Under Labor Code section 1771, all workers
who perform work on a public works project are required to be paid the
prevailing wage rates as determined by the Director. In Lusardi
Construction Co. Vs Aubry (1992) 1 Cal. 4th 976, 987, 4 Cal.Rptr 2d 837, the court held that “By its express
language, this statutory requirement is not limited to those workers whose
employers have contractually agreed to pay prevailing wage; it applies to
‘all workers employed on public works’.”
Labor Code section 1772, the court emphasized the word “all”. Labor Code section 1774 states that
“workman” provides that “Workers employed by contractors or subcontractors in
the execution of any contract for public work are deemed to be employed upon
public work.” (NO PARTNER EXEMPTION)
The employer shall notify the Joint
Apprenticeship Committee administering the apprenticeship standards of the
craft or trade in the area of the site of the public works project. (Labor Code Section 1777.5)
will result in being denied the right to bid on public works projects for one
year and civil penalties of $100 per calendar day. (Labor Code Section
Each contractor and subcontractor shall keep an
accurate payroll record, showing the name, address, social security number,
work classification, straight time and overtime hours worked each day and
week, and the actual per diem wages paid...in conjunction with public
work. (b) The payrolls enumerated
under subdivision (a) shall be certified… (Labor Code Section 1776)
The body awarding…shall specify in the
call for bids for the contract, in the bid specifications and in the contract
itself, what the general rate of per diem wages is for each craft,
classification or type of workman needed to execute the contract ... (Labor
The contractor shall, as a penalty…forfeit
not more than fifty dollars ($50) for each calendar day, … for each worker
paid less than the prevailing wage ... The amount of this penalty shall be
determined by the Labor Commissioner ... (Labor Code Section 1775).
any contractor or subcontractor performing a public works project is found by
the Labor Commissioner to be in violation of this chapter with intent to
defraud, ... (contractor or subcontractor) shall be ineligible to bid on or
receive any public works contract for a period of not less than one year or
more than three years. (b)... shall be
ineligible to bid on or receive any public works contract for a period up to
three years for each second and subsequent violation ... (Labor Code Section
Every employer shall establish, implement and
maintain an effective injury prevention program. (Labor Code Section 6401.7).
The prime contractor shall list only one
subcontractor for each portion as defined by the prime contractor in his or
her bid. (Public Contractor Code
If a prime contractor fails to specify a
subcontractor or…specifies more than one subcontractor... the prime
contractor agrees that he or she is fully qualified to perform that portion
himself or herself and that the prime contractor shall perform that portion
... (Public Contractor Code 4106).
No prime contractor whose bid is accepted shall: Substitute any person
as subcontractor in place of the subcontractor listed in the original bid, …
(Public Contractor Code 4107).
prime contractor violating any provision of this chapter ... and the awarding
authority may exercise the option, ... of (1) canceling his or her contract
or (2) assessing the prime contractor a penalty in the amount of not more
than 10 percent of the amount of the subcontractor involved, … (Public
Contract Code 4110).
Every person licensed as a contractor
shall have on file a Certificate of Worker's Compensation Insurance, the
violation of which is subject to penalty of…automatic suspension of the
license by operation of law (Business and Professions Code 7125 and 7125.2)
Every contractor and subcontractor shall
keep accurate records showing the name of and actual hours worked each
calendar day and each calendar week by each worker employed by him or her in
connection with public work.
Code Section 1812).
It is a misdemeanor for any person to
engage in the business or act in the capacity of a contractor within this
state without having a license…(Business and Professions Code Section 7028).
No person engaged in the business or
acting in the capacity of a contractor, may bring or maintain any action in
any court of the state for the collection of compensation for the performance
of any act or contract for which a license is required by this chapter
without alleging and proving that he was a duly licensed contractor at all times
during the performance of such act or contract, ... (Business and Professions
Code Section 7031).
Each county or city which required the
issuance of a permit ... shall also require Licenses that each applicant…file
a statement ...stating that the applicant is licensed under the provisions of
this chapter, giving the number of the license and stating that it is in full
force and effect… (Business and
Professions Code Section 7031.5).
body awarding the contract for public work shall obtain the prevailing rate
of per diem wages ... from the Director of the Department of Industrial
Relations. If the director determines that the rate of prevailing wage for
any craft, classification or type of workman is the rate established by a
collective bargaining agreement, the director may adopt such rate by
reference and such rate shall be in effect for the life of such agreement
(Labor Code Section 1773).
diem wages shall be deemed to include employer payments for health and welfare,
pension, vacation, travel time, subsistence pay... apprenticeship ... (Labor
Code Section 1773.1).
Contractors shall ensure that minority and
women business enterprises have the maximum opportunity to participate in the
performance of contracts and subcontracts.
(Public Contract Code Section 10115).