San Francisco County Municipal Code Art. 103 Prevailing Wages

All Contractors and Subcontractors performing work on a Covered Project or a Covered Contract as defined in Article 101 shall pay their workers on such project or contract not less than the Prevailing Rate of Wages as set under Section 103.2, or the rate required by the Minimum Compensation Ordinance, Labor and Employment Code Article 111, whichever is higher. (Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)

It shall be the duty of the Board of Supervisors (“the Board”), from time to time and at least once during each calendar year, to fix and determine the Prevailing Rate of Wages as follows: (a) On or before the first Monday in November of each year, the Civil Service Commission (“the Commission”) shall furnish to the Board data as to the highest general Prevailing Rate of Wages of the various crafts and kinds of labor as paid in private employment in the City, plus “per diem wages” and wages for overtime and holiday work. “Per diem wages” means “per diem wages” as defined in California Labor Code Sections 1773.1 and 1773.9, as amended from time to time. Based on the data, the Commission shall also recommend to the Board rates for the Prevailing Rate of Wages. (b) The Board of Supervisors shall, upon receipt of such data, fix and determine the Prevailing Rate of Wages no later than December 31 of that year. If the Board does not fix and determine the Prevailing Rate of Wages by December 31, the Commission’s recommended rates shall become the effective Prevailing Rate of Wages for the coming calendar year. (c) The Prevailing Rate of Wages as so fixed and determined by the Board (or as described above set by the Commission in the absence of Board action by December 31) shall remain in force and be deemed to be the highest general Prevailing Rate of Wages paid in private employment for similar work, until the same is changed for that calendar year by the Board. (d) Unless the Board expressly states otherwise, the Prevailing Rate of Wages as set by the Board (or as described above set by the Commission in the absence of Board action by December 31) shall track and match future wage determinations issued by the California Department of Industrial Relations. (e) In determining the highest general Prevailing Rate of Wages, as provided for in this Section 103.2, the Board shall not be limited to the consideration of data furnished by the Commission, but may consider such other evidence upon the subject as the Board shall deem proper and thereupon base its determination upon any or all of the data or evidence considered. (f) In the event that the highest general Prevailing Rate of Wages are not fixed and determined under this Section 103.2 for any calendar year, the rates established by the California Department of Industrial Relations for such year shall be deemed adopted; and if the Department of Industrial Relations does not so establish a rate for a craft or kind of labor, the most recent rate set under Section 103.2 for that craft or kind of labor shall remain in effect. (Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)

PROVISIONS. (a) Contractual Prevailing Wage Requirements. The City shall include in each contract, lease, or any other type of agreement that includes or contemplates a Covered Project or Covered Contract, the requirement that Contractors and Subcontractors performing work on the Covered Project or Covered Contract pay Prevailing Wages in accordance with the requirements of this Article 103. The failure of the City to comply with this subsection (a) shall not void or annul the requirements imposed by this Article 103 on Contractors and Subcontractors.

(b) Subcontractors Bound by Wage Provisions. Every contract, lease, or any other type of agreement that includes or contemplates a Covered Project or Covered Contract shall contain a provision requiring the Contractor and/or any Subcontractor to insert in every subcontract, sublease, or any other arrangement the requirement that the Subcontractor shall pay to all persons performing labor or work for a Covered Project, or rendering service for a Covered Contract, the highest general Prevailing Rate of Wages as fixed and determined in accordance with Section 103.2. This requirement shall apply to any subcontract, sublease, or other arrangement that the Contractor or Subcontractor may make for the performance of any work or labor for a Covered Project, or services for a Covered Contract. The failure of a Contractor or Subcontractor to comply with this subsection (b) shall not void or annul the requirement that any work or labor performed under any subcontract, sublease, or other arrangement made by the Contractor or Subcontractor for work or labor for a Covered Project or services for a Covered Contract must be paid at the highest general Prevailing Rate of Wages as fixed and determined in accordance with Section 103.2. (c) Additional Required Contract Provisions. Every contract, lease, or any other type of agreement for a Covered Project or Covered Contract shall contain provisions stating the following: (1) the Contractor will cooperate fully with the Labor Standards Enforcement Officer and other City employees and agents authorized to assist in the administration and enforcement of the Prevailing Wage requirements and other labor standards imposed on the Contractor by the Charter or the Municipal Code; (2) the Contractor agrees that the Labor Standards Enforcement Officer, and the Officer’s designees, in the performance of their duties, shall have the right to engage in random inspections of job sites and to have access to the employees of the Contractor, employee time sheets, inspection logs, Contractor daily logs, payroll records, employee paychecks, employee paystubs, and proof of payment documents; (3) the Contractor shall maintain a record in the format prescribed by OLSE of sign-in and sign-out showing which employees have been present on the job site; (4) the Contractor shall prominently post at each job site a sign informing employees that the project is subject to the City’s Prevailing Wage requirements and that these requirements are enforced by the Labor Standards Enforcement Officer; and (5) the Labor Standards Enforcement Officer may audit such records of the Contractor or Subcontractor as the Labor Standards Enforcement Officer reasonably deems necessary to determine compliance with the Prevailing Wage and other labor standards imposed by the Charter or the Municipal Code. Failure to comply with any of these requirements may result in penalties and forfeitures consistent with analogous provisions of the California Labor Code, including Section 1776(h), as amended from time to time. (d) Contract Documents to Include Wage Rate. The Department Head shall include in the contract specifications or other contract document, or make available in the offices of the department or at the job site, a detailed statement of the Prevailing Rate of Wages as fixed and determined in accordance with Section 103.2 as of the time the department issued the Advertisement For Bids or Solicitation on the contract. The Contractor shall agree to pay to all persons performing covered work or labor on or for the Covered Project or Covered Contract the highest general Prevailing Rate of Wages as determined in accordance with Section 103.2. If the contract documents do not include the Prevailing Rate of Wages, the specifications or contract documents shall include a statement that copies of the Prevailing Rate of Wages as fixed and determined in accordance with Section 103.2 are on file at the department’s principal office or at the job site and shall be made available to any interested party on request. (e) Records. (1) Records to be Kept by Contractors and Subcontractors. In every instance where the Municipal Code or a contractual arrangement – including, without limitation, any agreement, contract, franchise, lease, or permit – with the City requires a Contractor or Subcontractor to pay Prevailing Wages, the subject contract or subcontract shall contain a provision that the contractor or subcontractor shall keep, or cause to be kept, for a period of four years from the date of completion of the subject work, payrolls and basic records including time cards, trust fund reports, apprenticeship agreements, accounting ledgers, tax forms, proof of payment, and superintendent and foreperson daily logs for all trades workers performing work. For purposes of this subsection (e)(1), “completion of the subject work” means substantial completion for Covered Projects and the last day of covered work for Covered Contracts. Such records shall include the name, address, and social security number of each worker who worked on the project or under the contract, including apprentices, worker classification, a general description of the work each worker performed each day, the rate of pay (including rates of contributions for, or costs assumed, to provide fringe benefits), daily and weekly number of hours worked, deductions made, and actual wages paid. Every Subcontractor who shall undertake the performance of any part of a project or contractual arrangement subject to this Article 103 shall keep a like record of each person engaged in the execution of the subcontract. (2) Maintenance and Submission of Certified Payroll Records. (A) Each Contractor and Subcontractor subject to this Article 103 shall maintain weekly certified payroll records, and shall submit those certified payroll records to the City using the Office of Labor Stand

