Bill Text: CA AB2135 | 2023-2024 | Regular Session | Introduced

California Assembly Bill 2135

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Public works contracts: wage and penalty assessment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-08-15 - In committee: Held under submission. [AB2135 Detail]

Download: California-2023-AB2135-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2135

Introduced by Assembly Member Schiavo

February 06, 2024

An act to amend Section 1741 of the Labor Code, relating to public works contracts.

LEGISLATIVE COUNSEL'S DIGEST

AB 2135, as introduced, Schiavo. Public works contracts: wage and penalty assessment.

Existing law requires the Labor Commissioner to issue a civil wage and penalty assessment to a contractor or subcontractor, or both, if, after an investigation, the commissioner determines there has been a violation of the laws regulating public works contracts, including the payment of prevailing wages. Existing law requires the assessment to be served not later than 18 months after the filing of a valid notice of completion in the office of the county recorder in each county in which the public work or some part thereof was performed, or not later than 18 months after acceptance of the public work, whichever occurs last.

This bill would extend the above-described time period to 24 months, and would authorize an extension for good cause, including ongoing investigation and assessment by the Labor Commissioner or their designee. The bill would prohibit the dismissal of an investigation solely on the basis that the Labor Commissioner or their designee did not complete their review and assessment within the prescribed time.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1741 of the Labor Code is amended to read:

1741.

(a) If the Labor Commissioner or ~~his or her~~ their designee determines after an investigation that there has been a violation of this chapter, the Labor Commissioner shall with reasonable promptness issue a civil wage and penalty assessment to the contractor or subcontractor, or both. The assessment shall be in writing, shall describe the nature of the violation and the amount of wages, penalties, and forfeitures due, and shall include the basis for the assessment. The assessment shall be served not later than 18 24 months after the filing of a valid notice of completion in the office of the county recorder in each county in which the public work or some part thereof was performed, or not later than 18 24 months after acceptance of the public work, whichever occurs last. The deadline for service of the assessment may be extended for good cause, which shall include ongoing investigation and assessment by the Labor Commissioner or their designee. An investigation shall not be dismissed solely on the basis that the Labor Commissioner or their designee did not complete their review and assessment within the prescribed time. Service of the assessment shall be completed pursuant to Section 1013 of the Code of Civil Procedure by first-class and certified mail to the contractor, subcontractor, and awarding body. The assessment shall advise the contractor and subcontractor of the procedure for obtaining review of the assessment. The Labor Commissioner shall, to the extent practicable, ascertain the identity of any bonding company issuing a bond that secures the payment of wages covered by the assessment and any surety on a bond, and shall serve a copy of the assessment by certified mail to the bonding company or surety at the same time service is made to the contractor, subcontractor, and awarding body. However, no bonding company or surety shall be relieved of its responsibilities because it failed to receive notice from the Labor Commissioner.

(b) Interest shall accrue on all due and unpaid wages at the rate described in subdivision (b) of Section 3289 of the Civil Code. The interest shall accrue from the date that the wages were due and payable, as provided in Part 7 (commencing with Section 1720) of Division 2, until the wages are paid.

(c) (1) The Labor Commissioner shall maintain a public list of the names of each contractor and subcontractor who has been found to have committed a willful violation of Section 1775 or to whom a final order, which is no longer subject to judicial review, has been issued.

(2) The list shall include the date of each assessment, the amount of wages and penalties assessed, and the amount collected.

(3) The list shall be updated at least quarterly, and the contractor’s or subcontractor’s name shall remain on that list until the assessment is satisfied, or for a period of three years beginning from the date of the issuance of the assessment, whichever is later.