SB 1303 Modifications to Enforcement of Public Works Laws, including Potential for an LMCC Bringing Suit to Receive Attorney Fees

Under existing law, employers on public works projects must pay workers not less than the general prevailing rate of per diem wages as determined by the state Director of Industrial Relations. “Public works” includes construction, alteration, demolition, installation or repair work done under contract and paid for using public funds.

An awarding body may reduce payments when, among other things, payroll records are delinquent or inadequate.

SB 1303 requires that the private labor compliance entity confer with the negotiating parties to review relevant public works law prior to withholding funds for an alleged violation, and would prohibit the entity from withholding an amount that exceeds the alleged underpayments and penalty assessments.  Further, the private labor compliance entity seeking to withhold funds must provide a venue for a public works contractor or subcontractor to review and respond to evidence of alleged violations.

In the event of a violation of this law, an aggrieved party, including a joint labor-management committee (LMCC) established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175(a)), shall have the right to initiate a private right of action. The private right of action may only be filed against a private labor compliance entity, an awarding body, or an awarding body’s agent. The court shall award reasonable attorney’s fees and costs incurred in maintaining the action, including expert witness fees to a prevailing plaintiff.

For more information, contact your legal counsel.