SB 1162: Public contracts: employment compliance reports: apprenticeship programs.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2024-09-28
Current Status:
Passed
(2024-09-28: Chaptered by Secretary of State. Chapter 882, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements. Existing law defines skilled and trained workforce for purposes of these provisions to mean that at least 60% of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
This bill would require the monthly compliance report to include the full name of, and identify the apprenticeship program name, location, and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
Existing law authorizes the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations to approve apprenticeship programs in any trade in the state or in a city or trade area, whenever the apprentice training needs justify the establishment.
This bill would require the division, on or before July 1, 2025, to create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The bill would require the database to be searchable by using the first name, last name, and the graduation date of the worker.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements. Existing law defines skilled and trained workforce for purposes of these provisions to mean that at least 60% of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
This bill would require the monthly compliance report to include the full name of, and identify the apprenticeship program name, location, and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
Existing law authorizes the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations to approve apprenticeship programs in any trade in the state or in a city or trade area, whenever the apprentice training needs justify the establishment.
This bill would require the division, on or before July 1, 2025, to create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The bill would require the database to be searchable by using the first name, last name, and the graduation date of the worker.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements. Existing law defines skilled and trained workforce for purposes of these provisions to mean that at least 60% of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
This bill would additionally require the enforceable commitment to provide that the above-described report will include the date of birth of each worker. require the monthly compliance report to include the full name of, and identify the apprenticeship program name, location, and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
Existing law requires the Labor Commissioner to investigate allegations that a contractor or subcontractor violated certain employment laws specifically applicable to public works projects, including a requirement to pay prevailing wages. Existing law requires each contractor and subcontractor on a public works project to keep accurate payroll records, showing the name, address, social security number, and other specified employment information for each journeyman, apprentice, worker, or other employee employed in connection with the public work. Existing law requires those records to be available for inspection or furnished to certain individuals and agencies, including the public, as specified. Existing law imposes certain marking, obliteration, or redaction requirements to prevent the disclosure of an individuals name, address, and social security number to the public or certain public agencies, as specified. Existing law requires each payroll record to contain or be verified by a written declaration made under penalty of perjury, as specified. Existing law also makes neglecting to comply with the requirements to keep accurate payroll records a misdemeanor.This bill would require the payroll records to additionally include the date of birth of each of those employees, and would subject that date of birth information to the above-described requirements to prevent disclosure of similar personal information, as specified. By expanding the crime of perjury and the scope of a misdemeanor, this bill would impose a state-mandated local program.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.This bill would make legislative findings to that effect.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for specified reasons.Existing law authorizes the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations to approve apprenticeship programs in any trade in the state or in a city or trade area, whenever the apprentice training needs justify the establishment.
This bill would require the division, on or before July 1, 2025, to create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The bill would require the database to be searchable by using the first name, last name, and the graduation date of the worker.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements.
This bill would additionally require the enforceable commitment to provide that the above-described report will include the date of birth of each worker.
Existing law authorizes the Labor Commissioner or their designee to issue civil penalties if they determine, after an investigation, that a contractor or subcontractor did not use a skilled and trained workforce in accordance with the above-described requirements.This bill would require the Division of Labor Standards Enforcement to accept and investigate a complaint submitted by a joint labor management committee formed pursuant to existing federal law alleging that a contractor or subcontractor did not use a skilled and trained workforce in accordance with the above-described requirements.Existing law requires the Labor Commissioner to investigate allegations that a contractor or subcontractor violated certain employment laws specifically applicable to public works projects, including a requirement to pay prevailing wages. Existing law requires each contractor and subcontractor on a public works project to keep accurate payroll records, showing the name, address, social security number, and other specified employment information for each journeyman, apprentice, worker, or other employee employed in connection with the public work. Existing law requires those records to be available for inspection or furnished to certain individuals and agencies, including the public, as specified. Existing law imposes certain marking, obliteration, or redaction requirements to prevent the disclosure of an individuals name, address, and social security number to the public or certain public agencies, as specified. Existing law requires each payroll record to contain or be verified by a written declaration made under penalty of perjury, as specified. Existing law also makes neglecting to comply with the requirements to keep accurate payroll records a misdemeanor.
This bill would require the payroll records to additionally include the date of birth of each of those employees, and would subject that date of birth information to the above-described requirements to prevent disclosure of similar personal information, as specified. By expanding the crime of perjury and the scope of a misdemeanor, this bill would impose a state-mandated local program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements.
This bill would additionally require the enforceable commitment to provide that the above-described report will include the date of birth of each worker.
Existing law authorizes the Labor Commissioner or their designee to issue civil penalties if they determine, after an investigation, that a contractor or subcontractor did not use a skilled and trained workforce in accordance with the above-described requirements.
This bill would require the Division of Labor Standards Enforcement to accept and investigate a complaint submitted by a joint labor management committee formed pursuant to existing federal law alleging that a contractor or subcontractor did not use a skilled and trained workforce in accordance with the above-described requirements.
Existing law requires the Labor Commissioner to investigate allegations that a contractor or subcontractor violated certain employment laws specifically applicable to public works projects, including a requirement to pay prevailing wages. Existing law requires each contractor and subcontractor on a public works project to keep accurate payroll records, showing the name, address, social security number, and other specified employment information for each journeyman, apprentice, worker, or other employee employed in connection with the public work. Existing law requires those records to be available for inspection or furnished to certain individuals and agencies, including the public, as specified. Existing law imposes certain marking, obliteration, or redaction requirements to prevent the disclosure of an individuals name, address, and social security number to the public or certain public agencies, as specified. Existing law requires each payroll record to contain or be verified by a written declaration made under penalty of perjury, as specified. Existing law also makes neglecting to comply with the requirements to keep accurate payroll records a misdemeanor.
This bill would require the payroll records to additionally include the date of birth of each of those employees, and would subject that date of birth information to the above-described requirements to prevent disclosure of similar personal information, as specified. By expanding the crime of perjury and the scope of a misdemeanor, this bill would impose a state-mandated local program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law also authorizes a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce, regardless of whether they are required to do so by a statute or regulation. Existing law requires a public entity to include a notice in all bid documents and construction contracts when the use of a skilled and trained workforce is required. Existing law specifies that the failure of a public entity to include that notice does not excuse a public entity from the requirement to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce or, if the requirement is imposed by a statute or regulation, the bidder, contractor, or other entity from that obligation to use a skilled or trained workforce. requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements.
This bill would specify that the above described provisions apply to a commitment from or obligation on a bidder, contractor, subcontractor, or other entity. additionally require the enforceable commitment to provide that the above-described report will include the date of birth of each worker.
Existing law requires the Labor Commissioner to investigate allegations that a contractor or subcontractor violated certain employment laws specifically applicable to public works projects, including a requirement to pay prevailing wages. Existing law requires each contractor and subcontractor on a public works project to keep accurate payroll records, showing the name, address, social security number, and other specified employment information for each journeyman, apprentice, worker, or other employee employed in connection with the public work. Existing law requires those records to be available for inspection or furnished to certain individuals and agencies, including the public, as specified. Existing law imposes certain marking, obliteration, or redaction requirements to prevent the disclosure of an individuals name, address, and social security number to the public or certain public agencies, as specified. Existing law requires each payroll record to contain or be verified by a written declaration made under penalty of perjury, as specified. Existing law also makes neglecting to comply with the requirements to keep accurate payroll records a misdemeanor.
This bill would require the payroll records to additionally include the date of birth of each of those employees, and would subject that date of birth information to the above-described requirements to prevent disclosure of similar personal information, as specified. By expanding the crime of perjury and the scope of a misdemeanor, this bill would impose a state-mandated local program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law also authorizes a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce, regardless of whether they are required to do so by a statute or regulation. Existing law requires a public entity to include a notice in all bid documents and construction contracts when the use of a skilled and trained workforce is required. Existing law specifies that the failure of a public entity to include that notice does not excuse a public entity from the requirement to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce or, if the requirement is imposed by a statute or regulation, the bidder, contractor, or other entity from that obligation to use a skilled or trained workforce.
This bill would specify that the above described provisions apply to a commitment from or obligation on a bidder, contractor, subcontractor, or other entity.
(a)When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following:
(1)The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter.
(2)The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter. The required monthly report demonstrating compliance with this chapter shall include the full name of, and identify the apprenticeship program name, location, and graduation date of, each worker relied upon to satisfy the apprenticeship graduation percentage requirements of paragraph (2) of subdivision (d) of Section 2601.
(b)If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(c)If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following:
(1)Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph:
(A)The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter.
(B)If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(C)If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection.
(2)Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603.
(3)Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body.
(d)A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
SEC. 2.Section 2604 is added to the Public Contract Code, to read:2604.On or before July 1, 2025, the Division of Apprenticeship Standards shall create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The database shall be searchable by using the first name, last name, and graduation date of the worker.
(a)When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following:
(1)The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter.
(2)The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter. The required monthly report demonstrating compliance with this chapter shall include the full name of, and identify the apprenticeship program name, location, and graduation date of, each worker relied upon to satisfy the apprenticeship graduation percentage requirements of paragraph (2) of subdivision (d) of Section 2601.
(b)If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(c)If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following:
(1)Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph:
(A)The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter.
(B)If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(C)If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection.
(2)Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603.
(3)Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body.
(d)A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
SEC. 2.Section 2604 is added to the Public Contract Code, to read:2604.On or before July 1, 2025, the Division of Apprenticeship Standards shall create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The database shall be searchable by using the first name, last name, and graduation date of the worker.
(a)When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following:
(1)The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter.
(2)The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter that includes the date of birth of each worker. chapter. The required monthly report demonstrating compliance with this chapter shall include the full name of, and identify the apprenticeship program name, location, and graduation date of, each worker relied upon to satisfy the apprenticeship graduation percentage requirements of paragraph (2) of subdivision (d) of Section 2601.
(b)If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(c)If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following:
(1)Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph:
(A)The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter.
(B)If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(C)If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection.
(2)Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603.
(3)Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body.
(d)A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
SEC. 3.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.SEC. 4.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result either from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, or because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 2.Section 2604 is added to the Public Contract Code, to read:2604.On or before July 1, 2025, the Division of Apprenticeship Standards shall create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. The database shall be searchable by using the first name, last name, and graduation date of the worker.
(a)Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, date of birth, social security number, and work classification of, straight time and overtime hours worked each day and week by, and the actual per diem wages paid to, each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor 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 that persons 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 employees payroll record shall be made available for inspection or furnished to the employee or the employees 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 and the Division of Labor Standards Enforcement 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 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.
(c)Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by 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)(1)Except as provided in subdivision (f), 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 or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individuals name, address, date of birth, 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 multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individuals full social security number, but shall provide the last four digits of the social security number. 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 individuals social security number.
(2)Copies of electronic certified payroll records shall not satisfy payroll records requests made by Taft-Hartley trust funds and joint labor-management committees. Any copy of records requested by, and made available for inspection by or furnished to, a Taft-Hartley trust fund or joint labor-management committee shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
(f)(1)Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individuals name, address, date of birth, and social security number.
(2)An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g)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.
(h)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, the contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of 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.
(i)The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j)The director shall adopt rules consistent with the California Public Records Act (Division 10 (commencing with Section 7920.000) 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.
SEC. 2.Section 2602 of the Public Contract Code is amended to read:2602.(a)When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following:
(1)The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter.
(2)The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter that includes the date of birth of each worker.
(b)If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(c)If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following:
(1)Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph:
(A)The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter.
(B)If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(C)If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection.
(2)Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603.
(3)Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body.
(d)A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
SEC. 3.Section 2604 is added to the Public Contract Code, to read:2604.The Division of Labor Standards Enforcement shall accept and timely investigate a complaint submitted by a joint labor management committee formed pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) alleging that a contractor or subcontractor did not use a skilled and trained workforce in accordance with this chapter.SEC. 4.SEC. 3.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.
SEC. 5.SEC. 4.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.
SEC. 6.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result either from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, or because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, date of birth, social security number, and work classification of, straight time and overtime hours worked each day and week by, and the actual per diem wages paid to, each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor 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 that persons 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 employees payroll record shall be made available for inspection or furnished to the employee or the employees 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 and the Division of Labor Standards Enforcement 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 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.
(c)Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by 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)(1)Except as provided in subdivision (f), 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 or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individuals name, address, date of birth, 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 multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individuals full social security number, but shall provide the last four digits of the social security number. 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 individuals social security number.
(2)Copies of electronic certified payroll records shall not satisfy payroll records requests made by Taft-Hartley trust funds and joint labor-management committees. Any copy of records requested by, and made available for inspection by or furnished to, a Taft-Hartley trust fund or joint labor-management committee shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
(f)(1)Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individuals name, address, date of birth, and social security number.
(2)An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g)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.
(h)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, the contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of 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.
(i)The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j)The director shall adopt rules consistent with the California Public Records Act (Division 10 (commencing with Section 7920.000) 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.
SEC. 2.Section 2602 of the Public Contract Code is amended to read:2602.(a)When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following:
(1)The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter.
(2)The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter that includes the date of birth of each worker.
(b)If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(c)If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following:
(1)Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph:
(A)The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter.
(B)If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(C)If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection.
(2)Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603.
(3)Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body.
(d)A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
SEC. 3.Section 2604 is added to the Public Contract Code, to read:2604.The Division of Labor Standards Enforcement shall accept and timely investigate a complaint submitted by a joint labor management committee formed pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) alleging that a contractor or subcontractor did not use a skilled and trained workforce in accordance with this chapter.
