BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1336
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          AB 1336 (Frazier)
          As Amended  June 24, 2013
          Majority vote
          |ASSEMBLY:  |49-21|(May 24, 2013)  |SENATE: |25-11|(September 3,  |
          |           |     |                |        |     |2013)          |
           Original Committee Reference:    L. & E.  

           SUMMARY  :  Enacts various provisions of law related to  
          enforcement of prevailing wage law by specified joint-labor  
          management committees.  

           The Senate amendments  :

          1)Reduce the proposed increase to the statute of limitations for  
            specified enforcement actions from 24 months to 18 months  
            after the filing of a valid notice of completion of acceptance  
            of the public work.

          2)Increase the deadline for service by the Labor Commissioner of  
            specified assessments from 180 days to 18 months after the  
            filing of a valid notice of completion of acceptance of the  
            public work.

          3)Specify that the civil penalties established under this bill  
            may only be imposed against an employer that failed to pay the  
            prevailing wage to its employees.

          4)Specify that, in imposing civil penalties established under  
            this bill, a court shall follow the same standards and have  
            the same discretion in setting the amount of penalties as are  
            provided in a specified provision of existing law.

          5)Provide that liquidated damages shall only be awarded if the  
            complaint alleges with specificity the wages due and unpaid,  
            and the defendant fails to pay the wages, deposit that amount  
            with the court to be held in escrow, or provide proof to the  
            court of an adequate surety bond.

          6)Provide that liquidated damages shall be awarded only on the  
            wages found to be due and unpaid.


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          7)Authorize a court to exercise discretion to waive the payment  
            of liquidated damages, as specified.

          8)Make other related technical and conforming changes.

           FISCAL EFFECT  :  According to the Senate Appropriations Committee  
          pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  This bill is sponsored by the State Building and  
          Construction Trades Council of California, who argues that it  
          will enhance the state's enforcement efforts to combat the  
          underground economy, protect the public's investment in  
          infrastructure and protect workers from wage theft.

          The sponsor states that the change in the statute of limitations  
          for claims will allow for adequate time for a legal remedy for  
          workers cheated out of wages they are owed since victims of wage  
          theft are underpaid for years on multiple projects and only come  
          forward when their employment with the contractor ends.

          In addition, the sponsor states that under current law, a joint  
          labor-management committee that requests certified payroll  
          records receives them only with the workers' addresses and not  
          the workers' names.  However, many instances of wage theft  
          involve payroll records that do not report all the hours an  
          employee is actually working.  Providing the names of the  
          employees will allow the committee to properly follow-up and  
          determine if the payroll records are fraudulent.

          Finally, the sponsor states that this bill will provide  
          Taft-Hartley trust funds with the last four digits of social  
          security numbers, enabling the correct allocation of health  
          benefits and pension contributions to workers for which the  
          contributions were made.  The sponsor states that the redaction  
          of this information severely hinders this process and often  
          lawsuits are required to obtain this information.  Many  
          instances of wage theft involve payroll records that do not  
          report all the hours the employee is actually working and there  
          are occasions when the employer has gone out of business or  
          refuses to cooperate in an audit, so the certified payroll  
          records are the only practicable means for allocating benefit  


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          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091