Santa Clara County Contract Enforcement
The Board of Supervisors Policy Manual promulgates the County’s Wage Theft Prevention Policy, the Living Wage Policy, Pay Equity Policy and Equal Opportunity and Non-Discrimination Policy. Specifically, Board Policy 5.5.5.4 requires all entities contracting and seeking to contract with the County for expenditure of County funds to “comply with all applicable federal, state, and local wage and hour laws” and “pay equity laws.” The Policy also specifically prohibits these entities from discriminating against subcontractors, employees, and job applicants, or in the provision of services under the contract, on account of age, race, gender, sexual orientation, or a variety of other bases. The County has authorized the Office of Labor Standards Enforcement to investigate potential violations of these requirements, including by examining relevant records and facilities.
Board Policy 5.5.5.5 requires certain contractors and their subcontractors providing direct services within the County to pay a living wage to workers paid through funds provided by County. The County’s living wage is adjusted annually and current rates can be found here. Board Policy 5.5.5.5 also requires covered contractors and subcontractors to provide paid leave for illness and jury duty and imposes several other requirements.
County contracts incorporate these mandatory policies in all covered contracts and provide for their enforcement. Specifically, the County may disqualify an entity that has been found by final judgment to have violated any of the nondiscrimination, pay equity, and wage theft laws identified in Board Policy 5.5.5.4. Likewise, the County is authorized to suspend, terminate, or decline to renew an agreement, withhold payment until the contractor remedies the violation, or otherwise offer the contractor an opportunity to cure the violation. Similarly, to enforce the Board’s living wage policy, the County may take any responsive action, including by suspending, modifying, or terminating a contract or requiring the contractor to comply with a remediation plan or compliance agreement. The County could also waive the violation.