Cross references

California Code of Regulations

Subchapter 3. Payment of Prevailing Wages upon Public Works

Article 1. Definitions (Section 16000)
Article 2. Work Subject to Prevailing Wages (Sections 16001 - 16003)
Article 3. Duties, Responsibilities, and Rights of Parties (Sections 16100 - 16102)
Article 4. Wage Determinations (Sections 16200 - 16206)
Article 5. Petitions to Review Prevailing Wage Determinations (Sections 16300 - 16304)
Article 6. Certified Payroll Records: Requests, Content, and Cost (Sections 16400 - 16404)
Article 7. Withholding of Funds from Contractor--Hearing Procedure (Sections 16410 - 16414)

Subchapter 4. Awarding Body Labor Compliance Programs

Article 1. Operation of Labor Compliance Program and Contracts Subject to Labor Compliance Program Jurisdiction (Section 16421 -16423)
Article 2. Approval and Revocation of Approval of Labor Compliance Programs by Director (Section 16424 - 16429)
Article 3. Reports and Audits (Sections 16430 - 16432)
Article 4. Limited Exemption from the Requirement to Pay Prevailing Wages (Section 16433)
Article 5. Enforcement (Sections 16434 - 16439)
Article 6. Severability (Section 16500)
Article 8. Debarment (Sections 16800 - 16802)

LABOR CODE

1720. (a) As used in this chapter, "public works" means:

(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, "construction" includes work performed during the design and preconstruction phases of construction including, but not limited to, inspection and land surveying work.

(2) Work done for irrigation, utility, reclamation, and improvement districts, and other districts of this type. "Public work" does not include the operation of the irrigation or drainage system of any irrigation or reclamation district, except as used in Section 1778 relating to retaining wages.

(3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of any officer or public body of the state, or of any political subdivision or district thereof, whether the political subdivision or district operates under a freeholder's charter or not.

(4) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.

(5) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.

(6) Public transportation demonstration projects authorized pursuant to Section 143 of the Streets and Highways Code.

(b) For purposes of this section, "paid for in whole or in part

out of public funds" means all of the following:

(1) The payment of money or the equivalent of money by the state

or political subdivision directly to or on behalf of the public works

contractor, subcontractor, or developer.

(2) Performance of construction work by the state or political

subdivision in execution of the project.

(3) Transfer by the state or political subdivision of an asset of

value for less than fair market price.

(4) Fees, costs, rents, insurance or bond premiums, loans,

interest rates, or other obligations that would normally be required

in the execution of the contract, that are paid, reduced, charged at

less than fair market value, waived, or forgiven by the state or

political subdivision.

(5) Money loaned by the state or political subdivision that is to

be repaid on a contingent basis.

(6) Credits that are applied by the state or political subdivision

against repayment obligations to the state or political subdivision.

(1) Private residential projects built on private property are not

subject to the requirements of this chapter unless the projects are

built pursuant to an agreement with a state agency, redevelopment

agency, or local public housing authority.

(2) If the state or a political subdivision requires a private

developer to perform construction, alteration, demolition,

installation, or repair work on a public work of improvement as a

condition of regulatory approval of an otherwise private development

project, and the state or political subdivision contributes no more

money, or the equivalent of money, to the overall project than is

required to perform this public improvement work, and the state or

political subdivision maintains no proprietary interest in the

overall project, then only the public improvement work shall thereby

become subject to this chapter.

(3) If the state or a political subdivision reimburses a private

developer for costs that would normally be borne by the public, or

provides directly or indirectly a public subsidy to a private

development project that is de minimis in the context of the project,

an otherwise private development project shall not thereby become

subject to the requirements of this chapter.

(4) The construction or rehabilitation of affordable housing units

for low- or moderate-income persons pursuant to paragraph (5) or (7)

of subdivision (e) of Section 33334.2 of the Health and Safety Code

that are paid for solely with moneys from a Low and Moderate Income

Housing Fund established pursuant to Section 33334.3 of the Health

and Safety Code or that are paid for by a combination of private

funds and funds available pursuant to Section 33334.2 or 33334.3 of

the Health and Safety Code do not constitute a project that is paid

for in whole or in part out of public funds.

(5) "Paid for in whole or in part out of public funds" does not

include tax credits provided pursuant to Section 17053.49 or 23649 of

the Revenue and Taxation Code.

(6) Unless otherwise required by a public funding program, the

construction or rehabilitation of privately owned residential

projects is not subject to the requirements of this chapter if one or

more of the following conditions are met:

(A) The project is a self-help housing project in which no fewer

than 500 hours of construction work associated with the homes are to

be performed by the homebuyers.

(B) The project consists of rehabilitation or expansion work

associated with a facility operated on a not-for-profit basis as

temporary or transitional housing for homeless persons with a total

project cost of less than twenty-five thousand dollars ($25,000).

assistance, downpayment assistance, or for the rehabilitation of a

single-family home.

(D) The project consists of new construction, or expansion, or

rehabilitation work associated with a facility developed by a

nonprofit organization to be operated on a not-for-profit basis to

provide emergency or transitional shelter and ancillary services and

assistance to homeless adults and children. The nonprofit

organization operating the project shall provide, at no profit, not

less than 50 percent of the total project cost from nonpublic

sources, excluding real property that is transferred or leased.

Total project cost includes the value of donated labor, materials,

architectural, and engineering services.

(E) The public participation in the project that would otherwise

meet the criteria of subdivision (b) is public funding in the form of

below-market interest rate loans for a project in which occupancy of

at least 40 percent of the units is restricted for at least 20

years, by deed or regulatory agreement, to individuals or families

earning no more than 80 percent of the area median income.

(d) Notwithstanding any provision of this section to the contrary,

the following projects shall not, solely by reason of this section,

be subject to the requirements of this chapter:

(1) Qualified residential rental projects, as defined by Section

142 (d) of the Internal Revenue Code, financed in whole or in part

through the issuance of bonds that receive allocation of a portion of

the state ceiling pursuant to Chapter 11.8 of Division 1 (commencing

with Section 8869.80) of the Government Code on or before December

31, 2003.

(2) Single-family residential projects financed in whole or in

part through the issuance of qualified mortgage revenue bonds or

qualified veterans' mortgage bonds, as defined by Section 143 of the

Internal Revenue Code, or with mortgage credit certificates under a

Qualified Mortgage Credit Certificate Program, as defined by Section

25 of the Internal Revenue Code, that receive allocation of a portion

of the state ceiling pursuant to Chapter 11.8 of Division 1

(commencing with Section 8869.80) of the Government Code on or before

December 31, 2003.

(3) Low-income housing projects that are allocated federal or

state low-income housing tax credits pursuant to Section 42 of the

Internal Revenue Code, Chapter 3.6 of Division 31 (commencing with

Section 50199.4) of the Health and Safety Code, or Section 12206,

17058, or 23610.5 of the Revenue and Taxation Code, on or before

December 31, 2003.

(e) If a statute, other than this section, or a regulation, other

than a regulation adopted pursuant to this section, or an ordinance

or a contract applies this chapter to a project, the exclusions set

forth in subdivision (d) do not apply to that project.

(f) For purposes of this section, references to the Internal

Revenue Code mean the Internal Revenue Code of 1986, as amended, and

include the corresponding predecessor sections of the Internal

Revenue Code of 1954, as amended.

(g) The amendments made to this section by either Chapter 938 of

the Statutes of 2001 or the act adding this subdivision shall not be

construed to preempt local ordinances requiring the payment of

prevailing wages on housing projects.

1720.2. For the limited purposes of Article 2 (commencing with

Section 1770) of this chapter, "public works" also means any

construction work done under private contract when all of the

following conditions exist:

(a) The construction contract is between private persons.

(b) The property subject to the construction contract is privately

owned, but upon completion of the construction work, more than 50

percent of the assignable square feet of the property is leased to

the state or a political subdivision for its use.

(1) The lease agreement between the lessor and the state or

political subdivision, as lessee, was entered into prior to the

construction contract.

(2) The construction work is performed according to plans,

specifications, or criteria furnished by the state or political

subdivision, and the lease agreement between the lessor and the state

or political subdivision, as lessee, is entered into during, or upon

completion of, the construction work.

1720.3. For the limited purposes of Article 2 (commencing with

Section 1770), "public works" also means the hauling of refuse from a

public works site to an outside disposal location, with respect to

contracts involving any state agency, including the California State

University and the University of California, or any political

subdivision of the state.

1720.4. (a) This chapter shall not apply to any of the following

work:

(1) Any work performed by a volunteer. For purposes of this

section, "volunteer" means an individual who performs work for civic,

charitable, or humanitarian reasons for a public agency or

corporation qualified under Section 501(c)(3) of the Internal Revenue

Code as a tax-exempt organization, without promise, expectation, or

receipt of any compensation for work performed.

(A) An individual shall be considered a volunteer only when his or

her services are offered freely and without pressure and coercion,

direct or implied, from an employer.

(B) An individual may receive reasonable meals, lodging,

transportation, and incidental expenses or nominal nonmonetary awards

without losing volunteer status if, in the entire context of the

situation, those benefits and payments are not a substitute form of

compensation for work performed.

person is otherwise employed for compensation at any time (i) in the

construction, alteration, demolition, installation, repair, or

maintenance work on the same project, or (ii) by a contractor, other

than a corporation qualified under Section 501(c)(3) of the Internal

Revenue Code as a tax-exempt organization, that is receiving payment

to perform construction, alteration, demolition, installation,

repair, or maintenance work on the same project.

(2) Any work performed by a volunteer coordinator. For purposes of

this section, "volunteer coordinator" means an individual paid by a

corporation qualified under Section 501(c)(3) of the Internal Revenue

Code as a tax-exempt organization, to oversee or supervise

volunteers. An individual may be considered a volunteer coordinator

even if the individual performs some nonsupervisory work on a project

alongside the volunteers, so long as the individual's primary

responsibility on the project is to oversee or supervise the

volunteers rather than to perform nonsupervisory work.

(3) Any work performed by members of the California Conservation

Corps or of Community Conservation Corps certified by the California

Conservation Corps pursuant to Section 14507.5 of the Public

Resources Code.

