1 Los Angeles Unified School District Labor Compliance Certification Program July 27, 2006

2 LOS ANGELES UNIFIED SCHOOL DISTRICT MARK HOVATTER DIRECTOR, FACILITIES CONTRACT SERVICES

3 GUEST SPEAKER CHAR GRAFIL Special Assistant to the Labor Commissioner STATE LABOR COMMISSIONER OFFICE

4 GUEST SPEAKER LAURO CONS SENIOR DEPUTY LABOR COMMISIONER

5 CALIFORNIA PUBLIC WORKS LAWS California Code Section These sections detail the prevailing wage system: Explain who the laws protect The duties and responsibilities of an Awarding Body What contractors must do to comply with the law What constitutes the prevailing wage How the prevailing wage is determined How the prevailing wage requirement is enforced Title 8, California Code of Regulations 16000

6 WHO DOES THE LAW PROTECT? All workers employed on public works Employees Independent Contractors Partners Sole Proprietors Owner-operators “Public Works” - Labor Code sections 1720 Public Works is defined, in part as: “Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds…”

7 PUBLIC WORKS Public Works includes “Maintenance”: Public works contracts for maintenance are subject to the prevailing wage rate requirements. The California Code of Regulations section 16000, defines “maintenance” as: Routine, recurring work, for the preservation and protection of any publicly operated facility.

8 Public Works Public Works “Precedential Decisions”: Over the years, a body of law has developed containing interpretations of the statutes and regulations, in the area State Public Works, they are referred to as Precedential Decisions.

9 Public Works Public Works “Limited Exemptions”: There are exemptions to the prevailing wage requirements. A) Work carried out by a public agency “with its own work force”, B) Certain janitorial and custodial services of a routine, recurring or usual nature is excluded. C) Protection services, such as, Guards, watchmen, or other security forces are excluded D) Landscape Maintenance work by “sheltered workshops” E) Public Works projects of one thousand dollars($ ) or less are exempt

10 WHAT IS THE PREVAILING WAGE RATE? The Director of the Department of Industrial Relations has authorized the Division of Labor Statistics and Research as the lead agency for the determination of the prevailing wage rate. These rates are published semi-annually on February 22 and on August 22; and they are effective ten (10) days after issuance.

11 Prevailing Wage Rates A prevailing wage rate determination contains: 1.The name of the craft or trade 2.Determination number 3.Issue date 4.Expiration date 5.The locality where the rate is in effect 6.It also includes: basic hourly rate, health and welfare, pension, vacation, training contributions, straight-time and premium/overtime time rates

12 WHAT IS THE PROCESS BY WHICH PREVAILING WAGE RATES ARE ESTABLISHED? The “Division of Labor Statistics and Research” uses a methodology or process to determine the general prevailing wage rate. An Investigation or Wage Survey is conducted to determine: The basic hourly wage being paid to the majority of workers engaged in a particular craft or trade in a locality. Other information is also review and considered, such as: collective bargaining agreements from the various trades, wage data from other resources.

13 WHAT ARE SOME OF THE DUTIES AND RESPONSIBLITIES OF AN AWARDING BODY? An Awarding body is required to take cognizance of violations of the prevailing wage law requirements and report any suspected violation to the Labor Commissioner.- Labor Code section 1726 An Awarding Body is required to withhold and retain all amounts required to satisfy a “Civil Wage and Penalty Assessment” issued by the Labor Commissioner.- Labor Code section 1727 An Awarding Body is required to specify in the call for bid and in their contract- what the general prevailing wage is for each trade or classification and/or include a statement that copies of the prevailing rate per diem wages are on file and available at its principal office.- Labor Code section

14 WHAT A PUBLIC WORKS CONTRACTOR MUST DO TO COMPLY WITH THE LAW Maintain and furnish Certified Payroll Records-Labor Code section 1776 Payment of the Prevailing Wage Rates- Labor Code sections 1774 and 1813 Comply with Apprenticeship requirements- Labor Code section For additional information, visit the following website:

15 CERTIFIED PAYROLL RECORDS REQUIREMENTS Certified Payroll Record Requirements- Labor Code section 1776 Our Division’s Public Works Payroll Form- Consist of 3 parts: (Form A-1-131) (California Code of Regulations section 16401)

16 Certified Payroll Records continue Frequent errors and violations 1.On the form, omitting basic required information 2.Not paying the prevailing wage 3.Not paying the premium wage or overtime wage 4.Misclassification of workers 5.Failure to include the rate increases 6.Failure to verify if apprentices are certified or indentured 7.Failure to submit requested certified payroll records timely 8.Failure to report the “training fund contribution” amount

17 WHAT ARE SOME RAMIFICATION FOR NONCOMPLIANCE? Penalty for non-payment of the prevailing wage rate-Labor Code section 1775 Penalty for non-payment of the premium rates/overtime rates and holiday rates -Labor Code section 1813 Penalty for noncompliance with Certified Payroll Records requirements -Labor Code section 1776

