** "COMPLIANCE ENFORCEMENT LAWS" **

Public Works Compliance monitors, investigates, assist the enforcement of public contract and relevant labor laws on Construction projects awarded by State and Local awarding agencies. Should your company be awarded a Public Works Project, (As the prime contractor or one of its subcontractors), Public Works Compliance will monitor all projects Contractors performance for compliance in the following areas:

1. PREVAILING WAGE LAWS: Labor Code section 1771, 1773, 1773.1 require payment of not less than the per diem Prevailing wage as determined by the State Department of Industrial Relations to all workers employed on public works. This wage includes employer payments for health & welfare, pension, vacation, travel time and subsistence pay and apprenticeship or other training programs authorized by section 3093. Contractors found in violation are subject to payment of all back wages found owing and penalties of up to $50.00 per worker day and/or debarment pursuant to Labor Code section 1771.1. APPRENTICESHIP TRAINING FUNDS (ATF) are part of the PREVAILING WAGE RATE and Contractors shall pay the ATF on all hours worked by your journeymen, apprentices, sole owners, partners and corporate management personnel who worked on the job.

2. OVERTIME: shall be paid at the rate of one & one half times the prevailing rate on the check for any hours over 8 in one day plus all hours worked on Saturdays, (Sundays, and holidays may require the payment of Double Time rate). Labor Code section 1813 assesses the payment of $25.00 per worker day for violation of overtime requirements.

3. STATE CONTRACTOR LICENSE LAWS: Business and Professions Code sections 7026 and 7028.15 specify that all contractors submitting bids must be properly licensed at the time bids are submitted, (this includes all subcontractors). Labor Code section 1021 provides for penalties of up to $100.00 per worker day for contracting without the proper California State license.

4. SUBLETTING AND SUBCONTRACTING LAW: Public Contract Code sections 4100 ET. Seq. (the Subletting and Subcontracting Fair Practices Act) requires that the prime contractor list in the bid proposal the name, location of the place of business and license number of each subcontractor, and prohibits the substitution of any listed subcontractor without the formal consent of the awarding authority.

5. ITEMIZED WAGE STATEMENT: Labor Code sections 226 ET. Seq. requires that all employers provide their employees with an itemized statement of the employees’ payroll deductions. The itemized statement or "check-stub" must be provided with the employees’ paychecks or if employees are paid in cash, a written statement must be provided with the cash paid. Violations of section 226 subject the employer to a $100.00 per worker day period penalty.

6. UNEMPLOYMENT INSURANCE: Unemployment Insurance Code sections 13090 and 2101 make it unlawful for an employer to fail to report information required by law to the Employment Development Department with false information. This sort of violation commonly occurs when a contractor fails to withhold payroll taxes from his employees and then fails to report wages to employees on the Employer’s Quarterly Tax Returns. Violations of these statutes are crime and subject violators to substantial civil penalties.

7. TAX WITHHOLDING: Revenue and Taxation Codes sections 177299.8, 18682.6 and 24447 make it unlawful for an employer to fail to withhold taxes and fail to provide employees with the form W-2.

8. ANTI-KICKBACK: Labor Code sections 1777 and 1778 prohibits the taking of any portion of the wages of any workman or working subcontractor in connection with services rendered on any public work. Such violation may constitute a felony.

9. CERTIFIED PAYROLL RECORDS REQUIRED: Labor Code section 1776 requires that all contractors or subcontractors maintain and submit upon request of the public agency certified payroll records for all construction employees. Records must furnished within 10 days of the public agency’s request or the contractor is subject to $25.00 per worker day penalty. U.S. v. Landis & Young: The court held that "whenever a sole owner or member of a partnership performs the work of a laborer of mechanic on a project that falls with in the scope of Davis-Bacon Act, the prevailing wage determination is applied." County of Shasta, Case No. 132667 the court found: Labor code Sec: 1771 and 1774 are applicable to all workers, and those sections are not limited to "employees". The sections apply to partners and sole owners who are performing the work.

10. WORKERS COMPENSATION COVERAGE REQUIRED: Labor Code section 1861 requires that all contractors or subcontractors to whom a public works contract is awarded maintain workers compensation insurance for all construction workers employed on the public works jobs and file a statement with the awarding body attesting to such coverage.

11. APPRENTICES ON PUBLIC WORKS: Labor Code section 1777.5 requires that all contractors or subcontractors on public works projects to:

1. Notify in writing the local apprenticeship committee for each applicable craft of the contractor’s public contract award with in 10 days of contract award including information specified on the DAS-140 form (available from the California Division of Apprenticeship Standards).
2. Request dispatch of and Employ State registered apprentices in accordance with the required 1:5 ratio of apprentice to journeyman hours.
3. Required paying apprenticeship contributions to either the local Apprenticeship Committee or the California Apprenticeship Council. Violations may result in being denied the right to bid on public works projects for one year and civil penalties of $50.00 per calendar day of non-compliance.

NOTE: HELPER or CRAFT TENDER sub-classifications do not prevail as apprenticeship classification

12. IMMIGRATION LAW: For all contractors that violate the immigration law, civil penalties (depending on the violation) are from $250.00 to $10,000.00 per alien employed. In the event of a pattern, six months imprisonment is possible.

13. MINORITY AND WOMEN BUSINESS OPPORTUNITES: In accordance with Public Contract Code section 10108.5, contractors shall ensure that minority and women business enterprises have the maximum opportunity to participate in the performance of contracts and subcontracts.

14. HEALTH AND SAFETY LAWS: Labor Code sections 6400 ET. Seq. requires that all employers furnish a safe and healthful place of employment; establish implement and maintain an effective injury prevention program; and comply with all applicable occupational safety and health standards.

* NOTICE *

Strict compliance with the entire above public contracting laws benefits responsible contractors and the tax-paying public alike. Contractors are assured of a "level playing field" in which to bid. This results in the most responsible contractors bidding and performing public construction jobs and provides the highest quality product for each tax dollar spent. PUBLIC WORKS COMPLIANCE is dedicated to the compliance of PUBLIC WORKS LAWS. They will investigate all Public Works Projects in the Central Valley. They will aid any contractor requesting assistance, and file all necessary complaints of Willful Non-Compliance violations with the proper State agencies charged with the enforcement of the PUBLIC WORKS LAWS.

For further information on contractor responsibilities on public works contracts, you may contact any of the state agencies listed below:

45 Fremont Street, Suite # 1050

San Francisco, CA 94105 Ph: (415) 975-2035

Public Works Unit

2424 Arden Way, Suite # 340

Sacramento, CA 95825 Ph: (916) 263-2892

Prevailing Wage Unit

45 Fremont Street, Suite # 1160

San Francisco, CA 94105 Ph: (415) 792-8628

Information & Assistance

45 Fremont Street, Suite # 3160

San Francisco, CA 94105 Ph: (415) 975-2051

9835 Goethe Road

Sacramento, CA 95827 Ph: 1-800-321-CLSB

Cal OSHA Consultation Services - Information

45 Fremont Street, Suite # 1260

San Francisco, CA 94105 Ph: (415) 975-8515