(b) This section shall apply retroactively to otherwise covered

work concluded on or after January 1, 2002, to the extent permitted

by law.

written report to the Legislature that does both of the following:

(1) Describes the number and the nature of complaints received and

investigations conducted involving the use of volunteers on public

works projects subject to this chapter, that are projects as

described in Section 21190 of the Public Resources Code.

(2) Provides an estimate of each of the following as they relate

to public works projects that involve the acquisition, presentation,

or restoration of natural areas, including parks or ecological

reserves, or other public works projects that have one or more of the

purposes, as described in Section 21190 of the Public Resources

Code:

(A) The number of hours per year that volunteers work on public

works projects.

(B) The cost per year of public works projects, that are projects

as described in Section 21190 of the Public Resources Code, and the

percentage of work performed by volunteers.

that are projects as described in Section 21190 of the Public

Resources Code.

(d) The sum of one hundred thousand dollars ($100,000) is hereby

appropriated from the Environmental License Plate Fund for the

purposes of funding the report required pursuant to subdivision (c).

(e) This section shall remain in effect only until January 1,

2012, and as of that date is repealed, unless a later enacted

statute, which is enacted before January 1, 2012, deletes or extends

that date.

1721. "Political subdivision" includes any county, city, district,

public housing authority, or public agency of the state, and

assessment or improvement districts.

1722. "Awarding body" or "body awarding the contract" means

department, board, authority, officer or agent awarding a contract

for public work.

1722.1. For the purposes of this chapter, "contractor" and

"subcontractor" include a contractor, subcontractor, licensee,

officer, agent, or representative thereof, acting in that capacity,

when working on public works pursuant to this article and Article 2

(commencing with Section 1770).

1723. "Worker" includes laborer, worker, or mechanic.

1724. "Locality in which public work is performed" means the county

in which the public work is done in cases in which the contract is

awarded by the State, and means the limits of the political

subdivision on whose behalf the contract is awarded in other cases.

1725. "Alien" means any person who is not a born or fully

naturalized citizen of the United States.

1726. (a) The body awarding the contract for public work shall take

cognizance of violations of this chapter committed in the course of

the execution of the contract, and shall promptly report any

suspected violations to the Labor Commissioner.

(b) If the awarding body determines as a result of its own

investigation that there has been a violation of this chapter and

withholds contract payments, the procedures in Section 1771.6 shall

be followed.

jurisdiction to recover from an awarding body the difference between

the wages actually paid to an employee and the wages that were

required to be paid to an employee under this chapter, any penalties

required to be paid under this chapter, and costs and attorney's fees

related to this action, if either of the following is true:

(1) The awarding body previously affirmatively represented to the

contractor in writing, in the call for bids, or otherwise, that the

work to be covered by the bid or contract was not a "public work," as

defined in this chapter.

(2) The awarding body received actual written notice from the

Department of Industrial Relations that the work to be covered by the

bid or contract is a "public work," as defined in this chapter, and

failed to disclose that information to the contractor before the bid

opening or awarding of the contract.

1727. (a) Before making payments to the contractor of money due

under a contract for public work, the awarding body shall withhold

and retain therefrom all amounts required to satisfy any civil wage

and penalty assessment issued by the Labor Commissioner under this

chapter. The amounts required to satisfy a civil wage and penalty

assessment shall not be disbursed by the awarding body until receipt

of a final order that is no longer subject to judicial review.

(b) If the awarding body has not retained sufficient money under

the contract to satisfy a civil wage and penalty assessment based on

a subcontractor's violations, the contractor shall, upon the request

of the Labor Commissioner, withhold sufficient money due the

subcontractor under the contract to satisfy the assessment and

transfer the money to the awarding body. These amounts shall not be

disbursed by the awarding body until receipt of a final order that is

no longer subject to judicial review.

1728. In cases of contracts with assessment or improvement

districts where full payment is made in the form of a single warrant,

or other evidence of full payment, after completion and acceptance

of the work, the awarding body shall accept from the contractor in

cash a sum equal to, and in lieu of, any amount required to be

withheld, retained, or forfeited under the provisions of this

section, and said awarding body shall then release the final warrant

or payment in full.

1729. It shall be lawful for any contractor to withhold from any

subcontractor under him sufficient sums to cover any penalties

withheld from him by the awarding body on account of the

subcontractor's failure to comply with the terms of this chapter, and

if payment has already been made to the subcontractor the contractor

may recover from him the amount of the penalty or forfeiture in a

suit at law.

1734. Any court collecting any fines or penalties under the

criminal provisions of this chapter or any of the labor laws

pertaining to public works shall as soon as practicable after the

receipt thereof deposit same with the county treasurer of the county

in which such court is situated. Amounts so deposited shall be paid

at least once a month by warrant of the county auditor drawn upon

requisition of the judge or clerk of said court, to the State

Treasurer for deposit in the General Fund.

1735. A contractor shall not discriminate in the employment of

persons upon public works on any basis listed in subdivision (a) of

Section 12940 of the Government Code, as those bases are defined in

Sections 12926 and 12926.1 of the Government Code, except as

otherwise provided in Section 12940 of the Government Code. Every

contractor for public works who violates this section is subject to

all the penalties imposed for a violation of this chapter.

1736. During any investigation conducted under this part, the

Division of Labor Standards Enforcement shall keep confidential the

name of any employee who reports a violation of this chapter and any

other information that may identify the employee.

1740. Notwithstanding any other provision of this chapter or any

other law of this State, except limitations imposed by the

Constitution, the legislative body of a political subdivision which

has received or is to receive a loan or grant of funds from the

Federal Government or a federal department or agency for public works

of that political subdivision, may provide in its call for bids in

connection with such public works that all bid specifications and

contracts and other procedures in connection with bids or contracts

shall be subject to modification to comply with revisions in federal

minimum wage schedules without the necessity of republication or

duplication of other formal statutory requirements.

1741. (a) If the Labor Commissioner or his or her designee

determines after an investigation that there has been a violation of

this chapter, the Labor Commissioner shall with reasonable promptness

issue a civil wage and penalty assessment to the contractor or

subcontractor or both. The assessment shall be in writing and shall

describe the nature of the violation and the amount of wages,

penalties, and forfeitures due and shall include the basis for the

assessment. The assessment shall be served not later than 180 days

after the filing of a valid notice of completion in the office of the

county recorder in each county in which the public work or some part

thereof was performed, or not later than 180 days after acceptance

of the public work, whichever occurs last. However, if the

assessment is served after the expiration of this 180-day period, but

before the expiration of an additional 180 days, and the awarding

body has not yet made full payment to the contractor, the assessment

is valid up to the amount of the funds retained. Service of the

assessment shall be completed pursuant to Section 1013 of the Code of

Civil Procedure by first-class and certified mail to the contractor,

subcontractor, and awarding body. The assessment shall advise the

contractor and subcontractor of the procedure for obtaining review of

the assessment. The Labor Commissioner shall, to the extent

practicable, ascertain the identity of any bonding company issuing a

bond that secures the payment of wages covered by the assessment and

any surety on a bond, and shall serve a copy of the assessment by

certified mail to the bonding company or surety at the same time

service is made to the contractor, subcontractor, and awarding body.

However, no bonding company or surety shall be relieved of its

responsibilities because it failed to receive notice from the Labor

Commissioner.

(b) Interest shall accrue on all due and unpaid wages at the rate

described in subdivision (b) of Section 3289 of the Civil Code. The

interest shall accrue from the date that the wages were due and

payable, as provided in Part 7 (commencing with Section 1720) of

Division 2, until the wages are paid.

names of each contractor and subcontractor who has been found to

have committed a willful violation of Section 1775 or to whom a final

order, which is no longer subject to judicial review, has been

issued.

(2) The list shall include the date of each assessment, the amount

of wages and penalties assessed, and the amount collected.

(3) The list shall be updated at least quarterly, and the

contractor's or subcontractor's name shall remain on that list until

the assessment is satisfied, or for a period of three years beginning

from the date of the issuance of the assessment, whichever is later.

1742. (a) An affected contractor or subcontractor may obtain review

of a civil wage and penalty assessment under this chapter by

transmitting a written request to the office of the Labor

Commissioner that appears on the assessment within 60 days after

service of the assessment. If no hearing is requested within 60 days

after service of the assessment, the assessment shall become final.

(b) Upon receipt of a timely request, a hearing shall be commenced

within 90 days before the director, who shall appoint an impartial

hearing officer possessing the qualifications of an administrative

law judge pursuant to subdivision (b) of Section 11502 of the

Government Code. The appointed hearing officer shall be an employee

of the department, but shall not be an employee of the Division of

Labor Standards Enforcement. The contractor or subcontractor shall

be provided an opportunity to review evidence to be utilized by the

Labor Commissioner at the hearing within 20 days of the receipt of

the written request for a hearing. Any evidence obtained by the Labor

Commissioner subsequent to the 20-day cutoff shall be promptly

disclosed to the contractor or subcontractor.

The contractor or subcontractor shall have the burden of proving

that the basis for the civil wage and penalty assessment is

incorrect. The assessment shall be sufficiently detailed to provide

fair notice to the contractor or subcontractor of the issues at the

hearing.

Within 45 days of the conclusion of the hearing, the director

shall issue a written decision affirming, modifying, or dismissing

the assessment. The decision of the director shall consist of a

notice of findings, findings, and an order. This decision shall be

served on all parties and the awarding body pursuant to Section 1013

of the Code of Civil Procedure by first-class mail at the last known

address of the party on file with the Labor Commissioner. Within 15

days of the issuance of the decision, the director may reconsider or

modify the decision to correct an error, except that a clerical error

may be corrected at any time.

The director shall adopt regulations setting forth procedures for

hearings under this subdivision.

the decision of the director by filing a petition for a writ of

mandate to the appropriate superior court pursuant to Section 1094.5

of the Code of Civil Procedure within 45 days after service of the

decision. If no petition for writ of mandate is filed within 45 days

after service of the decision, the order shall become final. If it is

claimed in a petition for writ of mandate that the findings are not

supported by the evidence, abuse of discretion is established if the

court determines that the findings are not supported by substantial

evidence in the light of the whole record.

(d) A certified copy of a final order may be filed by the Labor

Commissioner in the office of the clerk of the superior court in any

county in which the affected contractor or subcontractor has property

or has or had a place of business. The clerk, immediately upon the

filing, shall enter judgment for the state against the person

assessed in the amount shown on the certified order.

