Watch out for Local Jurisdictions which have Implemented Additional Prevailing Wage Rules
Just when you think you figured out all the different requirements for California prevailing wage, the local jurisdictions impose additional requirements. While CCMI is not convinced that all of the requirements discussed below are valid, it will likely take a company suing the local jurisdiction for the issues to be resolved. In the meantime, contractors should be aware of the following special requirements relating to prevailing wage in the following three cities.
San Jose - San Jose imposes a maximum penalty of $300 per prevailing wage violation. This is $100 more than the maximum penalty imposed by the Department of Industrial Relations.
San Francisco - San Francisco requires a contractor to actually pay out vacation to its workers during the course of the project and does not allow a contractor to “bank” the vacation time earned on a prevailing wage project. We understand that this policy is in direct contradiction to the DIR’s interpretation of employer payments. San Francisco also has a minimum prevailing wage penalty of $50 per violation. Most recently they imposed this penalty even when the contractor had identified the error and fixed it before being audited.
Los Angeles - Last year the City imposed penalties against a contractor for not employing 20% apprentices on a project. Even though the contractor had properly requested apprentices from ALL applicable apprenticeship programs. The City’s labor compliance personnel stated that they wanted to see a more concerted effort to try and employ apprentices and required more than one request for apprentices from all programs. Once again, this is in direct conflict with the DIR’s regulations on this matter.
So, until a contractor is willing to spend the money to legally challenge the implementation of these additional/different rules (SF and LA), just be aware of these special local requirements.