18 CALIFORNIA LABOR CODE SECTIONS APPLICABLE TO EMPLOYERS Payment of Wage due to Discharged Employee- Labor Code section 201 Payment of Quitting Employee -Labor Code section 202 Penalty for violation of Labor Code sections 201 and 202 -Labor Code section 203

19 California Labor Code Sections Applicable to Employers continues Wage Itemized Statement Deductions to Employees- Labor Code section 226 Penalty for Violation of Labor Code section 226 -Labor Code section Notice of “Pay Days” and time and place of payment (Posting requirement)- Labor Code section 207 Comply with the requirement of Worker’s Compensation Coverage pursuant to Labor Code section 3700

20 INDUSTRIAL WELFARE COMMISSION ORDER #16 The Industrial Welfare Commission Order # 16 is applicable to the Construction Industry Daily Time Records Meal Periods Rest Periods Tools and Equipment

21 PUBLIC WORKS LABOR COMPLIANCE DEPARTMENT What is a Public Works “Labor Compliance Department”? Six (6) requirements under Labor Code section : 1.Public works contracts must include language concerning the prevailing wage requirements. 2.A pre job conference must be held with the contractors to discuss prevailing wage and other legal requirements. 3.Contractors must furnish certified payroll records to the Labor Compliance Program.

22 Labor Compliance Department continued 4. The Labor Compliance must review the certified payroll records to determine compliance. 5. The Labor Compliance Department must withhold contract payments when the certified payroll records are delinquent or inadequate. 6. After an investigation, the Labor Compliance Department must withhold contract payments equal to the amount of the “underpayment of wages” found due and applicable penalties.

23 DEBARMENT PROCEEDINGS LABOR CODE SECTION Debarment is covered in Labor code section Debarment is a penalty for “Willful Violation” of the prevailing wage laws and/or the violation of the law with “Intent to Defraud”. “A willful violation occurs when the contractor or subcontractor knew or reasonably should have known of his or her obligation under the public works laws and deliberately failed or refused to comply with its provisions.” Debarred Contractors are listed on the following website:

24 BREAK TIME

25 SECTION 2 LOS ANGELES UNIFIED SCHOOL DISTRICT LABOR COMPLIANCE DEPARTMENT Presented by TYBOUY TANG-WONG COMPLIANCE MANAGER

26 FACILTIES SERVICES DIVISION HIERARCHY  OFFICE OF SUPERINTENDENT  Roy Romer, Superintendent of Schools  FACILITIES SERVICES DIVISION  Joseph Mehula, Chief Facilities Executive  FACILITIES CONTRACT SERVICES  Mark Hovatter, Director  LABOR COMPLIANCE DEPARTMENT  Tybouy Tang-Wong, Compliance Manager

27 HISTORY OF THE LABOR COMPLIANCE DEPARTMENT In February 1985, Los Angeles Unified School District began administering a program for monitoring the prevailing wage rates paid to construction workers on public works projects throughout the District. On January 27, 1993, the Director of the Department of Industrial Relations granted the Los Angeles Unified School District initial approval to operate its Labor Compliance Department. On September 7, 1993, the Los Angeles Unified School District, Board of Education adopted the Labor Compliance Department. On December 7, 1996, the Labor Compliance Department received final approval from the Director of Department of Industrial Relations.

28 LABOR COMPLIANCE DEPARTMENT California Labor Code section 1770 et seq. and Education Code section requirements In establishing this Labor Compliance Department, the District also has to adhere to the statutory requirements It is the intent of the District to actively enforce the Labor Compliance Department requirements

29 BENEFITS OF A LABOR COMPLIANCE DEPARTMENT Competitive bidding process integrity Regeneration of funds to the community Better labor relations Quality construction work

30 CONSTRUCTION ACTIVITIES EXISTING FACILITIES In Progress: 5,976 projects 2 billion project value Completed: 14,254 projects 2 billion project value The Existing Facilities will complete its mission of Capital Improvement Program by 2010 with a project value of 7.6 billion dollars

31 CONSTRUCTION ACTIVITIES NEW CONSTRUCTION In Progress: 62 projects Completed: 139 projects

32 SECTION 3 DEFINITION OF TERMS Presented by RONALD VALLES

33 TERMS Area of Determination (Page 2) Awarding Body (Page 2) Certified (Page 2) Date of Notice or Call for Bids (Page 3) Employer Payments – General Prevailing Wage (Page 3) Payroll Records (Page 6) Predetermined Changes (Page 6) Worker (Page 7)

Section 8, Exhibit A34 General Prevailing Wage Determination website address: HOW TO READ THE PREVAILING WAGE DETERMINATION

