| Q. |
How do we find out when this section of law is in effect? |
| A. |
Go to the Division of Labor Standards website (http://www.dolir.mo.gov/ls/index.asp) and click on the Prevailing Wage Section; or call us at (573) 751-3403. |
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| Q. |
Has a condition of excessive unemployment ever been declared?
A. Yes. The Missouri Prevailing Wage Law Sections 290.550 to 290.580 Public Works During Excessive Unemployment were in effect from: July 21, 2003 through December 19, 2003, July 20, 2004 through September 12, 2005, January 13, 2006 through March 8, 2006, and again December 21, 2006 through January 19, 2007. |
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| Q. |
If excess unemployment is declared, will it pertain to new public works projects that are currently out for bid or in the contract negotiation stage? Will this exclude projects already contracted and under way? |
| A. |
Yes. It will apply to all projects out for bid, and being awarded. It will not apply to projects already contracted and/or underway. |
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| Q. |
If non-resident labor was excluded at the beginning of the contract, but the unemployment rate falls during the construction period, will non-resident laborers be allowed? |
| A. |
No. Section 290.560 requires every public works construction contract to contain a provision requiring that Missouri laborers or laborers from non-restrictive states be used when the statute is in effect. Since the contract covers an entire project, the law would be in effect for the duration of the project. |
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| Q. |
Does this apply to contracts let during the restrictive/excessive unemployment time period or is it for any work done during this time period regardless of when the project was awarded? For instance, if the contract was awarded in August but the law did not go into effect until January, and the workers doing the work right now are from Illinois, what actions would be taken if any? |
| A. |
This will only apply to contracts let when the law is in effect. There would be no retroactive action taken. |
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| Q. |
During excessive unemployment may a contract be awarded to construction firms located in restrictive states? |
| A. |
Yes, but only Missouri laborers or laborers from nonrestrictive states can be employed on the project except as provided in sections 290.560 and 290.565. |
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| Q. |
What is a nonrestrictive state and what criteria is used to determine the nonrestrictive status? |
| A. |
A nonrestrictive state is a state that has not enacted state laws restricting Missouri laborers from working on public works projects in that state. A list of such states is determined and provided by the Labor and Industrial Relations Commission (LIRC) as pursuant to 290.550(1). |
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| Q. |
Which States are "Nonrestrictive States" in regards to the "period of excessive unemployment" referred to in Section 290.560 Missouri Revised Statutes? |
| A. |
Nonrestrictive states, which includes the District of Columbia and the territories, and the words "United States" includes such district and territories, as of January 2008 are:
Alabama, American Samoa, Arkansas, Georgia, Guam, Hawaii, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington and Wisconsin. |
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| Q. |
Are workers from the states listed above able to work on public works projects in Missouri? |
| A. |
Yes, as long as those states remain nonrestrictive states. (See 290.560) |
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| Q. |
Do we look at where the workers live only or is the home state of the contractor looked at? |
| A. |
We look at where the workers live. The statute is not concerned with the home state of the contractor. It only restricts contractors in that they must employ only Missouri laborers or laborers from nonrestrictive states on public works projects during periods of excessive unemployment. |
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| Q. |
Who declares that a condition of excessive unemployment exists? |
| A. |
The Division of Labor Standards is the agency charged with administration of this law. However, the statute's requirements go into effect only after the Bureau of Labor Statistics (BLS) seasonally adjusted unemployment data published for Missouri show two months over 5% unemployment. Seasonally adjusted data is the only appropriate data to use in the case of a statute concerning public works construction since the construction industry is seasonal itself. Unemployment data obtained from BLS is not released until the third or fourth week of the month after the end of each previous month. Therefore, the requirement to use Missouri laborers or laborers from nonrestrictive states will be in effect when we have received information that the unemployment rate has exceeded 5% for two consecutive months. When in effect, notice will be provided to effected parties and/or posted on http://www.dolir.mo.gov/ls/index.asp. The effectiveness will end when new data is received indicating the unemployment rate is 5% or less. |
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| Q. |
What happens if the statute is not followed? |
| A. |
If the statute is not followed, Chapter 290.580 RSMo provides injunctive relief against the awarding or continuation of work under any public works contract. Monetary penalties could be assessed by the courts. |
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| Q. |
Who gets penalized if rule is not followed? |
| A. |
The action noted above could be against the public body or the contractor as they are both party to the contract that did not comply with the law. |
