290.250.  Applicable wage rates, incorporation into contracts — failure to pay, penalty — complaints of violation, public body or prime contractor to withhold payment — determination of a violation, investigation required — employer's right to dispute — enforcement proceeding permitted, when. — 1.  Every public body authorized to contract for or construct public works before advertising for bids or undertaking such construction shall request the department to determine the applicable wage rates in the locality where the work is to be performed.  The department shall determine the applicable wage rates in the locality in which the work is to be performed as provided in section 290.257.  Such determination or schedule of the wage rates shall be attached to and made a part of the specifications for the work.  The public body shall then specify in the resolution or ordinance and in the call for bids for the contract the wage rates in the locality needed to execute the contract.  The contractor to whom the contract is awarded and any subcontractor under the contractor shall pay not less than the specified wage rates to all workers employed by them in the execution of the contract.  The public body awarding the contract shall cause to be inserted in the contract a stipulation to the effect that not less than the specified wage rates shall be paid to all workers performing work under the contract.  The contractor shall forfeit as a penalty to the public body on whose behalf the contract is made or awarded one hundred dollars for each worker employed, for each calendar day, or portion thereof, such worker is paid less than the specified wage rates for any work done under the contract, by the contractor or by any subcontractor under the contractor, and the public body awarding the contract shall cause to be inserted in the contract a stipulation to this effect.  The public body awarding the contract, and its agents and officers, shall take cognizance of all complaints of all violations of the provisions of sections 290.210 to 290.340 committed in the course of the execution of the contract, and, when making payments to the contractor becoming due under the contract, shall withhold and retain therefrom all sums and amounts due and owing as a result of any violation of sections 290.210 to 290.340.  Any contractor may withhold from any subcontractor sufficient sums to cover any penalties withheld by the awarding public body on account of the subcontractor's failure to comply with the terms of sections 290.210 to 290.340, and if payment has already been made, the contractor may recover from the subcontractor the amount of the penalty in a suit at law.

  2.  In determining whether a violation of sections 290.210 to 290.340 has occurred, and whether a penalty shall be imposed pursuant to subsection 1 of this section, the department shall investigate any complaint made by an interested party listed under section 290.240.  Upon completing such investigation, the department shall notify the employer of its findings.  If the department concludes that a violation of sections 290.210 to 290.340 has occurred and a penalty may be due, the department shall notify the employer of such finding by providing a notice of penalty to the employer.  Such penalty shall not be due until forty-five days after the date of the notice of the penalty.

  3.  The employer shall have the right to dispute such notice of penalty in writing to the department within forty-five days of the date of the notice.  Upon receipt of this written notice of dispute, the department shall notify the employer of the right to resolve such dispute through arbitration.  The state and the employer shall submit to an arbitration process to be established by the department by rule, and in conformance with the guidelines and rules of the American Arbitration Association or other arbitration process mutually agreed upon by the employer and the state.  If at any time prior to the department pursuing an enforcement action to enforce the monetary penalty provisions of subsection 1 of this section against the employer, the employer pays the back wages as determined by either the department or the arbitrator, the department shall be precluded from initiating any enforcement action to impose the monetary penalty provisions of subsection 1 of this section.

  4.  If the employer fails to pay all wages due as determined by the arbitrator within forty-five days following the conclusion of the arbitration process, or if the employer fails to exercise the right to seek arbitration, the department may then pursue an enforcement action to enforce the monetary penalty provisions of subsection 1 of this section against the employer.  If the court orders payment of the penalties as prescribed in subsection 1 of this section, the department shall be entitled to recover its actual cost of enforcement from such penalty amount.

  5.  Nothing in this section shall be interpreted as precluding an action for enforcement filed by an aggrieved employee as otherwise provided in law.