SEC. 3.SEC. 4.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.
SEC. 4.SEC. 5.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.
SEC. 5.SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result either from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, or because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, date of birth, social security number, work classification, and work classification of, straight time and overtime hours worked each day and week, week by, and the actual per diem wages paid to to, each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor 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 that persons 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 employees payroll record shall be made available for inspection or furnished to the employee or the employees 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 and the Division of Labor Standards Enforcement 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 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.
(c)Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by 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)(1)Except as provided in subdivision (f), 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 or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individuals name, address, date of birth, 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 multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individuals full social security number, but shall provide the last four digits of the social security number. 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 individuals social security number.
(2)Copies of electronic certified payroll records shall not satisfy payroll records requests made by Taft-Hartley trust funds and joint labor-management committees. Any copy of records requested by, and made available for inspection by or furnished to, a Taft-Hartley trust fund or joint labor-management committee shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
(f)(1)Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individuals name, address, date of birth, and social security number.
(2)An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g)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.
(h)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, the contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of 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.
(i)The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j)The director shall adopt rules consistent with the California Public Records Act (Division 10 (commencing with Section 7920.000) 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.
SEC. 2.Section 2602 of the Public Contract Code is amended to read:2602.(a)When a contractor, bidder, or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the public entity or other awarding body that provides both of the following:
(1)The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this chapter.
(2)The contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with this chapter. chapter that includes the date of birth of each worker.
(b)If the contractor, bidder, or other entity fails to provide the monthly report required by this section, or provides a report that is incomplete, the public agency or other awarding body shall withhold further payments until a complete report is provided. If a monthly report is incomplete due to the failure of a subcontractor to timely submit the required information to the contractor, bidder, or other entity, the public agency or awarding body shall only withhold an amount equal to 150 percent of the value of the monthly billing for the relevant subcontractor. If a public agency or other awarding body withholds amounts pursuant to this subdivision, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor until the subcontractor provides the contractor, bidder, or other entity a complete report, and the public agency or awarding body subsequently pays the contractor, bidder, or other entity the withheld payments. If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to provide a complete report, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(c)If a monthly report does not demonstrate compliance with this chapter, the public agency or other awarding body shall do all of the following:
(1)Withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this chapter, with respect to the relevant apprenticeable occupation, prior to completion of the contract or project. All of the following shall apply to the withholding of payments under this paragraph:
(A)The public agency or awarding body shall withhold an amount equal to 150 percent of the value of the monthly billing for the entity that failed to comply with this chapter, or 150 percent of the value of the monthly billing for the subcontractor that failed to comply with this chapter. If a public agency or other awarding body withholds amounts pursuant to this paragraph, the contractor, bidder, or other entity shall be entitled to withhold the same amount from the subcontractor that did not demonstrate compliance with this chapter.
(B)If the contractor, bidder, or other entity substitutes a subcontractor pursuant to Chapter 4 (commencing with Section 4100) for failure to demonstrate compliance, and the contractor, bidder, or other entity replaces the subcontractor with one that provides an enforceable commitment that a skilled and trained workforce will be used to complete the contract or project, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments.
(C)If a contractor, bidder, or other entity submits to the public agency or awarding body a plan to achieve substantial compliance with this chapter, the public agency or awarding body shall immediately resume making payments to the contractor, bidder, or other entity, including all previously withheld payments unless, within a reasonable time, the public agency or awarding body rejects the plan as insufficient and explains the reasons for the rejection.
(2)Forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment in accordance with Section 2603.
(3)Forward to the Labor Commissioner a copy of the plan, if any, submitted by the contractor, bidder, or other entity to achieve substantial compliance with this chapter and the response to that plan, if any, by the public agency or awarding body.
(d)A monthly report provided to the public agency or other awarding body shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
SEC. 3.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.
SEC. 4.The Legislature finds and declares that Section 1 of this act, which amends Section 1776 of the Labor Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
In order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the publics right of access to their personal information.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result either from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, or because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SECTION 1.Section 2600 of the Public Contract Code is amended to read:2600.(a)This chapter applies when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, subcontractor, or other entity will use a skilled and trained workforce to complete a contract or project.(b)A public entity may require a bidder, contractor, subcontractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation.(c)When the use of a skilled and trained workforce to complete a contract or project is required pursuant to subdivision (a) or (b), the public entity shall include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement.SEC. 2.Section 2600.5 of the Public Contract Code is amended to read:2600.5.The failure of a public entity to provide a notice pursuant to subdivision (c) of Section 2600 shall not excuse either of the following:(a)The public entity from the requirement to obtain an enforceable commitment that a bidder, contractor, subcontractor, or other entity will use a skilled and trained workforce to complete a contract or project.(b)A bidder, contractor, subcontractor, or other entity from the obligation to use a skilled or trained workforce if such a requirement is imposed by a statute or regulation.(a)This chapter applies when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, subcontractor, or other entity will use a skilled and trained workforce to complete a contract or project.
(b)A public entity may require a bidder, contractor, subcontractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation.
(c)When the use of a skilled and trained workforce to complete a contract or project is required pursuant to subdivision (a) or (b), the public entity shall include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement.
SEC. 2.Section 2600.5 of the Public Contract Code is amended to read:2600.5.The failure of a public entity to provide a notice pursuant to subdivision (c) of Section 2600 shall not excuse either of the following:
(a)The public entity from the requirement to obtain an enforceable commitment that a bidder, contractor, subcontractor, or other entity will use a skilled and trained workforce to complete a contract or project.
(b)A bidder, contractor, subcontractor, or other entity from the obligation to use a skilled or trained workforce if such a requirement is imposed by a statute or regulation.
|
Date
|
Status
|
|---|---|
| Sep 28, 2024 | Chaptered by Secretary of State. Chapter 882, Statutes of 2024. |
| Sep 28, 2024 | Approved by the Governor. |
| Sep 11, 2024 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 31, 2024 | Assembly amendments concurred in. (Ayes 30. Noes 8. Page 5803.) Ordered to engrossing and enrolling. |
| Aug 31, 2024 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 31, 2024 | Read third time. Passed. (Ayes 72. Noes 0. Page 7114.) Ordered to the Senate. |
| Aug 31, 2024 | Read second time. Ordered to third reading. |
| Aug 31, 2024 | Assembly Rule 63 suspended. (Ayes 54. Noes 17. Page 7099.) |
| Aug 30, 2024 | Joint Rule 62(a) suspended. |
| Aug 30, 2024 | From committee: Do pass. (Ayes 7. Noes 0.) (August 30). |
| Aug 22, 2024 | Read third time and amended. |
| Aug 22, 2024 | Re-referred to Com. on L. & E. pursuant to Assembly Rule 77.2. |
| Aug 22, 2024 | Ordered to third reading. |
| Aug 20, 2024 | Read second time. Ordered to third reading. |
| Aug 19, 2024 | Read second time and amended. Ordered to second reading. |
| Aug 15, 2024 | From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 15). |
| Aug 7, 2024 | August 7 set for first hearing. Placed on suspense file. |
| Jul 3, 2024 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0.) (July 2). Re-referred to Com. on APPR. |
| Jun 20, 2024 | From committee: Do pass and re-refer to Com. on P. & C.P. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (June 19). Re-referred to Com. on P. & C.P. |
| Jun 10, 2024 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & E. |
| Jun 3, 2024 | Referred to Coms. on L. & E. and P. & C.P. |
| May 21, 2024 | In Assembly. Read first time. Held at Desk. |
| May 20, 2024 | Read third time. Passed. (Ayes 39. Noes 0. Page 4025.) Ordered to the Assembly. |
| May 16, 2024 | Read second time. Ordered to third reading. |
| May 16, 2024 | From committee: Do pass. (Ayes 7. Noes 0. Page 3974.) (May 16). |
| May 10, 2024 | Set for hearing May 16. |
| May 6, 2024 | May 6 hearing: Placed on APPR suspense file. |
| Apr 26, 2024 | Set for hearing May 6. |
| Apr 24, 2024 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To consent calendar. (Ayes 11. Noes 0. Page 3725.) (April 23). Re-referred to Com. on APPR. |
| Apr 18, 2024 | Re-referred to Com. on JUD. |
| Apr 17, 2024 | From committee: Do pass and re-refer to Com. on RLS. (Ayes 5. Noes 0. Page 3662.) (April 17). Re-referred to Com. on RLS. |
| Apr 12, 2024 | Set for hearing April 23 in JUD. pending receipt. |
| Apr 5, 2024 | Set for hearing April 17. |
| Apr 1, 2024 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R. |
| Feb 21, 2024 | Referred to Com. on L., P.E. & R. |
| Feb 15, 2024 | From printer. May be acted upon on or after March 16. |
| Feb 14, 2024 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2024 | SB 1162 Cortese Senate Third Reading By Kalra | Assembly Floor |
Passed |
|
| Aug 31, 2024 | Unfinished Business SB1162 Cortese Concurrence | Senate Floor |
Passed |
|
| Aug 30, 2024 | Do pass. | Assembly Standing Committee on Labor and Employment |
Passed |
|
| Aug 15, 2024 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 2, 2024 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Privacy and Consumer Protection |
Passed |
|
| Jun 19, 2024 | Do pass and be re-referred to the Committee on [Privacy and Consumer Protection] with recommendation: To Consent Calendar | Assembly Standing Committee on Labor and Employment |
Passed |
|
| May 20, 2024 | Senate 3rd Reading SB1162 Cortese | Senate Floor |
Passed |
|
| May 16, 2024 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 6, 2024 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 23, 2024 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Judiciary |
Passed |
|
| Apr 17, 2024 | Do pass, but first be re-referred to the Committee on [Rules] | Senate Standing Committee on Labor, Public Employment and Retirement |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Subcontractors Association Of California | ** Against | |
| California Legislative Conference Of Plumbing, Heating & Piping Industry | ** Support | |
| California State Association Of Electrical Workers | ** Support | |
| California State Pipe Trades Council | ** Support | |
| California-Nevada Conference Of Operating Engineers | * Support | Apr 17, 2024 |
| Housing Contractors Of California | ** Against | |
| National Electrical Contractors Association | ** Support | |
| Northern California Allied Trades | ** Support | |
| Southern California Glass Management Association | ** Support | |
| State Building and Construction Trades Council | * Support | Apr 17, 2024 |
| Western Electrical Contractors Association Inc. | ** Against | |
| Western Painting and Coating Contractors Association | ** Support | |
| Western States Council Of Sheet Metal Workers | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 1162 |
UNFINISHED BUSINESS
Bill No: SB 1162
Author: Cortese (D)
Amended: 8/22/24
Vote: 21
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 4/17/24
AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird
SENATE JUDICIARY COMMITTEE: 11-0, 4/23/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Gonzalez, Laird, Min, Niello, Wahab
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24
AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab
SENATE FLOOR: 39-0, 5/20/24
AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
NO VOTE RECORDED: Min
ASSEMBLY FLOOR: 52-0, 8/31/24 – Roll call not available
SUBJECT: Public contracts: employment compliance reports: apprenticeship programs
SOURCE: California State Association of Electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Workers
DIGEST:
This bill requires a contractor, bidder, or other entity to include the full name of, and identify the apprenticeship program name, location, and graduation date of, all workers in existing monthly compliance reports made to the public entity or other awarding body for projects with a skilled and trained workforce requirement. This bill also requires the Division of Apprenticeship Standards (DAS) to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program, as specified.
Assembly Amendments
(1) delete provisions related to public works payroll records; (2) delete the requirement that a contractor include the date of birth of each worker in monthly compliance reports for projects with a skilled and trained workforce requirement; (3) require a contractor, bidder, or other entity to include the full name of, and identify the apprenticeship program name, location, and graduation date of, all workers in monthly compliance reports for projects with a skilled and trained requirement; and (4) require DAS to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program, as specified.
ANALYSIS:
Existing law:
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (Public Contract Code §2600)
- Requires, when the use of a skilled and trained workforce to complete a contract or project is required, the public entity to include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement. Public Contract Code §2600(c).
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the Chief of DAS. Public Contract Code §2601(d).
- Requires for work subject to skilled and trained workforce requirements and performed on or after January 1, 2020, at least 60 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, as specified.
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. (Public Contract Code §2602)
- Provides that if a monthly report does not demonstrate compliance, the public agency or other awarding body shall withhold contract payments, as specified, and forward a copy of the report to the Labor Commissioner (LC). (Public Contract Code §2602(c))
- Requires a contractor or subcontractor to pay a civil penalty to the state of not more than $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the LC or his or her designee determines that the contractor or subcontractor failed to use a skilled and trained workforce. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than ten thousand dollars ($10,000) per month of work performed in violation of this chapter. (Public Contract Code §2603)
- Provides a framework for promoting and developing apprenticeship training through the California Apprenticeship Council and DAS within the Department of Industrial Relations (DIR). DAS enforces apprenticeship standards for, among other things, working conditions, classroom instruction and the specific skills required for state certification as a journeyperson in an apprentice occupation. (Labor Code §3070-3098)
- Defines an “apprenticeable occupation” as one for which the Chief of DAS has approved an apprenticeship program in the building and construction trades, as specified. (Public Contract Code §20119.1, §20155.2, §2601 and Labor Code §3075, among others).