(e) A judgment entered pursuant to this section shall bear the

same rate of interest and shall have the same effect as other

judgments and shall be given the same preference allowed by law on

other judgments rendered for claims for taxes. The clerk shall not

charge for the service performed by him or her pursuant to this

section.

(f) An awarding body that has withheld funds in response to a

civil wage and penalty assessment under this chapter shall, upon

receipt of a certified copy of a final order that is no longer

subject to judicial review, promptly transmit the withheld funds, up

to the amount of the certified order, to the Labor Commissioner.

(g) This section shall provide the exclusive method for review of

a civil wage and penalty assessment by the Labor Commissioner under

this chapter or the decision of an awarding body to withhold contract

payments pursuant to Section 1771.5.

1742.1. (a) After 60 days following the service of a civil wage and

penalty assessment under Section 1741 or a notice of withholding

under subdivision (a) of Section 1771.6, the affected contractor,

subcontractor, and surety on a bond or bonds issued to secure the

payment of wages covered by the assessment or notice shall be liable

for liquidated damages in an amount equal to the wages, or portion

thereof, that still remain unpaid. If the assessment or notice

subsequently is overturned or modified after administrative or

judicial review, liquidated damages shall be payable only on the

wages found to be due and unpaid.

Additionally, if the contractor or subcontractor demonstrates to

the satisfaction of the director that he or she had substantial

grounds for appealing the assessment or notice with respect to a

portion of the unpaid wages covered by the assessment or notice, the

director may exercise his or her discretion to waive payment of the

liquidated damages with respect to that portion of the unpaid wages.

Any liquidated damages shall be distributed to the employee along

with the unpaid wages. Section 203.5 shall not apply to claims for

prevailing wages under this chapter.

(b) Notwithstanding subdivision (a), there shall be no liability

for liquidated damages if the full amount of the assessment or

notice, including penalties, has been deposited with the Department

of Industrial Relations, within 60 days following service of the

assessment or notice, for the department to hold in escrow pending

administrative and judicial review. The department shall release such

funds, plus any interest earned, at the conclusion of all

administrative and judicial review to the persons and entities who

are found to be entitled to such funds.

the affected contractor or subcontractor within 30 days following the

service of a civil wage and penalty assessment under Section 1741,

afford the contractor or subcontractor the opportunity to meet with

the Labor Commissioner or his or her designee to attempt to settle a

dispute regarding the assessment without the need for formal

proceedings. The awarding body shall, upon receipt of a request from

the affected contractor or subcontractor within 30 days following the

service of a notice of withholding under subdivision (a) of Section

1771.6, afford the contractor or subcontractor the opportunity to

meet with the designee of the awarding body to attempt to settle a

dispute regarding the notice without the need for formal proceedings.

The settlement meeting may be held in person or by telephone and

shall take place before the expiration of the 60-day period for

seeking administrative review. No evidence of anything said or any

admission made for the purpose of, in the course of, or pursuant to,

the settlement meeting is admissible or subject to discovery in any

administrative or civil proceeding. No writing prepared for the

purpose of, in the course of, or pursuant to, the settlement meeting,

other than a final settlement agreement, is admissible or subject to

discovery in any administrative or civil proceeding. The assessment

or notice shall advise the contractor or subcontractor of the

opportunity to request a settlement meeting.

(d) This section shall become operative on January 1, 2007.

1743. (a) The contractor and subcontractor shall be jointly and

severally liable for all amounts due pursuant to a final order under

this chapter or a judgment thereon. The Labor Commissioner shall

first exhaust all reasonable remedies to collect the amount due from

the subcontractor before pursuing the claim against the contractor.

(b) From the amount collected, the wage claim shall be satisfied

prior to the amount being applied to penalties. If insufficient

money is recovered to pay each worker in full, the money shall be

prorated among all workers.

Industrial Relations Unpaid Wage Fund and held in trust for the

workers pursuant to Section 96.7. Penalties shall be paid into the

General Fund.

(d) A final order under this chapter or a judgment thereon shall

be binding, with respect to the amount found to be due, on a bonding

company issuing a bond that secures the payment of wages and a surety

on a bond. The limitations period of any action on a payment bond

shall be tolled pending a final order that is no longer subject to

judicial review.

1750. (a) (1) The second lowest bidder, and any person, firm,

association, trust, partnership, labor organization, corporation, or

other legal entity which has, prior to the letting of the bids on the

public works project in question, entered into a contract with the

second lowest bidder, that suffers damage as a proximate result of a

competitive bid for a public works project, as defined in subdivision

(b), not being accepted due to the successful bidder's violation, as

evidenced by the conviction of the successful bidder therefor, of

any provision of Division 4 (commencing with Section 3200) or of the

Unemployment Insurance Code, may bring an action for damages in the

appropriate state court against the violating person or legal entity.

(2) There shall be a rebuttable presumption that a successful

bidder who has been convicted of a violation of any provision of

Division 4 (commencing with Section 3200) of this code or of the

Unemployment Insurance Code, or of both, was awarded the bid because

that successful bidder was able to lower the bid due to this

violation or these violations occurring on the contract for public

work awarded by the public agency.

(b) For purposes of this article:

(1) "Public works project" means the construction, repair,

remodeling, alteration, conversion, modernization, improvement,

rehabilitation, replacement, or renovation of a public building or

structure.

(2) "Second lowest bidder" means the second lowest qualified

bidder deemed responsive by the public agency awarding the contract

for public work.

(3) The "second lowest bidder" and the "successful bidder" may

include any person, firm, association, corporation, or other legal

entity.

award costs and reasonable attorney's fees, in an amount to be

determined in the court's discretion, to the prevailing party.

(d) For purposes of an action brought pursuant to this section,

employee status shall be determined pursuant to Division 4

(commencing with Section 3200) with respect to alleged violations of

that division, pursuant to the Unemployment Insurance Code with

respect to alleged violations of that code, and pursuant to Section

2750.5 with respect to alleged violations of either Division 4

(commencing with Section 3200) or of the Unemployment Insurance Code.

(e) The right of action established pursuant to this article shall

not be construed to diminish rights of action established pursuant

to Section 19102 of, and Article 1.8 (commencing with Section

20104.70) of Chapter 1 of Part 3 of Division 2 of, the Public

Contract Code.

(f) A second lowest bidder who has been convicted of a violation

of any provision of Division 4 (commencing with Section 3200) of the

Labor Code or of the Unemployment Insurance Code, or both, within one

year prior to filing the bid for public work, and who has failed to

take affirmative steps to correct that violation or those violations,

is prohibited from taking any action authorized by this section.

1770. The Director of the Department of Industrial Relations shall

determine the general prevailing rate of per diem wages in accordance

with the standards set forth in Section 1773, and the director's

determination in the matter shall be final except as provided in

Section 1773.4. Nothing in this article, however, shall prohibit the

payment of more than the general prevailing rate of wages to any

workman employed on public work. Nothing in this act shall permit

any overtime work in violation of Article 3 of this chapter.

1771. Except for public works projects of one thousand dollars

($1,000) or less, not less than the general prevailing rate of per

diem wages for work of a similar character in the locality in which

the public work is performed, and not less than the general

prevailing rate of per diem wages for holiday and overtime work fixed

as provided in this chapter, shall be paid to all workers employed

on public works.

This section is applicable only to work performed under contract,

and is not applicable to work carried out by a public agency with its

own forces. This section is applicable to contracts let for

maintenance work.

1771.2. A joint labor-management committee established pursuant to

the federal Labor Management Cooperation Act of 1978 (Section 175a of

Title 29 of the United States Code) may bring an action in any court

of competent jurisdiction against an employer that fails to pay the

prevailing wage to its employees, as required by this article. This

action shall be commenced not later than 180 days after the filing of

a valid notice of completion in the office of the county recorder in

each county in which the public work or some part thereof was

performed, or not later than 180 days after acceptance of the public

work, whichever last occurs.

1771.5. (a) Notwithstanding Section 1771, an awarding body may not

require the payment of the general prevailing rate of per diem wages

or the general prevailing rate of per diem wages for holiday and

overtime work for any public works project of twenty-five thousand

dollars ($25,000) or less when the project is for construction work,

or for any public works project of fifteen thousand dollars ($15,000)

or less when the project is for alteration, demolition, repair, or

maintenance work, if the awarding body elects to initiate and enforce

a labor compliance program pursuant to subdivision (b) for every

public works project under the authority of the awarding body.

(b) For the purposes of this section, a labor compliance program

shall include, but not be limited to, the following requirements:

(1) All bid invitations and public works contracts shall contain

appropriate language concerning the requirements of this chapter.

(2) A prejob conference shall be conducted with the contractor and

subcontractors to discuss federal and state labor law requirements

applicable to the contract.

(3) Project contractors and subcontractors shall maintain and

furnish, at a designated time, a certified copy of each weekly

payroll containing a statement of compliance signed under penalty of

perjury.

(4) The awarding body shall review, and, if appropriate, audit

payroll records to verify compliance with this chapter.

(5) The awarding body shall withhold contract payments when

payroll records are delinquent or inadequate.

(6) The awarding body shall withhold contract payments equal to

the amount of underpayment and applicable penalties when, after

investigation, it is established that underpayment has occurred.

a labor compliance program that is approved, as specified in state

regulations, by the Director of the Department of Industrial

Relations.

(d) For purposes of this chapter, the Director of the Department

of Industrial Relations may revoke the approval of a labor compliance

program in the manner specified in state regulations.

1771.6. (a) Any awarding body that enforces this chapter in

accordance with Section 1726 or 1771.5 shall provide notice of the

withholding of contract payments to the contractor and subcontractor,

if applicable. The notice shall be in writing and shall describe

the nature of the violation and the amount of wages, penalties, and

forfeitures withheld. Service of the notice shall be completed

pursuant to Section 1013 of the Code of Civil Procedure by

first-class and certified mail to the contractor and subcontractor,

if applicable. The notice shall advise the contractor and

subcontractor, if applicable, of the procedure for obtaining review

of the withholding of contract payments.

The awarding body shall also serve a copy of the notice by

certified mail to any bonding company issuing a bond that secures the

payment of wages covered by the notice and to any surety on a bond,

if their identities are known to the awarding body.

