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Building Californias Future with Public Works Projects: A Prevailing Wage Training Seminar for Contractors January 21, 2010.

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Presentation on theme: "Building Californias Future with Public Works Projects: A Prevailing Wage Training Seminar for Contractors January 21, 2010."— Presentation transcript:

1 Building Californias Future with Public Works Projects: A Prevailing Wage Training Seminar for Contractors January 21, 2010

2 Public Works Projects July 2010 through 2011 Total projects estimated statewide: 5,860 Total projects estimated statewide: 5,860 State agencies:485 projects State agencies:485 projects Counties:1535 projects Counties:1535 projects Cities:1900 projects Cities:1900 projects School Districts:990 projects School Districts:990 projects Special Districts:950 projects Special Districts:950 projects

3 $32,930,483,538 $32,930,483,538 Estimated expenditures for public works projects throughout California Estimated expenditures for public works projects throughout California *Department of Finance

4 Session 1 Availability of New Federal & State Stimulus Funds for Public Works in California: What Contractors Need to Know Presented by: Gary OMara & Rebecca Clark

5 Session 1: Davis-Bacon Compliance Principles Laborers and mechanics Laborers and mechanics Site of the work Site of the work Truck drivers Truck drivers Fringe Benefits Fringe Benefits Federal contracts: PCA interaction with DBA Federal contracts: PCA interaction with DBA

6 Session 1: Laborers & Mechanics Workers whose duties are manual or physical in nature Workers whose duties are manual or physical in nature Includes apprentices, trainees, and helpers Includes apprentices, trainees, and helpers For CWHSSA, includes watchmen and guards For CWHSSA, includes watchmen and guards

7 Session 1: Laborers & Mechanics Does not include: Does not include: Timekeepers, inspectors, architects, engineers Timekeepers, inspectors, architects, engineers Bona fide executive, administrative, and professional employees as defined under FLSA Bona fide executive, administrative, and professional employees as defined under FLSA Working foremen are generally non-exempt Working foremen are generally non-exempt Must be paid the prevailing rate for the classification of work performed if not 541 exempt Must be paid the prevailing rate for the classification of work performed if not 541 exempt

8 Session 1: Site of the Work Davis-Bacon applies only to laborers and mechanics employed directly upon the site of the work Davis-Bacon applies only to laborers and mechanics employed directly upon the site of the work A three-part definition applies to determine the scope of the term site of work A three-part definition applies to determine the scope of the term site of work

9 Session 1: Truck Drivers Truck drivers are typically covered by federal prevailing wage. Truck drivers are typically covered by federal prevailing wage. When truck drivers are not covered by federal prevailing wage When truck drivers are not covered by federal prevailing wage

10 Session 1: Owner Operators Bona fide owner-operators of trucks who are independent contractors (an owner- operator is a person who owns and drives a truck) are not covered under federal law. Bona fide owner-operators of trucks who are independent contractors (an owner- operator is a person who owns and drives a truck) are not covered under federal law. This position does not apply to owner- operators of other equipment such as bulldozers, cranes, etc. This position does not apply to owner- operators of other equipment such as bulldozers, cranes, etc.

11 Session 1: Wages & Fringe Benefits The term wages or prevailing wages includes: The term wages or prevailing wages includes: The basic hourly rate (BHR) The basic hourly rate (BHR) Contractor contributions irrevocably made to trustee or third party pursuant to a bona fide fringe benefit fund, plan, or program Contractor contributions irrevocably made to trustee or third party pursuant to a bona fide fringe benefit fund, plan, or program The rate of costs the contractor reasonably anticipates in providing bona fide benefits where certain conditions are met The rate of costs the contractor reasonably anticipates in providing bona fide benefits where certain conditions are met

