What Every Contractor Should Know About Prevailing Wages Disadvantaged Business Enterprise (DBE) Supportive Services Program

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1 What Every Contractor Should Know About Prevailing Wages Disadvantaged Business Enterprise (DBE) Supportive Services Program The contents of this training course reflect the views of the author who is responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the State of California or the Federal Highway Administration. This course outline does not constitute a standard, specification, or regulation.

2 Overview of CA Prevailing Wages Coverage / Thresholds? Public Works projects of $1,000 or more Lease Arrangements Special public assistance Exceptions Charter cities Labor Compliance Programs small value projects $15,000 repair, maintenance, demolition $25,000 new construction 2

3 Overview of CA Prevailing Wages Who is covered? Public Works Project Workers Employees, Owners, Partners With some exceptions Type of work covered Onsite construction work Onsite inspection Trucking (onsite and offsite hauling) 3

4 Prevailing Wage Requirements Selecting the Proper Wage Determination Based on Bid Advertisement Date If there is no Bid Advertisement, then use the first day of the RFP/RFQ, the date that the written bid is submitted, date the contract is signed, or first date of work whichever comes first. This version applies throughout the life of the project Project Location increases are incorporated into specific classifications 4

5 Prevailing Wage Requirements Overtime After 8 hours in one day or 40 hours in a week Saturday and Sunday Premium pay required even if 40 hours a weeks has not been worked Holidays Premium pay required for designated holidays. Each trade designates its own holidays 5

6 Certified Payroll Must be signed by an officer, supervisor or responsible manager Must be produced weekly and employees paid weekly Payroll must include the following Worker info: Name, address, and SSN Basic hourly rate Standard and non-standard deductions Payroll number and period ending date Check number 6

7 Certified Payroll Mixed Funding Projects Project with Federal and State Funding Must pay the higher of the two wages (between Federal Davis Bacon and State Prevailing Wages) Need to check the classifications on Federal and State Determinations For example: Davis Bacon (Federal determination) does not recognize Laborer Group 5, but California does) Must comply with more restrictive work rule or law 7

8 Fringe Benefits Must be for the benefit of the employee Must be definite and certain Paid not less than quarterly Must be made irrevocably May be paid in cash or to a plan/fund/program Fringe Benefit Statement must accompany certified payroll Must identify to whom contributions are sent and specific amount of contribution Form PW26.pdf 8

9 Apprentice Requirements Employment of Apprentices Must be through an Approved DAS Apprenticeship Program Paid Apprenticeship Rates California (published on website Federal 9

10 Apprentice Requirements Training Contributions Paid to approved apprenticeship committee Paid to State (CAC-2) May be paid to the employee only if not an apprenticeable craft 10

11 Apprentice Forms DAS-140 Form Used to select an Approved Apprenticeship Training Committee Form must be submitted when work begins on the jobsite Obtain from 11

12 Apprentice Forms DAS-142 Form Request to Training Apprentices Presumptive compliance if DAS-142 is used 8 hour or 20% minimum employment of apprentice on all projects with 40 or more hours per craft 12

13 Monitoring Jobsite Requirements 13

14 Monitoring Jobsite Postings 14

15 Monitoring Sample Forms 15

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21 Certified Payroll Violations Non-Compliant Certified Payroll - Examples Reported basic hour rate is less than the prevailing wage amount Total hourly rate (basic rate + supplemental benefit) is less than wage determination rates If overtime rate is less than the prevailing wage rate If standard hours for any given day are greater than 10 21

22 Penalties Governing Regulations California DLSE Labor Code Wage Violations Labor Code Paperwork Errors/Omissions Labor Code Apprenticeship Labor Code Overtime 22

23 Procedures for Potential Violations State California Request for Documentation Notice to Withhold or Notice of Intent to Withhold Follow DLSE regulations 23

24 DIR Regulatory Updates

25 Senate Bill (SB) 854 Overview PWC-100 Registration required for all public works projects Applies to all public works projects over $1,000 Must be registered with 5 days of contract award Replaces previous requirement (projects over $30,000 or state bond funds) File Notice of project completion 25

26 Senate Bill (SB) 854 Overview Contractors must register on DIR website to perform on public works projects Must pay annual fee of $300 (effective July 1, 2014) Contractors not registered cannot perform Contractors must meet minimum qualification requirements 26

27 Senate Bill (SB) 854 Overview No longer billed ¼ of one percent of bond proceeds or pay ¼ of one percent on certain design build projects Effective January 15, 2015 specific information required in bid and contract documents DIR/CMU Enforcement will focus on egregious contractor violations Enhanced Technical Features Electronic Data Interface Access to Certified Payroll documents 27

28 Senate Bill (SB) 854 Certified Payroll Submission 28

29 SB 854 Exemptions Exceptions to the registration requirement for bidders in circumstances where a CSLB license would not be required: Labor Commissioner may exempt a contractor from providing electronic certified payroll on a project that is under the jurisdiction of one of the four legacy DIR-approved labor compliance programs : Caltrans, City of Los Angeles, Los Angeles Unified School District, and County of Sacramento, or that is covered by a qualifying project labor agreement at time of bid. 29

30 SB 854 DIR Process Summary PWC-100 Form Submittal Project Registration Contractor Registration Monitoring & Certified Payrolls Project Set Up Subcontractor Registration 30

31 Thank you! Questions & Answers Evaluation Survey Link will be ed after class Upcoming Classes Register today! Check s will be sent to you soon 31

32 Business Development Program Business Plan Development One-on-One Mentoring Free Technical Assistance Certificate upon Completion Teaming/Partnering Access to Recorded Webinars Access to Valuable Business Resources Custom Level Bid Matching For more information: Visit: