A civil wage and penalty assessment is issued by the Labor Commissioner when an investigation determines that a contractor or subcontractor has violated a law or laws pertaining to a public works contract. Public works laws are applicable to any pre-construction, construction, post-construction project, repair or installation done under contract and paid for, in part or whole, from public allocated funds. Public works laws set the requirements for payment of prevailing wages, regulation of work hours and applicable apprenticeship programs.
Prevailing wages refer to the rate of hourly wages and additional benefits that are required as payment for workers on public works projects. These rates and benefits are specified by the State Department of Industrial Relations (DIR) through the Division of Labor Statistics and Research for the area where the project is located. Contractors and subcontractors involved in any or all aspects of a public works project are responsible for understanding and complying with all parts of the Prevailing Wage Laws.
Investigations into prevailing wage violations are typically initiated by a Complaint to the Labor Commissioner. Civil penalties are often a result of these investigations. Civil penalties include back wages and are often assessed at hundreds of thousands or millions of dollars and may be withheld from contract payments. Contractors can also be penalized by contract termination, liability for government costs and debarment from new contracts for three years.
Prevailing wage laws demand compliance with a complex set of requirements, detailed record keeping and professional accountability. The legal professionals of the LAW OFFICE OF MITCHELL B. HANNAH have a proven track record of success in negotiations and courtroom proceedings with practical knowledge of the construction industry. MITCH HANNAH put himself through law school while working construction and gaining firsthand experience in development, project coordination and working construction in various trades. His clients have included business owners who are both private and public works contractors. If you are facing a Civil Wage and Penalty Assessment, contact the experienced professionals at the LAW OFFICE OF MITCHELL B. HANNAH for a free initial consultation.