12 Session 1: Interaction Among Government Contract Laws Federal contracts requiring PCA & DBA Federal contracts requiring PCA & DBA Covered contract has more than incidental amount of construction work Covered contract has more than incidental amount of construction work Federal prevailing wage applies to construction work Federal prevailing wage applies to construction work Construction includes Construction includes construction, alteration and repair, including painting and decorating construction, alteration and repair, including painting and decorating

13 Session 1: Interaction Among Government Contracts Laws Example 1 Example 1 Contract for supply of security system Contract for supply of security system Davis-Bacon applies to: Replacement of existing conduit, Replacement of existing conduit, Laying cable, and Laying cable, and Tearing out and replacing walls Tearing out and replacing walls

14 Session 1: Interaction Among Government Contracts Laws Example 2 Example 2 Contract for supply and installation of modular furniture Contract for supply and installation of modular furniture Davis-Bacon applies to: Bolting furniture or fixtures to floors, walls and/or ceilings, Bolting furniture or fixtures to floors, walls and/or ceilings, Modifying walls, floors and/or ceilings to accommodate shelving, Modifying walls, floors and/or ceilings to accommodate shelving, Installing electrical connections for desk area outlets. Installing electrical connections for desk area outlets.

15 Session 1: Interaction Among Government Contracts Laws Example 3 Example 3 Lighting retrofit contract for supply and installation of energy-efficient lighting fixtures: Lighting retrofit contract for supply and installation of energy-efficient lighting fixtures: Applies to installing new ballasts and/or lighting fixtures. Applies to installing new ballasts and/or lighting fixtures.

16 Session 1: American Reinvestment & Recovery Act of 2009 (ARRA) Overview of ARRA Signed into law by President Obama on February 17, 2009 Signed into law by President Obama on February 17, 2009 Appropriates substantial funding for Appropriates substantial funding for Construction, alteration and repair of federal buildings Construction, alteration and repair of federal buildings Infrastructure projects such as roads, bridges, public transit, water systems, and housing Infrastructure projects such as roads, bridges, public transit, water systems, and housing Various activities that federal agencies may contract out for service employees to perform Various activities that federal agencies may contract out for service employees to perform

17 Session 1: Labor Standards Coverage on ARRA Funded Projects Davis-Bacon requirements apply to: Davis-Bacon requirements apply to: Federal contracts funded by ARRA Federal contracts funded by ARRA Most ARRA-assisted construction projects Most ARRA-assisted construction projects Reorganization Plan No. 14 of 1950 gives: Reorganization Plan No. 14 of 1950 gives: Federal agencies responsibility to ensure that laborers and mechanics are paid at least the prevailing rates established by DOL Federal agencies responsibility to ensure that laborers and mechanics are paid at least the prevailing rates established by DOL DOL has regulatory authority and oversight responsibility and can investigate compliance DOL has regulatory authority and oversight responsibility and can investigate compliance

18 Session 1: ARRA Labor Standards Implementation Federal agencies must: Federal agencies must: Ensure that their bid solicitations and resulting covered contracts contain labor standards and wage determinations in accordance with Federal Acquisition Regulations Ensure that their bid solicitations and resulting covered contracts contain labor standards and wage determinations in accordance with Federal Acquisition Regulations Generally, ensure that recipients of assistance funded by ARRA appropriations require contractors and subcontractors to pay laborers and mechanics employed on covered ARRA-assisted construction at least the Davis-Bacon prevailing wages Generally, ensure that recipients of assistance funded by ARRA appropriations require contractors and subcontractors to pay laborers and mechanics employed on covered ARRA-assisted construction at least the Davis-Bacon prevailing wages

19 Session 1: ARRA Division B Requires application of prevailing wage requirements to projects financed with certain tax- favored bonds Requires application of prevailing wage requirements to projects financed with certain tax- favored bonds New, clean, renewable energy bonds New, clean, renewable energy bonds Qualified energy conservation bonds Qualified energy conservation bonds Qualified zone academy bonds Qualified zone academy bonds Qualified school construction bonds Qualified school construction bonds Recovery zone economy development bonds Recovery zone economy development bonds As defined in relevant Internal Revenue Code provisions As defined in relevant Internal Revenue Code provisions If issued after ARRA enactment (Feb. 17, 2009) If issued after ARRA enactment (Feb. 17, 2009)

