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Public Works Compliance
Posted On: Jan 11, 2006
Ethan Frome









Prevailing Wage•Compliance Program


The Northern California Electrical Construction Industry lmct monitors and reports on State and Federal regulations in the areas of qualifying personnel, apprenticeship, certified payrolls, immigration, licensing, overtime, prevailing wages, safety programs, subcontractor listing, workers’ compensation and wbe/mbe/dbe.


The Union Electrical Industry, NECA and the IBEW, represent established and qualified electrical contractors who comply with the State and Federal regulations applying to construction projects.  To maintain a “level playing field”, management and labor have joined forces to encourage complete compliance and enforcement of these regulations.  The union industry invests in professional technical training, offers a pool of qualified electricians, furnishes comprehensive medical insurance and provides long-term security through its pension programs.  To protect the futures of the NECA Electrical Contractor and the IBEW Electrician, this project, as well as many others, will be closely monitored.


For your reference, listed below is a sampling of the governmental regulations that apply to this particular project.



















Certified Payrolls























Safety Program


Subcontractor List
















Workers’ Comp






























Prevailing Wages
















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)


Violation 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 1777.7)


(a)   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 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 Code Section1773.2).


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).


Whenever 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 1771.1).



(a)   Every employer shall establish, implement and maintain an effective injury prevention program.  (Labor Code Section 6401.7).


(b)   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 4104).


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).


A 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. 

(Labor 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).


Work performed by employees of contractors in excess of 8 hours per day, 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less that 1-½ times the basic rate of pay.  (Labor Code Section 1815).


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).


The 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).


Per 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).


Regardless of whomever is awarded this contract, the Northern California Electrical Construction Industry LMCT will monitor this project on a regular basis to ensure full compliance with the above referenced laws and regulations.  If discrepancies or violations are identified, the Division of Labor Standards Enforcement will be notified and a stop payment notice may be issued to protect the interest of the affected employees.


The IBEW/NECA Labor-Management Cooperative Trust

For more information call (925) 933-0163


Northern California Electrical Construction Industry
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