Governor Jerry Brown has signed into law a bill that extends the deadline to serve a prevailing wage penalty assessment on employers.
AB 1336 amends the California Labor Code, extending the 180-day prevailing wage assessment deadline to not later than 18 months from completion of the project or acceptance of the public work, whichever occurs last.
California prevailing wage obligations are imposed on any employer that contracts with public entities to provide services or construction work in excess of $1,000. Often, California prevailing wage requirements are higher than federal law requirements. Additionally, California prevailing wage law requires employers to maintain (and make available for inspection) certified, accurate payroll records for public work projects that contain specific employee information and itemized pay information.
Penalties for failing to pay prevailing wages or overtime on public work projects in California start at $40 per day per employee. If the employer has been subject to a penalty within three years, penalties increase to $80 per day per employee. If an employer willfully fails to pay the prevailing wage, it is a misdemeanor and penalties soar to $120 per day per employee.