Bill Text: CA SB954 | 2015-2016 | Regular Session | Chaptered

California Senate Bill 954 (Prior Session Legislation)

Bill Title: Public works: prevailing wage: per diem wages.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-08-29 - Chaptered by Secretary of State. Chapter 231, Statutes of 2016. [SB954 Detail]

Download: California-2015-SB954-Chaptered.html

BILL NUMBER: SB 954	CHAPTERED
	BILL TEXT

	CHAPTER  231
	FILED WITH SECRETARY OF STATE  AUGUST 29, 2016
	APPROVED BY GOVERNOR  AUGUST 29, 2016
	PASSED THE SENATE  AUGUST 11, 2016
	PASSED THE ASSEMBLY  AUGUST 4, 2016
	AMENDED IN ASSEMBLY  JUNE 14, 2016

INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 4, 2016

   An act to amend Section 1773.1 of Labor Code, relating to
prevailing wage.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 954, Hertzberg. Public works: prevailing wage: per diem wages.
   Existing law requires, except for public works projects of $1,000
or less, that workers employed on public works be paid not less than
the general prevailing rate of per diem wages for work of a similar
character in the locality that the public work is performed, and not
less than the general prevailing rate of per diem wages for holiday
and overtime work fixed, as prescribed. Existing law requires the
Director of Industrial Relations to determine the general prevailing
rate of per diem wages for work of a similar character in the
locality in which the public work is to be performed, and the general
prevailing rate of per diem wages for holiday and overtime work.
   Existing law includes, as per diem wages, employer payment for
industry advancement and collective bargaining agreements
administrative fees, provided that these payments are required under
a collective bargaining agreement pertaining to the particular craft,
classification, or type of work within the locality or the nearest
labor market area at issue. Per diem wages also include employer
payments for other purposes similar to those specified, including,
but not limited to, certain apprenticeship or other training
programs, to the extent that the cost of training is reasonably
related to the amount of the contributions, and worker protection and
assistance programs or committees established under the federal
Labor Management Cooperation Act of 1978, to the extent that the
activities of the programs or committees are directed to the
monitoring and enforcement of laws related to public works.
   This bill would instead require per diem wages to include industry
advancement and collective bargaining agreements administrative fees
if the payments are made pursuant to a collective bargaining
agreement to which the employer is obligated. The bill would also
exclude from per diem wages, if the payments are not made pursuant to
a collective bargaining agreement to which the employer is
obligated, employer payments for other purposes similar to certain
apprenticeship or other training programs, worker protection and
assistance programs or committees established under the federal Labor
Management Cooperation Act of 1978, and industry advancement and
collective bargaining agreements administrative fees, as specified.
   Existing law provides that employer payments are credits against
the obligation to pay the general prevailing rate of per diem wages.
Credit is prohibited for benefits required to be provided by other
state or federal law or for payments made to monitor and enforce laws
related to public works if those payments are not made to a program
or committee established under the federal Labor Management
Cooperation Act of 1978.
   This bill would also prohibit credit for payments for industry
advancement and collective bargaining agreement administrative fees
if those payments are not made pursuant to a collective bargaining
agreement to which the employer is obligated.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1773.1 of the Labor Code is amended to read:
   1773.1.  (a) Per diem wages, as the term is used in this chapter
or in any other statute applicable to public works, includes employer
payments for the following:
   (1) Health and welfare.
   (2) Pension.
   (3) Vacation.
   (4) Travel.
   (5) Subsistence.
   (6) Apprenticeship or other training programs authorized by
Section 3093, to the extent that the cost of training is reasonably
related to the amount of the contributions.
   (7) Worker protection and assistance programs or committees
established under the federal Labor Management Cooperation Act of
1978 (29 U.S.C. Sec. 175a), to the extent that the activities of the
programs or committees are directed to the monitoring and enforcement
of laws related to public works.
   (8) Industry advancement and collective bargaining agreements
administrative fees, provided that these payments are made pursuant
to a collective bargaining agreement to which the employer is
obligated.
   (9) Other purposes similar to those specified in paragraphs (1) to
(5), inclusive; or other purposes similar to those specified in
paragraphs (6) to (8), inclusive, if the payments are made pursuant
to a collective bargaining agreement to which the employer is
obligated.
   (b) Employer payments include all of the following:
   (1) The rate of contribution irrevocably made by the employer to a
trustee or third person pursuant to a plan, fund, or program.
   (2) The rate of actual costs to the employer reasonably
anticipated in providing benefits to workers pursuant to an
enforceable commitment to carry out a financially responsible plan or
program communicated in writing to the workers affected.
   (3) Payments to the California Apprenticeship Council pursuant to
Section 1777.5.
   (c) Employer payments are a credit against the obligation to pay
the general prevailing rate of per diem wages. However, credit shall
not be granted for benefits required to be provided by other state or
federal law, for payments made to monitor and enforce laws related
to public works if those payments are not made to a program or
committee established under the federal Labor Management Cooperation
Act of 1978 (29 U.S.C. Sec. 175a), or for payments for industry
advancement and collective bargaining agreement administrative fees
if those payments are not made pursuant to a collective bargaining
agreement to which the employer is obligated. Credits for employer
payments also shall not reduce the obligation to pay the hourly
straight time or overtime wages found to be prevailing. However, an
increased employer payment contribution that results in a lower
hourly straight time or overtime wage shall not be considered a
violation of the applicable prevailing wage determination if all of
the following conditions are met:
   (1) The increased employer payment is made pursuant to criteria
set forth in a collective bargaining agreement.
   (2) The basic hourly rate and increased employer payment are no
less than the general prevailing rate of per diem wages and the
general prevailing rate for holiday and overtime work in the director'
s general prevailing wage determination.
   (3) The employer payment contribution is irrevocable unless made
in error.
   (d) An employer may take credit for an employer payment specified
in subdivision (b), even if contributions are not made, or costs are
not paid, during the same pay period for which credit is taken, if
the employer regularly makes the contributions, or regularly pays the
costs, for the plan, fund, or program on no less than a quarterly
basis.
   (e) The credit for employer payments shall be computed on an
annualized basis when the employer seeks credit for employer payments
that are higher for public works projects than for private
construction performed by the same employer, unless one or more of
the following occur:
   (1) The employer has an enforceable obligation to make the higher
rate of payments on future private construction performed by the
employer.
   (2) The higher rate of payments is required by a project labor
agreement.
   (3) The payments are made to the California Apprenticeship Council
pursuant to Section 1777.5.
   (4) The director determines that annualization would not serve the
purposes of this chapter.
   (f) (1) For the purpose of determining those per diem wages for
contracts, the representative of any craft, classification, or type
of worker needed to execute contracts shall file with the Department
of Industrial Relations fully executed copies of the collective
bargaining agreements for the particular craft, classification, or
type of work involved. The collective bargaining agreements shall be
filed after their execution and thereafter may be taken into
consideration pursuant to Section 1773 whenever they are filed 30
days prior to the call for bids. If the collective bargaining
agreement has not been formalized, a typescript of the final draft
may be filed temporarily, accompanied by a statement under penalty of
perjury as to its effective date.
   (2) When a copy of the collective bargaining agreement has
previously been filed, fully executed copies of all modifications and
extensions of the agreement that affect per diem wages or holidays
shall be filed.
   (3) The failure to comply with filing requirements of this
subdivision shall not be grounds for setting aside a prevailing wage
determination if the information taken into consideration is correct.