(b) The withholding of contract payments in accordance with

Section 1726 or 1771.5 shall be reviewable under Section 1742 in the

same manner as if the notice of the withholding was a civil penalty

order of the Labor Commissioner under this chapter. If review is

requested, the Labor Commissioner may intervene to represent the

awarding body.

for seeking review of the notice of the withholding, the awarding

body shall not disburse any contract payments withheld.

(d) From the amount recovered, the wage claim shall be satisfied

prior to the amount being applied to penalties. If insufficient

money is recovered to pay each worker in full, the money shall be

prorated among all workers.

(e) Wages for workers who cannot be located shall be placed in the

Industrial Relations Unpaid Wage Fund and held in trust for the

workers pursuant to Section 96.7. Penalties shall be paid into the

General Fund of the awarding body that has enforced this chapter

pursuant to Section 1771.5.

1771.7. (a) (1) An awarding body that chooses to use funds derived

from either the Kindergarten-University Public Education Facilities

Bond Act of 2002 or the Kindergarten-University Public Education

Facilities Bond Act of 2004 for a public works project, shall

initiate and enforce, or contract with a third party to initiate and

enforce, a labor compliance program, as described in subdivision (b)

of Section 1771.5, with respect to that public works project.

(2) If an awarding body described in paragraph (1) chooses to

contract with a third party to initiate and enforce a labor

compliance program for a project described in paragraph (1), that

third party shall not review the payroll records of its own employees

or the employees of its subcontractors, and the awarding body or an

independent third party shall review these payroll records for

purposes of the labor compliance program.

(b) This section applies to public works that commence on or after

April 1, 2003. For purposes of this subdivision, work performed

during the design and preconstruction phases of construction,

including, but not limited to, inspection and land surveying work,

does not constitute the commencement of a public work.

California State University chooses to use the funds described in

subdivision (a), then the "awarding body" is the Chancellor of the

California State University. For purposes of this subdivision, if

the chancellor is required by subdivision (a) to initiate and

enforce, or to contract with a third party to initiate and enforce,

the labor compliance program described in that subdivision, then in

addition to the requirements imposed upon an awarding body by

subdivision (b) of Section 1771.5, the Chancellor of the California

State University shall review the payroll records described in

paragraphs (3) and (4) of subdivision (b) of Section 1771.5 on at

least a monthly basis to ensure the awarding body's compliance with

the labor compliance program.

(2) For purposes of this subdivision, if an awarding body

described in subdivision (a) is the University of California or any

campus of that university, and that awarding body is required by

subdivision (a) to initiate and enforce, or to contract with a third

party to initiate and enforce, the labor compliance program described

in that subdivision, then in addition to the requirements imposed

upon an awarding body by subdivision (b) of Section 1771.5, the

payroll records described in paragraphs (3) and (4) of subdivision

(b) of Section 1771.5 shall be reviewed on at least a monthly basis

to ensure the awarding body's compliance with the labor compliance

program.

(d) (1) An awarding body described in subdivision (a) shall make a

written finding that the awarding body has initiated and enforced,

or has contracted with a third party to initiate and enforce, the

labor compliance program described in subdivision (a).

(2) (A) If an awarding body described in subdivision (a) is a

school district, the governing body of that district shall transmit

to the State Allocation Board, in the manner determined by that

board, a copy of the finding described in paragraph (1).

(B) The State Allocation Board may not release the funds described

in subdivision (a) to an awarding body that is a school district

until the State Allocation Board has received the written finding

described in paragraph (1).

procedure with respect to an award of the funds described in

subdivision (a) to an awarding body that is a school district, the

State Allocation Board shall verify, in the manner determined by that

board, that the school district has complied with the requirements

of this subdivision.

(3) If an awarding body described in subdivision (a) is a

community college district, the Chancellor of the California State

University, or the office of the President of the University of

California or any campus of the University of California, that

awarding body shall transmit, in the manner determined by the

Director of the Department of Industrial Relations, a copy of the

finding described in paragraph (1) to the director of that

department, or the director of any successor agency that is

responsible for the oversight of employee wage and employee work

hours laws.

(e) Notwithstanding Section 17070.63 of the Education Code, for

purposes of this act, the State Allocation Board shall increase the

grant amounts as described in Chapter 12.5 (commencing with Section

17070.10) of Part 10 of Division 1 of Title 1 of the Education Code

to accommodate the state's share of the increased costs of a new

construction or modernization project due to the initiation and

enforcement of the labor compliance program.

1771.8. (a) The body awarding any contract for a public works

project financed in any part with funds made available by the Water

Security, Clean Drinking Water, Coastal and Beach Protection Act of

2002 (Division 26.5 (commencing with Section 79500) of the Water

Code) shall adopt and enforce, or contract with a third party to

adopt and enforce, a labor compliance program pursuant to subdivision

(b) of Section 1771.5 for application to that public works project.

(b) This section shall become operative only if the Water

Security, Clean Drinking Water, Coastal and Beach Protection Act of

2002 (Division 26.5 (commencing with Section 79500) of the Water

Code) is approved by the voters at the November 5, 2002, statewide

general election.

1771.9. (a) The body awarding any contract for a public works

project financed in any part with funds made available by the Safe,

Reliable High-Speed Passenger Train Bond Act for the 21st Century

(Chapter 20 (commencing with Section 2704) of Division 3 of the

Streets and Highways Code) shall adopt and enforce, or contract with

a third party to adopt and enforce, a labor compliance program

pursuant to subdivision (b) of Section 1771.5 for application to that

public works project.

(b) This section shall become operative only if the Safe, Reliable

High-Speed Passenger Train Bond Act for the 21st Century (Chapter 20

(commencing with Section 2704) of Division 3 of the Streets and

Highways Code) is approved by the voters at the November 2, 2004,

statewide general election.

Workforce Development Agency's public works services provided to

labor compliance programs, interested parties, and awarding bodies

associated with bond funding projects, that are governed by the

public works requirements of this chapter, are to be supported as

costs of a state agency with responsibility for administration of the

bond program, or costs of construction, under subdivisions (a) and

(d) of Section 16727 of the Government Code. Public works services

under this chapter include all of the following:

(1) Prevailing wage measurement and setting.

(2) Wage petitions and special determinations.

(3) Coverage advice and determinations training for and approval

of, labor compliance programs' establishment and enforcement notices

to withhold.

(4) Civil wage and penalty assessments.

(5) Hearings in response to contractor requests under subdivision

(b) of Section 1171.6, Section 1742, and Section 1777.7.

1772. Workers employed by contractors or subcontractors in the

execution of any contract for public work are deemed to be employed

upon public work.

1773. The body awarding any contract for public work, or otherwise

undertaking any public work, shall obtain the general prevailing rate

of per diem wages and the general prevailing rate for holiday and

overtime work in the locality in which the public work is to be

performed for each craft, classification, or type of worker needed to

execute the contract from the Director of Industrial Relations. The

holidays upon which those rates shall be paid need not be specified

by the awarding body, but shall be all holidays recognized in the

applicable collective bargaining agreement. If the prevailing rate

is not based on a collectively bargained rate, the holidays upon

which the prevailing rate shall be paid shall be as provided in

Section 6700 of the Government Code.

In determining the rates, the Director of Industrial Relations

shall ascertain and consider the applicable wage rates established by

collective bargaining agreements and the rates that may have been

predetermined for federal public works, within the locality and in

the nearest labor market area. Where the rates do not constitute the

rates actually prevailing in the locality, the director shall obtain

and consider further data from the labor organizations and employers

or employer associations concerned, including the recognized

collective bargaining representatives for the particular craft,

classification, or type of work involved. The rate fixed for each

craft, classification, or type of work shall be not less than the

prevailing rate paid in the craft, classification, or type of work.

If the director determines that the rate of prevailing wage for

any craft, classification, or type of worker is the rate established

by a collective bargaining agreement, the director may adopt that

rate by reference as provided for in the collective bargaining

agreement and that determination shall be effective for the life of

the agreement or until the director determines that another rate

should be adopted.

1773.1. (a) Per diem wages, when the term is used in this chapter

or in any other statute applicable to public works, shall be deemed

to include employer payments for the following:

(1) Health and welfare.

(2) Pension.

(3) Vacation.

(4) Travel.

(5) Subsistence.

(6) Apprenticeship or other training programs authorized by

Section 3093, so long as the cost of training is reasonably related

to the amount of the contributions.

(7) Worker protection and assistance programs or committees

established under the federal Labor Management Cooperation Act of

1978 (Section 175a of Title 29 of the United States Code), to the

extent that the activities of the programs or committees are directed

to the monitoring and enforcement of laws related to public works.

(8) Industry advancement and collective bargaining agreements

administrative fees, provided that these payments are required under

a collective bargaining agreement pertaining to the particular craft,

classification, or type of work within the locality or the nearest

labor market area at issue.

(9) Other purposes similar to those specified in paragraphs (1) to

(8), inclusive.

(b) Employer payments include all of the following:

(1) The rate of contribution irrevocably made by the employer to a

trustee or third person pursuant to a plan, fund, or program.

(2) The rate of actual costs to the employer reasonably

anticipated in providing benefits to workers pursuant to an

enforceable commitment to carry out a financially responsible plan or

program communicated in writing to the workers affected.

(3) Payments to the California Apprenticeship Council pursuant to

Section 1777.5.

the general prevailing rate of per diem wages. However, no credit

shall be granted for benefits required to be provided by other state

or federal law. Credits for employer payments also shall not reduce

the obligation to pay the hourly straight time or overtime wages

found to be prevailing.

(d) The credit for employer payments shall be computed on an

annualized basis where the employer seeks credit for employer

payments that are higher for public works projects than for private

construction performed by the same employer, except where one or more

of the following occur:

(1) The employer has an enforceable obligation to make the higher

rate of payments on future private construction performed by the

employer.

(2) The higher rate of payments is required by a project labor

agreement.

(3) The payments are made to the California Apprenticeship Council

pursuant to Section 1777.5.

(4) The director determines that annualization would not serve the

purposes of this chapter.

