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

Building California’s Future with Building California’s Future with Public Works Projects:Public Works Projects:

A Prevailing Wage Training Seminar for ContractorsA Prevailing Wage Training Seminar for Contractors

January 21, 2010January 21, 2010

Public Works ProjectsPublic Works ProjectsJuly 2010 through 2011July 2010 through 2011

Total projects estimated statewide: Total projects estimated statewide: 5,8605,860

State agencies:State agencies: 485 projects485 projectsCounties:Counties: 1535 projects1535 projectsCities:Cities: 1900 projects1900 projectsSchool Districts:School Districts: 990 projects990 projectsSpecial Districts:Special Districts: 950 projects950 projects

$32,930,483,538$32,930,483,538

Estimated expenditures for public Estimated expenditures for public works projects throughout works projects throughout CaliforniaCalifornia

*Department of Finance*Department of Finance

Session 1Session 1

Availability of New Federal & State Stimulus Availability of New Federal & State Stimulus Funds for Public Works in California:Funds for Public Works in California:

What Contractors Need to KnowWhat Contractors Need to Know

Presented by: Gary O’Mara & Rebecca Clark

Session 1: Davis-BaconSession 1: Davis-BaconCompliance Principles Compliance Principles

Laborers and mechanicsLaborers and mechanics Site of the workSite of the work Truck driversTruck drivers Fringe BenefitsFringe Benefits Federal contracts: PCA interaction with DBAFederal contracts: PCA interaction with DBA

Session 1: Laborers & Session 1: Laborers & MechanicsMechanics

Workers whose duties are manual or Workers whose duties are manual or physical in naturephysical in nature

Includes apprentices, trainees, and Includes apprentices, trainees, and helpershelpers

For CWHSSA, includes watchmen and For CWHSSA, includes watchmen and guardsguards

Session 1: Laborers & Session 1: Laborers & MechanicsMechanics

Does Does notnot include: include: Timekeepers, inspectors, architects, engineersTimekeepers, inspectors, architects, engineers Bona fide executive, administrative, and Bona fide executive, administrative, and

professional employees as defined under FLSAprofessional employees as defined under FLSA

Working foremen are generally non-exemptWorking foremen are generally non-exempt Must be paid the prevailing rate for the Must be paid the prevailing rate for the

classification of work performed if not 541 exemptclassification of work performed if not 541 exempt

Erika L Monterroza

This should read Bona fide

Session 1: Site of the WorkSession 1: Site of the Work

Davis-Bacon applies only to laborers and Davis-Bacon applies only to laborers and mechanics employed “directly upon the mechanics employed “directly upon the site of the work”site of the work”

A three-part definition applies to determine A three-part definition applies to determine the scope of the term “site of work”the scope of the term “site of work”

Session 1: Truck DriversSession 1: Truck Drivers

Truck drivers are typically covered by Truck drivers are typically covered by federal prevailing wage.federal prevailing wage.

When truck drivers are When truck drivers are notnot covered by covered by federal prevailing wagefederal prevailing wage

Erika L Monterroza

typically / normally--this bullet contradicts the bullet below as it reads now

Session 1: Owner OperatorsSession 1: Owner Operators

Bona fideBona fide owner-operators of trucks who owner-operators of trucks who are independent contractors (an owner-are independent contractors (an owner-operator is a person who operator is a person who owns and drives owns and drives a trucka truck) are not covered under federal law. ) are not covered under federal law.

This position does not apply to owner-This position does not apply to owner-operators of other equipment such as operators of other equipment such as bulldozers, cranes, etc.bulldozers, cranes, etc.