- Requires the Chief of DAS to approve all apprenticeship programs. Existing law empowers the Chief to approve apprenticeship programs in any trade anywhere in the state, including cities and trade areas, if the apprentice training needs justify the creation of a program. (Labor Code §3075)
This bill:
- Requires the monthly compliance reports furnished by a contractor, bidder or other entity to the public entity or other awarding body demonstrating compliance with skilled and trained workforce requirements to include the full name of, and identify the apprenticeship program name, location and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
- Requires the Division of Apprenticeship Standards (DAS) to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program, and requires the database to be searchable by first name, last name and graduation date of the worker.
Background
Skilled and Trained Requirements and Monitoring
A "skilled and trained workforce" is defined in the Public Contract Code as a workforce where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a DAS-approved apprenticeship program. A skilled journeyperson is defined in the Public Contract Code as a worker who either 1) graduated from an apprenticeship program for the applicable occupation that was approved by DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor, or 2) has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by DAS. At least 60 percent of the skilled journeypersons employed to perform work on the contract or project must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
When a contractor is required to use a skilled and trained workforce to complete a project, they commit to doing so in an enforceable agreement with the public entity or awarding body. The contractor agrees to comply at every tier and is required to complete and submit to the awarding body a monthly report demonstrating compliance. Should a contractor fail to provide the monthly report or fall out of compliance, a list of penalties exist and the awarding body notifies the LC. Ensuring compliance can be difficult, because on projects that are only subject to skilled and trained requirements, and are not also a public work, it is incumbent upon the awarding body to enforce penalties. The payroll reporting requirements that exist for public works projects do not apply to projects that only require a skilled and trained workforce requirement.
Currently, skilled and trained workforce provisions contain no specifics as to what information contractors need to include in their monthly compliance reports. The Public Contract Code simply specifies they must contain information sufficient to “demonstrate compliance.” This bill would require that these reports include the full name of, and identify the apprenticeship program name, location and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Appropriations Committee:
- Costs of approximately $1.23 million in the first year and $1.16 million annually thereafter to DLSE to investigate every skilled and trained workforce complaint submitted by a JLMC (State Public Works Enforcement Fund). The Department of Industrial Relations (DIR) may also incur additional costs to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.
- Minor and absorbable costs to a state law enforcement agency or the Employment Development Department (as the designated lead agency of the Joint Enforcement Strike Force on the Underground Economy) to redact DOB information before making requested CPRs available to the public.
*The above fiscal analysis is for a prior version of the bill.
SUPPORT: (Verified 8/28/24)
California State Association of Electrical Workers (co-source)
California State Pipe Trades Council (co-source)
Western States Council of Sheet Metal Workers (co-source)
California Legislative Conference of Plumbing, Heating & Piping Industry
National Electrical Contractors Association
Northern California Allied Trades
Southern California Glass Management Association
Western Painting and Coating Contractors Association
OPPOSITION: (Verified 8/28/24)
American Subcontractors Association of California
Housing Contractors of California
Western Electrical Contractors Association, Inc.
ARGUMENTS IN SUPPORT: The sponsors of the measure, the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, state,
“Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law requires the enforceable commitment to provide that the contractor, bidder, or other entity will provide to the public entity or other awarding body a report on a monthly basis demonstrating its compliance with these requirements. SB 1162 proposes critical improvements to these compliance reports by requiring the inclusion of detailed information on the apprenticeship program name, location, and graduation date of all workers fulfilling the apprenticeship graduation percentage requirement. Furthermore, this bill requires the creation of a publicly accessible online database, maintained by the Division of Apprenticeship Standards, which will allow users to verify that workers have graduated from a California apprenticeship program by searching with their first and last name, along with their graduation date.
SB 1162 represents a significant step forward in ensuring the integrity of skilled and trained workforce requirements. By including detailed worker information in compliance reports, this bill enables Labor-Management Cooperation Committees (LMCCs) with the necessary tools to verify that contractors and subcontractors are adhering to the law. Additionally, the establishment of a searchable online database will enhance transparency and allow stakeholders to confirm worker qualifications, thereby protecting the public investment and enforcing a skilled and trained workforce on relevant projects.”
ARGUMENTS IN OPPOSITION: The American Subcontractors Association of California and Western Electrical Contractors Association, Inc. state:
“Senate Bill 1162 significantly expands the personal information contractors and subcontractors must supply to establish their workforce complies with existing Skilled and Trained Workforce requirements. Contractors will now be required to provide the “full name of, and identify the apprenticeship program name, location, and graduation date of, for each worker relied upon to satisfy the apprenticeship graduation percentage requirements of paragraph (2) of subdivision (d) of PCC§ 2601. Journey workers who graduated possibly decades before computerized records became commonplace may be hard-pressed to remember, much less produce documents to verify their apprenticeship program name, location, and graduation date…
ASAC and WECA are also gravely concerned that the new language is creating a cybersecurity risk by requiring personally identifiable information that will now be at risk for hacking. Witness the recent release by the California Department of Justice of a trove of personal information of holders of certain weapons permits. This searchable database will be a goldmine for stalkers, hackers, and cybercriminals.
ASAC and WECA also doubt that the Division of Apprenticeship Standards can create and maintain a public online database to verify that a worker has graduated from a California apprenticeship program by July 2025. One only needs to review the history of DIRs eCPR system and the costs of that deployment to see programs mired in delay and cost overruns.”
Prepared by: Emma Bruce / L., P.E. & R. / (916) 651-1556
8/31/24 23:10:22
**** END ****
Date of Hearing: August 30, 2024
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Liz Ortega, Chair
SBPCA Bill Id:SB 1162
Author:(Cortese) – As Amended Ver:August 22, 2024
SENATE VOTE: 39-0
SUBJECT: Public contracts: employment compliance reports and payroll records: workers’ dates of birth
SUMMARY:
- Requires the monthly compliance reports furnished by a contractor, bidder or other entity to the public entity or other awarding body demonstrating compliance with skilled and trained workforce requirements to include the full name of, and identify the apprenticeship program name, location and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
- Requires the Division of Apprenticeship Standards (DAS) to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program, and requires the database to be searchable by first name, last name and graduation date of the worker.
EXISTING FEDERAL LAW:
Permits, pursuant to the Labor Management Cooperation Act of 1978, the establishment of plant, area and industrywide labor management committees, which have been organized jointly by employers and labor organizations representing employees in that plant, area, or industry, as specified. 29 U.S.C. § 175a.
EXISTING STATE LAW:
- Provides for apprenticeship programs within the DAS within the Department of Industrial Relations (DIR), sponsored by specific entities and employers, and requires the Chief of the DAS to perform various functions with respect to apprenticeship programs and the welfare of apprentices. Labor Code § 3070 et seq.
- Defines the term “apprentice” to mean a person at least 16 years of age who has entered into an apprentice agreement with an employer or program sponsor, and requires the term of apprenticeship for each apprenticeable occupation to be approved by the Chief of DAS. Labor Code § 3077.
- Establishes the Division of Labor Standards Enforcement, under the direction of the Labor Commissioner (LC), within the DIR, and authorizes the LC to investigate employee complaints and enforce labor laws, as specified. Labor Code § 79 et seq.
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. Public Contract Code § 2600(b).
- Requires, when the use of a skilled and trained workforce to complete a contract or project is required, the public entity to include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement. Public Contract Code § 2600(c).
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief of the DAS. Public Contract Code § 2601(d).
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. Public Contract Code § 2602(a).
- Provides that, if a monthly report does not demonstrate compliance, the public agency or other awarding body shall withhold contract payments, as specified, and forward a copy of the report to the LC. Public Contract Code § 2602(c).
- Requires a contractor or subcontractor to pay a civil penalty to the state of not more than $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the LC or his or her designee determines that the contractor or subcontractor failed to use a skilled and trained workforce. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than $10,000 per month of work performed in violation. Public Contract Code § 2603.
FISCAL EFFECT:
According to the Assembly Appropriations Committee:
(This fiscal analysis does not consider the most recent amendments to the bill)
- Costs of an unknown, but potentially significant, amount to DIR to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.
- Minor and absorbable costs to a state law enforcement agency or the Employment Development Department (as the designated lead agency of the Joint Enforcement Strike Force on the Underground Economy) to redact DOB information before making requested CPRs available to the public.
COMMENTS:
A “skilled and trained workforce” is defined in the Public Contract Code as a workforce where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a DAS-approved apprenticeship program. A skilled journeyperson is defined in the Public Contract Code as a worker who either 1) graduated from an apprenticeship program for the applicable occupation that was approved by the DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor, or 2) has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the DAS. At least 60 percent of the skilled journeypersons employed to perform work on the contract or project must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
When a contractor, bidder or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, they must commit to the awarding body that: 1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier will comply with the skilled and trained workforce requirements; and 2) the contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained requirements.
In addition to the LC’s oversight, joint labor-management committees (JLMCs) play a critical role in verifying that workers on projects requiring a skilled and trained workforce meet the criteria under the law. However, current law does not specify what information must be included in the reports, which has led to difficulty in verifying compliance with apprenticeship graduation requirements.
Arguments in Support
The California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, co-sponsors of this measure, state “SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements.”
Arguments in Opposition
The American Subcontractors Association of California and Western Electrical Contractors Association, Inc. are in opposition and state “Journey workers who graduated possibly decades before computerized records became commonplace may be hard-pressed to remember, much less produce documents to verify their apprenticeship program name, location, and graduation date. The bill is silent on the obligation of apprenticeship programs to produce records, but it is easy to anticipate thousands of requests from journey workers for information going back decades, and what if the journey worker graduated from a program in another state or may no longer exist?”
REGISTERED SUPPORT / OPPOSITION:
Support
California State Association of Electrical Workers (Co-Sponsor)
California State Pipe Trades Council (Co-Sponsor)
Western States Council Sheet Metal, Air, Rail and Transportation (Co-Sponsor)
California Legislative Conference of Plumbing, Heating & Piping Industry
National Electrical Contractors Association
Northern California Allied Trades
Southern California Glass Management Association
Western Painting and Coating Contractors Association
Opposition
American Subcontractors Association of California
Western Electrical Contractors Association
Analysis Prepared by: Erin Hickey / L. & E. /
SENATE THIRD READING
STR Bill Id:SB 1162
Author:(Cortese)
As Amended Ver:August 22, 2024
Majority vote
SUMMARY
- Requires the monthly compliance reports furnished by a contractor, bidder or other entity to the public entity or other awarding body demonstrating compliance with skilled and trained workforce requirements to include the full name of, and identify the apprenticeship program name, location and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
- Requires the Division of Apprenticeship Standards (DAS) to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program, and requires the database to be searchable by first name, last name and graduation date of the worker.
Major Provisions
See Summary.
COMMENTS
A "skilled and trained workforce" is defined in the Public Contract Code as a workforce where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a DAS-approved apprenticeship program. A skilled journeyperson is defined in the Public Contract Code as a worker who either 1) graduated from an apprenticeship program for the applicable occupation that was approved by the DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor, or 2) has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the DAS. At least 60 percent of the skilled journeypersons employed to perform work on the contract or project must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
When a contractor, bidder or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, they must commit to the awarding body that: 1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier will comply with the skilled and trained workforce requirements; and 2) the contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained requirements.
In addition to the LC's oversight, joint labor-management committees (JLMCs) play a critical role in verifying that workers on projects requiring a skilled and trained workforce meet the criteria under the law. However, current law does not specify what information must be included in the reports, which has led to difficulty in verifying compliance with apprenticeship graduation requirements.
According to the Author
None
Arguments in Support
The California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, co-sponsors of this measure, state "SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements."
Arguments in Opposition
The American Subcontractors Association of California and Western Electrical Contractors Association, Inc. are in opposition and state "Journey workers who graduated possibly decades before computerized records became commonplace may be hard-pressed to remember, much less produce documents to verify their apprenticeship program name, location, and graduation date. The bill is silent on the obligation of apprenticeship programs to produce records, but it is easy to anticipate thousands of requests from journey workers for information going back decades, and what if the journey worker graduated from a program in another state or may no longer exist?"
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
(This fiscal analysis does not consider the most recent amendments to the bill)
- Costs of an unknown, but potentially significant, amount to DIR to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.
- Minor and absorbable costs to a state law enforcement agency or the Employment Development Department (as the designated lead agency of the Joint Enforcement Strike Force on the Underground Economy) to redact DOB information before making requested CPRs available to the public.
VOTES
SENATE FLOOR: 39-0-1
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Min
ASM LABOR AND EMPLOYMENT: 7-0-0
YES: Ortega, Flora, Alanis, Lowenthal, Lee, Ward, Zbur
ASM PRIVACY AND CONSUMER PROTECTION: 11-0-0
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Irwin, Lowenthal, Ortega, Ward, Wicks, Wilson
ASM APPROPRIATIONS: 11-0-4
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta
ASM LABOR AND EMPLOYMENT: 7-0-0
YES: Flora, Alanis, Wendy Carrillo, Lee, Reyes, Ward, Zbur
UPDATED
VERSION: August 19, 2024
CONSULTANT: Erin Hickey / L. & E. / FN: 0005058
SENATE THIRD READING
STR Bill Id:SB 1162
Author:(Cortese)
As Amended Ver:August 22, 2024
Majority vote
SUMMARY
- Requires the monthly compliance reports furnished by a contractor, bidder or other entity to the public entity or other awarding body demonstrating compliance with skilled and trained workforce requirements to include the full name of, and identify the apprenticeship program name, location and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement.
- Requires the Division of Apprenticeship Standards (DAS) to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program, and requires the database to be searchable by first name, last name and graduation date of the worker.