Section 8, Exhibit A35

Section 8, Exhibit A36 Statistics and Research --Prevailing Wage Determination

37 Current Prevailing Wage Determination (journeyman) Current Prevailing Wage Determination (apprentices)

38 PREVAILING WAGE DETERMINATION

39 PREVAILING WAGE DETERMINATION (CONTINUED)

40 PREVAILING WAGE DETERMINATION (CONTINUED) Step four – find and select appropriate county - Los Angeles

Section 3B, subsection C41 Los Angeles County Sub Trades Prevailing Wage Determination Locality Column Headers Sheet names: footnotes, increases

Section 3B, subsection C42 Los Angeles County Sub Trades Prevailing Wage Determination …continued # indicates apprentice Issue and Expiration Dates “AR” footnote Footnotes

Section 3B, subsection C43 FOOTNOTES: AR – “INCLUDES AN AMOUNT WITHHELD FOR DUES CHECK OFF…” “AR”

Section 3B, subsection C44 PREVAILING WAGE DETERMINATION SUBTRADE (CONTINUED) Holiday, Scope of Work, Travel, Predetermined Increase No Increase Increase is applicable

Section B, subsection G45 PREVAILING WAGE DETERMINATION SUBTRADE (CONTINUED)- Predetermined Increase $0.80 cent increase effective 8/1/05, with footnote “A” Predetermined Footnotes Predetermined Increase

Section 3B, subsection G46 Predetermined increase – footnotes…continued “A” – “the predetermined increase shown is to be allocated to wages and/or employer payments…”

Section 3B, subsection D47 SHIFT DIFFERENTIALS Step Five: Shift Differentials Choose Los Angeles County

Section 3B, subsection D48 SHIFT DIFFERENTIALS Electrician Footnotes

49 PREVAILING WAGE DETERMINATION SECTION 3 QUESTIONS FROM THE AUDIENCE?

50 LUNCH BREAK

51 SECTION 4 LABOR CODE REQUIREMENTS Presented by MONIQUE MENCHACA

52 LABOR COMPLIANCE REQUIREMENTS A. Prevailing Wage B. Submission of Certified Payroll Record C. Apprentices D. Apprentice-to-Journeyman Ratio E. Assessment of Penalty

53 SECTION 4A PREVAILING WAGE

Section 4A, page 154 PREVAILING WAGE Prevailing Wage Requirements Prevailing Wage shall apply to public works contracts that are: Over $25K for Construction and Installation Over $15K for Alteration, Repair, Demolition, Maintenance, and Warranty work

Section 4A, page155 PREVAILING WAGE Prevailing Wage Determination The Division of Labor Statistics and Research (DLSR) determines the appropriate prevailing wage rates for particular construction trades and crafts by county. The general prevailing wage rates are published twice a year, on February 22 and August 22.

Section 4A, page 156 PREVAILING WAGE Payment of Prevailing Wage It is the contractor’s duty to pay prevailing wages under Labor Code Section The prevailing wage rate for each worker must equal or exceed the rate specified in the contract by reference to the “Prevailing Wage Determinations” for the class of work actually performed within the correct locality.

Section 4A, page 257 PREVAILING WAGE Overtime Labor Code Section 1815 covers the payment of overtime The overtime wage rate should be no less than the determined prevailing wage rate for the applicable trade

Section 4A, page 258 PREVAILING WAGE Training Fund Please make sure to contribute the training fund in the amount identified in the prevailing wage determination for all journeymen and apprentices to an apprenticeship committee approved by the DAS or the California Apprenticeship Council (CAC).

59 SUBMISSION OF CERTIFIED PAYROLL RECORDS SECTION 4B

Section 4B, page 160 SUBMISSION OF CERTIFIED PAYROLL RECORDS Labor Code Section 1776 Contractors shall maintain payroll and basic records (time cards, cancelled checks, cash receipts, trust fund forms, etc.) during the course of the work and shall preserve them for a period of three (3) years. The payroll records shall contain the name, address, social security number, and work classification of each employee and owner performing the work. The payroll records must also show: 1.Straight time and overtime hours worked 2.Fringe benefits contribution 3.Actual wage rate paid to each worker In the event there has been no work performed during a given week, the CPR should state “No Work Performed” for that week.

61 APPRENTICES SECTION 4C

62 APPRENTICES Notification of Contract Award Information Request and Employ State-Registered Apprentices Supervision of Apprentices Prevailing Wage Rate For Apprentices Payment of Apprenticeship Training Contributions

Section 4C, page 163 Apprentices Notification of Contract Award Information Contractors and subcontractors are required to provide contract award information (DAS 140 Form) to the apprenticeship committee for each applicable craft. Submit the DAS 140 Form to the applicable apprenticeship committee within ten (10) working days of the date of the execution of the contract, but no later than the first day workers are employed upon the project. A copy of the DAS 140 Form is to be submitted to the LCP Office at the following address: Los Angeles Unified School District Labor Compliance Department 333 South Beaudry, 19 th Floor Los Angeles, CA The DAS 140 Form can be found in Exhibit D.

