1 Goals: 1. Ensure all interested subcontractors have access to information, resources and tools they need to be successful in their City contracts. 2. Provide subcontractors an opportunity to network with, and learn alongside, government contracting officials to gain a better understanding of the City processes, roles, and responsibilities associated with City government contracting. In partnership with City of Austin Contract Management Department Brought To You By: Welcome to the Subcontractors Academy!

2 Wage Compliance Program WAGE RATES AND PAYROLL REPPORTING (SECTION 00830) Marisol Claudio-Ehalt, Program Consultant City of Austin – Contract Management Department This Month’s Featured Speakers: David Prado, Contract Compliance Specialist, Sr. Baldemar Maldonado, Contract Compliance Specialist Sr. City of Austin – Contract Management Department June 22, 2015 Contract Management Department Subcontractors Academy

Labor and Wage Laws Davis-Bacon and Related Acts (DBRA) Contract Work Hours and Safety Standards Act (CWHSSA) Copeland Act (Anti-Kickback Act) Fair Labor Standards Act (FLSA) Government Code, Title 10 Chapter 2258, Prevailing Wage Rates (State) City of Austin Ordinance (Local) Child Labor Laws 3

Prevailing Wages Workers must be classified and paid accordingly, based on the type of work they perform. There’s a whole Section of the City’s contract devoted to it, and it’s required of all tiered subcontracts. The City makes sure that all “Laborers and Mechanics” are paid no less than the minimum prevailing wage in the contract. Employers on City construction projects must keep accurate payroll records, and the City can require you to furnish them for review. Every worker is either an employee or a subcontractor. 4

The City of Austin monitors and enforces prevailing wages on its construction projects  pre-construction meetings  on-site observations  bulletin boards – wage postings  worker interviews  complaint investigation  wage audits  corrective actions –  There’s always a way to make things right. 5

Wage Rates and Payroll Reporting (How to Comply) Section City of Austin Construction Contract Wage Rate Determinations (Wage Scales) 6

HH Heavy and Highway Construction 00830BC Building Construction

Wage Rate Determinations 8

Record Keeping The City can request any payroll records up to (3) three years or more after the project is completed. 9

Forms every employee should have on file:  Employee Certification  Project Employer  Wage Classification  Pay Rate  Wage Scale  Total Wage Obligation  Payroll Deduction Authorization Form  Not For Taxes  Explains “Other” Deductions 10

Every Employee Needs a Certification, and a Payroll Deduction Authorization Form 11 Building Construction

Every Employee Needs a Certification, and a Payroll Deduction Authorization Form 12 Heavy and Highway

Forms every employer must have: Weekly Certified Payroll Report Signed Wage Compliance Statement Apprentice Registration for all Apprentices Standards of Apprenticeship 13

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Statement of Compliance 15

Apprentices must be registered. City contracts require apprentices to be enrolled in a US Department of Labor – recognized apprenticeship program, or to be paid full journeyman’s wage rates. A State of Texas Apprentice License does not satisfy the requirement. 16

Administrative Actions Voluntary Corrective Action Plan (VCAP). Withholding of monthly estimate. May withhold, $60 for each worker employed for each calendar day or part of the day that the worker is paid less than the wage rates stipulated in the contract. 17 Source: Wage Rates and Payroll Reporting / 00830

Contractors may not: Prohibit employees from discussing their pay rate with other employees. Retaliate against employees who provide information during an employee interview or investigation. 18 Source: Wage Rates and Payroll Reporting / 00830

Other Contracting Authorities The City of Austin does not monitor prevailing wage compliance in projects from other entities such as: Austin Independent School District Austin Community College University of Texas Travis County Travis County Commissioners Court State of Texas Federal Government Private Developers 19

You will see us onsite: Verifying bulletin board postings. Observing workers performing work. Taking photos Interviewing workers. Verifying subcontractors onsite. 20

1. Wage rates and payroll reporting requirements apply to both contractors and subcontractors. 2. Workers on City of Austin Projects shall be paid not less than wage rates listed in the contract. 3. Wage rates shall be used throughout the duration of the Contract. Wage rates shall be posted by contractor at sites(s) of Work in prominent, easily accessible places where they can be seen by all workers. 4. Employees are required to be paid one and one-half the basic rate of pay for all hours in excess of (40) forty hours in such workweek. 5. Apprentices will be permitted to work as such only when they are registered, individually under a bonafide Apprenticeship or Trainee program registered with the Bureau of Apprenticeship and Training, United Sates Department of labor (USDOL). 6. Contractor shall keep payroll records as indicated in the contract. 21

City of Austin Contract Management Department Contract Development & Administration Division Cynthia Gonzales, Division Manager Wage Compliance Team: Rick Wilson – Team Supervisor Russell Kyle Baldemar Maldonado David Prado Sam Hernandez Beatriz Guereca 22

Questions? Comments? For additional Information: nt/contract-management Next Class: July 20, 2015 Job Order Contracting (JOC) 9 – 10 am One Texas Center Suite