(e) (1) For the purpose of determining those per diem wages for

contracts, the representative of any craft, classification, or type

of worker needed to execute contracts shall file with the Department

of Industrial Relations fully executed copies of the collective

bargaining agreements for the particular craft, classification, or

type of work involved. The collective bargaining agreements shall be

filed after their execution and thereafter may be taken into

consideration pursuant to Section 1773 whenever filed 30 days prior

to the call for bids. If the collective bargaining agreement has not

been formalized, a typescript of the final draft may be filed

temporarily, accompanied by a statement under penalty of perjury as

to its effective date.

(2) Where a copy of the collective bargaining agreement has

previously been filed, fully executed copies of all modifications and

extensions of the agreement that affect per diem wages or holidays

shall be filed.

(3) The failure to comply with filing requirements of this

subdivision shall not be grounds for setting aside a prevailing wage

determination if the information taken into consideration is correct.

1773.2. The body awarding any contract for public work, or

otherwise undertaking any public work, shall specify in the call for

bids for the contract, and 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 worker needed to execute the

contract.

In lieu of specifying the rate of wages in the call for bids, and

in the bid specifications and in the contract itself, the awarding

body may, in the call for bids, bid specifications, and contract,

include a statement that copies of the prevailing rate of per diem

wages are on file at its principal office, which shall be made

available to any interested party on request. The awarding body

shall also cause a copy of the determination of the director of the

prevailing rate of per diem wages to be posted at each job site.

1773.3. An awarding agency whose public works contract falls within

the jurisdiction of Section 1777.5 shall, within five days of the

award, send a copy of the award to the Division of Apprenticeship

Standards. When specifically requested by a local joint

apprenticeship committee, the division shall notify the local joint

apprenticeship committee regarding all such awards applicable to the

joint apprenticeship committee making the request. Within five days

of a finding of any discrepancy regarding the ratio of apprentices to

journeymen, pursuant to the certificated fixed number of apprentices

to journeymen, the awarding agency shall notify the Division of

Apprenticeship Standards.

1773.4. Any prospective bidder or his representative, any

representative of any craft, classification or type of workman

involved, or the awarding body may, within 20 days after commencement

of advertising of the call for bids by the awarding body, file with

the Director of Industrial Relations a verified petition to review

the determination of any such rate or rates upon the ground that they

have not been determined in accordance with the provision of Section

1773 of this code. Within two days thereafter, a copy of such

petition shall be filed with the awarding body. The petition shall

set forth the facts upon which it is based. The Director of

Industrial Relations or his authorized representative shall, upon

notice to the petitioner, the awarding body and such other persons as

he deems proper, including the recognized collective bargaining

representatives for the particular crafts, classifications or types

of work involved, institute an investigation or hold a hearing.

Within 20 days after the filing of such petition, or within such

longer period as agreed upon by the director, the awarding body, and

all the interested parties, he shall make a determination and

transmit the same in writing to the awarding body and to the

interested parties.

Such determination shall be final and shall be the determination

of the awarding body. Upon receipt by it of the notice of the filing

of such petition the body awarding the contract or authorizing the

public work shall extend the closing date for the submission of bids

or the starting of work until five days after the determination of

the general prevailing rates of per diem wages pursuant to this

section.

Upon the filing of any such petition, notice thereof shall be set

forth in the next and all subsequent publications by the awarding

body of the call for bids. No other notice need be given to bidders

by the awarding body by publication or otherwise. The determination

of the director shall be included in the contract.

1773.5. The Director of Industrial Relations may establish rules

and regulations for the purpose of carrying out this chapter,

including, but not limited to, the responsibilities and duties of

awarding bodies under this chapter.

1773.6. If during any quarterly period the Director of Industrial

Relations shall determine that there has been a change in any

prevailing rate of per diem wages in any locality he shall make such

change available to the awarding body and his determination shall be

final. Such determination by the Director of Industrial Relations

shall not be effective as to any contract for which the notice to

bidders has been published.

1773.7. The provisions of Section 11250 of the Government Code

shall not be applicable to Sections 1773, 1773.4, and 1773.6.

1773.9. (a) The Director of Industrial Relations shall use the

methodology set forth in subdivision (b) to determine the general

prevailing rate of per diem wages in the locality in which the public

work is to be performed.

(b) The general prevailing rate of per diem wages includes all of

the following:

(1) The basic hourly wage rate being paid to a majority of workers

engaged in the particular craft, classification, or type of work

within the locality and in the nearest labor market area, if a

majority of the workers is paid at a single rate. If no single rate

is being paid to a majority of the workers, then the single rate

being paid to the greatest number of workers, or modal rate, is

prevailing. If a modal rate cannot be determined, then the director

shall establish an alternative rate, consistent with the methodology

for determining the modal rate, by considering the appropriate

collective bargaining agreements, federal rates, rates in the nearest

labor market area, or other data such as wage survey data.

(2) Other employer payments included in per diem wages pursuant to

Section 1773.1 and as included as part of the total hourly wage rate

from which the basic hourly wage rate was derived. In the event the

total hourly wage rate does not include any employer payments, the

director shall establish a prevailing employer payment rate by the

same procedure set forth in paragraph (1).

(3) The rate for holiday and overtime work shall be those rates

specified in the collective bargaining agreement when the basic

hourly rate is based on a collective bargaining agreement rate. In

the event the basic hourly rate is not based on a collective

bargaining agreement, the rate for holidays and overtime work, if

any, included with the prevailing basic hourly rate of pay shall be

prevailing.

rate of per diem wages is the rate established by a collective

bargaining agreement, and that the collective bargaining agreement

contains definite and predetermined changes during its term that will

affect the rate adopted, the director shall incorporate those

changes into the determination. Predetermined changes that are

rescinded prior to their effective date shall not be enforced.

(2) When the director determines that there is a definite and

predetermined change in the general prevailing rate of per diem wages

as described in paragraph (1), but has not published, at the time of

the effective date of the predetermined change, the allocation of

the predetermined change as between the basic hourly wage and other

employer payments included in per diem wages pursuant to Section

1773.1, a contractor or subcontractor may allocate payments of not

less than the amount of the definite and predetermined change to

either the basic hourly wage or other employer payments included in

per diem wages for up to 60 days following the director's publication

of the specific allocation of the predetermined change.

(3) When the director determines that there is a definite and

predetermined change in the general prevailing rate of per diem wages

as described in paragraph (1), but the allocation of that

predetermined change as between the basic hourly wage and other

employer payments included in per diem wages pursuant to Section

1773.1 is subsequently altered by the parties to a collective

bargaining agreement described in paragraph (1), a contractor or

subcontractor may allocate payments of not less than the amount of

the definite and predetermined change in accordance with either the

originally published allocation or the allocation as altered in the

collective bargaining agreement.

1773.11. (a) Notwithstanding any other provision of law and except

as otherwise provided by this section, if the state or a political

subdivision thereof agrees by contract with a private entity that the

private entity's employees receive, in performing that contract, the

general prevailing rate of per diem wages and the general prevailing

rate for holiday and overtime work, the director shall, upon a

request by the state or the political subdivision, do both of the

following:

(1) Determine, as otherwise provided by law, the wage rates for

each craft, classification, or type of worker that are needed to

execute the contract.

(2) Provide these wage rates to the state or political subdivision

that requests them.

(b) This section does not apply to a contract for a public work,

as defined in this chapter.

described in this section in the order in which the requests for

these wage rates were received and regardless of the calendar year in

which they were received. If there are more than 20 pending

requests in a calendar year, the director shall respond only to the

first 20 requests in the order in which they were received. If the

director determines that funding is available in any calendar year to

determine and provide these wage rates in response to more than 20

requests, the director shall respond to these requests in a manner

consistent with this subdivision.

1774. The contractor to whom the contract is awarded, and any

subcontractor under him, shall pay not less than the specified

prevailing rates of wages to all workmen employed in the execution of

the contract.

1775. (a) (1) The contractor and any subcontractor under the

contractor shall, as a penalty to the state or political subdivision

on whose behalf the contract is made or awarded, forfeit not more

than fifty dollars ($50) for each calendar day, or portion thereof,

for each worker paid less than the prevailing wage rates as

determined by the director for the work or craft in which the worker

is employed for any public work done under the contract by the

contractor or, except as provided in subdivision (b), by any

subcontractor under the contractor.

(2) (A) The amount of the penalty shall be determined by the Labor

Commissioner based on consideration of both of the following:

(i) Whether the failure of the contractor or subcontractor to pay

the correct rate of per diem wages was a good faith mistake and, if

so, the error was promptly and voluntarily corrected when brought to

the attention of the contractor or subcontractor.

(ii) Whether the contractor or subcontractor has a prior record of

failing to meet its prevailing wage obligations.

(B) (i) The penalty may not be less than ten dollars ($10) for

each calendar day, or portion thereof, for each worker paid less than

the prevailing wage rate, unless the failure of the contractor or

subcontractor to pay the correct rate of per diem wages was a good

faith mistake and, if so, the error was promptly and voluntarily

corrected when brought to the attention of the contractor or

subcontractor.

(ii) The penalty may not be less than twenty dollars ($20) for

each calendar day, or portion thereof, for each worker paid less than

the prevailing wage rate, if the contractor or subcontractor has

been assessed penalties within the previous three years for failing

to meet its prevailing wage obligations on a separate contract,

unless those penalties were subsequently withdrawn or overturned.

(iii) The penalty may not be less than thirty dollars ($30) for

each calendar day, or portion thereof, for each worker paid less than

the prevailing wage rate, if the Labor Commissioner determines that

the violation was willful, as defined in subdivision (c) of Section

1777.1.

contractor or subcontractor, any outstanding wage claim under Chapter

1 (commencing with Section 1720) of Part 7 of Division 2 against

that contractor or subcontractor shall be satisfied before applying

that amount to the penalty imposed on that contractor or

subcontractor pursuant to this section.

(D) The determination of the Labor Commissioner as to the amount

of the penalty shall be reviewable only for abuse of discretion.

(E) The difference between the prevailing wage rates and the

amount paid to each worker for each calendar day or portion thereof

for which each worker was paid less than the prevailing wage rate

shall be paid to each worker by the contractor or subcontractor, and

the body awarding the contract shall cause to be inserted in the

contract a stipulation that this section will be complied with.