64 DAS 140 FORM Exhibit D

Section 4C, page 265 APPRENTICES Request and Employ State Registered Apprentices All contractors must request the dispatch of apprentices from one of the applicable apprenticeship programs and give at least a notice of forty-eight (48) hours. If no apprentices are dispatched within seventy-two (72) hours the contractor shall not be considered in violation of the requirement to employ apprentices for the remainder of the project.

Section 4C, page 366 APPRENTICES Supervision of Apprentices Apprentices employed on public works must at all times work with or under the direct supervision of a journeyman/men. Apprentices without the supervision of journeyman/men shall be paid at the journey level rate.

Section 4C, page 367 APPRENTICES Prevailing Wage Rate for Apprentices State-Registered Apprentices Apprentices shall be permitted to work and be employed at the lower apprentice wage rate if they are registered under a bona fide apprenticeship program with a State apprenticeship agency which is recognized by the DAS.

Section 4C, page 368 Prevailing Wage Rate for Apprentices Apprentices not registered Any worker listed on the Certified Payroll Reports as an apprentice, who is not registered with the State shall be paid the journey level rate for the classification of the work he/she actually performed. The responsibility to ensure that all apprentices are registered falls on the contractor. APPRENTICES

Section 4C, page 469 APPRENTICES Payment of Apprentices Training Contributions Contractors must contribute the training fund to an apprenticeship committee approved by the DAS or the California Apprenticeship Council (CAC). EXHIBIT F is a sample of the Training Fund Contribution Form.

70 TRAINING FUND CONTRIBUTIONS FORM Exhibit F

71 SECTION 4D APPRENTICE-TO-JOURNEYMAN RATIO

Section 4D, page 172 APPRENTICE-TO-JOURNEYMAN RATIO Apprentice-to-journeyman ratios are calculated at the end of the project, or at the end of the subcontractors portion of the project. In the event that the maximum Apprentice-to-Journeyman ratio has been exceeded, all apprentices shall be reclassified to journeymen for the entire project and must be paid the journey level rate.

73 SECTION 4E ASSESSMENT OF PENALTIES

Section 4E, page 174 ASSESSMENT OF PENALTIES Types of Penalties Labor Code Section 1775 Labor Code Section 1813 Labor Code Section 1776(g) Labor Code Section

75 LABOR CODE REQUIREMENTS SECTION 4 QUESTIONS FROM THE AUDIENCE?

76 SECTION 5 COMMON VIOLATIONS & HOW TO AVOID THEM Presented by TYBOUY TANG-WONG

Section 577 COMMON VIOLATIONS & HOW TO AVOID THEM Payment of Prevailing Wage Rate & Overtime Apprentice Requirements Submission of Certified Payroll Records Reporting Owner-Operators Misclassification of Workers Fringe Benefit Contributions & Shift Differential

78 SECTION 5A PAYMENT OF PREVAILING WAGE RATE & OVERTIME

Section 5A, pages PAYMENT OF PREVAILING WAGES & OVERTIME Using the incorrect wage determination Not understanding the double asterisk (**) rule Not utilizing the footnotes in the wage determination Not utilizing the Important Notices issued by the Department of Industrial Relations (DIR) & Precedential Public Works Decisions

80 Example Craft: INSIDE WIREMAN Advertisement Date: January 23, 2005

81 EXAMPLE – Inside Wireman Correct Wage Determination: (**) After the expiration date indicates that the rate is subject to change at the next determination Wage Determination

82 Example – Inside Wireman Wage Determination (*) would indicate that the rate would be in effect for the duration of the project.

Section 5A, page 383 UTILIZING THE FOOTNOTES IN THE WAGE DETERMINATION Footnotes are associated with the employer payments and/or fringe benefit packages that constitute a prevailing wage determination. Applicable footnotes are usually identified by an alphabetical character(s).

84 FOOTNOTES Footnotes Footnote K

85 FOOTNOTES Rate applies to the first 4 daily overtime hours and the first 12 hours worked on Sat., all other time is paid at the Sun. and Holiday overtime hourly rate.

Section 5A, page 386 UTLIZING IMPORTANT NOTICES & PRECEDENTIAL DECISIONS Important Notices issued by the DIR contain important information regarding modifications or changes to the Prevailing Wage Determination (Exhibit A & B) The DIR also issues Precedential Public Works Decisions (Exhibit A) Note: In addition, there are notices that have been issued by the Labor Compliance Program (Exhibit C).

