Category Archives: Employment and Prevailing Wage

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Second-Lowest Bidder for Public Contracts May Sue Lowest Bidder Who Paid Less Than Prevailing Wages

Public agencies have little, if any, discretion when awarding public contracts because they are required to award the contract to the lowest bidder, subject to certain minimum qualifications.  These limitations are designed to protect the public and its financial interests, not the bidders.  Losing bidders typically can contest the award only by challenging the bid … Continue Reading

New California Statutes Potentially Increase Contractors’ and Subcontractors’ Liability Exposure Under the Prevailing Wage Law

California has enacted several statues, effective January 1, 2014, which will likely increase contractors’ and subcontractors’ exposure to claims for prevailing wage violations on public works projects.  Under the Prevailing Wage Law, Cal. Labor Code § 1720 et seq., contractors and subcontractors working on public works are required to pay the wages prevailing in the … Continue Reading

General Contractors’ Liability to Subcontractors’ Employees On Public Infrastructure Projects

By Edward B. Lozowicki As residential and commercial construction markets evaporate and contractors fight for survival, new opportunities are appearing in the form of public infrastructure projects. The federal government is pouring money into public infrastructure and construction projects, to the tune of about $143 billion in total. Of that total, about $14 billion is … Continue Reading

California Court of Appeal Declares Wage Order 16 Valid

A California Court of Appeal has declared that Industrial Welfare Commission (IWC) Wage Order 16-2001 (“Wage Order 16”), regulating wages, hours and working conditions for employees in the on-site construction and mining industries, is valid.   If they have not already done so, employers in the construction industry should promptly ensure their practices comply with all … Continue Reading

Labor Through Contract Theory of Sanctions Liability

On May 8, 2006, Immigration and Customs Enforcement ("ICE") arrested 76 undocumented workers and 4 construction site managers at Fischer Homes, Inc. worksites in Kentucky. Fischer and its managers were charged criminally with harboring and transporting undocumented workers for financial gain. Tax investigators were also involved. On May 2, 2006, ICE carried a similar operation … Continue Reading

California Wage Order Provision Exempting Employees Covered By Collective Bargaining Agreements From Meal Period Rules Found Invalid

In Bearden v. U.S. Borax, Inc., a California Court of Appeal was asked to decide the validity of a provision in the Industrial Welfare Commission’s Wage Orders that exempts employees covered by a collective bargaining agreement from California’s meal period rules. The court held the provision conflicted with the meal period statute and was therefore invalid.… Continue Reading

Criminal Penalties For Violating OSHA Standards

Safety is important to all of us, but did you know you could be subject to criminal penalties, as well as civil penalties, for violating standards set by the California Occupational Safety and Health Administration (OSHA)? These penalties include prison sentences of up to four years and up to $3.5 million in fines. The following … Continue Reading
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