Senate committee advances bill to create public‑works compliance division in labor commissioner's office

CARSON CITY — The Senate Committee on Government Affairs on May 26 advanced Assembly Bill 502, a public‑works measure that would create a Public Works Compliance Division within the Nevada Labor Commissioner’s office, impose deadlines for public bodies to audit certified payroll reports, and give the labor commissioner discretion when imposing contractor disqualifications.

Assemblymember Max Carter, sponsor of AB 502, introduced the measure and said it aims to “bolster and improve procedures” in the Labor Commissioner’s office. Nevada Labor Commissioner Brett Harris told the committee the new division would allow public‑works matters to be handled with the same streamlined process as private wage and hour claims.

“The public works compliance process ends up being kind of a triage situation,” Harris said, describing a backlog of older cases. He said the bill would establish timelines so that public bodies must complete an investigation within 90 days after substantial completion of a project, and would create an alternative referral form so public bodies lacking resources could send suspected violations to the Labor Commissioner’s office for investigation.

An amendment adopted in committee changed the earliest date a contractor may request an apprenticeship utilization determination from “not earlier than 10 days” to “not earlier than 30 days,” a change described at the hearing as clarifying planning timelines for apprenticeship programs.

The bill also modifies statutory consequences for violations of Nevada’s public‑works law. Under the committee amendment the Labor Commissioner would have discretion in setting disqualification periods after administrative penalties, with a stepped range: first offense may be a warning up to 180 days’ disqualification; second offense, not less than 180 days up to three years; third offense, not less than three years up to five years; and subsequent offenses carry five years. Harris said the change aligns disqualification periods with the state’s apprenticeship utilization rules and allows graded penalties for serial offenders.

Witnesses from labor and construction industries voiced support at the hearing. Greg Esposito of the State Pipe Trades described the bill as improving the speed and fairness of investigations for workers who miss paychecks. “If you’ve ever lived check to check…that paycheck was how you’re gonna make rent that week,” Esposito said, arguing stronger enforcement helps workers recover withheld wages. Representatives from the Building and Construction Trades Council of Northern Nevada, Associated General Contractors, Nevada Contractors Association, the Regional Council of Carpenters and Associated Builders and Contractors also testified in favor, thanking the sponsor and the Labor Commissioner for negotiating the amendment.

Committee members did not formally oppose the measure. During the work session the committee voted to amend and pass AB 502; Vice Chair Orangewell moved the amend‑and‑do‑pass motion and Senator Daley seconded. The motion carried unanimously.

If enacted, AB 502 would create the compliance division structure and set the timelines and penalty discretion described in the bill text. The bill as amended preserves existing public‑body responsibilities to audit certified payrolls but requires those audits and provides a referral mechanism to the Labor Commissioner’s office when public bodies lack investigative resources.

The committee record shows AB 502 was discussed at length during the committee’s May 26 hearing and was carried forward in the work session where the amendment and do‑pass motion were approved unanimously.