87 IMPORTANT NOTICES Step Six Important Notices

88 IMPORTANT NOTICES (CONTINUED) Important Notices by Date Issued

89 IMPORTANT NOTICE DATED 6/16/2005

90 PRECEDENTIAL DECISIONS Precedential public works decisions (by date or topic)

91 PRECEDENTIAL DECISIONS (CONTINUED)

92 PRECEDENTIAL DECISIONS (CONTINUED)

93 PRECEDENTIAL DECISIONS (CONTINUED)

94 SECTION 5B APPRENTICE REQUIREMENTS

Section 5B, page 195 APPRENTICE REQUIREMENTS Submit the DAS 140 Form Employ State-registered apprentices Employ apprentices within the allowable apprentice-to- journeyman ratio Employ apprentices under the supervision of a journeyman/men Pay apprentices the correct prevailing wage Pay the correct Apprentice Training Contribution

Section 5B, page 296 DAS 140 FORM Contractors are required to submit the DAS 140 Form to the applicable apprenticeship committee in a timely manner. At the same time, contractors must submit a copy of the DAS 140 Form to the LCP Office at the following address: Los Angeles Unified School District Labor Compliance Department 333 S. Beaudry Ave, 19 th Floor Los Angeles, CA The DAS 140 Form can be found in Exhibit D.

Section 5B, page 297 EMPLOY STATE-REGISTERED APPRENTICES It is the contractors responsibility to ensure that all apprentices working on the project are registered with the State Apprentices who are not registered with the State must be paid the appropriate journey level rate The DIR’s website to confirm that an Apprentice is State- registered is:

Section 5B, page 398 The website should look as follows: VERIFICATION OF APPRENTICES

Section 5B, page 499 Step One: VERIFICATION OF APPRENTICES

Section 5B, page 5100 Step Two: Click on the Public Works link VERIFICATION OF APPRENTICES

Section 5B, page 6101 Step Three: VERIFICATION OF APPRENTICES

Section 5B, page 7102 The screen should look like this after Step Three: VERIFICATION OF APPRENTICES

Section 5B, page 8103 Step Four: VERIFICATION OF APPRENTICES

Section 5B, page 9104 Step Five: The worker’s full name should appear, if the information you inputted is correct and the worker is registered with the State. Click “Add to List” VERIFICATION OF APPRENTICES

Section 5B, page VERIFICATION OF APPRENTICES Step Six: To verify multiple workers, repeat Step Four here. When all workers have been inputted, click on “Go to certification”

Section 5B, page Print Out the Certificate for Your Records. VERIFICATION OF APPRENTICES

Section 5B, page APPRENTICE-TO-JOURNEYMAN RATIO All contractors must employ registered apprentices in accordance with the required apprentice-to-journeyman ratio, Apprenticeship ratios are calculated at the end of the project, or at the end of the subcontractors’ portion of the project. Contractors should monitor the total apprentice hours and journeyman hours per project for each craft.

Section 5B, page APPRENTICE-TO-JOURNEYMAN RATIO To request for the most recent ratios by the DAS, please submit a request to one of the following addresses: Division of Apprenticeship Standards 320 W. 4th Street, Suite #830 Los Angeles, CA (213) (213) (fax) Division of Apprenticeship Standards 455 Golden Gate Avenue, 8 th Floor San Francisco, CA (415) (415) (fax)

Section 5B, pages SUPERVISION OF APPRENTICE(S) Apprentices employed on public works must at all times work under the direct supervision of a journeyman/men. Apprentices without journeyman/men supervision shall be paid journey level wages.

Section 5B, page PAYING APPRENTICES Apprentices on public works shall be paid the applicable apprentice prevailing wage rate. Any apprentices who are not State registered shall be paid the journey level wage rate.

Section 5B, page PAYMENT OF APPRENTICES TRAINING CONTRIBUTION Contractors must contribute training funds to an apprenticeship committee approved by the DAS or California Apprenticeship Council (CAC). Contractors who do not contribute to an apprenticeship program must submit their contributions to the following address: California Apprenticeship Council P.O. Box San Francisco, CA

112 SECTION 5C SUBMISSION OF CERTIFIED PAYROLL RECORDS

Section 5C, page 1113 SUBMISSION OF CERTIFIED PAYROLL RECORDS Pursuant to Labor Code 1776, each contractor is obligated to keep an accurate payroll record. Contractors are required to submit CPRs on a weekly basis throughout the life of the project. As of February 1, 2004, contractors are required to submit their CPRs online at

Section 5C, page 1114 SUBMISSION OF CERTIFIED PAYROLL RECORDS The following are examples of what to avoid when submitting your CPRs: Incomplete data Non submittal of Non-Performance Work Combining schools/projects under the same CPRs Copies/reproductions of the Notice of Public Entity Form

115 SECTION 5D REPORTING OWNER-OPERATORS

Section 5D, page 1116 REPORTING OWNER-OPERATORS Owner-Operators are individuals that own and operate their own machines. They should be included on the Certified Payroll Reports (CPRs) of the company to which they are contracted. If Owner-Operators are incorporated they must submit CPRs. All employees, including the owner(s), working under the qualified corporation will be reported as Operating Engineers.