Major Provisions
See summary.
COMMENTS
A "skilled and trained workforce" is defined in the Public Contract Code as a workforce where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a DAS-approved apprenticeship program. A skilled journeyperson is defined in the Public Contract Code as a worker who either 1) graduated from an apprenticeship program for the applicable occupation that was approved by DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor, or 2) has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by DAS. At least 60% of the skilled journeypersons employed to perform work on the contract or project must be graduates of an apprenticeship program for the applicable occupation, except for specified occupations.
When a contractor, bidder or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, they must commit to the awarding body that: 1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier will comply with the skilled and trained workforce requirements; and 2) the contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained requirements.
In addition to the Labor Commissioner's oversight, joint labor-management committees (JLMCs) play a critical role in verifying that workers on projects requiring a skilled and trained workforce meet the criteria under the law. However, current law does not include specific requirements for the reports, which has led to difficulty in verifying compliance with apprenticeship graduation requirements.
According to the Author
No statement provided.
Arguments in Support
The California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, co-sponsors of this measure, state "SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
(This fiscal analysis does not consider the most recent amendments to the bill)
- Costs of an unknown, but potentially significant, amount to DIR to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.
- Minor and absorbable costs to a state law enforcement agency or the Employment Development Department (as the designated lead agency of the Joint Enforcement Strike Force on the Underground Economy) to redact DOB information before making requested CPRs available to the public.
VOTES
SENATE FLOOR: 39-0-1
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Min
ASM LABOR AND EMPLOYMENT: 7-0-0
YES: Ortega, Flora, Alanis, Lowenthal, Lee, Ward, Zbur
ASM PRIVACY AND CONSUMER PROTECTION: 11-0-0
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Irwin, Lowenthal, Ortega, Ward, Wicks, Wilson
ASM APPROPRIATIONS: 11-0-4
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta
UPDATED
VERSION: August 22, 2024
CONSULTANT: Erin Hickey / L. & E. / (916) 319-2733 FN: 0004271
SENATE THIRD READING
STR Bill Id:SB 1162
Author:(Cortese)
As Amended Ver:August 19, 2024
Majority vote
SUMMARY
Requires contractors and subcontractors on public works projects to include a worker's date of birth in public works payroll records and in monthly compliance reports made to the public entity or awarding body for projects with a skilled and trained workforce requirement.
Major Provisions
- Requires each contractor and subcontractor on public works projects to include in payroll records the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the work.
- Adds date of birth to the list of information required to be redacted in any payroll records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement (DLSE).
- Adds date of birth to the list of information required to be redacted in any payroll records made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or by a law enforcement agency investigating a violation of law.
- Requires a contractor, bidder or other entity to include the date of birth of each worker in the monthly compliance report furnished to the public entity or other awarding body.
- Finds and declares that, to protect the privacy of a journeyman, apprentice, worker or other employee employed by a contractor or subcontractor in connection with a public work, it is necessary to limit the public's right of access to their personal information.
COMMENTS
Public works law requires that, among other things, prevailing wage is paid to workers on publicly-funded projects, as specified. In California, the prevailing wage rate is an hourly rate paid on public works projects that is often set in the terms of a collective bargaining agreement. According to the Department of Industrial Relations (DIR), the wage rate relies upon such factors as "the particular craft, classification or type of work within the locality and in the nearest labor market area (if majorities of such workers are paid at a single rate). If there is no single rate paid to a majority, then the single or modal rate being paid to the greater number of workers is prevailing."
Prevailing wage laws are intended to ensure that contractors are not awarded public works contracts by paying low wages and undercutting competitors who provide higher compensation. In this way, these laws create a level playing field by requiring an across-the-board rate for all bidders on publicly-subsidized projects.
In addition to prevailing wage requirements, for public works contracts valued at $30,000 or more, contractors are required to use apprentices from an apprenticeship program approved by the Division of Apprenticeship Standards (DAS), unless the craft or trade does not require the use of apprentices, as indicated in the corresponding prevailing wage determination. This duty applies to all contractors and subcontractors on a project, even if their part of the project is valued at less than $30,000.
To ensure compliance with various pay requirements under public works law, contractors and subcontractors are required to submit their payroll records to the Labor Commissioner (LC).
Building and construction projects in California can require prevailing wage, a skilled and trained workforce, neither or both. Whether a project is a public work requiring prevailing wage has no bearing on whether skilled and trained workforce requirements apply, and vice versa.
A "skilled and trained workforce" is defined in the Public Contract Code as a workforce where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a DAS-approved apprenticeship program. A skilled journeyperson is defined in the Public Contract Code as a worker who either 1) graduated from an apprenticeship program for the applicable occupation that was approved by DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor, or 2) has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by DAS.
When a contractor, bidder or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, they must commit to the awarding body that: 1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier will comply with the skilled and trained workforce requirements; and 2) the contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained requirements.
In the event a contractor fails to provide the monthly report, or provides a report that is incomplete or does not demonstrate compliance, the awarding body is required to withhold contract payments. Should the monthly report not demonstrate compliance, the awarding body must also notify the LC for issuance of a civil wage and penalty assessment, as specified.
In addition to the LC's oversight of prevailing wage and skilled and trained laws, joint-labor management committees (JLMCs) play a critical role in enforcing these requirements. JLMCs verify the accuracy and thoroughness of payroll records, and file complaints with the LC for suspected violations of prevailing wage law. JLMCs are also authorized to bring an action in any court of competent jurisdiction against an employer that fails to pay the prevailing wage to its employees or that fails to provide payroll records as required.
JLMCs also verify that workers on projects requiring a skilled and trained workforce meet the criteria under the law. JLMCs have access to an online database containing the payroll records submitted to the LC, as well as an online database through DAS that includes information about workers' apprenticeship status and safety certification. This allows JLMCs to cross reference the information from the payroll records to ensure that the workers also have the appropriate training to work on a skilled and trained project.
However, JLMCs often experience issues verifying this information due to the prevalence of identical names amongst workers in the DIR databases. By adding a unique identifier such as a date of birth for each worker, JLMCs would be better able to verify that contractors are complying with the skilled and trained requirements.
According to the Author
"SB 1162 enables JLMCs to accurately verify workers have the appropriate training to work on a skilled and trained project. The bill requires employers to include a worker's [date of birth ] DOB in their monthly certified payroll reports submitted to JLMCs. This information enables JLMCs to search for a worker on the DIR database and use the DOB to verify the correct worker. By ensuring accurate identification, JLMCs can verify whether the worker meets the eligibility criteria to work on skilled and trained projects. This streamlined verification process will strengthen oversight and help JLMCs in enforce wage and labor requirements more efficiently."
The author adds that "The bill promotes equity and safety by ensuring employers comply with wage and labor requirements."
Arguments in Support
The California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, co-sponsors of this measure, state "By requiring employers to include the date of birth of each worker in their certified payroll reports, SB 1162 provides JLMCs with a powerful tool to accurately locate individuals within the Department of Industrial Relations (DIR) database. This information is essential for verifying whether workers meet the eligibility criteria to participate in skilled and trained projects, as mandated by state regulations. Furthermore, the inclusion of date of birth data enables JLMCs to verify whether a worker has successfully completed a state-certified apprenticeship program. This verification process is pivotal in ensuring compliance with labor standards and upholding the integrity of skilled and trained workforce initiatives."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Costs of an unknown, but potentially significant, amount to DIR to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.
- Minor and absorbable costs to a state law enforcement agency or the Employment Development Department (as the designated lead agency of the Joint Enforcement Strike Force on the Underground Economy) to redact DOB information before making requested CPRs available to the public.
VOTES
SENATE FLOOR: 39-0-1
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Min
ASM LABOR AND EMPLOYMENT: 7-0-0
YES: Ortega, Flora, Alanis, Lowenthal, Lee, Ward, Zbur
ASM PRIVACY AND CONSUMER PROTECTION: 11-0-0
YES: Bauer-Kahan, Joe Patterson, Bryan, Dixon, Hoover, Irwin, Lowenthal, Ortega, Ward, Wicks, Wilson
ASM APPROPRIATIONS: 11-0-4
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta
UPDATED
VERSION: August 19, 2024
CONSULTANT: Erin Hickey / L. & E. / (916) 319-2091 FN: 0004008
Date of Hearing: August 7, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
SBPCA Bill Id:SB 1162
Author:(Cortese) – As Amended Ver:June 10, 2024
Policy Committee: | Labor and Employment | Vote: | 7 - 0 |
Privacy and Consumer Protection | 11 - 0 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill requires certain payroll records and reports to include a worker’s date of birth (DOB) and removes the discretion of the Division of Labor Standards Enforcement (DLSE) to not investigate certain complaints.
Specifically, this bill:
- Requires certified payroll records (CPRs) for public works projects to additionally include the DOB for each worker required to be paid prevailing wage and subjects such personal information to existing privacy protections.
- Requires the monthly compliance report for a project required to use a skilled and trained workforce to include the DOB for each worker.
- Requires DLSE to accept and investigate a complaint submitted by a joint labor management committee (JLMC) alleging a contractor (or subcontractor) did not follow skilled and trained workforce requirements.
FISCAL EFFECT:
- Costs of approximately $1.23 million in the first year and $1.16 million annually thereafter to DLSE to investigate every skilled and trained workforce complaint submitted by a JLMC (State Public Works Enforcement Fund). The Department of Industrial Relations (DIR) may also incur additional costs to update database systems to reflect the DOB requirement for CPRs and skilled and trained compliance reports.
- Minor and absorbable costs to a state law enforcement agency or the Employment Development Department (as the designated lead agency of the Joint Enforcement Strike Force on the Underground Economy) to redact DOB information before making requested CPRs available to the public.
COMMENTS:
- Purpose. According to the author, requiring an employer to include a worker’s DOB in monthly CPRs submitted to JLMCs “enables JLMCs to search for a worker on the DIR database and use the DOB to verify the correct worker.” The author contends this “streamlined verification process” will help JLMCs accurately “verify whether the worker meets the eligibility criteria to work on skilled and trained projects” and “strengthen oversight and help JLMCs in enforce wage and labor requirements more efficiently.” This bill is co-sponsored by the California State Association of Electrical Workers, California State Pipe Trades Council, and Western States Council of Sheet Metal Workers and supported by other labor organizations and contractor associations.
- Background.
Workforce Requirements and Records. Building and construction projects in California can require payment of a prevailing wage, use of a skilled and trained workforce, both, or neither. Whether a project is a public work requiring prevailing wage has no bearing on whether skilled and trained workforce requirements apply, and vice versa.
Existing law generally requires payment of prevailing wage to all workers employed on a public works project valued over $1,000. CPRs reflect a company’s accounting of funds paid out on a contract performed for a public works project, detailing the hours worked, wages paid to each employee, and the jobs performed. The primary purpose of a CPR is to provide the contracting agency with a method of oversight to guarantee contractors compensate employees with prevailing wages, with contractors subject to specified civil penalties for record and wage violations.
A skilled and trained workforce means all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a program approved by the Division of Apprenticeship Standards (DAS). A contractor required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a project must submit a monthly report to the awarding body demonstrating compliance with skilled and trained standards. If the contractor fails to provide the monthly report, or provides a report that is incomplete or does not demonstrate compliance, the awarding body must withhold contract payments. The awarding body must also notify the Labor Commissioner (DLSE) when the monthly report does not demonstrate compliance, with contractors subject to specified civil penalties for such violations.
JLMCs. SB 954 (Archuleta), Chapter 824, Statutes of 2022, required DIR to establish an electronic CPR database specifically for Taft-Hartley trust funds and JLMCs, through which these entities can gain easier access to more detailed CPRs than records published on DIR’s website. JLMCs help enforce labor laws by filing complaints with DLSE for suspected violations of prevailing wage law or bringing an action in court against such employers. JLMCs also have access to an online DAS database that includes information about workers’ apprenticeship status and safety certification, thus allowing JLMCs to cross-reference DAS information with CPRs to help ensure workers on projects requiring a skilled and trained workforce meet those standards. However, JLMCs often experience issues verifying these cross-references due to the prevalence of identical names amongst workers in DIR databases.
This bill requires CPRs and monthly skilled and trained compliance reports to include the DOB for each worker, providing a unique identifier so JLMCs may better verify database cross-references and confirm contractors are complying with skilled and trained requirements. This bill also requires DLSE to investigate, without discretion, every complaint submitted by a JLMC alleging violations of skilled and trained requirements.
Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081
Date of Hearing: July 2, 2024
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Rebecca Bauer-Kahan, Chair
SBPCA Bill Id:SB 1162
Author:(Cortese) – As Amended Ver:June 10, 2024
PROPOSED CONSENT
SENATE VOTE: 39-0
SUBJECT: Public contracts: employment compliance reports and payroll records: workers’ dates of birth
SYNOPSIS
Under existing law, public works projects are required to pay no less than the general prevailing rate of per diem wages to all employees, and payroll reporting must ensure compliance with this requirement. Additionally, public entities are authorized to use a skilled and trained workforce to complete a contract or project and can require reporting of specified employee information to demonstrate compliance with this requirement. This bill seeks to aid in the compliance of these provisions by additionally requiring the date of birth of employees to be provided on payroll documents and certain reports in order to assist in verifying the identity of the employee and whether or not they have successfully completed an apprenticeship program. Current law provides that this information is to be redacted when disclosed to the public, therefore protecting the privacy of the employee.
