Bill to Increase Penalties for Failing to Pay Prevailing Wage Goes to Governor

Kevin de Leon's Assembly Bill 2002 is on its way to the governor. This bill increases the penalties for not paying prevailing wage from $50 to $100 per day per worker. This bill will put some teeth into the enforcement of prevailing wage laws. I have heard from some administrators of Labor Compliance Programs that there is a calculated risk that some contractors make with regards to underpaying their workers.

If unscrupulous contractors can cheat their workers on ten jobs and only get caught on one, they still can pocket substantial sums of money. Hopefully this increase will serve as a real deterrent for them.

According the bills analysis

The author and sponsor of this bill believes it is necessary to ensure greater compliance with prevailing wage law. Los Angeles Unified School District data reveals that the district has initiated almost 1900 cases in the last five
years involving underpayment of wages. Total penalties and back wages collected over the period were $7.2 million.

The bills supporters include organized labor and the LA Unified School District. Not surprisingly, the Associated Builders and Contractors (ABC) is opposing this.