Section 5D, page 1117 REPORTING OWNER-OPERATORS For example: Mr. Jones from Jones Operators, as a sole-proprietor, is not incorporated; therefore, he must be included in the CPRs of the company to which he is contracted, as an Owner-Operator. However, Smith Backhoe, Inc. is a corporation, and its owner, Mr. Smith, is an employee of the corporation; therefore, he must report himself as an Operating Engineer and Smith Backhoe, Inc. has to submit its own CPRs.

118 SECTION 5E MISCLASSIFICATION OF WORKERS

Section 5E, page 1119 MISCLASSIFICATION OF WORKERS Each worker must be paid the applicable Prevailing Wage Rate within the specified scope of work for the craft performed. For example: The craft of Electrician has many sub-trades, which consists of Communication & System Installer, Communication & System Technician, Sound Electrician, Inside Wireman, etc. If a worker is performing work that involves voice, data, and video communications work and the installation of less than ten (10) feet of conduit or raceway within the computer closet, the minimum rate of pay for this worker would be that of the Communication and System Installer.

Section 5E, page 1120 MISCLASSIFICATION OF WORKERS If a worker is performing work that involves the installation of conduit or raceway in excess of ten (10) feet, the minimum rate of pay would be that of an Inside Wireman. To confirm you are properly paying the applicable craft rate within the scope of work, go to the Department of Industrial Relation’s website at the following address:

121 SCOPE OF WORK Scope of Work link

122 SECTION 5F FRINGE BENEFIT CONTRIBUTIONS & SHIFT DIFFERENTIAL

Section 5F, page 1123 FRINGE BENEFIT CONTRIBUTIONS & SHIFT DIFFERENTIAL Failure to make the deducted benefit contributions in a timely manner to the appropriate Trust Funds is considered a prevailing wage violation of Labor Code Sections 1774 and In any event that the shift differential wage rate for an applicable craft is included in the Prevailing Wage Determination, the shift differential shall be paid. Currently, Operating Engineers, Plumbers and Electricians are subject to shift differential pay. Refer to Exhibit A or Section 3 on how to obtain these rates.

Section 5124 SUMMARY OF COMMON VIOLATIONS & HOW TO AVOID THEM Payment of Prevailing Wage Rate & Overtime Apprentice Requirements Submission of Certified Payroll Records Reporting Owner-Operators Misclassification of Workers Fringe Benefit Contributions & Shift Differential

125 COMMON VIOLATIONS & HOW TO AVOID THEM SECTION 5 QUESTIONS FROM THE AUDIENCE?

126 SECTION 6 AUDIT AND CASE PROCESS Presented by JENNIFER TRAN

127 SECTION 6A WITHHOLDING PROCESS

Section 6A, page 1128 WITHHOLDING PROCESS The LAUSD Labor Compliance Program has a duty to: Enforce Labor Code Sections 1720 through 1861 Educate contractors of their contractual obligations Work with contractors in violation to resolve situation

Section 6A, page 1129 WITHHOLDING PROCESS Notification to Contractor of Audit Contractors will be notified, via certified mail, that an audit has been initiated. Contractor’s Obligation To Submit Documentation Contractors will be notified, via certified mail, of the supporting payroll records they are required to submit. Requested documents are due within 10 working days of receipt of the request.

Section 6A, page 1130 WITHHOLDING PROCESS Informal Pre-Withhold Meeting With Contractor Contractors will be notified, via certified mail, of the date of an informal pre-withhold meeting To review and discuss the initial audit results with the contractor To inform the contractor of their rights under the due process To schedule a due date (10 working days) for any mitigating evidence to be submitted by the contractor

Section 6A, page 2131 WITHHOLDING PROCESS Contractor Accepts/Rejects Final Audit Findings A letter is sent to the contractor with the audit findings and directions of how payment is due. If a settlement cannot be reached, the case is forwarded to the State Labor Commissioner for approval. Submitting A Case to The State (Labor Code Section 1741(a)) LCP must submit, in writing, a Request for Approval of Forfeitures and Penalties to the State Labor Commissioner. A copy of the Request for Approval of Forfeiture and Penalties will be served to the contractors and bonding companies.

Section 6A, page 3132 WITHHOLDING PROCESS Notice of Withhold of Contract Payments The Request for Forfeiture is approved on: The date the State Labor Commissioner serves by first class mail on the LCP or Twenty (20) days after being served on the State Labor Commissioner Thereafter, a Notice of Withholding of Contract Payments is issued by the Labor Compliance Program. A copy of the Notice of Withholding of Contract Payment and the due process will be served on the contractors and bonding companies

Section 6A, page 3133 WITHHOLDING PROCESS Labor Code Section 1775(a)(2)(A): “The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following: “(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.” “(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.”