Session 1: Wages & Fringe Session 1: Wages & Fringe BenefitsBenefits

The term “wages” or “prevailing wages” The term “wages” or “prevailing wages” includes:includes: The basic hourly rate (BHR)The basic hourly rate (BHR)

Contractor contributions Contractor contributions irrevocablyirrevocably made to made to trustee or third party pursuant to a bona fide trustee or third party pursuant to a bona fide fringe benefit fund, plan, or programfringe benefit fund, plan, or program

The rate of costs the contractor reasonably The rate of costs the contractor reasonably anticipates in providing bona fide benefits anticipates in providing bona fide benefits where certain conditions are metwhere certain conditions are met

Session 1: Interaction Among Session 1: Interaction Among Government Contract LawsGovernment Contract Laws

Federal contracts requiring PCA & DBAFederal contracts requiring PCA & DBA Covered contract has Covered contract has more than incidentalmore than incidental

amount of construction workamount of construction work

Federal prevailing wage applies to Federal prevailing wage applies to construction workconstruction work

Construction includesConstruction includes• ““construction, alteration and repair, including construction, alteration and repair, including

painting and decorating”painting and decorating”

Session 1: Interaction Among Session 1: Interaction Among Government Contracts LawsGovernment Contracts Laws

Example 1Example 1Contract for supply of security systemContract for supply of security system

Davis-Bacon applies to:Davis-Bacon applies to:• Replacement of existing conduit,Replacement of existing conduit,• Laying cable, andLaying cable, and• Tearing out and replacing wallsTearing out and replacing walls


Example 2Example 2 Contract for supply Contract for supply and installationand installation of modular of modular

furniturefurniture

Davis-Bacon applies to:Davis-Bacon applies to:• Bolting furniture or fixtures to floors, Bolting furniture or fixtures to floors,

walls and/or ceilings,walls and/or ceilings,• Modifying walls, floors and/or ceilings to Modifying walls, floors and/or ceilings to

accommodate shelving,accommodate shelving,• Installing electrical connections for desk Installing electrical connections for desk

area outlets.area outlets.


Example 3Example 3Lighting retrofit contract for supply Lighting retrofit contract for supply and and

installationinstallation of energy-efficient lighting of energy-efficient lighting fixtures:fixtures:

• Applies to installing new ballasts Applies to installing new ballasts and/or lighting fixtures.and/or lighting fixtures.

Session 1: American Session 1: American Reinvestment & Recovery Act of Reinvestment & Recovery Act of

2009 (ARRA)2009 (ARRA)Overview of ARRAOverview of ARRA

Signed into law by President Obama on Signed into law by President Obama on February 17, 2009February 17, 2009

Appropriates substantial funding forAppropriates substantial funding for Construction, alteration and repair of federal buildingsConstruction, alteration and repair of federal buildings Infrastructure projects such as roads, bridges, public Infrastructure projects such as roads, bridges, public

transit, water systems, and housingtransit, water systems, and housing Various activities that federal agencies may contract Various activities that federal agencies may contract

out for service employees to performout for service employees to perform

Session 1: Labor Standards Session 1: Labor Standards Coverage on ARRA Funded ProjectsCoverage on ARRA Funded Projects

Davis-Bacon requirements apply to:Davis-Bacon requirements apply to: Federal contracts funded by ARRAFederal contracts funded by ARRA Most ARRA-assisted construction projectsMost ARRA-assisted construction projects

Reorganization Plan No. 14 of 1950 gives:Reorganization Plan No. 14 of 1950 gives: Federal agencies responsibility to ensure that Federal agencies responsibility to ensure that

laborers and mechanics are paid at least the laborers and mechanics are paid at least the prevailing rates established by DOLprevailing rates established by DOL

DOL has regulatory authority and oversight DOL has regulatory authority and oversight responsibility and can investigate complianceresponsibility and can investigate compliance

Session 1: ARRA Labor Session 1: ARRA Labor Standards ImplementationStandards Implementation

Federal agencies must:Federal agencies must: Ensure that their bid solicitations and resulting Ensure that their bid solicitations and resulting

covered contracts contain labor standards covered contracts contain labor standards and wage determinations in accordance with and wage determinations in accordance with Federal Acquisition RegulationsFederal Acquisition Regulations

Generally, ensure that recipients of Generally, ensure that recipients of assistance funded by ARRA appropriations assistance funded by ARRA appropriations require contractors and subcontractors to pay require contractors and subcontractors to pay laborers and mechanics employed on covered laborers and mechanics employed on covered ARRA-assisted construction at least the ARRA-assisted construction at least the Davis-Bacon prevailing wagesDavis-Bacon prevailing wages

