Public Works requirements and Labor Compliance Programs

1771.  Except for public works projects of one thousand dollars

($1,000) or less, not less than the general prevailing rate of per

diem wages for work of a similar character in the locality in which

the public work is performed, and not less than the general

prevailing rate of per diem wages for holiday and overtime work fixed

as provided in this chapter, shall be paid to all workers employed

on public works.

   This section is applicable only to work performed under contract,

and is not applicable to work carried out by a public agency with its

own forces. This section is applicable to contracts let for

maintenance work.

1771.2.  A joint labor-management committee established pursuant to

the federal Labor Management Cooperation Act of 1978 (Section 175a of

Title 29 of the United States Code) may bring an action in any court

of competent jurisdiction against an employer that fails to pay the

prevailing wage to its employees, as required by this article.  This

action shall 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 last occurs.

1771.5.  (a) Notwithstanding Section 1771, an awarding body shall

not require the payment of the general prevailing rate of per diem

wages or the general prevailing rate of per diem wages for holiday

and overtime work for any public works project of twenty-five

thousand dollars ($25,000) or less when the project is for

construction work, or for any public works project of fifteen

thousand dollars ($15,000) or less when the project is for

alteration, demolition, repair, or maintenance work, if the awarding

body elects to initiate and enforce a labor compliance program

pursuant to subdivision (b) for every public works project under the

authority of the awarding body.

   (b) For the purposes of this section, a labor compliance program

shall include, but not be limited to, the following requirements:

   (1) All bid invitations and public works contracts shall contain

appropriate language concerning the requirements of this chapter.

   (2) A prejob conference shall be conducted with the contractor and

subcontractors to discuss federal and state labor law requirements

applicable to the contract.

   (3) Project contractors and subcontractors shall maintain and

furnish, at a designated time, a certified copy of each weekly

payroll containing a statement of compliance signed under penalty of

perjury.

   (4) The awarding body shall review, and, if appropriate, audit

payroll records to verify compliance with this chapter.

   (5) The awarding body shall withhold contract payments when

payroll records are delinquent or inadequate.

   (6) The awarding body shall withhold contract payments equal to

the amount of underpayment and applicable penalties when, after

investigation, it is established that underpayment has occurred.

1771.6.  (a) Any awarding body that enforces this chapter in

accordance with Section 1726 or 1771.5 shall provide notice of the

withholding of contract payments to the contractor and subcontractor,

if applicable.  The notice shall be in writing and shall describe

the nature of the violation and the amount of wages, penalties, and

forfeitures withheld.  Service of the notice shall be completed

pursuant to Section 1013 of the Code of Civil Procedure by

first-class and certified mail to the contractor and subcontractor,

if applicable. The notice shall advise the contractor and

subcontractor, if applicable, of the procedure for obtaining review

of the withholding of contract payments.

   The awarding body shall also serve a copy of the notice by

certified mail to any bonding company issuing a bond that secures the

payment of wages covered by the notice and to any surety on a bond,

if their identities are known to the awarding body.

   (b) The withholding of contract payments in accordance with

Section 1726 or 1771.5 shall be reviewable under Section 1742 in the

same manner as if the notice of the withholding was a civil penalty

order of the Labor Commissioner under this chapter.  If review is

requested, the Labor Commissioner may intervene to represent the

awarding body.

   (c) Pending a final order, or the expiration of the time period

for seeking review of the notice of the withholding, the awarding

body shall not disburse any contract payments withheld.

   (d) From the amount recovered, the wage claim shall be satisfied

prior to the amount being applied to penalties.  If insufficient

money is recovered to pay each worker in full, the money shall be

prorated among all workers.

   (e) Wages for workers who cannot be located shall be placed in the

Industrial Relations Unpaid Wage Fund and held in trust for the

workers pursuant to Section 96.7.  Penalties shall be paid into the

General Fund of the awarding body that has enforced this chapter

pursuant to Section 1771.5.

1771.7 is pending legislation (9/02) that would require schools to have a Labor Compliance Program in effect before having access to the $12.5 Billion Public Education Facilities Bond.