20 Session 1: DOL ARRA Guidance All Agency Memorandum No. 207, dated May 29, 2009, provides DOL basic guidance Advisory letters, such as those issued to the Department of Energy and Department of Interior, provide further guidance

21 Session 1: WHD ARRA Website & HUD Clarification The Wage and Hour Division has established a special ARRA website: The Wage and Hour Division has established a special ARRA website: Certain specific HUD programs affected by a provision in the Supplemental Appropriations Act of 2009, enacted on June 24, 2009 Certain specific HUD programs affected by a provision in the Supplemental Appropriations Act of 2009, enacted on June 24, 2009

22 Session 1: Clarification on DB Applicability to HUD Programs Supplemental Appropriations Act of 2009 applies to the same statutory provisions applicable to non-ARRA funded assistance under specific programs to ARRA funded assistance under those programs Previously applicable thresholds apply to ARRA projects funded under: CDBG, Public Housing, and Native American Housing

23 Session 1: Clarification on DB Applicability to HUD Programs ARRA funding not affected by section 1205 of the supplemental appropriations act: ARRA funding not affected by section 1205 of the supplemental appropriations act: Assisted Housing Green Retrofit Assisted Housing Green Retrofit Lead Hazard Reduction/Healthy Homes Program Lead Hazard Reduction/Healthy Homes Program HUDs tax credit assistance program HUDs tax credit assistance program

24 Session 2 How Contractors Can Locate & Understand Applicable Prevailing Wage Rates for Every Public Works Project Presented by: Gregory Govan & Tim Stahlheber

25 Session 2: Prevailing Wage Laws, regulations, and the methodology for determining the prevailing rate Laws, regulations, and the methodology for determining the prevailing rate Definitions and other information Definitions and other information

26 Session 2: Prevailing Wage Navigating the DIR/DLSR web page Navigating the DIR/DLSR web page Main menu: locating a journeyman determination Main menu: locating a journeyman determination Statewide determinations (index) Statewide determinations (index) Prevailing wage determination – select Iron Worker Prevailing wage determination – select Iron Worker

27 Session 2: Prevailing Wage Collective bargaining agreement provisions – select Iron Worker craft Collective bargaining agreement provisions – select Iron Worker craft Holiday Holiday Scope of work Scope of work Travel and subsistence Travel and subsistence

28 Session 2: Prevailing Wage Locating a sub trade – select Ventura County sheet Locating a sub trade – select Ventura County sheet Issue & expiration dates Issue & expiration dates Overtime requirements Overtime requirements

29 Session 2: Prevailing Wage Predetermined increases superseded Predetermined increases superseded Effective dates & footnotes Effective dates & footnotes Modifications Modifications

30 Session 2: Prevailing Wage Select a county at step five Shift differential pay rates from drop down menu Select a county at step five Shift differential pay rates from drop down menu Shift pay determinations Shift pay determinations Shift provisions Shift provisions

31 Session 2: Prevailing Wage Special determinations Special determinations Petition to review Petition to review Residential Prevailing Wage Determinations available on DLSR web page Residential Prevailing Wage Determinations available on DLSR web page

32 Session 2: Prevailing Wage Wage survey for residential construction crafts in Central Valley Counties Wage survey for residential construction crafts in Central Valley Counties Important notice Important notice Frequently asked questions Frequently asked questions

33 Break

34 Session 3 Apprenticeship Requirements Under the Prevailing Wage Laws & How Contractors Can Comply Presented by: Pacia Parker