(b) If a worker employed by a subcontractor on a public works

project is not paid the general prevailing rate of per diem wages by

the subcontractor, the prime contractor of the project is not liable

for any penalties under subdivision (a) unless the prime contractor

had knowledge of that failure of the subcontractor to pay the

specified prevailing rate of wages to those workers or unless the

prime contractor fails to comply with all of the following

requirements:

(1) The contract executed between the contractor and the

subcontractor for the performance of work on the public works project

shall include a copy of the provisions of Sections 1771, 1775, 1776,

1777.5, 1813, and 1815.

(2) The contractor shall monitor the payment of the specified

general prevailing rate of per diem wages by the subcontractor to the

employees, by periodic review of the certified payroll records of

the subcontractor.

(3) Upon becoming aware of the failure of the subcontractor to pay

his or her workers the specified prevailing rate of wages, the

contractor shall diligently take corrective action to halt or rectify

the failure, including, but not limited to, retaining sufficient

funds due the subcontractor for work performed on the public works

project.

(4) Prior to making final payment to the subcontractor for work

performed on the public works project, the contractor shall obtain an

affidavit signed under penalty of perjury from the subcontractor

that the subcontractor has paid the specified general prevailing rate

of per diem wages to his or her employees on the public works

project and any amounts due pursuant to Section 1813.

contractor on a public works project within 15 days of the receipt by

the Division of Labor Standards Enforcement of a complaint of the

failure of a subcontractor on that public works project to pay

workers the general prevailing rate of per diem wages.

1776. (a) Each contractor and subcontractor shall keep accurate

payroll records, 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 to each journeyman,

apprentice, worker, or other employee employed by him or her in

connection with the public work. Each payroll record shall contain or

be verified by a written declaration that it is made under penalty

of perjury, stating both of the following:

(1) The information contained in the payroll record is true and

correct.

(2) The employer has complied with the requirements of Sections

1771, 1811, and 1815 for any work performed by his or her employees

on the public works project.

(b) The payroll records enumerated under subdivision (a) shall be

certified and shall be available for inspection at all reasonable

hours at the principal office of the contractor on the following

basis:

(1) A certified copy of an employee's payroll record shall be made

available for inspection or furnished to the employee or his or her

authorized representative on request.

(2) A certified copy of all payroll records enumerated in

subdivision (a) shall be made available for inspection or furnished

upon request to a representative of the body awarding the contract,

the Division of Labor Standards Enforcement, and the Division of

Apprenticeship Standards of the Department of Industrial Relations.

(3) A certified copy of all payroll records enumerated in

subdivision (a) shall be made available upon request by the public

for inspection or for copies thereof. However, a request by the

public shall be made through either the body awarding the contract,

the Division of Apprenticeship Standards, or the Division of Labor

Standards Enforcement. If the requested payroll records have not been

provided pursuant to paragraph (2), the requesting party shall,

prior to being provided the records, reimburse the costs of

preparation by the contractor, subcontractors, and the entity through

which the request was made. The public may not be given access to

the records at the principal office of the contractor.

the Division of Labor Standards Enforcement or shall contain the same

information as the forms provided by the division. The payroll

records may consist of printouts of payroll data that are maintained

as computer records, if the printouts contain the same information as

the forms provided by the division and the printouts are verified in

the manner specified in subdivision (a).

(d) A contractor or subcontractor shall file a certified copy of

the records enumerated in subdivision (a) with the entity that

requested the records within 10 days after receipt of a written

request.

(e) Any copy of records made available for inspection as copies

and furnished upon request to the public or any public agency by the

awarding body, the Division of Apprenticeship Standards, or the

Division of Labor Standards Enforcement shall be marked or

obliterated to prevent disclosure of an individual's name, address,

and social security number. The name and address of the contractor

awarded the contract or the subcontractor performing the contract

shall not be marked or obliterated. Any copy of records made

available for inspection by, or furnished to, a joint

labor-management committee established pursuant to the federal Labor

Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be

marked or obliterated only to prevent disclosure of an individual's

name and social security number. A joint labor management committee

may maintain an action in a court of competent jurisdiction against

an employer who fails to comply with Section 1774. The court may

award restitution to an employee for unpaid wages and may award the

joint labor management committee reasonable attorney's fees and costs

incurred in maintaining the action. An action under this subdivision

may not be based on the employer's misclassification of the craft of

a worker on its certified payroll records. Nothing in this

subdivision limits any other available remedies for a violation of

this chapter.

(f) The contractor shall inform the body awarding the contract of

the location of the records enumerated under subdivision (a),

including the street address, city, and county, and shall, within

five working days, provide a notice of a change of location and

address.

(g) The contractor or subcontractor has 10 days in which to comply

subsequent to receipt of a written notice requesting the records

enumerated in subdivision (a). In the event that the contractor or

subcontractor fails to comply within the 10-day period, he or she

shall, as a penalty to the state or political subdivision on whose

behalf the contract is made or awarded, forfeit twenty-five dollars

($25) for each calendar day, or portion thereof, for each worker,

until strict compliance is effectuated. Upon the request of the

Division of Apprenticeship Standards or the Division of Labor

Standards Enforcement, these penalties shall be withheld from

progress payments then due. A contractor is not subject to a penalty

assessment pursuant to this section due to the failure of a

subcontractor to comply with this section.

(h) The body awarding the contract shall cause to be inserted in

the contract stipulations to effectuate this section.

(i) The director shall adopt rules consistent with the California

Public Records Act (Chapter 3.5 (commencing with Section 6250) of

Division 7 of Title 1 of the Government Code) and the Information

Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of

Part 4 of Division 3 of the Civil Code) governing the release of

these records, including the establishment of reasonable fees to be

charged for reproducing copies of records required by this section.

1777. Any officer, agent, or representative of the State or of any

political subdivision who wilfully violates any provision of this

article, and any contractor, or subcontractor, or agent or

representative thereof, doing public work who neglects to comply with

any provision of section 1776 is guilty of a misdemeanor.

1777.1. (a) Whenever a contractor or subcontractor performing a

public works project pursuant to this chapter is found by the Labor

Commissioner to be in violation of this chapter with intent to

defraud, except Section 1777.5, the contractor or subcontractor or a

firm, corporation, partnership, or association in which the

contractor or subcontractor has any interest is ineligible for a

period of not less than one year or more than three years to do

either of the following:

(1) Bid on or be awarded a contract for a public works project.

(2) Perform work as a subcontractor on a public works project.

(b) Whenever a contractor or subcontractor performing a public

works project pursuant to this chapter is found by the Labor

Commissioner to be in willful violation of this chapter, except

Section 1777.5, the contractor or subcontractor or a firm,

corporation, partnership, or association in which the contractor or

subcontractor has any interest is ineligible for a period up to three

years for each second and subsequent violation occurring within

three years of a separate and previous willful violation of this

chapter to do either of the following:

(1) Bid on or be awarded a contract for a public works project.

(2) Perform work as a subcontractor on a public works project.

subcontractor knew or reasonably should have known of his or her

obligations under the public works law and deliberately fails or

refuses to comply with its provisions.

(d) Not less than semiannually, the Labor Commissioner shall

publish and distribute to awarding bodies a list of contractors who

are ineligible to bid on or be awarded a public works contract, or to

perform work as a subcontractor on a public works project pursuant

to this chapter. The list shall contain the name of the contractor,

the Contractor's State License Board license number of the

contractor, and the effective period of debarment of the contractor.

The commissioner shall also place advertisements in construction

industry publications targeted to the contractors and subcontractors,

chosen by the commissioner, that state the effective period of the

debarment and the reason for debarment. The advertisements shall

appear one time for each debarment of a contractor in each

publication chosen by the commissioner. The debarred contractor or

subcontractor shall be liable to the commissioner for the reasonable

cost of the advertisements, not to exceed five thousand dollars

($5,000). The amount paid to the commissioner for the advertisements

shall be credited against the contractor's or subcontractor's

obligation to pay civil fines or penalties for the same willful

violation of this chapter.

(e) For purposes of this section, "contractor or subcontractor"

means a firm, corporation, partnership, or association and its

responsible managing officer, as well as any supervisors, managers,

and officers found by the Labor Commissioner to be personally and

substantially responsible for the willful violation of this chapter.

(f) For the purposes of this section, the term "any interest"

means an interest in the entity bidding or performing work on the

public works project, whether as an owner, partner, officer, manager,

employee, agent, consultant, or representative. "Any interest"

includes, but is not limited to, all instances where the debarred

contractor or subcontractor receives payments, whether cash or any

other form of compensation, from any entity bidding or performing

work on the public works project, or enters into any contracts or

agreements with the entity bidding or performing work on the public

works project for services performed or to be performed for contracts

that have been or will be assigned or sublet, or for vehicles,

tools, equipment, or supplies that have been or will be sold, rented,

or leased during the period from the initiation of the debarment

proceedings until the end of the term of the debarment period. "Any

interest" does not include shares held in a publicly traded

corporation if the shares were not received as compensation after the

initiation of debarment from an entity bidding or performing work on

a public works project.

(g) For the purposes of this section, the term "entity" is defined

as a company, limited liability company, association, partnership,

sole proprietorship, limited liability partnership, corporation,

business trust, or organization.

(h) The Labor Commissioner shall adopt rules and regulations for

the administration and enforcement of this section.

1777.5. (a) Nothing in this chapter shall prevent the employment of

properly registered apprentices upon public works.

(b) Every apprentice employed upon public works shall be paid the

prevailing rate of per diem wages for apprentices in the trade to

which he or she is registered and shall be employed only at the work

of the craft or trade to which he or she is registered.

training under apprenticeship standards that have been approved by

the Chief of the Division of Apprenticeship Standards and who are

parties to written apprentice agreements under Chapter 4 (commencing

with Section 3070) of Division 3 are eligible to be employed at the

apprentice wage rate on public works. The employment and training of

each apprentice shall be in accordance with either of the following:

(1) The apprenticeship standards and apprentice agreements under

which he or she is training.

(2) The rules and regulations of the California Apprenticeship

Council.

