prevailing wage/labor compliance webinar

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PREVAILING WAGE/LABOR COMPLIANCE WEBINAR KNOW YOUR DUTIES AND RESPONSIBILITIES UNDER THE LAW Public Works California Labor Commissioner’s Office Department of Industrial Relations July 23, 2021

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Prevailing wage seminar know your duties and responsibilities under the lawRESPONSIBILITIES UNDER THE LAW
Office Department of Industrial
Relations July 23, 2021
Disclaimer
The following presentation is intended to summarize relevant portions of existing law in the Labor Code and California Code of Regulations, but those code sections, as interpreted by the courts, will govern actual enforcement. The information contained in this presentation is a general overview of existing law or regulation. Any opinions expressed are solely those of the author/speaker and are not necessarily the official position of the Department of Industrial Relations (DIR), its Director, or any related public entity. The information in this presentation is not intended as legal advice, and does not guarantee any outcome in specific enforcement or coverage proceedings within the jurisdiction of DIR.
California Labor Commissioner’s Office
What Must Contractors do to Comply with the Law?
A public works contractor is anyone who bids on or enters into a contract to perform work that requires the payment of prevailing wages.
It includes: • subcontractors who have entered into a contract with another contractor to
perform a portion of the work on a public works project.
• sole proprietors and brokers who are responsible for performing work on a public works project, even if they do not have employees or will not use their own employees to perform the work.
Who is a Public Works contractor?
1. Must be registered when bidding, listed in a bid proposal, or engaged in the performance of any contract for public work (Labor Codes §§1725.5 & 1771.1)
Contractors who are bidding on, listed on bid proposals, awarded a contract for, or working on a public works project.
Small project exemption: Does not apply to projects of:
• A total contract cost of $25,000 or less when the project is for construction, alteration, demolition, installation, or repair work
• A total contract cost of $15,000 or less when the project is for maintenance work
Who needs to register?
Fiscal Periods for Registrations
Users can apply for one, two or three fiscal periods
• Registration activity occurs within the following Timeframe:
• A registration violation occurs in any instance when a contractor bids on, is listed on a bid proposal, is awarded a contract for, or is working on a public works project without an active registration when registration is required.
• You will want to ensure that any bidding, being listed on bid proposals, contract awards, or work on public works projects occurs within your registration activity timeframe.
• Failing to register when required can result in penalties.
Registration Violation
violation
• Registration violations that occur within the grace period for late renewals can result in a mitigated penalty of $400 instead of $2000 if the violation was accidental
• $2000 penalty for all violation
July 1, 2021
Grace Period Begins
September 30, 2021
Grace Period Ends
May 1, 2022
Early Renewal Begins
June 30, 2022
Fiscal Period Ends
Renew starting May 1st to avoid a possible lapse occurring after June 30
• If Work is performed consistently before, during and after expiration—ensure that your registration is active by July 1st, 2022 (Next Fiscal Period)
July 1, 2022
• UNREGISTERED CONTRACTORS engaged in the performance of any PW contract
Labor Code § 1771.1(g): Shall forfeit, as a civil penalty, $100 for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of $8,000
• HIGHER-TIERED CONTRACTOR that hires an unregistered lower tier subcontractor
Labor Code § 1771.1(h): Shall forfeit, as a civil penalty, $100 for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of $10,000
Registration penalties will be issued on a Civil Wage and Penalty Assessment (CWPA).
STOP ORDER (Labor Code §1771.1(j)):
• When an unregistered contractor performs work on a public works project, the Labor Commissioner shall issue and serve a Stop Order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works projects until the contractor becomes registered.
The stop order shall not apply to work by registered contractors or subcontractors on the public work
Failure to Observe Stop Order (Labor Code § 1771.1 (k)):
• Failure of a contractor or subcontractor to observe a stop order issued upon them can result in:
• Being found guilty of a misdemeanor which is punishable by imprisonment in county jail not exceeding 60 days or a fine not exceeding $10,000 dollars.
• Workers employed by an unregistered contractor affected by a work stoppage must be paid by the employer at the prevailing wage rate for any time lost due to the stop order, up to a maximum of 10 days.
Fact Pattern:
GenCo
• DEF Co was awarded subcontract from ABC Genco for a total of $50,000
• Unregistered 2nd tier subcontractor hired by DEF Co to install modular
office systems for $10,000
• The Labor Commissioner’s Office comes to the project site to perform
an inspection and discovers the 2nd tier subcontractor is unregistered.
