Public works: payroll records.

Plain English Breakdown

The official source material does not provide specific details on the penalties or the exact nature of the expanded criminal penalties.

Public Works Payroll Records

AB-538 requires public works contractors to keep detailed payroll records and makes these records available upon request by the public, with penalties for non-compliance.

What This Bill Does

• Requires awarding bodies to obtain certified payroll records from contractors if they do not have them when requested by the public.
• Authorizes the Division of Labor Standards Enforcement to enforce penalties on contractors who fail to provide these records within 10 days.
• Expands criminal penalties for neglecting to keep accurate payroll records.

Who It Names or Affects

• Contractors and subcontractors on public works projects
• Awarding bodies of public works projects
• The Division of Labor Standards Enforcement

Terms To Know

Prevailing wages

The minimum wage rates set by law for workers in specific job classifications on public works projects.

Awarding body

An entity responsible for awarding contracts for public works projects, such as a city or county government agency.

Limits and Unknowns

• The bill does not specify an effective date.
• It is unclear how the new enforcement mechanisms will be implemented in practice.

Official Summary Text

AB 538, Berman.
Public works: payroll records.
Existing law requires the Labor Commissioner to investigate allegations that a contractor or subcontractor violated the law regulating public works projects, including the payment of prevailing wages. Existing law requires each contractor and subcontractor on a public works project to keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the public work. Existing law requires certified copies of records to be available upon request by the public and sets forth a process for the public to request the records either through the awarding body or the Division of Labor Standards Enforcement. Existing law makes any contractor,
subcontractor, agent, or representative who neglects to comply with the requirements to keep accurate payroll records guilty of a misdemeanor.
This bill would require the awarding body, if a request is made by the public through the awarding body and the body is not in possession of the certified records, to obtain those records from the relevant contractor and make them available to the requesting entity. The bill would authorize the Division of Labor Standards Enforcement to enforce certain penalties if a contractor fails to comply with the awarding body’s request within 10 days of receipt of the notice. To the extent that this bill would impose additional duties on any contractor, subcontractor, agent, or representative, the bill would expand the scope of a crime and impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for
certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF