Summary:

 House Bill 305 (HB 305) requires that public contracts provide for increased contractor and subcontractor reimbursement and worker wage increases in accordance with and concurrent with state minimum wage increases or increased costs as mandated by law.  

Legislation Overview:

 House Bill 305 (HB 305) enacts a new section of the Minimum Wage Act (MWA) to read:

A. Beginning July 1, 2025, a state agency that contracts for services shall include in the terms of that contract: 

(1) a provision for increasing reimbursement so that the contractor and any subcontractor to that contract are held harmless for any wage increase resulting from an increase in the state minimum wage or cost increase resulting from a change to statutory benefits; and 
(2) a requirement that individuals employed pursuant to that contract or a subcontract of that contract who are paid the state minimum wage will receive wage increases in accordance with and concurrent with increases in the state minimum wage. 

B. As used in this section: 

(1) "contract" means any agreement for the procurement of services; 
(2) "services" means the furnishing of labor, time or effort by a contractor or subcontractor not involving the delivery of a specific end product other than reports and other materials that are merely incidental to the required performance; 
(3) "statutory benefits" means any benefit that an employer is required by state law to provide to the employer's employees; and 
(4) "subcontract" means a contract subordinate to another superordinate contract, which subcontract is to procure in whole or in part services to be procured under the terms of the superordinate contract.



 

Current Law:

 The proposed requirement that public contracts provide for increased contractor and subcontractor reimbursement and worker wage increases in accordance with state minimum wage increases or increased costs is not in place.