BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1336
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1336 (Frazier) - As Amended:  April 17, 2013 

          Policy Committee:                              Labor and  
          Employment   Vote:                            5-2
                        Judiciary                                      7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill makes the following changes to statute governing  
          prevailing wage and joint-labor management committees (JLM  
          committees):  

          1)Extends the statute of limitations from 180 days to 24 months  
            (after the wages were due) during which time a JLM committee  
            can bring action to any court for an employer failing to pay a  
            prevailing wage, as specified.  

          2)Requires the court to award restitution to an employee for  
            unpaid wages, plus interest, from the date the wages became  
            due and payable, and liquidated damages equal to the amount of  
            unpaid wages owed.  Further authorizes the court to impose  
            civil penalties, injunctive relief, or any other appropriate  
            equitable relief, and requires the court to award a JLM  
            committee its reasonable attorney's fees and costs incurred,  
            as specified.  

          3)Prohibits an action based on the employer's misclassification  
            of the craft of a worker in its certified payroll records.   
            Also, specifies there is no limit to other available remedies  
            for a violation of the law.  

          4)Requires any copy of certified payroll records made available  
            for inspection to a multiemployer Taft-Hartley trust fund,  
            which requests the records for the purpose of allocating  
            contributions to participants, to be marked or obliterated  
            only to prevent disclosure of an individual's full social  
            security number.  The bill does, however, require the last  








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            four digits of the social security number to be provided.  

          5)Removes the requirement for a JLM committee, when making  
            available payroll records, to prevent disclosure of an  
            individual's name.  

           FISCAL EFFECT  

          Minimal fiscal impact to the Department of Industrial Relations  
          (DIR).  DIR indicates their workload may decrease as a result of  
          the prohibition an action based on the misclassification of a  
          worker.  




           COMMENTS  

           1)Purpose  .  A JLM committee, established under federal law, is a  
            panel comprised of union and management representatives to  
            investigate, study and discuss possible solutions to mutual  
            problems affecting labor-management relations.

            According to the author, "Misclassification of workers on  
            public works projects is unfair to the employees and to the  
            taxpayers funding the projects. If workers are performing  
            skilled crafts that they are not properly trained and  
            qualified to do, the quality and safety of the project, as  
            well as the safety of other employees on the job site, may be  
            jeopardized.

            "The bill extends the statute of limitations for filing a  
            lawsuit to two years, and allows employee names to be included  
            in the records provided to a joint labor-management committee,  
            to ensure that underpaid workers can be properly compensated.   
            AB 1336 will help to prevent the misclassification of workers,  
            and ensure that work is done by appropriately qualified  
            skilled workers."

           2)Opposition  .  The United Contractors is opposed to the measure  
            unless amendments are made to it.  Specifically, they are  
            concerned "the provisions of the bill might be misinterpreted  
            as authorizing causes of action against innocent third  
            parties."  Likewise, they state: "extending the time frame to  
            two years for JLM committees to commence civil actions would  








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            conflict with underlying purposes of the existing statutes of  
            limitation under the Labor Code, namely that wage claimants  
            with good cause of actions should pursue them with reasonable  
            diligence.  It is unfair and inappropriate to require  
            employers to defend themselves years after the fact, at a time  
            when they may no longer have access to witnesses or other  
            evidence to disprove a claim?"  
           
          3)Existing law  authorizes a JLM committee to bring a civil  
            action in court against an employer that fails to pay the  
            prevailing wage to its employees on a public works project.   
            This action must occur no later than 180 days after filing a  
            valid notice of completion with the county recorder, as  
            specified.  This bill proposes to extend this time period to  
            take action to 24 months after the wages were due.  

            Statute also authorizes a JLM committee to file a civil action  
            and authorizes the court to award restitution to an employee  
            for unpaid wages.  The court may award the JLM committee  
            reasonable attorney's fees and costs incurred in maintaining  
            the action.  Current law further prohibits an action from  
            being based on the employer's misclassification of the craft  
            of a worker on its certified payroll records.  This bill  
            replicates these provisions in a different code section  
            dealing with the ability of a JLM committee to file civic  
            action and adds provisions to require a court to award  
            interest and liquidated damages to an employee, as specified.   


            Current law requires any contractor or subcontractor on a  
            public works project to keep accurate payroll records  
            detailing the name, address, social security number, work  
            classification, hours worked, and wages paid to employees.   
            The certified payroll records are required to be made  
            available for inspection upon the request of an employee, the  
            awarding body, the Division of Labor Standards Enforcement, or  
            the Division of Apprenticeship Standards.  These records are  
            to be marked or obliterated to provide disclosure of an  
            individual's name, address, and social security number.    

            Statute requires any payroll records made available for  
            inspection to a JLM committee to be marked or obliterated only  
            to prevent disclosure of an individual's name and social  
            security number.  This bill proposes to delete the requirement  
            to make an individual's name available.  








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           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081