Section 6A, page 3134 WITHHOLDING PROCESS Contractor’s Right to Settlement Meeting (Labor Code Section (b)) The contractor is given 30 days to request a settlement meeting with the LCP Contractor’s Request for A Formal Hearing (Labor Code Section 1742(a)) The contractor has 60 days to request a hearing by submitting a written Request for Review. The contractor has the burden of proving that the basis for the civil wage and penalty assessment is incorrect. If no hearing is requested within 60 days, the Notice of Withholding will become final.

Section 6A, page 4135 WITHHOLDING PROCESS Liquidated Damages (Labor Code Section (b)) After 60 days, the contractor and bonding company shall be liable for liquidated damages equal to the amount of back wages owed.

Section 6A, page 5136 WITHHOLDING PROCESS Contractor’s Right To Review Evidence (Labor Code Section 1742 (b)) The contractor has the right to review evidence that can be used at the hearing. The LCP shall make the evidence available for review within twenty (20) days of receipt of the Request for Review. Failure to make evidence available will preclude the LCP from introducing the evidence at the hearing.

Section 6A, page 5137 WITHHOLDING PROCESS Announcement Of The State’s Decision (Labor Code Section 1742 (b)) The State’s decision will be announced within 45 days of the conclusion of the hearing. The Director may reconsider or modify the decision within 15 days of the decision. Contractor’s Right to Appeal (Labor Code Section 1742(c)) The contractor may appeal by filing a petition to the appropriate superior court within 45 days after the decision If no petition is filed within 45 days, the decision becomes final

Section 6A, page 5138 WITHHOLDING PROCESS Notification to the Division of Apprenticeship Standards (Labor Code Section ) The District will report to the Division of Apprenticeship Standards within five (5) days any discrepancy regarding the ratio of apprentices to journeymen

139 SECTION 6B PRE-BID & JOB START MEETING

Section 6B, page 1140 PRE-BID & JOB START MEETINGS Commonly Asked Questions for the Labor Compliance Program Commonly Asked Questions for the Online Certified Payroll Reporting System LCP Job Start Checklist California Labor Code Section DAS 140 Form LAUSD Online Certified Payroll Reporting System Interpretation of Labor Code (H) & (C) Sample of Public Works Payroll Summary Form and Notice to Public Entity

141 SECTION 6C FIELD INTERVIEWS & OBSERVATIONS

Section 6C, page 1142 FIELD INTERVIEWS & OBSERVATIONS Observation Form (Exhibit H) Labor Compliance Interview Form (Exhibit I)

143 AUDIT & CASE PROCESS SECTION 6 QUESTIONS FROM THE AUDIENCE?

144 BREAK TIME

145 SECTION 7 ONLINE TOOLS Presented by SOPHANNA KHVANN

146 SECTION 7A PRIME CONTRACTOR, SUBCONTRACTORS, AND LAUSD REQUIREMENTS FOR ONLINE SUBMISSION

Section 7A, page 2147 CONTRACTOR REQUIREMENTS FOR ONLINE CPR SUBMISSION Prime contractors and subcontractors have an obligation to submit CPRs to the District pursuant to the California Labor Code and the California Code of Regulations. Prime contractors and subcontractors must know the terms of all contracts entered with the District before beginning work on any LAUSD project.

Section 7A, page 2148 LAUSD REQUIREMENTS FOR ONLINE CPR SUBMISSION Submit CPRs within 10 working days of the work-week ending date. Submit one CPR per school, per contract, per week. Report all workers, including owners and superintendents, that were on-site.

Section 7A, page 2149 LAUSD REQUIREMENTS FOR ONLINE CPR SUBMISSION All contractors must submit CPRs, whether work is performed or not, from the start of the project until the time that they finish their work on the project. Contractors must pay every worker by check on a weekly basis. Contractors must submit the Public Works Payroll Summary Form and Notice to Public Entity, printed and signed, to the LAUSD for each CPR they prepare.

150 SECTION 7B ONLINE TOOLS REGISTRATION AND USAGE

Section 7B, page 1151 REQUEST FOR ACCESS TO LAUSD ONLINE TOOLS

Section 7B, page 2152 ACCESSING THE ONLINE TOOLS Go to: Contractor

Section 7B, page 3153 NORMAL LOGIN Login Using Your Registered and Password FSD Vendor Registration

Section 7B, page 3154 VENDOR REGISTRATION

Section 7B, page 4155 ACCESSING THE ONLINE TOOLS Labor Compliance Online Certified Payroll Reporting Manual for Online Tools Pre-Bid Certification Module Contractor Invoice Access Additional Contractor Reports Logout

Section 7B, page 5156 ACCESSING THE ONLINE TOOLS Online Certified Payroll Reporting Instruction Manuals for LCP Online Tools Upcoming Events