Session 1: ARRA Division BSession 1: ARRA Division B Requires application of prevailing wage Requires application of prevailing wage

requirements to projects financed with certain tax-requirements to projects financed with certain tax-favored bondsfavored bonds

• New, clean, renewable energy bondsNew, clean, renewable energy bonds• Qualified energy conservation bondsQualified energy conservation bonds• Qualified zone academy bondsQualified zone academy bonds• Qualified school construction bondsQualified school construction bonds• Recovery zone economy development bondsRecovery zone economy development bonds

As defined in relevant Internal Revenue Code As defined in relevant Internal Revenue Code provisionsprovisions

If issued after ARRA enactment (Feb. 17, 2009)If issued after ARRA enactment (Feb. 17, 2009)

Erika L Monterroza

projects - plural

Session 1: DOL ARRA GuidanceSession 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

Session 1: WHD ARRA WebsiteSession 1: WHD ARRA Website& HUD Clarification& HUD Clarification

The Wage and Hour Division has The Wage and Hour Division has established a special ARRA website:established a special ARRA website:

www.dol.gov/whd/recovery

Certain specific HUD programs affected by Certain specific HUD programs affected by a provision in the Supplemental a provision in the Supplemental Appropriations Act of 2009, enacted on Appropriations Act of 2009, enacted on June 24, 2009June 24, 2009

Erika L Monterroza

This link is broken -

Session 1: Clarification on DB Session 1: Clarification on DB Applicability to HUD ProgramsApplicability 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

Session 1: Clarification on DB Session 1: Clarification on DB Applicability to HUD ProgramsApplicability to HUD Programs

ARRA funding ARRA funding notnot affected by section affected by section 1205 of the supplemental appropriations 1205 of the supplemental appropriations act:act:

Assisted Housing Green RetrofitAssisted Housing Green Retrofit

Lead Hazard Reduction/Healthy Homes Lead Hazard Reduction/Healthy Homes ProgramProgram

HUD’s tax credit assistance programHUD’s tax credit assistance program

Session 2Session 2

How Contractors Can Locate & How Contractors Can Locate & Understand Applicable Prevailing Wage Understand Applicable Prevailing Wage

Rates for Every Public Works ProjectRates for Every Public Works Project

Presented by: Gregory Govan & Tim Stahlheber

Session 2: Prevailing WageSession 2: Prevailing Wage

Laws, regulations, and the methodology Laws, regulations, and the methodology for determining the prevailing ratefor determining the prevailing rate

Definitions and other informationDefinitions and other information


Navigating the DIR/DLSR web page Navigating the DIR/DLSR web page

Main menu: locating a journeyman Main menu: locating a journeyman determination determination

Statewide determinations (index) Statewide determinations (index) Prevailing wage determination – select Iron Prevailing wage determination – select Iron

WorkerWorker


Collective bargaining agreement Collective bargaining agreement provisions – select Iron Worker craftprovisions – select Iron Worker craft

HolidayHoliday Scope of workScope of work Travel and subsistenceTravel and subsistence


Locating a sub trade – select Ventura Locating a sub trade – select Ventura County sheetCounty sheet Issue & expiration datesIssue & expiration dates Overtime requirementsOvertime requirements


Predetermined increases supersededPredetermined increases superseded Effective dates & footnotesEffective dates & footnotes

ModificationsModifications


Select a county at step five Shift Select a county at step five Shift differential pay rates from drop down differential pay rates from drop down menumenu

Shift pay determinationsShift pay determinations

Shift provisionsShift provisions


Special determinationsSpecial determinations

Petition to reviewPetition to review

Residential Prevailing Wage Residential Prevailing Wage Determinations available on DLSR web Determinations available on DLSR web pagepage


Wage survey for residential construction Wage survey for residential construction crafts in Central Valley Countiescrafts in Central Valley Counties

Important noticeImportant notice

Frequently asked questionsFrequently asked questions

BreakBreak

Session 3Session 3

Apprenticeship Requirements Under Apprenticeship Requirements Under the Prevailing Wage Laws & How the Prevailing Wage Laws & How

