AB 1336, as amended, Frazier. Prevailing wages: payroll records.
Existing law requires contractors engaged in public works to pay employees the prevailing wage, as determined by the Director of Industrial Relations, and to comply with requirements relating to recordkeeping and employee work schedules. A joint labor-management committee, established pursuant to a specified provision of federal law, is authorized to bring an action against any employer who fails to pay prevailing wages as required by state law. The action is required to be commenced not later than 180 days after the filing of a valid notice of completion in the office of the county recorder in each county in which the public work, or some part thereof, was performed, or not later than 180 days after acceptance of the public work, whichever occurs last.
This bill would delete the requirement
begin delete that the action be commenced not later than 180 days after the filing of a valid notice of completion, as prescribed, or not later than 180 days after acceptance of the public work, whichever occurs last,end delete
and would instead require that the action be commenced not later than begin delete 24 months after the wages were dueend delete. The bill would require, among other things, the court, in an action on prevailing wages, to award restitution to an employee for unpaid wages, plus interest, from the date the wages became payable,
and would authorize the imposition of civil penalties, injunctive relief, or any other appropriate equitable relief.
Existing law requires each contractor and subcontractor to keep accurate payroll records showing the name, address, social security number, work classification, straight time, and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Any copy of records made available for inspection by, or furnished to, a joint labor-management committee is required to be marked or obliterated only to prevent disclosure of an individual’s name and social security number.
This bill would instead require that any copy of payroll records made available for inspection by, or furnished to, a joint labor-management committee, established pursuant to federal law, is required to be marked or obliterated only to prevent disclosure of an individual’s social security number. The bill would also require that any copy of records made available for inspection by, or furnished to, a multiemployer Taft-Hartley trust fund that requests the records for the purposes of allocating contributions to participants be marked or obliterated only to prevent disclosure of an individual’s full social security number, but provide the last 4 digits of the social security number.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) If the Labor Commissioner or his or her designee
4determines after an investigation that there has been a violation of
5this chapter, the Labor Commissioner shall with reasonable
6promptness issue a civil wage and penalty assessment to the
7contractor or subcontractor or both. The assessment shall be in
begin delete andend delete shall describe the nature of the violation and the
9amount of wages, penalties, and forfeitures due and shall include
10the basis for the assessment. The assessment shall be served not
begin delete 180 daysend delete after the filing of a valid notice of
12completion in the office of the county recorder in each county in
13which the public work or some part thereof was performed, or not
begin delete 180 daysend delete after acceptance of the public work,
15whichever occurs last.
begin delete However, if the assessment is served after
Service of the assessment shall be
16the expiration of this 180-day period, but before the expiration of
17an additional 180 days, and the awarding body has not yet made
18full payment to the contractor, the assessment is valid up to the
19amount of the funds retained.end delete
20completed pursuant to Section 1013 of the Code of Civil Procedure
21by first-class and certified mail to the contractor, subcontractor,
22and awarding body. The assessment shall advise the contractor
23and subcontractor of the procedure for obtaining review of the
24assessment. The Labor Commissioner shall, to the extent
P4 1practicable, ascertain the identity of any bonding company issuing
2a bond that secures the payment of wages covered by the
3assessment and any surety on a bond, and shall serve a copy of the
4assessment by certified mail to the bonding company or surety at
5the same time service is made to the contractor, subcontractor, and
6awarding body. However, no bonding company or surety shall be
7relieved of its responsibilities because it failed to receive notice
8from the Labor Commissioner.
9(b) Interest shall accrue on all due and unpaid wages at the rate
10described in subdivision (b) of Section 3289 of the Civil Code.
11The interest shall accrue from the date that the wages were due
12and payable, as provided in Part 7 (commencing with Section
131720) of Division 2, until the wages are paid.
14(c) (1) The Labor Commissioner shall maintain a public list of
15the names of each contractor and subcontractor who has been found
16to have committed a willful violation of Section 1775 or to whom
17a final order, which is no longer subject to judicial review, has
19(2) The list shall include the date of each assessment, the amount
20of wages and penalties assessed, and the amount collected.
21(3) The list shall be updated at least quarterly, and the
22contractor’s or subcontractor’s name shall remain on that list until
23the assessment is satisfied, or for a period of three years beginning
24from the date of the issuance of the assessment, whichever is later.
Section 1771.2 of the Labor Code is amended to read:
(a) A joint labor-management committee established
28pursuant to the federal Labor Management Cooperation Act of
291978 (29 U.S.C. Sec. 175a) may bring an action in any court of
30competent jurisdiction against an employer that fails to pay the
31prevailing wage to its employees, as required by this article. This
32action shall be commenced not later than
begin delete 24 months after the wages
33were due.end delete
38(b) (1) In an action brought pursuant to this section, the court
39shall award restitution to an employee for unpaid wages, plus
40interest, under Section 3289 of the Civil Code from the date that
P5 1the wages became due and payable, and liquidated damages equal
2to the amount of unpaid wages owed, and may impose civil
3penalties in accordance with Section 1775, injunctive relief, or
4any other appropriate form of equitable relief. The court shall award a prevailing joint
begin delete labor committee its reasonable
9attorney’s fees and costs incurred in maintaining the action,
10including expert witness fees.
11(2) An action pursuant to this section shall not be based on the
12employer’s misclassification of the craft of a worker in its certified
28 This subdivision does not limit
any other available remedies
29for a violation of this chapter.
