Bill Text: CA AB1939 | 2013-2014 | Regular Session | Chaptered
Bill Title: Public works: prevailing wages: contractor's costs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-07-21 - Chaptered by Secretary of State - Chapter 161, Statutes of 2014. [AB1939 Detail]
Download: California-2013-AB1939-Chaptered.html
BILL NUMBER: AB 1939 CHAPTERED
BILL TEXT
CHAPTER 161
FILED WITH SECRETARY OF STATE JULY 21, 2014
APPROVED BY GOVERNOR JULY 21, 2014
PASSED THE SENATE JUNE 30, 2014
PASSED THE ASSEMBLY JULY 3, 2014
AMENDED IN SENATE JUNE 25, 2014
AMENDED IN SENATE JUNE 2, 2014
AMENDED IN ASSEMBLY APRIL 24, 2014
INTRODUCED BY Assembly Member Daly
FEBRUARY 19, 2014
An act to add Section 1784 to the Labor Code, relating to public
works.
LEGISLATIVE COUNSEL'S DIGEST
AB 1939, Daly. Public works: prevailing wages: contractor's costs.
Existing law generally requires the payment of not less than the
prevailing rate of per diem wages for work of a similar character in
the locality in which the public work, as defined, is performed, and
not less than the prevailing rate for holiday and overtime work, to
workers employed on public works projects of greater than $1,000.
Existing law requires an awarding body, as defined, to obtain the
general prevailing rate of per diem wages, as determined by the
Department of Industrial Relations.
Existing law authorizes a contractor to bring an action in a court
of competent jurisdiction to recover from an awarding body specified
labor costs, penalties, and legal fees if either the awarding body
previously affirmatively represented to the contractor that the work
to be covered by the bid or contract was not a "public work" or 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" and failed to disclose that information
to the contractor. Existing law also authorizes a contractor to bring
an action 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 a decision of the awarding
body, the Department of Industrial Relations, or a court that
classifies the work as a "public work," if that body, before the bid
opening or awarding of the contract, failed to identify as a "public
work" in the bid specification or in the contract documents that
portion of the work that the decision classifies as a "public work."
This bill would authorize a contractor, as defined, to bring an
action in a court of competent jurisdiction to recover from the
hiring party, as defined, that the contractor directly contracts
with, any increased costs, including labor costs, penalties, and
legal fees incurred as a result of any decision by the Department of
Industrial Relations, the Labor and Workforce Development Agency, or
a court that classifies, after the time at which the hiring party
accepts the contractor's bid, awards the contractor a contract when
no bid is solicited, or otherwise allows construction to proceed, the
work covered by the project, or any portion thereof, as a public
work, except under the circumstances specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1784 is added to the Labor Code, to read:
1784. (a) Notwithstanding any other law, a contractor may bring
an action in a court of competent jurisdiction to recover from the
hiring party that the contractor directly contracts with, any
increased costs attributable solely to the provisions of this
chapter, including, but not limited to, 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 or other
sums required to be paid under this chapter, and costs and attorney's
fees for the action incurred by the contractor as a result of any
decision by the Department of Industrial Relations, the Labor and
Workforce Development Agency, or a court that classifies, after the
time at which the hiring party accepts the contractor's bid, awards
the contractor a contract under circumstances when no bid is
solicited, or otherwise allows construction by the contractor to
proceed, the work covered by the project, or any portion thereof, as
a "public work," as defined in this chapter, except to the extent
that either of the following is true:
(1) The owner or developer or its agent expressly advised the
contractor that the work to be covered by the contract would be a
"public work," as defined in this chapter, or is otherwise subject to
the payment of prevailing wages.
(2) The hiring party expressly advised the contractor that the
work subject to the contract would be a "public work," as defined in
this chapter, or is otherwise subject to the payment of prevailing
wages.
(b) (1) To be entitled to the recovery of increased costs
described in subdivision (a), the contractor shall notify the hiring
party and the owner or developer within 30 days after receipt of the
notice of a decision by the Department of Industrial Relations or the
Labor and Workforce Development Agency, or the initiation of any
action in a court alleging, that the work covered by the project, or
any portion thereof, is a "public work," as defined in this chapter.
(2) The notice provided pursuant to this subdivision shall set
forth the legal name, address, and telephone number of the
contractor, and the name, address, and telephone number of the
contractor's representative, if any, and shall be given by registered
or certified mail, express mail, or overnight delivery by an express
service carrier.
(c) A contractor is not required to list any prevailing wages or
apprenticeship standard violations on a prequalification
questionnaire that are the direct result of the failure of the owner
or developer or its agent, or a hiring party, to notify the
contractor that the project, or any portion thereof, was a "public
work," as defined in this chapter.
(d) This section does not apply to private residential projects
built on private property unless the project is built pursuant to an
agreement with a state agency, redevelopment agency, or local public
housing authority.
(e) This section does not apply if the conduct of the contractor
caused the project to be a "public work," as defined in this chapter,
or if the contractor has actual knowledge that the work is a "public
work," as defined in this chapter.
(f) A contractor may seek recovery pursuant to this section only
from a hiring party with whom the contractor has a direct contract.
(g) For purposes of this section, "contractor" means a person or
entity licensed by the Contractors' State Licensing Board that has a
direct contract with the hiring party to provide services on private
property or for the benefit of a private owner or developer.
(h) For purposes of this section, "hiring party" means the party
that has a direct contract for services provided by the contractor
who is seeking recovery pursuant to subdivision (a) on a private
works project that was subsequently determined to be a public work by
the Department of Industrial Relations or the Labor and Workforce
Development Agency, or by the initiation of any action in a court
alleging that the work covered by the project, or any portion
thereof, was a public work.