Contractors Can ComplyContractors Can Comply

Presented by: Pacia Parker

Session 3: Apprenticeship Session 3: Apprenticeship RequirementsRequirements

DAS Public Works InformationDAS Public Works Information

http://www.dir.ca.gov/DAS/PublicWorksForms.htm


Apprenticeship Program SearchApprenticeship Program Search

http://www.databases/das/aigstart.asp


Apprenticeship Certification for Public WorksApprenticeship Certification for Public Works

http://www.DAS/appcertpw/AppCertSearch.asp


Training Funds CertificationTraining Funds Certificationhttp://www.dir.ca.gov/CAC/trainingfund/Tfsearch.html

LunchLunch

Session 4Session 4How Prevailing Wage Requirements How Prevailing Wage Requirements

Are Enforced: What Every Public Are Enforced: What Every Public Works Contractor Should Know to Works Contractor Should Know to

Avoid Liability Under California LawAvoid Liability Under California Law

Presented by: Robert Roginson, David Cross, John Cumming & Susan Nakagama

Session 4: Who Does the Law Session 4: Who Does the Law Protect?Protect?

All “Workers” Employed on Public WorksAll “Workers” Employed on Public Works

Includes employees, independent Includes employees, independent contractors, partners, sole proprietors, contractors, partners, sole proprietors, owner operatorsowner operators

Session 4: What Must Public Session 4: What Must Public Works Contractors Do to Comply Works Contractors Do to Comply

with the Law?with the Law?

Maintain and Furnish RecordsMaintain and Furnish Records

Pay the Prevailing Rate to All WorkersPay the Prevailing Rate to All Workers

Comply with Apprenticeship RequirementsComply with Apprenticeship Requirements

Session 4: What Are Session 4: What Are Certified Payroll Records & Certified Payroll Records &

Why Should I Care?Why Should I Care?

What Information Is IncludedWhat Information Is Included

NameName

AddressAddress

Social security numberSocial security number

Work classificationWork classification

Session 4: What Are Session 4: What Are Certified Payroll Records & Certified Payroll Records &

Why Should I Care?Why Should I Care?

What Information Is IncludedWhat Information Is Included

Straight time & overtime hours workedStraight time & overtime hours worked

Actual wages paidActual wages paid

CertificationCertification

Session 4: Certified Payroll Session 4: Certified Payroll RecordsRecords

DIR Form A – 1 - 131DIR Form A – 1 - 131

Electronic or Alternative FormsElectronic or Alternative Forms

Statement of Employer PaymentsStatement of Employer Payments

Session 4: Certified Payroll Session 4: Certified Payroll RecordsRecords

Responding to RequestsResponding to Requests From Awarding Body, DAS or DLSEFrom Awarding Body, DAS or DLSE From the publicFrom the public

How & WhenHow & When

10 working days10 working days

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

Conduct InvestigationsConduct Investigations Investigate complaints from workers, Investigate complaints from workers,

monitoring agencies, contractors and monitoring agencies, contractors and awarding bodiesawarding bodies


Conduct InvestigationsConduct Investigations Obtain relevant documents (certified payroll Obtain relevant documents (certified payroll

records, contract documents, inspector logs, records, contract documents, inspector logs, prevailing wage determinations, bond prevailing wage determinations, bond information)information)

Prepare audits and findingsPrepare audits and findings


Issue and serve Civil Wage Penalty Issue and serve Civil Wage Penalty Assessments (“CWPAs”)Assessments (“CWPAs”)

Defend CWPAs in Administrative Review Defend CWPAs in Administrative Review Proceedings and in CourtProceedings and in Court

Collect and Disburse Wages And Collect and Disburse Wages And PenaltiesPenalties

Debarment ProceedingsDebarment Proceedings

Labor Commissioner Approval of Labor Commissioner Approval of Forfeiture Requests from Approved Labor Forfeiture Requests from Approved Labor Compliance ProgramsCompliance Programs


DebarmentDebarment


Session 4: Labor ComplianceSession 4: Labor Compliance

Labor Compliance Programs (“LCPs”)Labor Compliance Programs (“LCPs”)

Established under Labor Code §1771.5Established under Labor Code §1771.5

Approved by Director of Industrial RelationsApproved by Director of Industrial Relations

Governed by Regulations at 8 C.C.R. Governed by Regulations at 8 C.C.R. §16421-16439§16421-16439