California recognizes the right of individuals to seek and obtain privacy. This includes protecting personal information, including home addresses, telephone numbers, social security numbers, and dates of birth, from being shared with the public. However, state law also recognizes that public access to information concerning the conduct of the people’s business is a fundamental and necessary right. Therefore, the right of access to public records may be limited where records include personal information. In order to balance the two fundamental rights, the statute that this bill seeks to amend requires that any personal information be redacted from all records being provided to the public. Nothing in this bill changes that protection.
This bill is co-sponsored by the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers and has no registered opposition. The bill passed the Labor and Employment Committee on a 7‑0 vote.
SUMMARY: Requires contractors and subcontractors on public works projects to include a worker’s date of birth in public works payroll records and in monthly compliance reports made to the public entity or awarding body for projects with a skilled and trained workforce requirement, as well as requires the Division of Labor Standards Enforcement (DLSE) to accept and investigate in a timely manner complaints from a joint labor-management committee, as specified, alleging that a contractor or subcontractor failed to use a skilled and trained workforce. Specifically, this bill:
- Requires each contractor and subcontractor on public works projects to include in payroll records the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the work.
- Adds date of birth to the list of information required to be redacted in any payroll records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or DLSE.
- Adds date of birth to the list of information required to be redacted in any payroll records made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy (JESF) or by a law enforcement agency investigating a violation of law.
- Requires a contractor, bidder or other entity to include the date of birth of each worker in the monthly compliance report furnished to the public entity or other awarding body.
- Requires the DLSE to accept and investigate in a timely manner a complaint from a joint labor-management committee, as specified, alleging that a contractor or subcontractor failed to use a skilled and trained workforce as required.
- Finds and declares that, to protect the privacy of a journeyman, apprentice, worker or other employee employed by a contractor or subcontractor in connection with a public work, it is necessary to limit the public’s right of access to their personal information.
EXISTING LAW:
- Requires contractors and subcontractors, when performing public works, to 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 the contractor or subcontractor in connection with the public work. (Lab. Code § 1776(a).)
- Defines “public works” to include, among other things, 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 a public utility company pursuant to an order of the Public Utilities Commission or other public authority. (Lab. Code § 1720(a).)
- Requires contractors and subcontractors, while performing public works, to furnish specified payroll records at least once a month directly to the Labor Commissioner (LC), as specified. (Lab. Code §1771.4(a)(3).)
- Requires the Department of Industrial Relations (DIR), by July 1, 2024, to develop and implement an online database, accessible only to multiemployer Taft-Hartley trust funds and joint-labor management committees (JLMCs), of electronic certified payroll records submitted in compliance with public works requirements. (Lab. Code, § 1771.4(e).)
- Specifies that any records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement (DLSE) must be marked or obliterated to prevent disclosure of an individual’s name, address, and social security number. (Lab. Code, §1776(e).)
- Requires, upon request, agencies included in the Joint Enforcement Strike Force on the Underground Economy (JESF) and other law enforcement agencies investigating violations of law, to be provided nonredacted copies of certified payroll records, as specified. (Lab. Code § 1776(f)(1).)
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (Pub. Con. Code § 2600.)
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief of the Division of Apprenticeship Standards (DAS). (Pub. Con. Code § 2601.)
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. (Pub. Con. Code § 2602)
- Provides, pursuant to the California Constitution, that all people have inalienable rights, including the right to pursue and obtain privacy. (Cal. Const. art. I, § 1.)
- Provides, pursuant to the California Constitution, that the people have the right of access to information concerning the conduct of the people’s business, and, therefore, the meetings of public bodies and the writings of public officials and agencies are required to be open to public scrutiny. (Cal. Const. art. I, § 3(b)(1).)
- Requires a statute to be broadly construed if it furthers the people’s right of access, and narrowly construed if it limits the right of access. (Cal. Const. art. I, § 3(b)(1).)
- Requires a statute that limits the public’s right of access to be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. (Cal. Const. art. I, § 3(b)(1).)
- Governs the disclosure of information collected and maintained by public agencies pursuant to the California Public Records Act (CPRA). (Gov. Code §§ 7920.000 et seq.)
- States that the Legislature, mindful of the individual right to privacy, finds and declares that access to information concerning the conduct of the people’s business is a fundamental and necessary right of every person in this state. (Gov. Code § 7921.000.)
- Defines “public records” as any writing containing information relating to the conduct of the public’s business prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics. (Gov. Code § 7920.530.)
- Provides that all public records are accessible to the public upon request, unless the record requested is exempt from public disclosure. (Gov. Code § 7922.530.)
FISCAL EFFECT: As currently in print, this bill is keyed fiscal.
COMMENTS:
1) The purpose of this bill. Under existing law, public works projects are required to pay no less than the general prevailing rate of per diem wages to all employees, and payroll reporting must ensure compliance with this requirement. Additionally, public entities are authorized to use a skilled and trained workforce to complete a contract or project and can require reporting of specified employee information to demonstrate compliance with this requirement. This bill seeks to aid in the compliance of these provisions by additionally requiring the date of birth of employees be provided on payroll documents and certain reports. Current law provides that this information is to be redacted when disclosed to the public, therefore protecting the privacy of the employee.
According to the co-sponsors of the bill, the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, the inclusion of date of birth data enables JLMCs to verify whether a worker has successfully completed a state-certified apprenticeship program. This verification process helps ensure compliance with labor standards and uphold the integrity of skilled and trained workforce initiatives.
2) Author’s statement. According to the author:
SB 1162 enables JLMCs to accurately verify workers have the appropriate training to work on a skilled and trained project. The bill requires employers to include a worker's DOB in their monthly certified payroll reports submitted to JLMCs. This information enables JLMCs to search for a worker on the DIR database and use the DOB to verify the correct worker. By ensuring accurate identification, JLMCs can verify whether the worker meets the eligibility criteria to work on skilled and trained projects. This streamlined verification process will strengthen oversight and help JLMCs in enforce wage and labor requirements more efficiently.
3) Background. The Labor and Employment Committee analysis of this bill provides useful background on JLMCs and public works requirements under existing law:
Public works law requires that, among other things, prevailing wage is paid to workers on publicly-funded projects, as specified. In California, the prevailing wage rate is an hourly rate paid on public works projects that is often set in the terms of a collective bargaining agreement. . . .
Prevailing wage laws are intended to ensure that contractors are not awarded public works contracts by paying low wages and undercutting competitors who provide higher compensation. In this way, these laws create a level playing field by requiring an across-the-board rate for all bidders on publicly-subsidized projects.
[. . .]
To ensure compliance with various pay requirements under public works law, contractors and subcontractors are required to submit their payroll records to the LC.
[. . .]
When a contractor, bidder or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, they must commit to the awarding body that: 1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier will comply with the skilled and trained workforce requirements; and 2) the contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained requirements.
[. . .]
In addition to the LC’s oversight of prevailing wage and skilled and trained laws, joint-labor management committees (JLMCs) play a critical role in enforcing these requirements. JLMCs verify the accuracy and thoroughness of payroll records, and file complaints with the LC for suspected violations of prevailing wage law. JLMCs are also authorized to bring an action in any court of competent jurisdiction against an employer that fails to pay the prevailing wage to its employees or that fails to provide payroll records as required.
JLMCs also verify that workers on projects requiring a skilled and trained workforce meet the criteria under the law. JLMCs have access to an online database containing the payroll records submitted to the LC, as well as an online database through DAS that includes information about workers’ apprenticeship status and safety certification. This allows JLMCs to cross reference the information from the payroll records to ensure that the workers also have the appropriate training to work on a skilled and trained project.
4) Analysis of this bill. The question before this Committee is whether or not the addition of birth date information to the existing reporting requirements for including an individual’s name, address, and social security number, represents an unnecessary risk to Californian’s right to privacy. California recognizes the right of individuals to seek and obtain privacy. This includes protecting personal information from being shared with the public. However, it also recognizes that public access to information concerning the conduct of the people’s business is a fundamental and necessary right. Therefore, the right of access to public records may be limited where records include personal information. In order to balance the two fundamental rights, the current law that this bill seeks to amend requires that any personal information be redacted from all records being provided to the public. Nothing in this bill changes that protection.
5) Related legislation. SB 954 (Archuleta; Ch. 824, Stats. 2022) required the DIR to develop and implement an online database of certified payroll records submitted to comply with Public Works requirements.
AB 1023 (Flora; Ch. 326, Stats. 2021) allowed the LC to impose a penalty on a contractor or subcontractor on a public works project if they fail to furnish payroll records to the LC, as specified.
AB 2311 (Low; Ch. 347, Stats. 2020) required a public entity, when the use of a skilled and trained workforce to complete a contract or project is required, to include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement. Further stated that the failure to provide such notice does not excuse a public entity, bidder, or contractor from complying with the skilled and trained workforce requirement.
AB 3018 (Low; Ch. 882, Stats. 2018) enhanced compliance with skilled and trained workforce rules by strengthening public agency reporting requirements, creating penalties for noncompliance, and providing the LC with the authority to issue a civil wage and penalty assessment against a contractor or subcontractor found in violation of state law.
ARGUMENTS IN SUPPORT: According to the co-sponsors of the bill, the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers:
By requiring employers to include the date of birth of each worker in their certified payroll reports, SB 1162 provides JLMCs with a powerful tool to accurately locate individuals within the Department of Industrial Relations (DIR) database. This information is essential for verifying whether workers meet the eligibility criteria to participate in skilled and trained projects, as mandated by state regulations.
[. . .]
SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements.
REGISTERED SUPPORT / OPPOSITION:
Support
California State Association of Electrical Workers (co-sponsor)
California State Pipe Trades Council (co-sponsor)
Western States Council Sheet Metal, Air, Rail and Transportation (co-sponsor)
Opposition
None on file.
Analysis Prepared by: Julie Salley / P. & C.P. / (916) 319-2200
Date of Hearing: June 19, 2024
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Liz Ortega, Chair
SBPCA Bill Id:SB 1162
Author:(Cortese) – As Amended Ver:June 10, 2024
SENATE VOTE: 39-0
SUBJECT: Public contracts: employment compliance reports and payroll records: workers’ dates of birth
SUMMARY: Requires contractors and subcontractors on public works projects to include a worker’s date of birth in public works payroll records and in monthly compliance reports made to the public entity or awarding body for projects with a skilled and trained workforce requirement, as well as requires the Division of Labor Standards Enforcement (DLSE) to accept and timely investigate complaints from a joint labor-management committee, as specified, alleging that a contractor or subcontractor failed to use a skilled and trained workforce. Specifically, this bill:
- Requires each contractor and subcontractor on public works projects to include in payroll records the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the work.
- Adds date of birth to the list of information required to be redacted in any payroll records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or DLSE.
- Adds date of birth to the list of information required to be redacted in any payroll records made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy (JESF) or by a law enforcement agency investigating a violation of law.
- Requires a contractor, bidder or other entity to include the date of birth of each worker in the monthly compliance report furnished to the public entity or other awarding body.
- Requires the DLSE to accept and timely investigate a complaint from a joint labor-management committee, as specified, alleging that a contractor or subcontractor failed to use a skilled and trained workforce as required.
- Finds and declares that, to protect the privacy of a journeyman, apprentice, worker or other employee employed by a contractor or subcontractor in connection with a public work, it is necessary to limit the public’s right of access to their personal information.
EXISTING FEDERAL LAW:
Permits, pursuant to the Labor Management Cooperation Act of 1978, the establishment of plant, area and industrywide labor management committees, which have been organized jointly by employers and labor organizations representing employees in that plant, area, or industry, as specified. 29 U.S.C. § 175a.
EXISTING STATE LAW:
- Establishes the DLSE, under the direction of the Labor Commissioner (LC), within the Department of Industrial Relations (DIR), and authorizes the LC to investigate employee complaints and enforce labor laws, as specified. Labor Code § 79 et seq.
- Requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a "public works" project costing over $1,000 dollars and imposes misdemeanor penalties for violation of this requirement. Labor Code § 1771.
- Defines “public works,” for the purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Labor Code § 1720(a).
- Requires each contractor and subcontractor on a public works project to 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 the contractor or subcontractor in connection with the public work. Labor Code § 1776(a).
- Requires contractors and subcontractors, while performing public works, to furnish specified payroll records at least once a month directly to the LC, in an electronic format, in the manner prescribed by the LC, on the department’s internet website. Labor Code § 1771.4(a)(3).
- Requires the DIR, by July 1, 2024, to develop and implement an online database, accessible only to multiemployer Taft-Hartley trust funds and joint-labor management committees, of electronic certified payroll records submitted in compliance with public works requirements. Labor Code, §1771.4(e).
- Requires 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 or the DLSE to be marked or obliterated to prevent disclosure of an individual’s name, address, and social security number, but prohibits the name and address of the contractor awarded the contract and the subcontractor performing the contract from being marked or obliterated. Labor Code § 1776(e).
- Requires payroll records made available for inspection by, or furnished to, a joint labor management committee to be marked or obliterated only to prevent disclosure of an individual’s social security number. Labor Code § 1776(e).
- Requires, upon request, that agencies included in the JESF and other law enforcement agencies be provided nonredacted copies of certified payroll records, as specified. Labor Code § 1776(f)(1).
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. Public Contract Code § 2600(b).
- Requires, when the use of a skilled and trained workforce to complete a contract or project is required, the public entity to include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement. Public Contract Code § 2600(c).
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief of the Division of Apprenticeship Standards (DAS). Public Contract Code § 2601(d).
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. Public Contract Code § 2602(a).
