Assistant Vice Chancellor Clayton Halliday says UC Davis is glad to see the state taking action to ensure construction workers are compensated fairly for building the Tercero II student housing project.

“This is how the system is supposed to work,” said Halliday, the campus architect. He said UC Davis cooperated fully in the investigations, and in at least one of the cases went directly to the state Department of Industrial Relations with a report of possible wage violations.

The campus architect issued his comments in the wake of the state Labor Commissioner Angela Bradstreet’s announcement last week that two more Tercero builders had committed wage violations.

According to an Aug. 19 news release from the Department of Industrial Relations, Nevada-based Kings Drywall and JL Home Development had made improper payments to 149 workers — resulting in wage and penalty assessments exceeding $1.3 million.

In June, the state levied wage and penalty assessments of $1.5 million against framing contractor Russell/Thompson of Redding for making improper payments to 74 employees. The state issued similar assessments against 84 Lumber and Brown Construction Inc., the general contractor, from West Sacramento. Brown had given the framing contract the 84 Lumber, which in turn hired Russell/Thompson.

State officials said Brown could be responsible for the wage and penalty assessments if the subcontractors successfully appeal.

Halliday said he understands the frustration over wages, but he noted that the campus followed all state and UC rules in awarding the Tercero contract to Brown, which in turn brought in subcontractors.

The state asserted in its Aug. 19 news release that Kings Drywall and JL Home Improvement failed to report workers on the companies’ certified payroll reports, pay overtime and provide accurate deduction statements.

“My office is committed to providing a level playing field for all contractors who comply with the law,” Bradstreet said in the news release. “Contractors cannot simply cut corners and intentionally underpay their workers, depriving those employees of the money the earned.”

The Tercero II project, along La Rue Road south of the Dairy Barn, will provide space for nearly 600 student beds in three, four-story buildings.
Student Housing reserves are paying for the $33 million project.

At last two of the buildings are due to be ready in time for fall quarter. If the third building is not ready, officials plan to have students “triple-up” in other rooms, until the last building is finished.

Earlier coverage: "State labor commissioner slaps Tercero II framing contractor" (June 11, 2010)