subject to this Article 103 shall keep a like record of each person engaged in the execution of the subcontract. (2) Maintenance and Submission of Certified Payroll Records. (A) Each Contractor and Subcontractor subject to this Article 103 shall maintain weekly certified payroll records, and shall submit those certified payroll records to the City using the Office of Labor Standards Enforcement’s certified payroll reporting system. The awarding department may provide by contract for additional payroll maintenance or payroll submission requirements. All certified payroll records shall be accompanied by a statement of compliance signed by the Contractor or Subcontractor indicating that the payroll records are correct and complete, that the wage rates contained therein are not less than those determined in accordance with Section 103.2, and that the classifications set forth for each employee conform with the work performed. (B) Exemption. Unless otherwise provided by contract, Covered Contracts that do not qualify as a Covered Project are exempt from the requirement that the Contractor submit certified payroll records to the City. (3) All such records as described in this subsection (e) shall at all times be open to inspection and examination of the duly authorized officers and agents of the City, including representatives of the Office of Labor Standards Enforcement. (4) Should the Department Head or the Labor Standards Enforcement Officer determine that a Contractor or Subcontractor is not in compliance with the requirements of this subsection (e), the Department Head or the Labor Standards Enforcement Officer shall issue written notification to the Contractor or Subcontractor mandating compliance within not fewer than 10 calendar days from the date of the notification. Should the Contractor or Subcontractor fail to comply as required in the notification, the Department Head who executed the contract or the Labor Standards Enforcement Officer may impose penalties consistent with analogous provisions of the California Labor Code, including Section 1776, as amended from time to time, for each calendar day of noncompliance, or portion thereof, for each worker. Upon the request of the responsible Department Head or the Labor Standards Enforcement Officer, the Controller shall withhold these penalties from progress payments then due or to

become due. (f) City as Third Party Beneficiary. The City shall in each contract, lease, or any other type of agreement that includes or contemplates work qualifying as a Covered Real Estate Project: (1) a provision naming the City, affected workers, and employee organizations formally representing affected workers, as third party beneficiaries for the limited purpose of having the right to enforce the Prevailing Wage requirements of Article 103 and apprenticeship requirements of Article 104, including the right to file charges and seek penalties against any Contractor or Subcontractor in accordance with Articles 103 through 106 and (2) a provision requiring the Real Property Contracting Party to reasonably cooperate with the City in any action or proceeding against a Contractor or Subcontractor that fails to pay the Prevailing Rate of Wages or employ Apprentices as required. A Real Property Contracting Party that requires the payment of Prevailing Wages and employment of Apprentices in the Covered Project, and that reasonably cooperates with the City in any enforcement action, shall not be in breach of the applicable sales contract or lease with the City due to a Contractor’s or Subcontractor’s failure to pay the Prevailing Rate of Wages or employ Apprentices. So long as the Real Property Contracting Party satisfies the requirements of the previous sentence, and has not directly performed trade work on the Covered Project, any enforcement action by the City, through the City’s Labor Standards Enforcement Officer or otherwise, shall be directly against the Contractor or Subcontractor that failed to pay Prevailing Wages or employ Apprentices as required. Nothing in this Article 103 shall limit the remedies available to a City department, as set forth in the applicable sales contract or lease, for a Real Property Contracting Party’s failure to require the payment of the Prevailing Rate of Wages or the employment of Apprentices in a Covered Project, or for a Real Property Contracting Party’s failure to reasonably cooperate with the City in any enforcement action as set forth above. (g) Where the Covered Project involves Housing Development on real property sold by the City, the requirements of this Article 103 shall terminate upon issuance of a final certificate of occupancy for the Covered Project, so long as future construction work and/or other future activities do not fall within the meaning of Covered Contract or Covered Project. (Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)