LABOR COMPLIANCE MONITORING AND ENFORCEMENT OF LABOR CODE
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1 LABOR COMPLIANCE MONITORING AND ENFORCEMENT OF LABOR CODE Date: August 30, 2016 Presented by: Lindsey Woolsey Headquarters Labor Compliance Capital Outlay Support Phone: (530)
2 LABOR CODE (a) For the limited purposes of Article 2 (commencing with Section 1770), public works also means the hauling and delivery of ready-mixed concrete to carry out a public works contract, with respect to contracts involving any state agency, including the California State University and the University of California, or any political subdivision of the state. (b) For purposes of this section, ready-mixed concrete means concrete that is manufactured in a factory or a batching plant, according to a set recipe, and then delivered in a liquefied state by mixer truck for immediate incorporation into a project. (c) For purposes of this section, the hauling and delivery of ready-mixed concrete to carry out a public works contract means the job duties for a ready mixer driver that are used by the director in determining wage rates pursuant to Section 1773, and includes receiving the concrete at the factory or batching plant and the return trip to the factory or batching plant. (d) For purposes of this section, the applicable prevailing wage rate shall be the current prevailing wage, as determined by the director, for the geographic area in which the factory or batching plant is located. (e) The entity hauling or delivering ready-mixed concrete to carry out a public works contract shall enter into a written subcontract agreement with the party that engaged the entity to supply the ready-mixed concrete. The written agreement shall require compliance with the requirements of this chapter. The entity hauling or delivering ready-mixed concrete shall be considered a subcontractor solely for the purposes of this chapter. (f) The entity hauling or delivering ready-mixed concrete to carry out a public works contract shall submit a certified copy of the payroll records required by subdivision (a) of Section 1776 to the party that engaged the entity and to the general contractor within three working days after the employee has been paid, accompanied by a written time record that shall be certified by each driver for the performance of job duties in subdivision (c). (g) This section applies to public works contracts that are awarded on or after July 1, 2016 Trailer Bill Language In Effect (23) Existing law defines public works, for purposes of requirements regarding the payment of prevailing wages for public works projects, to include, among other things, the hauling and delivery of ready-mixed concrete, as defined, to carry out a public works contract, with respect to contracts involving any state agency or any political subdivision of the state. Existing law, also requires the entity hauling or delivering ready-mixed concrete to enter into a written subcontract agreement with, and to provide employee payroll and time records to, the party that engaged that entity within 3 days, as specified. Existing law provides that these provisions apply to public works contracts awarded on or after July 1, This bill would extend the time to submit employee payroll records to 5 days. The bill would provide that these provisions do not apply to public works contracts advertised for bid or awarded prior to July 1,
3 CALTRANS MONITORING & ENFORCEMENT OF LABOR CODE SUBMISSION OF CERTIFIED PAYROLL RECORDS AB219 requires payroll records to be submitted to the prime contractor within five (5) business days after payment has been made. This portion of Labor Code is between the contractor and subcontractor. The prime contractor must submit all payroll documents to Caltrans by the 15 th of the month for the prior month s work. Caltrans Labor Compliance Program has not changed the process which to submit the certified payroll records to the District/Region Offices. Failure to provide payroll records as required will result in a withholding of payment up to $10,000 for the prime contractor. Payment withholds will be on the payment to the prime contractor. The contractor may withhold payment from the subcontractor. CERTIFIED PAYROLL RECORDS Labor Code required the subcontractor to pay the prevailing wage determination based on the plant/ batch facility geographic location. All information already required by Labor Code 1776 will be required for the certified payrolls submitted by the subcontractor, including the Caltrans project number. Q: Does work hours for the specific Caltrans project have to be separated on the payroll, or can the payroll include all hours worked by the driver? A: Payrolls are contract/project specific. Hours for the specific contract must be identified and submitted on the payroll associated with the specific project worked. If the required Labor Code 1776 elements are not present in the payroll records, the payroll records will be considered inadequate and shall result in a withholding of payment from the prime contractor. Any Labor Code and Standard Specification required payroll records that are not provided to Caltrans by the 15 th of the month for the previous month s work will be considered delinquent and shall result in a withholding of payment from the prime contractor. 3
4 TIME RECORDS CERTIFIED BY EACH DRIVER Per Caltrans Standard Specifications Section K(3), the prime contractor is required to submit all drivers time records with the required certified payroll records no later than the 15 th of the month for the prior month s work: Caltrans Standard Specifications K(3) Submitted certified payrolls for hauling and delivering ready-mixed concrete must be accompanied by a written time record. The time record must include: 1. Truck driver's full name and address 2. Name and address of the factory or batching plant 3. Time the concrete was loaded at the factory or batching plant 4. Time the truck returned to the factory or batching plant 5. Truck driver's signature certifying under penalty of perjury that the information contained in this written time record is true and correct There is currently no specific form for time records. Time records must meet the Labor Code requirements and include the information identified in the Caltrans Standard Specifications K(3) above. Q: Is a blanket statement acceptable for driver acknowledgement on time records? A: Yes, as long as the language includes a penalty of perjury statement with signature of the driver. Q: Is the driver s signature required on all submitted time records? A: Yes. However, Caltrans may accept ID numbers and/or codes (electronic versions) in lieu of a signature, provided that the subcontractor submit to the District/Region Labor Compliance Office a master list verification for all employees names and the associated ID/codes. Q: Will Caltrans accept codes for plant/batch facilities address/location? A: No. Q: If one driver has three different loads & plant locations, and work different projects can the subcontractor use one certified time record sheet? A: If a subcontractor chooses to put all three (3) projects for one driver on the same time record sheet, each project s specific hours must be separated and reflect the correct corresponding Caltrans project number and driver signature. The subcontractor may also choose to complete separate time records for each separate Caltrans project and the driver would have to sign each separate sheet. 4
5 Time records with all required information must be submitted with the weekly certified payroll. Failure to submit completed time records will be considered delinquent and Caltrans will withhold payment up to $10,000 from the prime contractor. WRITTEN SUBCONTRACT AGREEMENT Labor Code requires contractor and subcontractor to enter into a written agreement. Q: Will Caltrans be monitoring the written agreement? If so, when will the written agreement between contractor and subcontractor be due to Caltrans? A: Yes. Caltrans will expect a copy of the written agreement at the first certified payroll submission from the prime contractor. Q: What are the requirements of a written agreement? A: A written agreement must be contract/project specific and include both entities information. It may be completed in an or hard copy signed agreement/contract. Q: What if there is an emergency and a verbal agreement occurs? A: There must be a written agreement. A follow up based on the verbal agreement, including the date of the verbal conversation may be accepted. 5
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