(a) If the Labor Commissioner or his or her designee determines after an investigation that a contractor or subcontractor failed to use a skilled and trained workforce in accordance with this chapter, the contractor or subcontractor responsible for the violation shall forfeit, as a civil penalty to the state, not more than five thousand dollars ($5,000) per month of work performed in violation of this chapter. A contractor or subcontractor that commits a second or subsequent violation within a three-year period shall forfeit as a civil penalty to the state the sum of not more than ten thousand dollars ($10,000) per month of work performed in violation of this chapter. (b) For the purposes of this section: (1) âAny interestâ shall have the same meaning as in subdivision (h) of Section 1777.1 of the Labor Code. (2) âContractor or subcontractorâ shall have the same meaning as in subdivision (g) of Section 1777.1 of the Labor Code. (3) âEntityâ shall have the same meaning as in subdivision (i) of Section 1777.1 of the Labor Code. (c) The amount of any monetary penalty may be reduced or waived by the Labor Commissioner if the amount of the penalty would be disproportionate to the severity of the violation. The Labor Commissioner shall consider, in setting the amount of a monetary penalty, all of the following circumstances: (1) Whether the violation was intentional. (2) Whether the contractor or subcontractor has committed other violations of this chapter or of the Labor Code. (3) Whether, upon notice of the violation, the contractor or subcontractor took steps to voluntarily remedy the violation. (4) The extent or severity of the violation. (5) Whether a contractor or subcontractor submitted and followed a plan to achieve substantial compliance with this chapter. (d) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741 of the Labor Code, upon determination of penalties assessed under subdivision (a). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742 of the Labor Code. The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, shall apply. (e) The determination of the Labor Commissioner as to the amount of the penalty imposed under subdivision (a) shall be reviewable by the Director of Industrial Relations only for an abuse of discretion. (f) If a subcontractor is found to have violated this chapter, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of the subcontractorâs failure to comply with this chapter or unless the prime contractor fails to comply with any of the following requirements: (1) For contracts entered into on or after January 1, 2019, the contract executed between the contractor and the subcontractor for the performance of work on the project shall include a copy of this chapter. (2) The contractor shall periodically monitor the subcontractorâs use of a skilled and trained workforce. (3) Upon becoming aware of a failure of the subcontractor to use a skilled and trained workforce, the contractor shall take corrective action, including, but not limited to, retaining 150 percent of the amount due to the subcontractor for work performed on the project until the failure is corrected. (4) Prior to making the final payment to the subcontractor for work performed on the project, the contractor shall obtain a declaration signed under penalty of perjury from the subcontractor that the subcontractor has met the requirements of this chapter. (g) The Labor Commissioner shall notify the prime co
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