- Provides that if a monthly report does not demonstrate compliance, the public agency or other awarding body shall withhold contract payments, as specified, and forward a copy of the report to the LC. Public Contract Code § 2602(c).
- Requires a contractor or subcontractor to pay a civil penalty to the state of not more than $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the LC or his or her designee determines that the contractor or subcontractor failed to use a skilled and trained workforce. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than $10,000 per month of work performed in violation. Public Contract Code § 2603.
FISCAL EFFECT: According to the Senate Appropriations Committee, “The administrative costs to the Department of Industrial Relations (DIR) resulting from this bill have yet to be determined. However, the magnitude of these costs would likely be, at a minimum, in the hundreds of thousands of dollars annually (special fund).”
COMMENTS: This bill is double referred to the Assembly Privacy and Consumer Protection Committee upon passage out of this Committee.
Public Works and Prevailing Wage Laws
Public works law requires that, among other things, prevailing wage is paid to workers on publicly-funded projects, as specified. In California, the prevailing wage rate is an hourly rate paid on public works projects that is often set in the terms of a collective bargaining agreement. According to the DIR, the wage rate relies upon such factors as "the particular craft, classification or type of work within the locality and in the nearest labor market area (if majorities of such workers are paid at a single rate). If there is no single rate paid to a majority, then the single or modal rate being paid to the greater number of workers is prevailing."
Prevailing wage laws are intended to ensure that contractors are not awarded public works contracts by paying low wages and undercutting competitors who provide higher compensation. In this way, these laws create a level playing field by requiring an across-the-board rate for all bidders on publicly-subsidized projects.
In addition to prevailing wage requirements, for public works contracts valued at $30,000 or more, contractors are required to use apprentices from an apprenticeship program approved by the DAS, unless the craft or trade does not require the use of apprentices, as indicated in the corresponding prevailing wage determination. This duty applies to all contractors and subcontractors on a project, even if their part of the project is valued at less than $30,000.
To ensure compliance with various pay requirements under public works law, contractors and subcontractors are required to submit their payroll records to the LC.
Skilled and Trained Requirements
Building and construction projects in California can require prevailing wage, a skilled and trained workforce, neither or both. Whether a project is a public work requiring prevailing wage has no bearing on whether skilled and trained workforce requirements apply, and vice versa.
A “skilled and trained workforce” is defined in the Public Contract Code as a workforce where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in a DAS-approved apprenticeship program. A skilled journeyperson is defined in the Public Contract Code as a worker who either 1) graduated from an apprenticeship program for the applicable occupation that was approved by DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor, or 2) has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by DAS.
When a contractor, bidder or other entity is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or project, they must commit to the awarding body that: 1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier will comply with the skilled and trained workforce requirements; and 2) the contractor, bidder, or other entity will provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained requirements.
In the event a contractor fails to provide the monthly report, or provides a report that is incomplete or does not demonstrate compliance, the awarding body is required to withhold contract payments. Should the monthly report not demonstrate compliance, the awarding body must also notify the LC for issuance of a civil wage and penalty assessment, as specified.
Joint Labor Management Committees
In addition to the LC’s oversight of prevailing wage and skilled and trained laws, joint-labor management committees (JLMCs) play a critical role in enforcing these requirements. JLMCs verify the accuracy and thoroughness of payroll records, and file complaints with the LC for suspected violations of prevailing wage law. JLMCs are also authorized to bring an action in any court of competent jurisdiction against an employer that fails to pay the prevailing wage to its employees or that fails to provide payroll records as required.
JLMCs also verify that workers on projects requiring a skilled and trained workforce meet the criteria under the law. JLMCs have access to an online database containing the payroll records submitted to the LC, as well as an online database through DAS that includes information about workers’ apprenticeship status and safety certification. This allows JLMCs to cross reference the information from the payroll records to ensure that the workers also have the appropriate training to work on a skilled and trained project.
However, JLMCs often experience issues verifying this information due to the prevalence of identical names amongst workers in the DIR databases. By adding a unique identifier such as a date of birth for each worker, JLMCs would be better able to verify that contractors are complying with the skilled and trained requirements.
According to the Author
“SB 1162 enables JLMCs to accurately verify workers have the appropriate training to work on a skilled and trained project. The bill requires employers to include a worker's DOB in their monthly certified payroll reports submitted to JLMCs. This information enables JLMCs to search for a worker on the DIR database and use the DOB to verify the correct worker. By ensuring accurate identification, JLMCs can verify whether the worker meets the eligibility criteria to work on skilled and trained projects. This streamlined verification process will strengthen oversight and help JLMCs in enforce wage and labor requirements more efficiently.”
The author adds that “The bill promotes equity and safety by ensuring employers comply with wage and labor requirements.”
Arguments in Support
The California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, co-sponsors of this measure, state “By requiring employers to include the date of birth of each worker in their certified payroll reports, SB 1162 provides JLMCs with a powerful tool to accurately locate individuals within the Department of Industrial Relations (DIR) database. This information is essential for verifying whether workers meet the eligibility criteria to participate in skilled and trained projects, as mandated by state regulations. Furthermore, the inclusion of date of birth data enables JLMCs to verify whether a worker has successfully completed a state-certified apprenticeship program. This verification process is pivotal in ensuring compliance with labor standards and upholding the integrity of skilled and trained workforce initiatives.”
Arguments in Opposition
None on file.
Prior Legislation
SB 954 (Archuleta) Chapter 824, Statutes of 2022 required the DIR to develop and implement an online database of certified payroll records submitted to comply with Public Works requirements.
AB 1023 (Flora) Chapter 326, Statutes of 2021 allowed the LC to impose a penalty on a contractor or subcontractor on a public works project if they fail to furnish payroll records to the LC, as specified.
AB 2311 (Low) Chapter 347, Statutes of 2020 required a public entity, when the use of a skilled and trained workforce to complete a contract or project is required, to include in all bid documents and construction contracts a notice that the project is subject to the skilled and trained workforce requirement. Further stated that the failure to provide such notice does not excuse a public entity, bidder, or contractor from complying with the skilled and trained workforce requirement.
AB 3018 (Low) Chapter 882, Statutes of 2018 enhanced compliance with skilled and trained workforce rules by strengthening public agency reporting requirements, creating penalties for noncompliance, and providing the LC with the authority to issue a civil wage and penalty assessment against a contractor or subcontractor found in violation of state law.
REGISTERED SUPPORT / OPPOSITION:
Support
California State Association of Electrical Workers (Co-Sponsor)
California State Pipe Trades Council (Co-Sponsor)
Western States Council Sheet Metal, Air, Rail and Transportation (Co-Sponsor)
Opposition
None on file.
Analysis Prepared by: Erin Hickey / L. & E. /
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 1162 |
THIRD READING
Bill No: SB 1162
Author: Cortese (D)
Amended: 4/1/24
Vote: 21
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 4/17/24
AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird
SENATE JUDICIARY COMMITTEE: 11-0, 4/23/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Gonzalez, Laird, Min,
Niello, Wahab
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24
AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab
SUBJECT: Public contracts: employment compliance reports and payroll records: workers’ dates of birth
SOURCE: California State Association of Electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Workers
DIGEST:
This bill requires contractors and subcontractors to include a worker’s date of birth in existing public works payroll records and in existing monthly compliance reports made to the public entity or other awarding body for projects with a skilled and trained workforce requirement.
ANALYSIS:
Existing federal law:
Permits, pursuant to the Labor Management Cooperation Act of 1978, the establishment of plant, area, and industrywide labor management committees, which have been organized jointly by employers and labor organizations representing employees in that plant, area, or industry, as specified. (29 U.S.C. §175a)
Existing state law:
- Requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a “public works” project costing over $1,000 dollars and imposes misdemeanor penalties for violation of this requirement. (Labor Code §1771)
- Defines "public work" to include, among other things, 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 a public utility company pursuant to order of the Public Utilities Commission or other public authority. (Labor Code §1720(a))
- Requires contractors and subcontractors, while performing public works, to 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 the contractor or subcontractor in connection with the public work. (Labor Code §1776 (a))
- Requires contractors and subcontractors, while performing public works, to furnish specified payroll records at least once a month directly to the Labor Commissioner (LC), in an electronic format, in the manner prescribed by the LC, on the Department’s internet website. (Labor Code, §1771.4 (a)(3))
- Requires the Department of Industrial Relations (DIR), by July 1, 2024, to develop and implement an online database, accessible only to multiemployer Taft-Hartley trust funds and joint-labor management committees (JLMCs), of electronic certified payroll records submitted in compliance with public works requirements. (Labor Code, §1771.4 (e))
- Specifies that any records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement (DLSE) 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. (Labor Code, §1776 (e))
- Specifies that any copy of records made available for inspection by, or furnished to, JLMCs shall be marked or obliterated only to prevent disclosure of an individual’s social security number. (Labor Code, §1776 (e))
- Requires, upon request, agencies included in the Joint Enforcement Strike Force on the Underground Economy (JESF) and other law enforcement agencies investigating violations of law, to be provided nonredacted copies of certified payroll records, as specified. (Labor Code, §1776 (f)(1))
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (Public Contract Code §2600)
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief of the Division of Apprenticeship Standards (DAS). (Public Contract Code §2601)
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. (Public Contract Code §2602)
- Provides that if a monthly report does not demonstrate compliance, the public agency or other awarding body shall withhold contract payments, as specified, and forward a copy of the report to the LC. (Public Contract Code §2602(c))
- Requires a contractor or subcontractor to pay a civil penalty to the state of not more than $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the LC or his or her designee determines that the contractor or subcontractor failed to use a skilled and trained workforce. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than ten thousand dollars ($10,000) per month of work performed in violation of this chapter. (Public Contract Code §2603)
This bill:
- Requires contractors and subcontractors, while performing public works, to include in existing payroll records the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the public work.
- Includes date of birth in the existing list of redacted information in any payroll records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or DLSE
- Includes date of birth in the existing list of redacted information in any payroll records made available for inspection and furnished upon request to the public by an agency included in JESF or by a law enforcement agency investigating a violation of law.
- Requires a contractor, bidder, or other entity, on projects requiring a skilled and trained workforce, to include the date of birth of each worker in the existing monthly compliance report furnished to the public entity or other awarding body.
- Declares that in order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with a public work, it is necessary to limit the public’s right of access to their personal information.
Background
Public Works Requirements and Monitoring
The determination that a project constitutes a “public work” carries with it contractor requirements to, among other things, pay prevailing wage and utilize apprentices for contracts valued at $30,000 or more. California’s prevailing wage laws ensure that the ability to secure a public works contract is not based on paying lower wages than a competitor. One component of prevailing wage policy is the requirement that contractors and subcontractors register with DIR and submit their payroll records to the LC to ensure compliance with various pay and records keeping requirements. As noted under existing state law, these payroll records, sans an individual’s social security number, are available to JLMCs.
Oftentimes workers with identical or similar names are employed on the same construction site. This can make it difficult for monitoring bodies, like JLMCs, to verify whether a contractor is paying prevailing wage. Including the date of birth of each journeyman, apprentice, worker, or other employee employed on public works projects provides JLMCs a unique identifier to differentiate between individuals with similar names. Additionally, on projects that require registered DAS-apprentices, access to an individual’s date of birth assists JLMCs in verifying a worker’s enrollment in an apprenticeship program approved by DAS.
Given the risks associated with sharing social security numbers, using an individual’s date of birth is a safer way to provide JLMCs a unique identifier.
Skilled and Trained Requirements and Monitoring
Skilled and trained workforce requirements are qualifications for the building and construction workforce that California law requires on certain projects. A “skilled and trained workforce” is one where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by DAS. It is important to remember that a project can be subject to either a skilled and trained workforce, prevailing wage law, both, or neither.
When a contractor is required to use a skilled and trained workforce to complete a project, they commit to doing so in an enforceable agreement with the public entity or awarding body. The contractor agrees to comply at every tier and is required to complete and submit to the awarding body a monthly report demonstrating compliance. Should a contractor fail to provide the monthly report or fall out of compliance, a list of penalties exist and the awarding body notifies the LC. Ensuring compliance can be difficult, because on projects that are only subject to skilled and trained requirements, and are not also a public work, it is incumbent upon the awarding body to enforce penalties. The payroll reporting requirements that exist for public works projects do not apply to projects that only require a skilled and trained workforce requirement.
As of now, skilled and trained workforce provisions contain no specifics as to what contractors need to include in their monthly compliance reports. Public Contract Code simply specifies they must contain information sufficient to “demonstrate compliance.” This bill would require that these reports include the date of birth of each worker. As explained above, JLMCs would then be able to use this information to verify a worker’s enrollment in, or graduation from, a DAS-approved apprenticeship program.
Related/ Prior Legislation
SB 954 (Archuleta, Chapter 824, Statutes of 2022) required the Department of Industrial Relations to develop and implement an online database of certified payroll records submitted to comply with public works requirements.
AB 3018 (Low, Chapter 882, Statutes of 2018) addressed compliance with skilled and trained workforce rules by strengthening public agency reporting requirements, creating penalties for noncompliance, and providing the Labor Commissioner (LC) with the authority to issue a civil wage and penalty assessment against a contractor or subcontractor found in violation of state law.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, “The administrative costs to the Department of Industrial Relations (DIR) resulting from this bill have yet to be determined. However, the magnitude of these costs would likely be, at a minimum, in the hundreds of thousands of dollars annually (special fund).”
