Labor Compliance Program Manual - San Francisco Public Schools

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Awarding Body LCP State of California Requirements as of January 21, 2009 Procedures Manual _________________________________________________________________________________________________ CHAPTER 4– Standards of Responsibility: Prevailing Wages The awarding body should require in its procurement procedures that all persons who submit bids, proposals or offers to enter into a contract with the awarding body do so truthfully and in good faith, and shall not attempt to mislead the awarding body with respect to the following including, but not limited to, records regarding the nature or quality of the work performed under the contract, payroll records, classification of employees on payroll records, and payment of prevailing wages where called for by the contract. If directed by the awarding body, contractor shall file, and cause any subcontractor to file, compliance reports with the LCP administrator. Compliance reports shall be filed as required in Labor Code section 1776 on a weekly basis. Compliance reports shall contain such information and be supported by such data or records as may be requested by the LCP administrator to determine whether general contractor or its subcontractor is in compliance with the prevailing wage requirements. General contractors shall include the awarding bodies’ prevailing wage requirements in each subcontract entered into in furtherance of its Public Works agreement with the awarding bodies, so that such provisions are binding upon each of its subcontractors. A. Remedies for Contractor's Breach of Prevailing Wage Requirements 1. The general contractor shall acknowledge that it shall pay workers the proper prevailing or wage (“Wage Provision”) and submit all required labor compliance documentation to the awarding body establishing its compliance with such requirement (“Document Provision”). The contractor shall acknowledge that the Wage Provision promotes each of the following (collectively “Goals”): a. It protects job opportunities and stimulates the economy by reducing the incentive to recruit and pay a substandard wage to labor. b. It benefits the public through the superior efficiency of well-paid employees, whereas the payment of inadequate wages tends to negatively affect the quality of services to the awarding body by fostering high turnover and instability in the workplace. c. Paying workers a wage that enables them not to live in poverty is beneficial to the health and welfare of all citizens of the community in which the project is located. It increases the ability of such workers to attain sustenance, decreases the amount of poverty, and reduces the amount of taxpayer funded social services in the community in which the project is located. d. It increases competition by promoting a more level playing field among contractors. ______________________________________________________________________________________________ SFUSD - 5 - Chapter 4
Awarding Body LCP State of California Requirements as of January 21, 2009 Procedures Manual _________________________________________________________________________________________________ 2. The general contractor agrees that the Documentation Provision is critical to the awarding body’s ability to monitor contractor’s compliance with the Wage Provision and to ultimately achieve the Goals. The contractor further agrees its breach of the Documentation Provision results in the need for additional enforcement action to achieve compliance with the prevailing wage provisions. In light of the critical importance of the Documentation Provision, the awarding body and contractor agree that the contractor’s compliance with this Provision, as well as the Wage Provision, is an express condition of the awarding body’s obligation to make each payment due the contractor pursuant to the Public Works contract. The awarding body shall not be obligated to make payment due the contractor until contractor has performed all of its obligations under these provisions. Any payment by the awarding body, despite the contractor’s failure to fully perform its obligations under these provisions, shall not be deemed to be a waiver of any other term or condition contained in the Public Works contract or a waiver of the right to withhold payment for any subsequent breach of the Wage Provision or the Documentation Provision. B. Penalties for Breach of Prevailing Wage Requirements: The contractor agrees that its breach of the Prevailing Wage requirements would cause the awarding body damage by undermining the Goals, and the awarding body’s damage would not be remedied by contractor’s payment of restitution to the workers who were paid a substandard wage. The contractor further agrees that such damage could increase the greater number of employees not paid the applicable prevailing wage and the longer the amount of time over which such wages were not paid. The awarding body and contractor mutually agree that making a precise determination of the amount of awarding body’s damages as a result of the contractor’s breach of the Prevailing Wage requirements would be impracticable and/or extremely difficult. Therefore, the parties agree that, in the event of such a breach, the contractor shall pay to the awarding body appropriate penalties, per Section 1775, 1776 and 1813 of the Labor Code. As such, the contractor shall forfeit as a penalty to the awarding body, up to $50 for each day for each worker paid less than the stipulated prevailing rates for any public work done under contract by the contractor or by any subcontractor in violation of the provisions of the Labor Code, particularly Sections 1770 through 1780, inclusive. Liquidated Damages: Labor Code Section 1742.1 requires the following: (a) After 60 days following the service of a civil wage and penalty assessment under Section 1741 or a notice of withholding under subdivision (a) of Section 1771.6, the affected contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of ______________________________________________________________________________________________ SFUSD - 6 - Chapter 4
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Labor Compliance Program Manual - San Francisco Public Schools

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