BILL NUMBER: SB 954 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Hertzberg
FEBRUARY 4, 2016
An act to amend Section 1773.1 of Labor Code, relating to
prevailing wage.
LEGISLATIVE COUNSEL'S DIGEST
SB 954, as introduced, Hertzberg. Public works: prevailing wage:
per diem wages.
Existing law requires, except for public works projects of $1,000
or less, that workers employed on public works be paid not less than
the general prevailing rate of per diem wages for work of a similar
character in the locality that the public work is performed, and not
less than the general prevailing rate of per diem wages for holiday
and overtime work fixed, as prescribed. Existing law requires the
Director of Industrial Relations to determine the general prevailing
rate of per diem wages for work of a similar character in the
locality in which the public work is to be performed, and the general
prevailing rate of per diem wages for holiday and overtime work.
Existing law includes, as per diem wages, employer payment for
industry advancement and collective bargaining agreements
administrative fees, provided that these payments are required under
a collective bargaining agreement pertaining to the particular craft,
classification, or type of work within the locality or the nearest
labor market area at issue. Per diem wages also include employer
payments for other purposes similar to those specified, including,
but not limited to, certain apprenticeship or other training
programs, to the extent that the cost of training is reasonably
related to the amount of the contributions, and worker protection and
assistance programs or committees established under the federal
Labor Management Cooperation Act of 1978, to the extent that the
activities of the programs or committees are directed to the
monitoring and enforcement of laws related to public works.
This bill would instead require per diem wages to include industry
advancement and collective bargaining agreements administrative
fees, provided that the employer is required by a collective
bargaining agreement to make those payments. The bill would also
exclude from per diem wages, employer payments for other purposes
similar to certain apprenticeship or other training programs, worker
protection and assistance programs or committees established under
the federal Labor Management Cooperation Act of 1978, and industry
advancement and collective bargaining agreements administrative fees.
Existing law provides that employer payments are credits against
the obligation to pay the general prevailing rate of per diem wages.
Credit is prohibited for benefits required to be provided by other
state or federal law or for payments made to monitor and enforce laws
related to public works if those payments are not made to a program
or committee established under the federal Labor Management
Cooperation Act of 1978.
This bill would also prohibit credit for payments for industry
advancement if those payments are not required by a collective
bargaining agreement.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1773.1 of the Labor Code is amended to read:
1773.1. (a) Per diem wages, as the term is used in this chapter
or in any other statute applicable to public works, includes employer
payments for the following:
(1) Health and welfare.
(2) Pension.
(3) Vacation.
(4) Travel.
(5) Subsistence.
(6) Apprenticeship or other training programs authorized by
Section 3093, to the extent that the cost of training is reasonably
related to the amount of the contributions.
(7) Worker protection and assistance programs or committees
established under the federal Labor Management Cooperation Act of
1978 (29 U.S.C. Sec. 175a), to the extent that the activities of the
programs or committees are directed to the monitoring and enforcement
of laws related to public works.
(8) Industry advancement and collective bargaining agreements
administrative fees, provided that these payments are
required under a collective bargaining agreement pertaining to the
particular craft, classification, or type of work within the locality
or the nearest labor market area at issue. the
employer is required by a collective bargaining agreement to make
these payments.
(9) Other purposes similar to those specified in paragraphs (1) to
(8), (5), inclusive.
(b) Employer payments include all of the following:
(1) The rate of contribution irrevocably made by the employer to a
trustee or third person pursuant to a plan, fund, or program.
(2) The rate of actual costs to the employer reasonably
anticipated in providing benefits to workers pursuant to an
enforceable commitment to carry out a financially responsible plan or
program communicated in writing to the workers affected.
(3) Payments to the California Apprenticeship Council pursuant to
Section 1777.5.
(c) Employer payments are a credit against the obligation to pay
the general prevailing rate of per diem wages. However, credit shall
not be granted for benefits required to be provided by other state or
federal law, or for payments made to monitor and
enforce laws related to public works if those payments are not made
to a program or committee established under the federal Labor
Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a).
175a), or for payments for industry advancement if
those payments are not required by a collective bargaining agreement.
Credits for employer payments also shall not reduce the
obligation to pay the hourly straight time or overtime wages found to
be prevailing. However, an increased employer payment contribution
that results in a lower hourly straight time or overtime wage shall
not be considered a violation of the applicable prevailing wage
determination if all of the following conditions are met:
(1) The increased employer payment is made pursuant to criteria
set forth in a collective bargaining agreement.
(2) The basic hourly rate and increased employer payment are no
less than the general prevailing rate of per diem wages and the
general prevailing rate for holiday and overtime work in the director'
s general prevailing wage determination.
(3) The employer payment contribution is irrevocable unless made
in error.
(d) An employer may take credit for an employer payment specified
in subdivision (b), even if contributions are not made, or costs are
not paid, during the same pay period for which credit is taken, if
the employer regularly makes the contributions, or regularly pays the
costs, for the plan, fund, or program on no less than a quarterly
basis.
(e) The credit for employer payments shall be computed on an
annualized basis when the employer seeks credit for employer payments
that are higher for public works projects than for private
construction performed by the same employer, unless one or more of
the following occur:
(1) The employer has an enforceable obligation to make the higher
rate of payments on future private construction performed by the
employer.
(2) The higher rate of payments is required by a project labor
agreement.
(3) The payments are made to the California Apprenticeship Council
pursuant to Section 1777.5.
(4) The director determines that annualization would not serve the
purposes of this chapter.
(f) (1) For the purpose of determining those per diem wages for
contracts, the representative of any craft, classification, or type
of worker needed to execute contracts shall file with the Department
of Industrial Relations fully executed copies of the collective
bargaining agreements for the particular craft, classification, or
type of work involved. The collective bargaining agreements shall be
filed after their execution and thereafter may be taken into
consideration pursuant to Section 1773 whenever they are filed 30
days prior to the call for bids. If the collective bargaining
agreement has not been formalized, a typescript of the final draft
may be filed temporarily, accompanied by a statement under penalty of
perjury as to its effective date.
(2) When a copy of the collective bargaining agreement has
previously been filed, fully executed copies of all modifications and
extensions of the agreement that affect per diem wages or holidays
shall be filed.
(3) The failure to comply with filing requirements of this
subdivision shall not be grounds for setting aside a prevailing wage
determination if the information taken into consideration is correct.