Enforce State Prevailing Wage Laws Enforce State Prevailing Wage Laws Consistent with Practice of Labor Consistent with Practice of Labor Commissioner [DLSE] Commissioner [DLSE]

Fourteen Statutes Require LCPsFourteen Statutes Require LCPs


LCP Reporting ResponsibilitiesLCP Reporting Responsibilities

Annual reportsAnnual reports

Project reportsProject reports

Request for Approval of Forfeiture – must be Request for Approval of Forfeiture – must be served on affected contractor and served on affected contractor and subcontractorsubcontractor


Laws and Regulations Enforced by LCPs:Laws and Regulations Enforced by LCPs:

Prevailing wage requirements of Labor Code, Prevailing wage requirements of Labor Code, including sections 1771, 1774, 1775 including sections 1771, 1774, 1775 [Violations and Penalties], 1776 [CPRs], [Violations and Penalties], 1776 [CPRs], 1777.5(m) [Training Fund], and 1811-1815 1777.5(m) [Training Fund], and 1811-1815 [P.W. Overtime][P.W. Overtime]


LCPs do LCPs do notnot enforce: enforce:

Apprenticeship violations other than prevailing Apprenticeship violations other than prevailing wagewage

Other State labor lawsOther State labor laws

Some LCPs Some LCPs maymay enforce federal or local laws enforce federal or local laws or contract requirements - outside of or contract requirements - outside of jurisdiction of DIRjurisdiction of DIR


Review of Certified Payroll RecordsReview of Certified Payroll Records

Withholding for delinquent/inadequate CPRsWithholding for delinquent/inadequate CPRs

Confirmation of CPRsConfirmation of CPRs

Site VisitsSite Visits


Investigation of Complaints and Investigation of Complaints and EnforcementEnforcement

DLSE Approves ForfeituresDLSE Approves Forfeitures

LCP Issues Notice of Withholding of LCP Issues Notice of Withholding of Contract PaymentsContract Payments


Appeal and Hearing Under Labor Code Appeal and Hearing Under Labor Code §1742 [Same Procedure as DLSE Cases]§1742 [Same Procedure as DLSE Cases]

Forms And Resources (See Website)Forms And Resources (See Website)

BreakBreak

Session 5Session 5

The Nuts & Bolts of the Administrative The Nuts & Bolts of the Administrative Review Process for Public Works Review Process for Public Works

Contractors Who Receive An Contractors Who Receive An Assessment (Mock Proceedings)Assessment (Mock Proceedings)

Presented by: David Cross, Anthony Mischel, Sherry Gentry, Lorna Espiritu, Doreen Peters, &

Rachel Farmer

Session 6Session 6

Changes to Public Works Changes to Public Works

Project Monitoring & ComplianceProject Monitoring & Compliance

Presented by: Nance Steffen & John Cumming

Session 7Session 7

Q & A – Any Topic Regarding Prevailing Q & A – Any Topic Regarding Prevailing Wage Compliance of Interest to Public Wage Compliance of Interest to Public

Works ContractorsWorks Contractors

DisclaimerDisclaimer This presentation is intended as general information only and This presentation is intended as general information only and

does not carry the force of legal opinion.does not carry the force of legal opinion.

The Department of Labor is providing this information as a The Department of Labor is providing this information as a public service. This information and related materials are public service. This information and related materials are presented to give the public access to information on presented to give the public access to information on Department of Labor programs. You should be aware that, Department of Labor programs. You should be aware that, while we try to keep the information timely and accurate, there while we try to keep the information timely and accurate, there will often be a delay between official publications of the will often be a delay between official publications of the materials and the modification of these pages. Therefore, we materials and the modification of these pages. Therefore, we make no express or implied guarantees. The make no express or implied guarantees. The Federal Federal Register and the Register and the Code of Federal RegulationsCode of Federal Regulations remain the remain the official source for regulatory information published by the official source for regulatory information published by the Department of Labor. We will make every effort to keep this Department of Labor. We will make every effort to keep this information current and to correct errors brought to our information current and to correct errors brought to our attention.attention.

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 © 1996-2007 Northeast Technical Institute© 1996-2007 Northeast Technical Institute

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