Section 1776 of the Labor Code is amended to read:
(a) Each contractor and subcontractor shall keep accurate
33payroll records, showing the name, address, social security number,
34work classification, straight time and overtime hours worked each
35day and week, and the actual per diem wages paid to each
36journeyman, apprentice, worker, or other employee employed by
37him or her in connection with the public work. Each payroll record
38shall contain or be verified by a written declaration that it is made
39under penalty of perjury, stating both of the following:
P6 1(1) The information contained in the payroll record is true and
3(2) The employer has complied with the requirements of
4Sections 1771, 1811, and 1815 for any work performed by his or
5her employees on the public works project.
6(b) The payroll records enumerated under subdivision (a) shall
7be certified and shall be available for inspection at all reasonable
8hours at the principal office of the contractor on the following
10(1) A certified copy of an employee’s payroll record shall be
11made available for inspection or furnished to the employee or his
12or her authorized representative on request.
13(2) A certified copy of all payroll records enumerated in
14subdivision (a) shall be made available for inspection or furnished
15upon request to a representative of the body awarding the contract
16and the Division of Labor Standards Enforcement of the
17Department of Industrial Relations.
18(3) A certified copy of all payroll records enumerated in
19subdivision (a) shall be made available upon request by the public
20for inspection or for copies thereof. However, a request by the
21public shall be made through either the body awarding the contract
22or the Division of Labor Standards Enforcement. If the requested
23payroll records have not been provided pursuant to paragraph (2),
24the requesting party shall, prior to being provided the records,
25reimburse the costs of preparation by the contractor, subcontractors,
26and the entity through which the request was made. The public
27may not be given access to the records at the principal office of
29(c) The certified payroll records shall be on forms provided by
30the Division of Labor Standards Enforcement or shall contain the
31same information as the forms provided by the division. The
32payroll records may consist of printouts of payroll data that are
33maintained as computer records, if the printouts contain the same
34information as the forms provided by the division and the printouts
35are verified in the manner specified in subdivision (a).
36(d) A contractor or subcontractor shall file a certified copy of
37the records enumerated in subdivision (a) with the entity that
38requested the records within 10 days after receipt of a written
P7 1(e) Except as provided in subdivision (f), any copy of records
2made available for inspection as copies and furnished upon request
3to the public or any public agency by the awarding body or the
4Division of Labor Standards Enforcement shall be marked or
5obliterated to prevent disclosure of an individual’s name, address,
6and social security number. The name and address of the contractor
7awarded the contract or the subcontractor performing the contract
8shall not be marked or obliterated. Any copy of records made
9available for inspection by, or furnished to, a multiemployer
10Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests
11the records for the purposes of allocating contributions to
12participants shall be marked or obliterated only to prevent
13disclosure of an individual’s full social security number, but shall
14provide the last four digits of the social security number. Any copy
15of records made available for inspection by, or furnished to, a joint
16labor-management committee established pursuant to the federal
17Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a)
18shall be marked or obliterated only to prevent disclosure of an
19individual’s social security number.
begin delete A joint labor management
20committee may maintain an action in a court of competent
21jurisdiction against an employer who fails to comply with Section
221774. The court may award restitution to an employee for unpaid
23wages and may award the joint labor management committee
24reasonable attorney’s fees and costs incurred in maintaining the
25action. An action under this subdivision may not be based on the
26employer’s misclassification of the craft of a worker on its certified
27payroll records. Nothing in this subdivision limits any other
28available remedies for a violation of this chapter.end delete
29(f) (1) Notwithstanding any other provision of law, agencies
30that are included in the Joint Enforcement Strike Force on the
31Underground Economy established pursuant to Section 329 of the
32Unemployment Insurance Code and other law enforcement
33agencies investigating violations of law shall, upon request, be
34provided nonredacted copies of certified payroll records. Any
35copies of records or certified payroll made available for inspection
36and furnished upon request to the public by an agency included in
37the Joint Enforcement Strike Force on the Underground Economy
38or to a law enforcement agency investigating a violation of law
39shall be marked or redacted to prevent disclosure of an individual’s
40name, address, and social security number.
P8 1(2) An employer shall not be liable for damages in a civil action
2for any reasonable act or omission taken in good faith in
3compliance with this subdivision.
4(g) The contractor shall inform the body awarding the contract
5of the location of the records enumerated under subdivision (a),
6including the street address, city, and county, and shall, within five
7working days, provide a notice of a change of location and address.
8(h) The contractor or subcontractor has 10 days in which to
9comply subsequent to receipt of a written notice requesting the
10records enumerated in subdivision (a). In the event that the
11contractor or subcontractor fails to comply within the 10-day
12period, he or she shall, as a penalty to the state or political
13subdivision on whose behalf the contract is made or awarded,
14forfeit one hundred dollars ($100) for each calendar day, or portion
15thereof, for each worker, until strict compliance is effectuated.
16Upon the request of the Division of Labor Standards Enforcement,
17these penalties shall be withheld from progress payments then due.
18A contractor is not subject to a penalty assessment pursuant to this
19section due to the failure of a subcontractor to comply with this
21(i) The body awarding the contract shall cause to be inserted in
22the contract stipulations to effectuate this section.
23(j) The director shall adopt rules consistent with the California
24Public Records Act (Chapter 3.5 (commencing with Section 6250)
25of Division 7 of Title 1 of the Government Code) and the
26Information Practices Act of 1977 (Title 1.8 (commencing with
27Section 1798) of Part 4 of Division 3 of the Civil Code) governing
28the release of these records, including the establishment of
29reasonable fees to be charged for reproducing copies of records
30required by this section.