SUPPORT: (Verified 5/16/24)
California State Association of Electrical Workers (co-source)
California State Pipe Trades Council (co-source)
Western States Council of Sheet Metal Workers (co-source)
OPPOSITION: (Verified 5/16/24)
None received
ARGUMENTS IN SUPPORT:
The sponsors of the measure, the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, state,
“By requiring employers to include the date of birth of each worker in their certified payroll reports, SB 1162 provides JLMCs with a powerful tool to accurately locate individuals within the Department of Industrial Relations (DIR) database. This information is essential for verifying whether workers meet the eligibility criteria to participate in skilled and trained projects, as mandated by state regulations. Furthermore, the inclusion of date of birth data enables JLMCs to verify whether a worker has successfully completed a state-certified apprenticeship program. This verification process is pivotal in ensuring compliance with labor standards and upholding the integrity of skilled and trained workforce initiatives. SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements.”
ARGUMENTS IN OPPOSITION:
Prepared by: Emma Bruce / L., P.E. & R. / (916) 651-1556
5/17/24 10:09:25
**** END ****
SENATE COMMITTEE ON
Senator Anna Caballero, Chair
2023 - 2024 Regular Session
SB 1162 (Cortese) - Public contracts: employment compliance reports and payroll records: workers’ dates of birth
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
SB 1162 would (1) require an existing monthly report related to an enforceable commitment by a contractor, bidder, or other entity to use a skilled and trained workforce to additionally include the date of birth for each worker, (2) require payroll records for employees employed in connection with public works projects to include the date of birth of those employees, as specified.
Fiscal Impact:
The administrative costs to the Department of Industrial Relations (DIR) resulting from this bill have yet to be determined. However, the magnitude of these costs would likely be, at a minimum, in the hundreds of thousands of dollars annually (special fund).
Background:
Joint Labor Management Committees (JLMCs) are empowered to bring an action in any court of competent jurisdiction against an employer that fails to pay the prevailing wage to its employees or that fails to provide payroll records, as required by public works law.
The determination that a project constitutes a “public work” carries with it contractor requirements to, among other things, pay prevailing wage and utilize apprentices for contracts valued at $30,000 or more. California’s prevailing wage laws ensure that the ability to secure a public works contract is not based on paying lower wages than a competitor. One component of prevailing wage policy is the requirement that contractors and subcontractors register with DIR and submit their payroll records to the Labor Commissioner to ensure compliance with various pay and records keeping requirements. These payroll records, sans an individual’s social security number, are available to JLMCs. The additional obligations that accompany a “public work” necessitate monitoring by the Labor Commissioner, awarding bodies, and JLMCs.
Oftentimes a construction site employs workers with identical or similar names, which can complicate efforts of monitoring bodies, like JLMCs, to verify whether a contractor is paying prevailing wage. Including the date of birth of each journeyman, apprentice, worker, or other employee employed on public works projects would provide JLMCs a unique identifier to differentiate between individuals with similar names. Additionally, on projects that require registered DAS-apprentices, access to an individual’s date of birth assists JLMCs in verifying a worker’s enrollment in an apprenticeship program approved by the Division of Apprenticeship Standards (DAS).
Skilled and trained workforce requirements are qualifications for the building and construction workforce that California law requires on certain projects. A “skilled and trained workforce” is one where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by DAS. A construction project can be subject to either a skilled and trained workforce, prevailing wage law, both, or neither.
When a contractor is required to use a skilled and trained workforce to complete a project, they commit to doing so in an enforceable agreement with the public entity or awarding body. The contractor agrees to comply at every tier and is required to complete and submit to the awarding body a monthly report demonstrating compliance. Should a contractor fail to provide the monthly report or fall out of compliance, a list of penalties exist and the Labor Commissioner is notified by the awarding body. Ensuring compliance can be difficult, because on projects that are only subject to skilled and trained requirements, and are not also a public work, it is incumbent upon the awarding body to enforce penalties and notify the LC. The payroll reporting requirements that exist for public works projects do not apply to projects that only require a skilled and trained workforce requirement.
Proposed Law:
This bill would do the following:
- Require the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the public work to be included on the payroll records, as specified.
- Require the date of birth of each worker to be included in the existing monthly compliance report on projects requiring a skilled and trained workforce, as specified.
- Provide that the date of birth on payroll records and reports and on the reports related to projects requiring a skilled and trained workforce are to be redacted and not disclosed to the public.
Related Legislation:
- SB 954 (Archuleta, Chapter 824, Statutes of 2022) required DIR to develop and implement an online database of certified payroll records submitted to comply with public works requirements.
- SB 2311 (Low, Chapter 347, Statutes of 2020) required a public entity to include in all bid documents and construction contracts whether the project is subject to skilled and trained workforce provisions in existing law.
- AB 1023 (Flora, Chapter 326, Statutes of 2021) revised the requirement to furnish payroll records monthly to require that the contractor or subcontractor furnish those records at least once every 30 days while work is being performed on the project and within 30 days after the final day of work performed on the project, as specified.
- AB 3018 (Low, Chapter 882, Statutes of 2018) strengthened public agency reporting requirements related to skilled and trained workforce rules by creating penalties for noncompliance, and providing the Commissioner with the authority to issue a civil wage and penalty assessment against a contractor or subcontractor for a violation.
Staff Comments:
Currently, skilled and trained workforce provisions do not contain specifics regarding what contractors need to include in their monthly compliance reports. The Public Contract Code simply specifies they must contain information sufficient to “demonstrate compliance.” This bill would require that these reports include the date of birth of each worker. As noted above, JLMCs would then be able to use this information to verify a worker’s enrollment in, or graduation from, a DAS-approved apprenticeship program.
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Senator Thomas Umberg, Chair
2023-2024 Regular Session
Bill No: SB 1162 (Author:Cortese)
Version: April 1, 2024
Hearing Date: April 23, 2024
Fiscal: Yes
Urgency: No
Consultant: AM
SUBJECT
Public contracts: employment compliance reports and payroll records: workers’ dates of birth
DIGEST
This bill additionally requires an existing monthly report related to an enforceable commitment by a contractor, bidder, or other entity to use a skilled and trained workforce to also include the date of birth for each worker. The bill also requires payroll records for employees employed in connection with public works projects to include the date of birth of those employees. The bill provides that the date of birth included in the report or on those payroll records is not be disclosed to the public.
EXECUTIVE SUMMARY
Under existing law public works projects are required to pay no less than the general prevailing rate of per diem wages to all employees and requires payroll reporting to ensure compliance with this requirement. Additionally, public entities are authorized to use a skilled and trained workforce to complete a contract or project and can require reporting of specified employee information to demonstrate compliance with this requirement. This bill seeks to aid in the compliance of these provisions by additionally requiring the date of birth of employees be provide on payroll documents and certain reports, but provides that this information is to be redacted when disclosed to the public.
This bill is sponsored by the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal, Air, Rail and Transportation. No timely opposition was received by the Committee. This bill passed the Senate Labor, Public Employment and Retirement Committee on a vote of 5 to 0.
PROPOSED CHANGES TO THE LAW
Existing law:
- Requires contractors and subcontractors, when performing public works, to 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 the contractor or subcontractor in connection with the public work. (Lab. Code § 1776(a).)
- Requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a “public works” project costing over $1,000 dollars and imposes misdemeanor penalties for violation of this requirement. (Lab. Code § 1771.)
- Defines “public works” to include, among other things, 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 a public utility company pursuant to an order of the Public Utilities Commission or other public authority. (Lab. Code § 1720(a).)
- Requires contractors and subcontractors, while performing public works, to furnish specified payroll records at least once a month directly to the Labor Commissioner (Commissioner), as specified. (Lab. Code §1771.4(a)(3).)
- Requires the Department of Industrial Relations (DIR), by July 1, 2024, to develop and implement an online database, accessible only to multiemployer Taft-Hartley trust funds and joint-labor management committees (JLMCs), of electronic certified payroll records submitted in compliance with public works requirements. (Lab. Code, § 1771.4(e).)
- Specifies that any records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement (DLSE) must be marked or obliterated to prevent disclosure of an individual’s name, address, and social security number. (Lab. Code, §1776(e).)
- Specifies that any copy of records made available for inspection by, or furnished to, JLMCs must be marked or obliterated to prevent disclosure of an individual’s social security number. (Lab. Code § 1776(e).)
- Requires, upon request, agencies included in the Joint Enforcement Strike Force on the Underground Economy (JESF) and other law enforcement agencies investigating violations of law, to be provided nonredacted copies of certified payroll records, as specified. (Lab. Code § 1776(f)(1).)
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (Pub. Contract Code § 2600.)
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief of the Division of Apprenticeship Standards (DAS). (Pub. Contract Code § 2601.)
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. (Public Contract Code §2602)
- Provides, pursuant to the California Constitution, that the people have the right of access to information concerning the conduct of the people’s business, and, therefore, the meetings of public bodies and the writings of public officials and agencies are required to be open to public scrutiny. (Cal. const. art. I, § 3(b)(1).)
- Requires a statute to be broadly construed if it furthers the people’s right of access, and narrowly construed if it limits the right of access. (Cal. const. art. I, § 3(b)(1).)
- Requires a statute that limits the public’s right of access to be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. (Cal. const. art. I, § 3(b)(1).)
- Governs the disclosure of information collected and maintained by public agencies pursuant to the California Public Records Act (CPRA). (Gov. Code §§ 7920.000 et seq.)
- States that the Legislature, mindful of the individual right to privacy, finds and declares that access to information concerning the conduct of the people’s business is a fundamental and necessary right of every person in this state. (Gov. Code § 7921.000.)
- Defines “public records” as any writing containing information relating to the conduct of the public’s business prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics. (Gov. Code § 7920.530.)
- Provides that all public records are accessible to the public upon request, unless the record requested is exempt from public disclosure. (Gov. Code § 7922.530.)
This bill:
- Requires the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the public work to be included on the payroll records described in 1), above.
- Requires the date of birth of each worker to be included in the existing monthly compliance report on projects requiring a skilled and trained workforce described in 5), above.
- Provides that the date of birth on payroll records and reports and on the reports related to projects requiring a skilled and trained workforce are to be redacted and not disclosed to the public.
COMMENTS
- State need for the bill
The author writes:
SB 1162 enables Labor-Management Cooperation Committees, (LMCCs) to accurately verify workers have the appropriate training to work on a skilled and trained project. The bill requires employers to include a worker's DOB in their monthly certified payroll reports submitted to LMCCs. This information enables LMCCs to search for a worker on the DIR database and use the DOB to verify the correct worker. By ensuring accurate identification, LMCCs can verify whether the worker meets the eligibility criteria to work on skilled and trained projects. This streamlined verification process will strengthen oversight and help LMCCs in enforce wage and labor requirements more efficiently.
- Background
- JLMCs and public works requirements and monitoring
The Senate Labor, Public Employment and Retirement Committee analysis of this bill provides useful background on JLMCs and public works requirements under existing law stating:
[…] In California, JLMCs play a vital role in ensuring compliance with public works and skilled and trained statutes. Specifically, JLMCs are empowered to bring an action in any court of competent jurisdiction against an employer that fails to pay the prevailing wage to its employees or that fails to provide payroll records, as required by public works law.
[…] California’s prevailing wage laws ensure that the ability to secure a public works contract is not based on paying lower wages than a competitor. One component of prevailing wage policy is the requirement that contractors and subcontractors register with DIR and submit their payroll records to the [Labor Commissioner] LC to ensure compliance with various pay and records keeping requirements. As noted under existing law, these payroll records, sans an individual’s social security number, are available to JLMCs. The additional obligations that accompany a “public work” necessitate monitoring by the LC, awarding bodies, and JLMCs.[1]
That analysis further noted that providing a date of birth can help improve the ability of JLMCs to ensure compliance with existing law:
Oftentimes workers with identical or similar names are employed on the same construction site. This can make it difficult for monitoring bodies, like JLMCs, to verify whether a contractor is paying prevailing wage. Including the date of birth of each journeyman, apprentice, worker, or other employee employed on public works projects provides JLMCs a unique identifier to differentiate between individuals with similar names. Additionally, on projects that require registered DAS-apprentices [Division of Apprenticeship Standards], access to an individual’s date of birth assists JLMCs in verifying a worker’s enrollment in an apprenticeship program approved by DAS.[2]
- Skilled and Trained Workforce Requirements and Monitoring
The Senate Labor, Public Employment and Retirement Committee analysis of this bill also provides background on skilled and trained workforce requirements writing:
When a contractor is required to use a skilled and trained workforce to complete a project, they commit to doing so in an enforceable agreement with the public entity or awarding body. The contractor agrees to comply at every tier and is required to complete and submit to the awarding body a monthly report demonstrating compliance. Should a contractor fail to provide the monthly report or fall out of compliance, a list of penalties exist and the LC is notified by the awarding body. Ensuring compliance can be difficult, because on projects that are only subject to skilled and trained requirements, and are not also a public work, it is incumbent upon the awarding body to enforce penalties and notify the LC. The payroll reporting requirements that exist for public works projects do not apply to projects that only require a skilled and trained workforce requirement.