ABC GenCo and DEF Co DIR Registration both active.
• A Stop Order is issued against the 2nd tier subcontractor.
Polling Quiz: Stop Orders
2. Pay the Prevailing Wage Rate to all Workers (Labor Codes § 1771, § 1774 and § 1813)
“The contractor to whom the contract is awarded, and any subcontractor under him, shall pay not less than the specified prevailing rates of wages to all workers employed in the execution of the contract.” (Labor Code § 1774)
Except for public works projects of one thousand dollars ($1,000) or less (Labor Code § 1771)
Prevailing Wage Rate Determination The Director of the Department of Industrial Relations shall determine the general prevailing rate of per diem wages.
(Labor Code §1770)
year : February 22nd and August 22nd
The effective date is 10 days after the issue date of the determination : March 3rd in leap years and March 4th in non-leap years, and September 1st, respectively.
PROOF OF PUBLICATION The BAKERS'JELOCALIFORNIAN
P.O. BOX 440 BAKERSFIELD, CA 93302
APARCHITECTS 3434 TRUXTUN AVE240 BAKERSFIELD, CA 93301
STATE OFCALIFORNIA COUNTY OFKERN
I AM A CITIZEN OF THE UNITED STATES AND A RllSlDllNT OF THE COUNTY AFORESAID: I AM OVER THE AGE OF EIGHTEEN YEARS, AND NOT A PARTY TO OR !NTERllSTED IN THE ABOVli ENTITLED MATTER. l AM THE ASSISTANT PRJNCIPALCLERK OFTHE PRINTER01'THEBAKERSFIELD CALIFORNIAN, A NEWSPAPER OF GENERALCIRCULATION. PRINTED AND PUBLISHED DAILY IN THE CITY OF BAKERSFIELD COUNTY OF KERN,
AND WHICH NEWSPAPER HAS BEEN ADJUDGE!) A NEWSPAPER Of GENERAL CIRCULATION BY TN£ SUPER.lOR COURT OF TH£ COUNTY OF KERN, STATE OF CALIFORNIA, UNDER DA TE OF FEBRUARY 5, 1952, CASE NUMBER 57lll0; THATTHE NOTICE,Of WHICHTHEANNEXED ISA l'R!NTSD COJ'Y, HAS BEEN PUBLISHED IN EACH REGULAR AND ENTIRE ISSUE OF SAJDNEWSPAPER ANDNOT lN ANY SUPPLEMENTTHEREOFONTHE FOLLOWING DATES, TOWIT:
ALLIN YEAR 2019
I CERTIFY [OR DECLARE) LINDER PENALTY Of PERJURY THAT THE FOREGOfNG IS TRUE A NDCORRECT
PO#: RunTin1es 2
14087243 ITBC PublicNotices
BAKERSFIELD,CA 9330I
0So!loltor l.D,:
Is the applicable Determination? 2018-2 2019-1 2019-2
PROOF OF PUBLICATION
AP ARCHITECTS
STATE OF CALIFORNIA COUNTY OF KERN
I AM A CITIZEN OF THE UNITED STATES AND A RllSlDllNT
OF THE COUNTY AFORESAID: I AM OVER THE AGE OF EIGHTEEN YEARS, AND NOT A PARTY TO OR !NTERllSTED IN THE ABOVli ENTITLED MATTER. l AM THE ASSISTANT PRJNCIPAL CLERK OF THE PRINTER 01' THE BAKERSFIELD CALIFORNIAN, A NEWSPAPER OF GENERAL CIRCULATION. PRINTED AND PUBLISHED DAILY IN THE CITY OF BAKERSFIELD COUNTY OF KERN,
AND WHICH NEWSPAPER HAS BEEN ADJUDGE!) A
NEWSPAPER Of GENERAL CIRCULATION BY TN£ SUPER.lOR COURT OF TH£ COUNTY OF KERN, STATE OF CALIFORNIA, UNDER DA TE OF FEBRUARY 5, 1952, CASE NUMBER 57lll0; THAT THE NOTICE, Of WHICH THE ANNEXED IS A l'R!NTSD COJ'Y, HAS BEEN PUBLISHED IN EACH REGULAR AND ENTIRE ISSUE OF SAJD NEWSPAPER
AND NOT lN ANY SUPPLEMENT THEREOF ON THE
FOLLOWING DATES, TO WIT:
ALLIN YEAR 2019
I CERTIFY [OR DECLARE) LINDER PENALTY Of PERJURY THAT THE FOREGOfNG IS TRUE A ND CORRECT
PO#:
Starl Date
$45,079.78
Overtime & Holidays
MOST OF THE TIME, ANYTHING OVER 8 HOURS ON WEEKDAYS IS CONSIDERED OVERTIME.
