South City is moving ahead on an ordinance that would prevent developers from receiving their final building permits on large projects/buildings until they satisfy outstanding wage theft obligations.
The ordinance would apply only to the construction industry and likely for buildings or remodels that are 5,000 square feet or more.
Wage theft violations are often adjudicated on the state level, with the California Labor Commission verifying complaints and issuing a court order, or judgment, with the amount the contractor, subcontractor or developer owes.
Once a developer completes a construction project, the city conducts an inspection and issues a certificate of occupancy. With the proposed new rule, the final certificate and necessary permits would be withheld if it’s determined there is an outstanding wage theft judgment against them.
“As a local operator we only have so many triggers we can pull to enforce wage theft and ensure it doesn’t happen,” said Tony Rozzi, deputy director of Economic and Community Development. “I would love to have an ordinance that also affects low-wage workers in retail or the restaurant industry or the hotels, but we just don't have a whole lot of leverage on other industries in the way that we do with construction.”
Other cities, such as San Jose, Fresno and Milpitas have implemented a similar version of South City’s proposal. And the San Mateo County District Attorney’s Office recently received about $740,000 grant funding to create its own wage theft enforcement arm this past May.
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Several public commenters, many of them members of local unions, voiced support for the ordinance.
“These workers toil hard, yet they’re often paid substandard wages which they must accept to support themselves and their families. It's upsetting to know that they are getting exploited for their talents and skills just to make the contractors wealthier,” said one member of the Carpenters Local 217 union.
All councilmembers also supported the proposed ordinance, which will be further discussed at a later council meeting.
“This ordinance is not just a regulatory ordinance. I think it's a powerful statement from this council, once again, to a commitment of justice, to commitment of fairness, to commitment of dignity of labor,” Vice Mayor Eddie Flores said. “When some of these contractors cut corners by failing to pay their workers, they’re gaining an unfair advantage over those who adhere to labor laws and that’s not OK.”
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