. 2