San Jose ballot measure would force real estate developers to hire local

Posted by National Alliance for Fair Contracting on

By MARISA KENDALL
PUBLISHED: February 6, 2018 at 6:00 am | UPDATED: February 6, 2018 at 6:07 am

SAN JOSE – As Silicon Valley’s housing market booms, benefiting homeowners, landlords and developers, some activists say one group isn’t reaping its fair share of the profits: the local construction workers building these expensive homes.

A new ballot measure for San Jose seeks to change that. If approved by voters in November, the “Build Better San Jose” initiative would require developers of large, private projects to hire more local workers, and pay them better.

“Workers are not paid enough to be able to afford to live in the area,” said Louise Auerhahn, director of economic and workforce policy for public policy group Working Partnerships USA, which helped draft the measure.

Responsible Development San Jose, a coalition that supports local construction workers, is set to send the initiative to city officials Tuesday, the first step to putting it before voters in November. Once it is approved by the city, it will need 21,200 signatures to make it to the ballot.

If passed by voters, the measure would require developers in San Jose to pay workers the “prevailing wage” – a payment standard set by the California Department of Industrial Relations that varies depending on a worker’s location and specific type of work.

As of last year, the prevailing wage for construction workers classified as “laborers” in Northern California ranged from about $20 to $33 per hour. Developers also would have to put forth a “best faith effort” to hire locally for at least 30 percent of a project’s hours, hiring workers who live in San Jose or within 50 miles of the city’s limits. And developers would be required to help train new local workers by using one hour of apprentice labor for every five hours worked by an experienced worker.

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Understanding Wage Rates Under California’s Prevailing Wage Law

Posted by National Alliance for Fair Contracting on

8-16-17
Richard E. Donahoo

California’s Prevailing Wage Law requires contractors to pay specific wage rates on public works projects. The rates are published by the State’s Department of Industrial Relations (“DIR”). The published rates include many different prevailing wage rates, which are based on the geographic location and the type of work that is performed. The rates are organized and published by the DIR in General Prevailing Wage Determinations, which set forth the rates for worker classifications (e.g., Laborer, Carpenter, Plumber, Operator). The specific rates applicable for each craft, classification, or type of work, and for each geographic locality throughout the state, can be located on the DIR website at http://www.dir.ca.gov. Understanding how to read a General Determination is important to understanding the required rate.

Prevailing Wage Determinations

California Labor Code (section 1774) states that workers must be paid not less than the “specified prevailing rates of wages” to all workmen employed in the execution of the contract. These specific rates are found in the General Determinations, which correspond to the type of work actually performed by individual workers. As explained in the State’s Public Works Manual,

“A worker’s title or status with the employer is not determinative of an individual’s coverage by the prevailing wage laws. What is determinative is whether the duties performed by the individual on a public works project constitute covered work. An individual who performs skilled or unskilled labor on a public works project is entitled to be paid the applicable prevailing wage rate for the time the work is performed, regardless of whether the individual holds a particular status such as partner, owner, owner-operator, independent contractor or sole proprietor, or holds a particular title with the employer such as president, vice-president, superintendent or foreman. For example, a “working” foreman or a “working” superintendent – one who performs labor on the project in connection with supervisorial responsibilities – is entitled to compensation at not less than the prevailing rate for the type of work performed.”

The Basic Hourly Rate vs Total Rate

General Determinations include both a Basic Hourly Rate and the Total Hourly Rate for each location and classification. Employers are required by California law to pay employees the Basic Hourly Rate as the minimum hourly wage for all hours worked. The Total Hourly Rate includes the Basic Hourly Rate and additional compensation for “employer payments” which are typically fringe benefits such as health insurance, vacation, pension and other “fringe benefits.” Employers can choose to pay fringe benefits directly to employees as part of their wages or can obtain an offset for the employer’s “actual cost” of the benefit provided to the employee that was paid into a bona fide health, pension, vacation, or fringe benefit plan. Either way, the total compensation paid by the employer to the employee must match the Total Hourly Wage set by the Director in the General Determination.

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Labor Enforcement Task Force (LETF)

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Learn more about LETF in California and the Underground Economy

 

The Labor Enforcement Task Force, under the direction of the Department of Industrial Relations, is a coalition of California State government enforcement agencies that work together and in partnership with local agencies to combat the underground economy. In this joint effort, information and resources are shared to ensure employees are paid properly and have safe work conditions and honest, law-abiding businesses have the opportunity for healthy competition.

California Department of Industrial Relations and Labor Commissioner Champion “Wage Theft Is A Crime” Campaign

Posted by National Alliance for Fair Contracting on

Wednesday, February 18, 2015

 

Last year the California Department of Industrial Relations (DIR) and the Department of Labor Standards Enforcement (DLSE) initiated a campaign, entitled “Wage Theft is a Crime,” to educate California workers about the complexities of California’s wage laws. DIR Director Christine Baker stated that the “department’s mission is to protect California’s workers with comprehensive labor laws and enforcement focused on businesses that intentionally skirt the law.” The department’s recent effort is the “Wage Theft is a Crime” campaign which encourages workers, especially those in low-wage industries, to report possible labor code violations within the workplace. In support of this program, educational materials have been distributed through local events, mailings, and digital and print media in English, Spanish, Chinese, Vietnamese, Hmong and Tagalog.

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Employees’ Actions Lead To Contractor’s Conviction And Level The Playing Field

Posted by National Alliance for Fair Contracting on

February 11, 2015

SACRAMENTO, Calif., 

 

Feb. 11, 2015/PRNewswire/ — Licensed electrical contractor  Calvin Harris, of Harris Electric, was convicted of eight felony counts on February 9 for not paying employees prevailing wages and falsifying documents to conceal his actions. The investigation was conducted jointly by the Alameda County District Attorney’s Office, the California Department of Industrial Relations and the California Department of Insurance. According to Alameda County District Attorney Nancy E. O’Malley’s press release, two of Harris Electric’s employees reported being victims of the wage theft on three public works’ projects – Alameda County General Services Agency (Santa Rita Jail Solar Project), the Port of Oakland and the City of Fremont – which led to the investigation of Harris.  According to the press release, “A comparison of Harris’ payroll records for the Alameda County projects revealed employee wage theft violations of $359,347.89,” which impacted 11 employees.