157 SECTION 7C ONLINE CPR SYSTEM

Section 7C, page 1158 ONLINE CPR SYSTEM

Section 7C, page 2159 HARD COPY VERSUS ONLINE CPR SUBMISSION Example of a Public Works Payroll Summary Form and Notice to Public Entity, as generated by the Online CPR System

Section 7C, page 3160 HANDS-ON TRAINING Accessing the System Login and Registration Entering Employees & Owner-Operators Creating Certified Payroll Records Finalizing and Printing the Certified Payroll Records Sending the Correct Documents to the LCP Office Account Maintenance & Technical Assistance

161 SECTION 7D COMMON ERRORS WITH ONLINE CPR SUBMISSION

Section 7D, page 1162 COMMON ERRORS WITH ONLINE CPR SUBMISSION Not reporting work done for each school on a separate CPR, even schools with the same contract number-do not combine work into one CPR. Not reporting each trades, shifts, and/or wage rate separately for employees who work in different trades/shifts/wage rates on any one project. Be sure to report Gross Amount Earned for All Projects if the employee was paid on one check.

Section 7D, page 1163 COMMON ERRORS WITH ONLINE CPR SUBMISSION Not confirming contract numbers and school names before beginning submission – submitting CPRs under the wrong contract number will delay processing. Attempting to produce any Online CPR System document using a third-party publication software – submitting any non- LAUSD Online CPR is considered a failure to comply with contractual obligations. Not checking for any CPRs that are showing “Past Due” in the system and submitting the required hard copy to the LCP Office.

Section 7D, page 2164 STEP 1: PAST DUE CPRS Click On “Archive” to View All Past Due Certified Payroll Records

Section 7D, page 3165 STEP 2: THE ARCHIVE SCREEN Click On The Payroll Number “Past Due”

Section 7D, page 4166 STEP 3: PRINT OPTIONS Printable Form Notice to Public Entity Form

Section 7D, page 6167 STEP 4: NOTICE TO PUBLIC ENTITY

Section 7D, page 7168 STEP 5: MAILING ADDRESS After you print the Notice to Public Entity Form, please mail it to our office to the following address: Labor Compliance Department 333 South Beaudry Ave. 19 th Floor Los Angeles, CA 90017

Section 7D, page 7169 STEP 6: HARD COPY RECEIVED Hard Copy Received Date

Section 7D, page 8170 TECHNICAL ASSISTANCE

171 SECTION 7E NEW ONLINE TOOLS

Section 7E, page 1172 NEW ONLINE TOOLS Our new online tools consists of the following modules: Contractor Invoice Access Module Labor Compliance Pending Case Module Pre-Bid Certification Module

173 SECTION 7E CONTRACTOR INVOICE ACCESS MODULE

Section 7E, page 2174 CONTRACTOR INVOICE ACCESS MODULE

Section 7E, page 3175 XZZY Xzzy VIEWING INVOICE HISTORY Display Invoices From Another Contract View Individual Invoice

Section 7E, page 4176 XZZY Xzzy VIEWING INVOICE HISTORY View Specific Information Return to Invoices Invoice History

177 SECTION 7E LABOR COMPLIANCE PENDING CASE MODULE

Section 7E, page 6178 VIEWING PENDING CASES Vendor in Question Case Number Contract Number

Section 7E, page 7179 XXXXX VIEWING PENDING CASES Case Number

Section 7E, page 8180 XXXXX VIEWING PENDING CASES Withholds All Pending

181 SECTION 7E PRE-BID CERTIFICATION MODULE

Section 7E, page 9182 PRE-BID CERTIFICATION MODULE

Section 7E, page PRE-BID CERTIFICATION Bid or Contract Number

Section 7E, page PRE-BID CERTIFICATION

Section 7E, page PRE-BID CERTIFICATION  Column Header

Section 7E, page PRE-BID CERTIFICATION ZZZZZ

Section 7E, page VERIFYING PRE-BID CERTIFIED CONTRACTORS Bid or Contract Number

Section 7E, page Xzzy ZZZZZZ VERIFYING PRE-BID CERTIFIED CONTRACTORS Drop Down Box Printable View

Section 7E, page PREVAILING WAGE DETERMINATIONS

Section 7E, page PREVAILING WAGE DETERMINATIONS

191 SECTION 7F FUTURE UPGRADE

Section 7F, page 1192 FUTURE UPGRADE Our future upgrade consists of the following module: Automated Audit Application Module Check accuracy of prevailing wage & fringe benefits Check accuracy of apprentice to journeyman ratios Check accuracy of shift differential for all trades

193 ONLINE TOOLS SECTION 7 QUESTIONS FROM THE AUDIENCE?

194 CLOSING STATEMENT MARK HOVATTER DIRECTOR, FACILITIES CONTRACT SERVICES