In response to complaints by both labor and the private sector, the Director of the Department of Industrial Relations has proposed sweeping new regulations governing certified payrolls and state and local labor compliance programs. Prevailing wages as determined under the Labor Code must be paid by private contractors working on public works projects. The scope and pitfalls of these requirements were reported earlier in Manatt Real Estate and Land Use newsletters. All affected parties have complained about the cost and inefficiency of the enforcement of this law, particularly the lack of consistency in the application of the law and the fines and penalties imposed on violators.
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