Regulation on contractor penalties OK’d

Thursday, Feb. 19, 2004 | 10:18 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The Legislative Commission Wednesday approved a new state regulation on assessing penalties for contractors who violate paying the prevailing wage on construction of government projects.

Labor Commissioner Terry Johnson told the commission the prime contractor on any job would be penalized, instead of the subcontractors, for any violations.

The penalty has been assessed against the subcontractor if he or she didn't obey the prevailing wage law. Johnson said however the government entity that puts the contract out to bid, signs the agreement with the prime contractor.

So it's the prime contractor responsible for making sure the prevailing wage is paid. Johnson said it's up to the prime contractor to recover from the subcontractor, possibly by withholding payments from the company.

Assemblyman Bernie Anderson, D-Sparks, asked Johnson if illegal aliens working on government jobs have a right to file a claim if they are not paid the prevailing wage.

Johnson said he has ruled they are entitled to the pay. He said he issued such a ruling last year and the case is now on appeal to the Nevada Supreme Court.