35 Session 3: Apprenticeship Requirements DAS Public Works Information DAS Public Works Information

36 Session 3: Apprenticeship Requirements Apprenticeship Program Search Apprenticeship Program Search

37 Session 3: Apprenticeship Requirements Apprenticeship Certification for Public Works Apprenticeship Certification for Public Works

38 Session 3: Apprenticeship Requirements Training Funds Certification Training Funds Certification

39 Lunch

40 Session 4 How Prevailing Wage Requirements Are Enforced: What Every Public Works Contractor Should Know to Avoid Liability Under California Law Presented by: Robert Roginson, David Cross, John Cumming & Susan Nakagama

41 Session 4: Who Does the Law Protect? All Workers Employed on Public Works All Workers Employed on Public Works Includes employees, independent contractors, partners, sole proprietors, owner operators Includes employees, independent contractors, partners, sole proprietors, owner operators

42 Session 4: What Must Public Works Contractors Do to Comply with the Law? Maintain and Furnish Records Maintain and Furnish Records Pay the Prevailing Rate to All Workers Pay the Prevailing Rate to All Workers Comply with Apprenticeship Requirements Comply with Apprenticeship Requirements

43 Session 4: What Are Certified Payroll Records & Why Should I Care? What Information Is Included What Information Is Included Name Name Address Address Social security number Social security number Work classification Work classification

44 Session 4: What Are Certified Payroll Records & Why Should I Care? What Information Is Included What Information Is Included Straight time & overtime hours worked Straight time & overtime hours worked Actual wages paid Actual wages paid Certification Certification

45 Session 4: Certified Payroll Records DIR Form A – DIR Form A – Electronic or Alternative Forms Electronic or Alternative Forms Statement of Employer Payments Statement of Employer Payments

46 Session 4: Certified Payroll Records Responding to Requests Responding to Requests From Awarding Body, DAS or DLSE From Awarding Body, DAS or DLSE From the public From the public How & When How & When 10 working days 10 working days

47 Session 4: How Does DLSE Enforce the Law? Conduct Investigations Conduct Investigations Investigate complaints from workers, monitoring agencies, contractors and awarding bodies Investigate complaints from workers, monitoring agencies, contractors and awarding bodies

48 Session 4: How Does DLSE Enforce the Law? Conduct Investigations Conduct Investigations Obtain relevant documents (certified payroll records, contract documents, inspector logs, prevailing wage determinations, bond information) Obtain relevant documents (certified payroll records, contract documents, inspector logs, prevailing wage determinations, bond information) Prepare audits and findings Prepare audits and findings

49 Session 4: How Does DLSE Enforce the Law? Issue and serve Civil Wage Penalty Assessments (CWPAs) Issue and serve Civil Wage Penalty Assessments (CWPAs) Defend CWPAs in Administrative Review Proceedings and in Court Defend CWPAs in Administrative Review Proceedings and in Court

50 Collect and Disburse Wages And Penalties Collect and Disburse Wages And Penalties Debarment Proceedings Debarment Proceedings Labor Commissioner Approval of Forfeiture Requests from Approved Labor Compliance Programs Labor Commissioner Approval of Forfeiture Requests from Approved Labor Compliance Programs Session 4: How Does DLSE Enforce the Law?

51 Debarment Debarment Session 4: How Does DLSE Enforce the Law?

52 Session 4: Labor Compliance Labor Compliance Programs (LCPs) Labor Compliance Programs (LCPs) Established under Labor Code § Established under Labor Code § Approved by Director of Industrial Relations Approved by Director of Industrial Relations Governed by Regulations at 8 C.C.R. § Governed by Regulations at 8 C.C.R. §

53 Session 4: Labor Compliance Enforce State Prevailing Wage Laws Consistent with Practice of Labor Commissioner [DLSE] Enforce State Prevailing Wage Laws Consistent with Practice of Labor Commissioner [DLSE] Fourteen Statutes Require LCPs Fourteen Statutes Require LCPs