SATURDAY AND SUNDAY/HOLIDAY RATE IS LISTED ACCORDINGLY
Example of a Prevailing Wage Calculation:
Prevailing Wage Determination Requires: Employer Payments
Grp 3 Laborer: Basic Wage H & W Pension Vac/Hol Training Other Total $35.34 7.32 8.03 4.84 .69 .61 = $56.83
Even though the total sum of employer payments is $21.10/hr, the employer doesn’t have to pay those precise amounts listed to each plan as indicated in the wage determination (except for training which is not paid to the employee but goes to a training fund or to the California Apprenticeship Council (CAC)).
Contractor can pay:
Or: Basic Training Total $56.14 .69 $56.83
Penalties for Paying Less than the Specified Prevailing Rates of Wages
• Contractor/Subcontractor shall forfeit not more than two hundred dollars ($200) for each calendar day, for each worker paid less than prevailing wage rates
• Penalties will be issued on a Civil Wage and Penalty Assessment (CWPA)
Comply with Apprenticeship Standards (Labor Code §1777.5)3.
> $1,000 Main Contract
(NOT Subcontract)
CADIR M
LC 1771
All workers employed on the public works project must be paid no less than the prevailing wage rate
> $15,000 Main Contract
> $25,000 Main Contract
≥ $30,000 Main Contract
Contractor(s) must comply with apprenticeship requirements for all apprenticeable crafts
P u b l i c W o r k s
Employ apprentices in at least the minimum ratio
Pay required training fund rate to the applicable committee(s) or CAC.
Notify applicable apprenticeship committees of contract award information
P u b l i c W o r k s
Minimum Apprenticeship Ratio
Daily Overtime
Total Hours of Notice
Saturday/ Sunday/ Holiday Hours
One apprentice hour for every five journeyman hours
May be found in the apprenticeship standards under which the contractor has agreed to be bound by. Calculated at the end of the project and not on a daily basis.
Not applicable
approved apprenticeship
approved apprenticeship
standards
Apprentices must work with or under a journeyman at all times.
Must be sent to all applicable apprenticeship committees
May be sent only to applicable apprenticeship committee(s) that approved the contractor
3 Request proof that contract award information was submitted for all contracted work.
1 Monitor contractor’s payroll records to ensure apprentices are reported in the correct ratio.
2 Verify training funds were paid for all Applicable crafts.
Penalties for Noncompliance with Apprenticeship Standards
• Contractor/Subcontractor shall forfeit not more than one hundred dollars ($100) for each full calendar day of noncompliance
• Contractor/Subcontractor shall forfeit not more than three hundred dollars ($300) for each full calendar day of noncompliance for a second or subsequent violation within a three (3) year period
• Penalties will be issued on a Civil Wage and Penalty Assessment (CWPA)
Maintain and Furnish Payroll Records [Labor Codes §1771.4(a) (3) and §17764.
• “Each contractor and subcontractor shall keep accurate payroll records…”(Labor Code § 1776)
• Required Information (Labor Code §1776)
DLSE Form A-1-131 - Public Works Payroll Form may be used (Title 8, C.C.R. section §16401) Form use optional as long as all required information is included
Payroll Records:
The form is available to download on the DIR website by searching “A-1-131” in the search bar.
Contractor Requirements
“All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner”
California Labor Code § 1771.4(a)(3)
Does not apply to projects of $25,000 or less when the project is for construction, alteration, demolition, installation, or repair work or for projects of $15,000 or less when the project is for maintenance work. However, you are required to retain records for at least 3 years after
completion of the work
• A subcontractor receives a “Request for Payroll Records” from the
Labor Commissioner’s Office on a public works project
• The total project cost of the public works project is $24,000
• With the City of Fresno and the Prime Contractor to perform
renovation in their facilities department.
Polling Quiz: Request for Payroll Records
Contractor Requirements
Contractor Requirements
Contractor Requirements
Contractor Requirements
THANK YOU
Department of Industrial Relations
Disclaimer
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