(d) When the contractor to whom the contract is awarded by the

state or any political subdivision, in performing any of the work

under the contract, employs workers in any apprenticeable craft or

trade, the contractor shall employ apprentices in at least the ratio

set forth in this section and may apply to any apprenticeship program

in the craft or trade that can provide apprentices to the site of

the public work for a certificate approving the contractor under the

apprenticeship standards for the employment and training of

apprentices in the area or industry affected. However, the decision

of the apprenticeship program to approve or deny a certificate shall

be subject to review by the Administrator of Apprenticeship. The

apprenticeship program or programs, upon approving the contractor,

shall arrange for the dispatch of apprentices to the contractor. A

contractor covered by an apprenticeship program's standards shall not

be required to submit any additional application in order to include

additional public works contracts under that program.

"Apprenticeable craft or trade," as used in this section, means a

craft or trade determined as an apprenticeable occupation in

accordance with rules and regulations prescribed by the California

Apprenticeship Council. As used in this section, "contractor"

includes any subcontractor under a contractor who performs any public

works not excluded by subdivision (o).

(e) Prior to commencing work on a contract for public works, every

contractor shall submit contract award information to an applicable

apprenticeship program that can supply apprentices to the site of the

public work. The information submitted shall include an estimate of

journeyman hours to be performed under the contract, the number of

apprentices proposed to be employed, and the approximate dates the

apprentices would be employed. A copy of this information shall also

be submitted to the awarding body if requested by the awarding body.

Within 60 days after concluding work on the contract, each

contractor and subcontractor shall submit to the awarding body, if

requested, and to the apprenticeship program a verified statement of

the journeyman and apprentice hours performed on the contract. The

information under this subdivision shall be public. The

apprenticeship programs shall retain this information for 12 months.

(f) The apprenticeship program that can supply apprentices to the

area of the site of the public work shall ensure equal employment and

affirmative action in apprenticeship for women and minorities.

(g) The ratio of work performed by apprentices to journeymen

employed in a particular craft or trade on the public work may be no

higher than the ratio stipulated in the apprenticeship standards

under which the apprenticeship program operates where the contractor

agrees to be bound by those standards, but, except as otherwise

provided in this section, in no case shall the ratio be less than one

hour of apprentice work for every five hours of journeyman work.

(h) This ratio of apprentice work to journeyman work shall apply

during any day or portion of a day when any journeyman is employed at

the jobsite and shall be computed on the basis of the hours worked

during the day by journeymen so employed. Any work performed by a

journeyman in excess of eight hours per day or 40 hours per week

shall not be used to calculate the ratio. The contractor shall employ

apprentices for the number of hours computed as above before the end

of the contract or, in the case of a subcontractor, before the end

of the subcontract. However, the contractor shall endeavor, to the

greatest extent possible, to employ apprentices during the same time

period that the journeymen in the same craft or trade are employed at

the jobsite. Where an hourly apprenticeship ratio is not feasible

for a particular craft or trade, the Chief of the Division of

Apprenticeship Standards, upon application of an apprenticeship

program, may order a minimum ratio of not less than one apprentice

for each five journeymen in a craft or trade classification.

(i) A contractor covered by this section that has agreed to be

covered by an apprenticeship program's standards upon the issuance of

the approval certificate, or that has been previously approved for

an apprenticeship program in the craft or trade, shall employ the

number of apprentices or the ratio of apprentices to journeymen

stipulated in the applicable apprenticeship standards, but in no

event less than the 1-to-5 ratio required by subdivision (g).

(j) Upon proper showing by a contractor that he or she employs

apprentices in a particular craft or trade in the state on all of his

or her contracts on an annual average of not less than one hour of

apprentice work for every five hours of labor performed by

journeymen, the Chief of the Division of Apprenticeship Standards may

grant a certificate exempting the contractor from the 1-to-5 hourly

ratio, as set forth in this section for that craft or trade.

(k) An apprenticeship program has the discretion to grant to a

participating contractor or contractor association a certificate,

which shall be subject to the approval of the Administrator of

Apprenticeship, exempting the contractor from the 1-to-5 ratio set

forth in this section when it finds that any one of the following

conditions is met:

(1) Unemployment for the previous three-month period in the area

exceeds an average of 15 percent.

(2) The number of apprentices in training in the area exceeds a

ratio of 1 to 5.

(3) There is a showing that the apprenticeable craft or trade is

replacing at least one-thirtieth of its journeymen annually through

apprenticeship training, either on a statewide basis or on a local

basis.

(4) Assignment of an apprentice to any work performed under a

public works contract would create a condition that would jeopardize

his or her life or the life, safety, or property of fellow employees

or the public at large, or the specific task to which the apprentice

is to be assigned is of a nature that training cannot be provided by

a journeyman.

(l) When an exemption is granted pursuant to subdivision (k) to an

organization that represents contractors in a specific trade from

the 1-to-5 ratio on a local or statewide basis, the member

contractors shall not be required to submit individual applications

for approval to local joint apprenticeship committees, if they are

already covered by the local apprenticeship standards.

(m) (1) A contractor to whom a contract is awarded, who, in

performing any of the work under the contract, employs journeymen or

apprentices in any apprenticeable craft or trade shall contribute to

the California Apprenticeship Council the same amount that the

director determines is the prevailing amount of apprenticeship

training contributions in the area of the public works site. A

contractor may take as a credit for payments to the council any

amounts paid by the contractor to an approved apprenticeship program

that can supply apprentices to the site of the public works project.

The contractor may add the amount of the contributions in computing

his or her bid for the contract.

(2) At the conclusion of the 2002-03 fiscal year and each fiscal

year thereafter, the California Apprenticeship Council shall

distribute training contributions received by the council under this

subdivision, less the expenses of the Division of Apprenticeship

Standards for administering this subdivision, by making grants to

approved apprenticeship programs for the purpose of training

apprentices. The funds shall be distributed as follows:

(A) If there is an approved multiemployer apprenticeship program

serving the same craft or trade and geographic area for which the

training contributions were made to the council, a grant to that

program shall be made.

(B) If there are two or more approved multiemployer apprenticeship

programs serving the same craft or trade and geographic area for

which the training contributions were made to the council, the grant

shall be divided among those programs based on the number of

apprentices registered in each program.

(A) and (B) shall be used to defray the future expenses of the

Division of Apprenticeship Standards.

(3) All training contributions received pursuant to this

subdivision shall be deposited in the Apprenticeship Training

Contribution Fund, which is hereby created in the State Treasury.

Notwithstanding Section 13340 of the Government Code, all money in

the Apprenticeship Training Contribution Fund is hereby continuously

appropriated for the purpose of carrying out this subdivision and to

pay the expenses of the Division of Apprenticeship Standards.

(n) The body awarding the contract shall cause to be inserted in

the contract stipulations to effectuate this section. The

stipulations shall fix the responsibility of compliance with this

section for all apprenticeable occupations with the prime contractor.

(o) This section does not apply to contracts of general

contractors or to contracts of specialty contractors not bidding for

work through a general or prime contractor when the contracts of

general contractors or those specialty contractors involve less than

thirty thousand dollars ($30,000).

(p) All decisions of an apprenticeship program under this section

are subject to Section 3081.

1777.6. An employer or a labor union shall not refuse to accept

otherwise qualified employees as registered apprentices on any public

works on any basis listed in subdivision (a) of Section 12940 of the

Government Code, as those bases are defined in Sections 12926 and

12926.1 of the Government Code, except as provided in Section 3077 of

this code and Section 12940 of the Government Code.

1777.7. (a) (1) A contractor or subcontractor that is determined by

the Chief of the Division of Apprenticeship Standards to have

knowingly violated Section 1777.5 shall forfeit as a civil penalty an

amount not exceeding one hundred dollars ($100) for each full

calendar day of noncompliance. The amount of this penalty may be

reduced by the Chief if the amount of the penalty would be

disproportionate to the severity of the violation. A contractor or

subcontractor that knowingly commits a second or subsequent violation

of Section 1777.5 within a three-year period, where the

noncompliance results in apprenticeship training not being provided

as required by this chapter, shall forfeit as a civil penalty the sum

of not more than three hundred dollars ($300) for each full calendar

day of noncompliance. Notwithstanding Section 1727, upon receipt of

a determination that a civil penalty has been imposed by the Chief,

the awarding body shall withhold the amount of the civil penalty from

contract progress payments then due or to become due.

(2) In lieu of the penalty provided for in this subdivision, the

Chief may, for a first-time violation and with the concurrence of an

apprenticeship program described in subdivision (d), order the

contractor or subcontractor to provide apprentice employment

equivalent to the work hours that would have been provided for

apprentices during the period of noncompliance.

(b) In the event a contractor or subcontractor is determined by

the Chief to have knowingly committed a serious violation of any

provision of Section 1777.5, the Chief may also deny to the

contractor or subcontractor, and to its responsible officers, the

right to bid on or be awarded or perform work as a subcontractor on

any public works contract for a period of up to one year for the

first violation and for a period of up to three years for a second or

subsequent violation. Each period of debarment shall run from the

date the determination of noncompliance by the Chief becomes a final

order of the Administrator of Apprenticeship.

officer may obtain a review of the determination of the Chief

imposing the debarment or civil penalty by transmitting a written

request to the office of the Administrator within 30 days after

service of the determination of debarment or civil penalty. A copy

of this report shall also be served on the Chief. If the

Administrator does not receive a timely request for review of the

determination of debarment or civil penalty made by the Chief, the

order shall become the final order of the Administrator.

(2) Within 20 days of the timely receipt of a request for review,

the Chief shall provide the contractor, subcontractor, or responsible

officer the opportunity to review any evidence the Chief may offer

at the hearing. The Chief shall also promptly disclose any

nonprivileged documents obtained after the 20-day time limit at a

time set forth for exchange of evidence by the Administrator.

(3) Within 90 days of the timely receipt of a request for review,

a hearing shall be commenced before the Administrator or an impartial

hearing officer designated by the Administrator and possessing the

qualifications of an administrative law judge pursuant to subdivision

(b) of Section 11502 of the Government Code. The affected

contractor, subcontractor, or responsible officer shall have the

burden of providing evidence of compliance with Section 1777.5.

(4) Within 45 days of the conclusion of the hearing, the

Administrator shall issue a written decision affirming, modifying, or

dismissing the determination of debarment or civil penalty. The

decision shall contain a statement of the factual and legal basis for

the decision and an order. This decision shall be served on all

parties and the awarding body pursuant to Section 1013 of the Code of

Civil Procedure by first-class mail at the last known address of the

party that the party has filed with the Administrator. Within 15

days of issuance of the decision, the Administrator may reconsider or

modify the decision to correct an error, except that a clerical

error may be corrected at any time.

