New Laws for 2012, Part 4

The following is the final segment of my series regarding new laws that may affect how you do business in California in 2012.  There were several laws passed impacting prevailing wage, public works, and Project Labor Agreements, which are summarized for you below.

Pursuant to AB 436, the method by which the Department of Industrial Relations sets reimbursement rates for its costs of performing prevailing wage monitoring and enforcement on specified public works projects (for school districts, community college districts, and other specified special districts) has been revised.  The rules exempt from the requirements those public works projects financed by any part of the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002.  Further, the reimbursement to the DIR may be waived when the public entity has entered into a collective bargaining agreement binding all the contractors performing work on the project (i.e., a Project Labor Agreement, or PLA).

For prevailing wage violations on public works, AB 551 increased the maximum penalty to contractors and subcontractors who are found to have failed to pay prevailing wage from $50 per day, to $200 per day.  The bill also increased the minimum penalty from not less than $10 per day, to not less than $40 per day, and excepts only certain mistakes found to be in good faith.

Presently, existing law requires prevailing wages be paid for the hauling of materials into a public works construction site, as well as the hauling of refuse off of the site.  Now, however, under AB 514, if refuse is hauled from the site and thereafter sold as a commodity, prevailing wage does not apply.  “Refuse” is further defined to include soil, sand, gravel, rocks, concrete, asphalt, excavation, materials and construction debris.

Existing law requires contractors and subcontractors on public works to keep payroll records regarding its employees, and requires these records contain specific information as dictated by the Division of Labor Standards Enforcement.  Certain personal identification information must be removed when certified payroll records are made available for inspection to the public, or to a public agency.  AB 766 however, now requires nonredacted copies of certified payroll records to be provided upon request to any agency included in the Joint Enforcement Strike Force on the Underground Economy (JESF), or to any law enforcement agency.  Disclosures to the public require redaction of individuals’ names, addresses, and social security numbers. 

SB 117 prohibits a state agency from entering into a contract for goods or services in excess of $100,000 if the contractor discriminates between employees with spouses or domestic partners of a different sex and employees with spouses or domestic partners of the same sex, or discriminates between same-sex and different-sex domestic partners of employees, or between same-sex and different-sex spouses of employees.

SB 136 expands the definition of “public works,” thereby extending prevailing wage requirements to include construction, alteration, demolition, installation, or repair work done under private contract that satisfies specified conditions related to energy.  Specifically, prevailing wages must now be paid under private contract when the following conditions exist:  (a) the work is performed in connection with the construction or maintenance of renewable energy generation capacity or energy efficiency improvements; AND (b) the work is performed on the property of the state or a political subdivision of the state; AND (c) either of the following conditions exists:  (1) more than 50% of the energy generated is purchased or will be purchased by the state or a political subdivision of the state; OR (2) the energy efficiency improvements are primarily intended to reduce energy costs that would otherwise be incurred by the state or a political subdivision of the state.  (See newly added Labor Code § 1720.6.)

SB 922, effective January 1, 2015, establishes the parameters for the use of Project Labor Agreements (PLAs) for publicly-funded construction projects.  State funding may not be used to support any project by a charter city that has in place charter provisions, initiatives or an ordinance prohibiting the governing board’s consideration of a PLA. 

Questions?  Concerns about how this may impact your business?  Comment, or send me an email, and let’s discuss.  Best wishes for a happy, fulfilling and successful new year!

Nothing in this blog is intended to create an attorney-client relationship.  This article is intended to provide a general overview of the current status of the law for informational purposes only, and is not intended to constitute, or serve as a substitute for, a professional legal consultation.  Laws change every day; please consult an attorney regarding the current status of the law, and how the law affects your specific circumstances. Thank you.