Morgan Hill Municipal Code Ch. 15.38 Wage Theft Prevention

Whenever used in this chapter, the following terms shall have the meanings set forth below:

"Completion" means that construction is complete and the project is eligible for a certificate of occupancy.

"Contractor" means the prime contractor on a construction project.

"Owner" means the person or persons, firm, corporation, partnership or other legal entity exercising ownership of the project.

"Project" means new construction of greater than fifteen thousand square feet that is not subject to prevailing wage requirements and/or does not have a valid project labor or community workforce agreement.

"Project construction employees" means employees of the contractor or subcontractor.

"Representative" means a person authorized to legally bind the owner and/or contractor (for example; a corporate officer, general partner, or managing member of a limited liability company.)

(Ord. No. 2265 N.S., § 1, 12-6-2017)

As a condition of approval for any building permit required for a project, an applicant shall sign an acknowledgement that owner, contractor and any subcontractors are required to comply with all applicable provisions of the California Labor Code, including Labor Code section 2810.5.

(Ord. No. 2265 N.S., § 1, 12-6-2017)

Prior to issuance of a certificate of occupancy, or other permit to occupy new construction, for each contractor or subcontractor whose portion of the work exceeds one hundred thousand dollars or one percent of the value of the construction cost of the project, whichever is greater, owner shall provide to the city a pay transparency certification ("certification"), signed by a representative of the owner, the contractor and any subcontractor under penalty of perjury under the laws of the state of California. The certification required under this section shall be in a form approved by the city and contain the following:

A. A statement that project construction employees of the contractor and any subcontractors received written notice of the employers pay practices as required by California Labor Code section 2810.5 and wage statements under Labor Code 226(a); or

B. Project construction employees of the contractor and/or any subcontractors are covered by a valid collective bargaining agreement that expressly provides for the wages, hours of work, and working conditions of the employee, and if the agreement provides premium wage rates for all overtime hours worked and a regular hourly rate of pay for those employees of not less than 30 percent more than the state minimum wage. (See Labor Code section 2810.5(c).)

(Ord. No. 2265 N.S., § 1, 12-6-2017)

Prior to issuing a certificate of occupancy, or other permit allowing occupancy of the project, the city shall make a finding of compliance with this chapter. Such a finding shall be issued if:

A. The city determines after a review of the certificate that owner, Contractor and any subcontractors have complied with the provisions of this chapter; and

B. The city has not received any information that the Labor Commissioner of the state of California has found violations of Labor Code sections 226 or 2810.5 regarding construction work performed on the Project.

(Ord. No. 2265 N.S., § 1, 12-6-2017)

If the city determines that the owner, contractor or any subcontractor has failed to comply with the provisions of this chapter, or if the Labor Commissioner has found violations of Labor Code sections 226 or 2810.5, the city may issue a certificate of occupancy, only if the owner or contractor can provide evidence of the existence of a labor payment and/or lien release bond, in a form and amount sufficient to ensure that any wage claims and penalties can be fully paid.

(Ord. No. 2265 N.S., § 1, 12-6-2017)

Nothing in this chapter shall be interpreted to authorize a right of action against the city.

(Ord. No. 2265 N.S., § 1, 12-6-2017)