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City audit finds prevailing‑wage shortfalls at America's Cup World Series; contractors, event authority agree to repayment plan

San Francisco Board of Supervisors budget and finance subcommittee · March 13, 2013
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Summary

The Office of Labor Standards Enforcement reported $400,455.03 in back wages owed to 113 workers after an audit of temporary‑event construction at America's Cup World Series sites; Hartman Studios and the America's Cup organizing committee agreed to a memorandum of understanding to repay workers and to improve compliance before the main event.

The Office of Labor Standards Enforcement told a San Francisco Board of Supervisors subcommittee on March 13 that an audit of temporary construction for last year's America's Cup World Series found widespread noncompliance with the city's prevailing‑wage rules and related recordkeeping requirements.

Donna Levitt, deputy director of OLSE, said the office audited eight first‑ and second‑tier subcontractors who performed covered work such as bleacher installation, staging and tent erection. The audit found certified payroll records were not kept and that many subcontractors were unfamiliar with California prevailing‑wage rules. OLSE calculated back wages owed to 113 employees totaling $400,455.03 and an apprenticeship‑training contribution of…

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