Sec. 106.1. Penalty and Forfeiture.
Sec. 106.2. Withholding of Funds.
Sec. 106.3. Where the City Does Not Have the Ability to Withhold Funds.
Sec. 106.4. Termination.
Sec. 106.5. Recourse Procedure.
Sec. 106.6. Distribution of Forfeiture and Damages.
Sec. 106.7. Remedies for Non-Compliance with Determination of Violation.
Any Contractor or Subcontractor who fails or neglects to comply with the requirements of Article 103, Article 104, and/or Article 105 shall forfeit to the City back wages due plus penalties. Penalties shall be forfeited in amounts consistent with analogous provisions of the California Labor Code as amended from time to time, including Sections 1775, 1777.7, and 1813, but not less than $50 for each calendar day, or portion thereof, for each worker not paid or otherwise not employed in compliance with the requirements of Article 103, Article 104, and/or Article 105. A Contractor shall be jointly and severally liable for the forfeitures of its Subcontractor(s). In addition, any Contractor or Subcontractor who fails or neglects to comply with the requirements of Article 103, Article 104, and/or Article 105 shall be subject to the penalties set forth in Article V of Chapter 6 of the Administrative Code, including debarment.
(Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)
For any Covered Project or Covered Contract under which the City has the ability to withhold funds, it shall be the duty of the officer, board, or commission under whose jurisdiction said Covered Project or Covered Contract is being carried on, constructed, or performed, when certifying to the Controller any payment which may become due under said Contract, to deduct from said payment or payments the total amount of any forfeiture provided for in Section 106.1. In doing so, the Department Head must also notify in writing the Labor Standards Enforcement Officer of the Department Head’s action. The Labor Standards Enforcement Officer may also, upon written notice to the Department Head responsible for the project, certify to the Controller any forfeiture(s) to deduct from any payment as provided for in this Section 106.2. Certification of forfeitures under this Section 106.2 shall be made only upon an investigation and audit by the responsible Department Head or the Labor Standards Enforcement Officer and upon service of written notice to the Contractor that includes identification of the grounds for the forfeiture or forfeitures (“Certification of Forfeiture”). The audit supporting the forfeiture shall be appended to the Certification of Forfeiture, but failure to append such documentation shall not invalidate the Certification of Forfeiture. Service of the Certification of Forfeiture shall be made by United States mail and the date of service shall be the date of mailing. The Controller, in issuing any warrant for any such payment, shall deduct from the amount which would otherwise be due on said payment or payments the amount of said forfeiture or forfeitures as so certified. This Section 106.2 does not provide for the withholding of funds disbursed through a City loan for a Covered Real Estate Project.
(Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)
A Covered Project or Covered Contract subject to the procedures and/or requirements of Section 106.2 shall not be subject to the procedures and requirements of Section 106.3. For any Covered Project or Covered Contract for which the City does not have the ability to withhold funds, the Labor Standards Enforcement Officer shall determine whether a Contractor and/or a Subcontractor has failed to comply with the Prevailing Wage Provisions. If after conducting an investigation, the Labor Standards Enforcement Officer determines that a violation has occurred, the Labor Standards Enforcement Officer shall issue to and serve a Determination of Violation on the Contractor and/or any Subcontractor, which sets forth the basis of the determination and orders payment of back wages due plus penalties in amounts consistent with Section 106.1. A Contractor shall be jointly and severally liable for the violations and liabilities set forth in a Determination of Violation issued to its Subcontractor(s). Service of the Determination of Violation shall be made by United States mail and the date of service shall be the date of mailing.
(Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)
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