Avoiding Pitfalls with Public Works Jobs and Apprentices
James Wakefield
Many non-union contractors bid on Public Works jobs. Most know that they must pay prevailing wage for their trade in the geographic area of the job. The State of California Department of Industrial Relations provides very useful information to help an employer determine the correct wage and benefits to pay for most all construction trades.
Contractors are encouraged to make use of the information provided by the State and obey its requirements. The State is taking a very aggressive approach towards contractors who fail to pay prevailing wages.
Even if a contractor does pay prevailing wages and pays all required benefits to its employees on a Public Works job, the contractor can still get in trouble if it does not maintain the statutory required minimum number of apprentices for all trades the contractor is responsible for. Perhaps the contractor is an electrical contractor. Section 1777.5 of the California Labor Code mandates that: “The ratio of work performed by apprentices to journeymen employed in a particular craft…may be no higher than the ratio stipulated [in the collective bargaining agreement] but…in no case shall be less than one hour of apprentice work for every five hours of journeyman work.”
Essentially that means that discounting overtime, if the contractor has five journeymen working on a job, the contractor must also have one apprentice. What happens if the job requires only two journeymen? The code provides for some exemptions. However, few would apply today. A couple codes that may apply are (1) if the contractor can establish that statewide it meets the requirements of Section 1777.5, or (2) the work is of such a type that an apprentice would jeopardize the safety of the apprentice.
The Department of Labor has announced that it will strictly enforce Section 1777.5. A knowing violation will cost the contractor $100 per day. If it is found to have violated the rule twice, the penalty can be up to $300 per day. If the contractor subs out some work to another sub-contractor, it is the contractor’s responsibility to make sure that each of the entities it subcontracts with also provides the requisite number of apprentices or it may be liable for the penalties.
There is no question that Public Works jobs can be very lucrative. When a contractor opts to work in the public sector, it needs be very aware of the potential pitfalls. They can be costly!