54 Session 4: Labor Compliance LCP Reporting Responsibilities LCP Reporting Responsibilities Annual reports Annual reports Project reports Project reports Request for Approval of Forfeiture – must be served on affected contractor and subcontractor Request for Approval of Forfeiture – must be served on affected contractor and subcontractor

55 Session 4: Labor Compliance Laws and Regulations Enforced by LCPs: Laws and Regulations Enforced by LCPs: Prevailing wage requirements of Labor Code, including sections 1771, 1774, 1775 [Violations and Penalties], 1776 [CPRs], (m) [Training Fund], and [P.W. Overtime] Prevailing wage requirements of Labor Code, including sections 1771, 1774, 1775 [Violations and Penalties], 1776 [CPRs], (m) [Training Fund], and [P.W. Overtime]

56 Session 4: Labor Compliance LCPs do not enforce: LCPs do not enforce: Apprenticeship violations other than prevailing wage Apprenticeship violations other than prevailing wage Other State labor laws Other State labor laws Some LCPs may enforce federal or local laws or contract requirements - outside of jurisdiction of DIR Some LCPs may enforce federal or local laws or contract requirements - outside of jurisdiction of DIR

57 Session 4: Labor Compliance Review of Certified Payroll Records Review of Certified Payroll Records Withholding for delinquent/inadequate CPRs Withholding for delinquent/inadequate CPRs Confirmation of CPRs Confirmation of CPRs Site Visits Site Visits

58 Session 4: Labor Compliance Investigation of Complaints and Enforcement Investigation of Complaints and Enforcement DLSE Approves Forfeitures DLSE Approves Forfeitures LCP Issues Notice of Withholding of Contract Payments LCP Issues Notice of Withholding of Contract Payments

59 Session 4: Labor Compliance Appeal and Hearing Under Labor Code §1742 [Same Procedure as DLSE Cases] Appeal and Hearing Under Labor Code §1742 [Same Procedure as DLSE Cases] Forms And Resources (See Website) Forms And Resources (See Website)

60 Break

61 Session 5 The Nuts & Bolts of the Administrative Review Process for Public Works Contractors Who Receive An Assessment (Mock Proceedings) Presented by: David Cross, Anthony Mischel, Sherry Gentry, Lorna Espiritu, Doreen Peters, & Rachel Farmer

62 Session 6 Changes to Public Works Project Monitoring & Compliance Presented by: Nance Steffen & John Cumming

63 Session 7 Q & A – Any Topic Regarding Prevailing Wage Compliance of Interest to Public Works Contractors

64 Disclaimer This presentation is intended as general information only and does not carry the force of legal opinion. This presentation is intended as general information only and does not carry the force of legal opinion. The Department of Labor is providing this information as a public service. This information and related materials are presented to give the public access to information on Department of Labor programs. You should be aware that, while we try to keep the information timely and accurate, there will often be a delay between official publications of the materials and the modification of these pages. Therefore, we make no express or implied guarantees. The Federal Register and the Code of Federal Regulations remain the official source for regulatory information published by the Department of Labor. We will make every effort to keep this information current and to correct errors brought to our attention. The Department of Labor is providing this information as a public service. This information and related materials are presented to give the public access to information on Department of Labor programs. You should be aware that, while we try to keep the information timely and accurate, there will often be a delay between official publications of the materials and the modification of these pages. Therefore, we make no express or implied guarantees. The Federal Register and the Code of Federal Regulations remain the official source for regulatory information published by the Department of Labor. We will make every effort to keep this information current and to correct errors brought to our attention.

65 Copyrighted images used in this presentation: Copyrighted images used in this presentation: © 2005 CS & Associates, Inc © 2005 CS & Associates, Inc © 2006 Shadeed © 2006 Shadeed © 2008 AllSchools.com © 2008 AllSchools.com © Northeast Technical Institute © Northeast Technical Institute


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