Every contract for any construction project, as defined in Section 1782 of the California Labor Code, to be performed within the state at the expense of the city, or paid out of city moneys, whether such work be done directly under contract award, or indirectly by or under subcontract or by any other arrangement whatsoever, must provide, in addition to other provisions required by law, that any person performing labor in the state in performance of such contracts, subcontracts, or any other arrangement, shall be paid not less than the general prevailing rate of wages; provided, however, that the requirement to pay the general prevailing rate of wages shall not apply to: (a) contracts for any construction project originally awarded or executed in an amount of $25,000 or less; (b) contracts for any alteration, demolition, repair, or maintenance work originally awarded or executed in an amount of $15,000 or less; (c) materials for which no manufacturing plant exists in the city; or (d) standard materials or commodities carried in stock by dealers or manufacturers generally.
The general prevailing rate of wages shall be the general prevailing rate of wages for the area in which the city is located as determined by the director of the department of industrial relations pursuant to California Labor Code section 1773. Every contract for which the payment of the general prevailing rate of wages is required shall provide that the determination of the director of the department of industrial relations in force at the time the notice to bidders is published with respect to the general prevailing rate of wages in private employment in the city for similar work shall be binding upon the parties any contract awarded as a result of such notice. If any worker is paid less than the general prevailing rate of wages for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, the city may withhold contract payments equal to the amount of underpayment. In addition, the contractor shall forfeit as a penalty to the city not more than $50 for each calendar day, or portion thereof, for each worker paid less than the general prevailing rate of wages, as determined by the director of the department of industrial relations, for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, and every contract shall have inserted therein a clause to that effect.
In the performance of the contract, eight hours shall be the maximum hours of labor on any calendar day, and 40 hours shall be the maximum hours of labor during any one calendar week. Work performed by employees of contractors in excess of eight hours per day, and 40 hours during any one week, is permitted upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. The contractor shall as a penalty forfeit $25 for each worker employed in the execution of the contract by the contractor or by any subcontractor for each calendar day during which the worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this section.
To the extent that there is insufficient money due a contractor to cover all penalties forfeited and amounts due in accordance with this section, and in all cases where the contract does not provide for a money payment by the city to the contractor, the city shall provide notice of the violation to the director of industrial relations, division of labor standards enforcement, for commencement an enforcement action pursuant to California Labor Code, section 1775.
Out of any money withheld or recovered, pursuant to this section, there shall first be paid the amount due each worker, and if insufficient funds are withheld, recovered, or both to pay each worker in full, the money shall be prorated among all workers. At the expiration of 90 days after the completion of the contract and the formal acceptance of the project, all penalties or forfeitures withheld or recovered pursuant to this section shall be deposited in the city's general fund.
Every contractor or subcontractor, or any firm, corporation, partnership or association in which the contractor or subcontractor has a substantial interest who is found by the city manager to be in willful violation of the provisions of this chapter with intent to defraud shall be ineligible to bid on or receive a contract paid out of moneys deposited in the city's treasury for a period of not more than five years from the date such determination is made by the city manager.
The specifications for any contract that requires the payment of the general prevailing rate of wages under this section shall include a statement that a copy of the current director of industrial relations prevailing wage determination will be made available to any interested party on request.
Every contract falling under the terms of this section shall contain a provision that requires the contractor to insert into every subcontract or subagreement entered into, provisions identical with the provisions set forth in the contract pursuant to this chapter regarding compliance with the requirements for wage rates, hours of labor, and requirements for the employment of apprentices. The stipulations shall fix the responsibility of compliance with sections 3.60.040 and 3.60.050 of this chapter with the prime contractor. (Ord. 2024-0010 § 6)