As of now, skilled and trained workforce provisions contain no specifics as to what contractors need to include in their monthly compliance reports. Public Contract Code simply specifies they must contain information sufficient to “demonstrate compliance.” SB 1162 would require that these reports include the date of birth of each worker. As explained above, JLMCs would then be able to use this information to verify a worker’s enrollment in, or graduation from, a DAS-approved apprenticeship program.[3]
- Limiting disclosure of information contained in public records – date of birth
California generally recognizes that public access to information concerning the conduct of the people’s business is a fundamental and necessary right.[4] At the same time, the state recognizes that this right must be balanced against the right to privacy.[5] The general right of access to public records may, therefore, be limited where records include personal information. In recognition of this, the bill states that in order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with the public work, it is necessary to limit the public’s right of access to their personal information. In light of the personal nature of a person’s date of birth and the fact that other personally identifying information is already protected from disclosure, the bill’s findings appear consistent with the state’s right to privacy and limits on disclosure of public records.
- Statements in support
The sponsors of the bill write in support, stating:
By requiring employers to include the date of birth of each worker in their certified payroll reports, SB 1162 provides JLMCs with a powerful tool to accurately locate individuals within the Department of Industrial Relations (DIR) database. This information is essential for verifying whether workers meet the eligibility criteria to participate in skilled and trained projects, as mandated by state regulations.
Furthermore, the inclusion of date of birth data enables JLMCs to verify whether a worker has successfully completed a state-certified apprenticeship program. This verification process is pivotal in ensuring compliance with labor standards and upholding the integrity of skilled and trained workforce initiatives.
SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements.
SUPPORT
California State Association of Electrical Workers (sponsor)
California State Pipe Trades Council (sponsor)
Western States Council of Sheet Metal, Air, Rail and Transportation (sponsor)
OPPOSITION
None received
RELATED LEGISLATION
Pending Legislation: None known.
Prior Legislation:
SB 954 (Archuleta, Ch. 824, Stats. 2022) required the DIR to develop and implement an online database of certified payroll records submitted to comply with public works requirements.
SB 2311 (Low, Ch. 347, Stats. 2020) required a public entity to include in all bid documents and construction contracts whether the project is subject to skilled and trained workforce provisions in existing law.
AB 1023 (Flora, Ch. 326, Stats. 2021) revised the requirement to furnish payroll records monthly to require that the contractor or subcontractor furnish those records at least once every 30 days while work is being performed on the project and within 30 days after the final day of work performed on the project, as specified.
AB 3018 (Low, Ch. 882, Stats. 2018) strengthened public agency reporting requirements related to skilled and trained workforce rules by creating penalties for noncompliance, and providing the Commissioner with the authority to issue a civil wage and penalty assessment against a contractor or subcontractor for a violation.
PRIOR VOTES
Senate Labor, Public Employment and Retirement (5 Ayes, 0 Noes)
**************
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Lola Smallwood-Cuevas, Chair
2023 - 2024 Regular
Bill No: SB 1162 Hearing Date: April 17, 2024
Author: | Cortese | ||
Version: | April 1, 2024 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Emma Bruce | ||
SUBJECT: Public contracts: employment compliance reports and payroll records: workers’ dates of birth
KEY ISSUE
This bill requires contractors and subcontractors to include a worker’s date of birth in existing public works payroll records and in existing monthly compliance reports made to the public entity or other awarding body for projects with a skilled and trained workforce requirement.
ANALYSIS
Existing federal law:
- Permits, pursuant to the Labor Management Cooperation Act of 1978, the establishment of plant, area, and industrywide labor management committees, which have been organized jointly by employers and labor organizations representing employees in that plant, area, or industry, as specified. (29 U.S.C. §175a)
Existing state law:
- Requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a “public works” project costing over $1,000 dollars and imposes misdemeanor penalties for violation of this requirement. (Labor Code §1771)
- Defines "public work" to include, among other things, 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 a public utility company pursuant to order of the Public Utilities Commission or other public authority. (Labor Code §1720(a))
- Requires contractors and subcontractors, while performing public works, to 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 the contractor or subcontractor in connection with the public work. (Labor Code §1776 (a))
- Requires contractors and subcontractors, while performing public works, to furnish specified payroll records at least once a month directly to the Labor Commissioner (LC), in an electronic format, in the manner prescribed by the LC, on the Department’s internet website. (Labor Code, §1771.4 (a)(3))
- Requires the Department of Industrial Relations (DIR), by July 1, 2024, to develop and implement an online database, accessible only to multiemployer Taft-Hartley trust funds and joint-labor management committees (JLMCs), of electronic certified payroll records submitted in compliance with public works requirements. (Labor Code, §1771.4 (e))
- Specifies that any records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement (DLSE) 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. (Labor Code, §1776 (e))
- Specifies that any copy of records made available for inspection by, or furnished to, JLMCs shall be marked or obliterated only to prevent disclosure of an individual’s social security number. (Labor Code, §1776 (e))
- Requires, upon request, agencies included in the Joint Enforcement Strike Force on the Underground Economy (JESF) and other law enforcement agencies investigating violations of law, to be provided nonredacted copies of certified payroll records, as specified. (Labor Code, §1776 (f)(1))
- Authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (Public Contract Code §2600)
- Defines “skilled and trained workforce” to mean, among other requirements, a workforce where all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief of the Division of Apprenticeship Standards (DAS). (Public Contract Code §2601)
- Requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements. (Public Contract Code §2602)
- Provides that if a monthly report does not demonstrate compliance, the public agency or other awarding body shall withhold contract payments, as specified, and forward a copy of the report to the LC. (Public Contract Code §2602(c))
- Requires a contractor or subcontractor to pay a civil penalty to the state of not more than $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the LC or his or her designee determines that the contractor or subcontractor failed to use a skilled and trained workforce. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than ten thousand dollars ($10,000) per month of work performed in violation of this chapter. (Public Contract Code §2603)
This bill:
- Requires contractors and subcontractors, while performing public works, to include in existing payroll records the date of birth of each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the public work.
- Includes date of birth in the existing list of redacted information in any payroll records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or DLSE
- Includes date of birth in the existing list of redacted information in any payroll records made available for inspection and furnished upon request to the public by an agency included in JESF or by a law enforcement agency investigating a violation of law.
- Requires a contractor, bidder, or other entity, on projects requiring a skilled and trained workforce, to include the date of birth of each worker in the existing monthly compliance report furnished to the public entity or other awarding body.
- Declares that in order to protect the privacy of a journeyman, apprentice, worker, or other employee employed by a contractor or subcontractor in connection with a public work, it is necessary to limit the public’s right of access to their personal information.
COMMENTS
1. Background:
Joint Labor Management Committees (JLMCs)
JLMCs, established pursuant to the federal Labor Management Cooperation Act of 1978, aim to improve communications and working relationships between labor and management, provide workers and employers with opportunities to explore joint approaches to problems, and develop ways to increase productivity and promote economic development. In California, JLMCs play a vital role in ensuring compliance with public works and skilled and trained statutes. Specifically, JLMCs are empowered to bring an action in any court of competent jurisdiction against an employer that fails to pay the prevailing wage to its employees or that fails to provide payroll records, as required by public works law.
Public Works Requirements and Monitoring
The determination that a project constitutes a “public work” carries with it contractor requirements to, among other things, pay prevailing wage and utilize apprentices for contracts valued at $30,000 or more. California’s prevailing wage laws ensure that the ability to secure a public works contract is not based on paying lower wages than a competitor. One component of prevailing wage policy is the requirement that contractors and subcontractors register with DIR and submit their payroll records to the LC to ensure compliance with various pay and records keeping requirements. As noted under existing law, these payroll records, sans an individual’s social security number, are available to JLMCs. The additional obligations that accompany a “public work” necessitate monitoring by the LC, awarding bodies, and JLMCs.
Oftentimes workers with identical or similar names are employed on the same construction site. This can make it difficult for monitoring bodies, like JLMCs, to verify whether a contractor is paying prevailing wage. Including the date of birth of each journeyman, apprentice, worker, or other employee employed on public works projects provides JLMCs a unique identifier to differentiate between individuals with similar names. Additionally, on projects that require registered DAS-apprentices, access to an individual’s date of birth assists JLMCs in verifying a worker’s enrollment in an apprenticeship program approved by DAS.
Given the risks associated with sharing social security numbers, using an individual’s date of birth is a safer way to provide JLMCs a unique identifier.
Skilled and Trained Requirements and Monitoring
Skilled and trained workforce requirements are qualifications for the building and construction workforce that California law requires on certain projects. A “skilled and trained workforce” is one where all the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by DAS. It is important to remember that a project can be subject to either a skilled and trained workforce, prevailing wage law, both, or neither.
When a contractor is required to use a skilled and trained workforce to complete a project, they commit to doing so in an enforceable agreement with the public entity or awarding body. The contractor agrees to comply at every tier and is required to complete and submit to the awarding body a monthly report demonstrating compliance. Should a contractor fail to provide the monthly report or fall out of compliance, a list of penalties exist and the LC is notified by the awarding body. Ensuring compliance can be difficult, because on projects that are only subject to skilled and trained requirements, and are not also a public work, it is incumbent upon the awarding body to enforce penalties and notify the LC. The payroll reporting requirements that exist for public works projects do not apply to projects that only require a skilled and trained workforce requirement.
As of now, skilled and trained workforce provisions contain no specifics as to what contractors need to include in their monthly compliance reports. Public Contract Code simply specifies they must contain information sufficient to “demonstrate compliance.” SB 1162 would require that these reports include the date of birth of each worker. As explained above, JLMCs would then be able to use this information to verify a worker’s enrollment in, or graduation from, a DAS-approved apprenticeship program.
2. Committee Comments:
The author may wish to consider amending the bill to specify that JLMCs can request copies of the monthly compliance report submitted to awarding bodies for projects with a skilled and trained workforce requirement. Existing public works law creates a clear mechanism for JLMCs to access payroll records, but on projects only subject to skilled and trained requirements, no such clear mechanism exists.
3. Need for this bill?
According to the author, “[Joint] Labor-Management Cooperation Committees [JLMCs] play a crucial role in ensuring that employers comply with wage and labor requirements, particularly in the context of public works projects. One of their primary functions is to oversee and monitor employer adherence to these regulations. Currently, [JLMCCs] have access to certain resources such as employer-certified payroll records for public works projects and online databases provided by the Department of Industrial Relations (DIR), which include information on Apprenticeship Status and Safety Training Certification by name.”
Furthermore, “Despite having access to the online database, they often encounter difficulties in identifying the correct individual because multiple workers may share the same name. This situation underscores the need for an additional unique identifier that can effectively differentiate between individuals with similar names.”
4. Proponent Arguments
The sponsors of the measure, the California State Association of Electrical Workers, the California State Pipe Trades Council, and the Western States Council of Sheet Metal Workers, state,
“By requiring employers to include the date of birth of each worker in their certified payroll reports, SB 1162 provides JLMCs with a powerful tool to accurately locate individuals within the Department of Industrial Relations (DIR) database. This information is essential for verifying whether workers meet the eligibility criteria to participate in skilled and trained projects, as mandated by state regulations. Furthermore, the inclusion of date of birth data enables JLMCs to verify whether a worker has successfully completed a state-certified apprenticeship program. This verification process is pivotal in ensuring compliance with labor standards and upholding the integrity of skilled and trained workforce initiatives. SB 1162 streamlines the verification process for JLMCs, empowering them to enforce regulations more efficiently while maintaining the highest standards of accountability. By accurately identifying individuals and confirming their eligibility to work on specific projects, JLMCs can better ensure that skilled and trained workers are employed in accordance with state requirements.”
5. Opponent Arguments:
None received.
6. Dual Referral:
Amendments taken after the bill was referred to the Committee on Labor, Public Employment and Retirement have triggered a re-referral to the Senate Judiciary. Should the bill be passed today, it will be sent to the Senate Rules Committee for a re-referral to the Senate Judiciary Committee.
7. Prior Legislation:
SB 954 (Archuleta, Chapter 824, Statutes of 2022) required the Department of Industrial Relations to develop and implement an online database of certified payroll records submitted to comply with public works requirements.
SB 2311 (Low, Chapter 347, Statutes of 2020) required a public entity to include in all bid documents and construction contracts whether the project is subject to skilled and trained workforce provisions in existing law. The bill also specified that failure of a public entity to provide this notice does not excuse the public entity of the obligation to obtain a commitment that these provisions will be followed OR a bidder or contractor from the obligation to use a skilled and trained workforce if this is a requirement imposed by statute or regulation.
AB 1023 (Flora, Chapter 326, Statutes of 2021) revised the requirement to furnish payroll records monthly to require that the contractor or subcontractor furnish those records at least once every 30 days while work is being performed on the project and within 30 days after the final day of work performed on the project. The bill also required that the contractor or subcontractor furnish these records in an electronic format, in the manner prescribed by the Labor Commissioner, on the department’s internet website.
AB 3018 (Low, Chapter 882, Statutes of 2018) addressed compliance with skilled and trained workforce rules by strengthening public agency reporting requirements, creating penalties for noncompliance, and providing the Labor Commissioner (LC) with the authority to issue a civil wage and penalty assessment against a contractor or subcontractor found in violation of state law.
SUPPORT
California State Association of Electrical Workers (co-sponsor)
California State Pipe Trades Council (co-sponsor)
Western States Council of Sheet Metal Workers (co-sponsor)
OPPOSITION
None received
-- END --
Discussed in Hearing
1MIN
Senate Floor
34SEC
Assembly Floor
3MIN
Assembly Standing Committee on Labor and Employment
29SEC
Assembly Floor
2MIN
Senate Floor
39SEC
Senate Standing Committee on Judiciary
6MIN
Senate Standing Committee on Labor, Public Employment and Retirement
Bill Author
Bill Co-Author(s):