(5) An affected contractor, subcontractor, or responsible officer

who has timely requested review and obtained a decision under

paragraph (4) may obtain review of the decision of the Administrator

by filing a petition for a writ of mandate to the appropriate

superior court pursuant to Section 1094.5 of the Code of Civil

Procedure within 45 days after service of the final decision. If no

timely petition for a writ of mandate is filed, the decision shall

become the final order of the Administrator. The decision of the

Administrator shall be affirmed unless the petitioner shows that the

Administrator abused his or her discretion. If the petitioner claims

that the findings are not supported by the evidence, abuse of

discretion is established if the court determines that the findings

are not supported by substantial evidence in light of the entire

record.

(6) The Chief may certify a copy of the final order of the

Administrator and file it with the clerk of the superior court in any

county in which the affected contractor or subcontractor has

property or has or had a place of business. The clerk, immediately

upon the filing, shall enter judgment for the state against the

person assessed in the amount shown on the certified order. A

judgment entered pursuant to this section shall bear the same rate of

interest and shall have the same effect as other judgments and be

given the same preference allowed by the law on other judgments

rendered for claims for taxes. The clerk shall not charge for the

service performed by him or her pursuant to this section. An

awarding body that has withheld funds in response to a determination

by the Chief imposing a penalty under this section shall, upon

receipt of a certified copy of a final order of the Administrator,

promptly transmit the withheld funds, up to the amount of the

certified order, to the Administrator.

(d) If a subcontractor is found to have violated Section 1777.5,

the prime contractor of the project is not liable for any penalties

under subdivision (a), unless the prime contractor had knowledge of

the subcontractor's failure to comply with the provisions of Section

1777.5 or unless the prime contractor fails to comply with any of the

following requirements:

(1) The contract executed between the contractor and the

subcontractor or the performance of work on the public works project

shall include a copy of the provisions of Sections 1771, 1775, 1776,

1777.5, 1813, and 1815.

(2) The contractor shall continually monitor a subcontractor's use

of apprentices required to be employed on the public works project

pursuant to subdivision (d) of Section 1777.5, including, but not

limited to, periodic review of the certified payroll of the

subcontractor.

(3) Upon becoming aware of a failure of the subcontractor to

employ the required number of apprentices, the contractor shall take

corrective action, including, but not limited to, retaining funds due

the subcontractor for work performed on the public works project

until the failure is corrected.

(4) Prior to making the final payment to the subcontractor for

work performed on the public works project, the contractor shall

obtain a declaration signed under penalty of perjury from the

subcontractor that the subcontractor has employed the required number

of apprentices on the public works project.

(e) Any funds withheld by the awarding body pursuant to this

section shall be deposited in the General Fund if the awarding body

is a state entity, or in the equivalent fund of an awarding body if

the awarding body is an entity other than the state.

(f) The Chief shall consider, in setting the amount of a monetary

penalty, in determining whether a violation is serious, and in

determining whether and for how long a party should be debarred for

violating this section, all of the following circumstances:

(1) Whether the violation was intentional.

(2) Whether the party has committed other violations of Section

1777.5.

(3) Whether, upon notice of the violation, the party took steps to

voluntarily remedy the violation.

(4) Whether, and to what extent, the violation resulted in lost

training opportunities for apprentices.

(5) Whether, and to what extent, the violation otherwise harmed

apprentices or apprenticeship programs.

If a party seeks review of a decision by the Chief to impose a

monetary penalty or period of debarment, the Administrator shall

decide de novo the appropriate penalty, by considering the same

factors set forth above.

(g) The interpretation of Section 1777.5 and this section shall be

in accordance with the regulations of the California Apprenticeship

Council. The Administrator may adopt regulations to establish

guidelines for the imposition of monetary penalties and periods of

debarment and may designate precedential decisions under Section

11425.60 of the Government Code.

1778. Every person, who individually or as a representative of an

awarding or public body or officer, or as a contractor or

subcontractor doing public work, or agent or officer thereof, who

takes, receives, or conspires with another to take or receive, for

his own use or the use of any other person any portion of the wages

of any workman or working subcontractor, in connection with services

rendered upon any public work is guilty of a felony.

1779. Any person or agent or officer thereof who charges, collects,

or attempts to charge or collect, directly or indirectly, a fee or

valuable consideration for registering any person for public work, or

for giving information as to where such employment may be procured,

or for placing, assisting in placing, or attempting to place, any

person in public work, whether the person is to work directly for the

State, or any political subdivision or for a contractor or

subcontractor doing public work is guilty of a misdemeanor.

1780. Any person acting on behalf of the State or any political

subdivision, or any contractor or subcontractor or agent or

representative thereof, doing any public work who places any order

for the employment of a workman on public work where the filling of

the order for employment involves the charging of a fee, or the

receiving of a valuable consideration from any applicant for

employment is guilty of a misdemeanor.

1781. (a) (1) Notwithstanding any other provision of law, a

contractor may, subject to paragraphs (2) and (3), bring an action in

a court of competent jurisdiction to recover from the body awarding

a contract for a public work or otherwise undertaking any public work

any increased costs incurred by the contractor as a result of any

decision by the body, the Department of Industrial Relations, or a

court that classifies, after the time at which the body accepts the

contractor's bid or awards the contractor a contract in circumstances

where no bid is solicited, the work covered by the bid or contract

as a "public work," as defined in this chapter, to which Section 1771

applies, if that body, before the bid opening or awarding of the

contract, failed to identify as a "public work," as defined in this

chapter, in the bid specification or in the contract documents that

portion of the work that the decision classifies as a "public work."

(2) The body awarding a contract for a public work or otherwise

undertaking any public work is not liable for increased costs in an

action described in paragraph (1) if all of the following conditions

are met:

(A) The contractor did not directly submit a bid to, or directly

contract with, that body.

(B) The body stated in the contract, agreement, ordinance, or

other written arrangement by which it undertook the public work that

the work described in paragraph (1) was a "public work," as defined

in this chapter, to which Section 1771 applies, and obligated the

party with whom the body makes its written arrangement to cause the

work described in paragraph (1) to be performed as a "public work."

Code or any other provision of law pertaining to the body providing

and maintaining bonds to secure the payment of contractors, including

the payment of wages to workers performing the work described in

paragraph (1).

(3) If a contractor did not directly submit a bid to, or directly

contract with a body awarding a contract for, or otherwise

undertaking a public work, the liability of that body in an action

commenced by the contractor under subdivision (a) is limited to that

portion of a judgment, obtained by that contractor against the body

that solicited the contractor's bid or awarded the contract to the

contractor, that the contractor is unable to satisfy. For purposes

of this paragraph, a contractor may not be deemed to be unable to

satisfy any portion of a judgment unless, in addition to other

collection measures, the contractor has made a good faith attempt to

collect that portion of the judgment against a surety bond,

guarantee, or some other form of assurance.

(b) When construction has not commenced at the time a final

decision by the Department of Industrial Relations or a court

classifies all or part of the work covered by the bid or contract as

a "public work," as defined in this chapter, the body that solicited

the bid or awarded the contract shall rebid the "public work" covered

by the contract as a "public work," any bid that was submitted and

any contract that was executed for this work are null and void, and

the contractor may not be compensated for any nonconstruction work

already performed unless the body soliciting the bid or awarding the

contract has agreed to compensate the contractor for this work.

(1) "Awarding body" does not include the Department of General

Services, the Department of Transportation, or the Department of

Water Resources.

(2) "Increased costs" includes, but is not limited to:

(A) Labor cost increases required to be paid to workers who

perform or performed work on the "public work" as a result of the

events described in subdivision (a).

(B) Penalties for a violation of this article for which the

contractor is liable, and which violation is the result of the events

described in subdivision (a).

1810. Eight hours labor constitutes a legal day's work in all cases

where the same is performed under the authority of any law of this

State, or under the direction, or control, or by the authority of any

officer of this State acting in his official capacity, or under the

direction, or control or by the authority of any municipal

corporation, or of any officer thereof. A stipulation to that effect

shall be made a part of all contracts to which the State or any

municipal corporation therein is a party.

1811. The time of service of any workman employed upon public work

is limited and restricted to 8 hours during any one calendar day, and

40 hours during any one calendar week, except as hereinafter

provided for under Section 1815.

1812. Every contractor and subcontractor shall keep an accurate

record 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 the public work. The record shall be kept open at all

reasonable hours to the inspection of the awarding body and to the

Division of Labor Standards Enforcement.

1813. The contractor or subcontractor shall, as a penalty to the

state or political subdivision on whose behalf the contract is made

or awarded, forfeit twenty-five dollars ($25) for each worker

employed in the execution of the contract by the respective

contractor or subcontractor for each calendar day during which the

worker is required or permitted to work more than 8 hours in any one

calendar day and 40 hours in any one calendar week in violation of

the provisions of this article. In awarding any contract for public

work, the awarding body shall cause to be inserted in the contract a

stipulation to this effect. The awarding body shall take cognizance

of all violations of this article committed in the course of the

execution of the contract, and shall report them to the Division of

Labor Standards Enforcement.

1814. Any officer, agent, or representative of the State or any

political subdivision who violates any provision of this article and

any contractor or subcontractor or agent or representative thereof

doing public work who neglects to comply with any provision of

Section 1812 is guilty of a misdemeanor.

1815. Notwithstanding the provisions of Sections 1810 to 1814,

inclusive, of this code, and notwithstanding any stipulation inserted

in any contract pursuant to the requirements of said sections, work

performed by employees of contractors in excess of 8 hours per day,

and 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 than 11/2 times the basic rate of pay.

1860. The awarding body shall cause to be inserted in every public

works contract a clause providing that, in accordance with the

provisions of Section 3700 of the Labor Code, every contractor will

be required to secure the payment of compensation to his employees.

1861. Each contractor to whom a public works contract is awarded

shall sign and file with the awarding body the following

certification prior to performing the work of the contract: "I am

aware of the provisions of Section 3700 of the Labor Code which

require every employer to be insured against liability for workers'

compensation or to undertake self-insurance in accordance with the

provisions of that code, and I will comply with such provisions

before commencing the performance of the work of this contract."