Prevailing Wage Law Lorman Education Services. All Rights Reserved.

Transcription

1 Prevailing Wage Law

2 Prevailing Wage Law Prepared by: Laura E. Innes Simpson, Garrity & Innes, PC Nina Kani Foley & Lardner LLP Roger M. Mason Sweeney, Mason, Wilson & Bosomworth Jon Welner Paul, Hastings, Janofsky & Walker LLP 2008 Lorman Education Services. All Rights Reserved. All Rights Reserved. Lorman seminars are copyrighted and may not be recorded or transcribed in whole or part without its express prior written permission. Your attendance at a Lorman seminar constitutes your agreement not to record or transcribe all or any part of it. This publication is designed to provide general information on the seminar topic presented. It is sold with the understanding that the publisher is not engaged in rendering any legal or professional services. Although this manual is prepared by professionals, it should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought. This disclosure may be required by the Circular 230 regulations of the United States Treasury and the Internal Revenue Service. We inform you that any federal tax advice contained in this written communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding federal tax penalties imposed by the federal government or (ii) promoting, marketing or recommending to another party any tax related matters addressed herein. These materials were prepared by the faculty members who are solely responsible for their correctness and appropriateness.

3 Table of Contents Prevailing Wage Law What Are Prevailing Wages?...3 What Is a Public Works Project?... 3 When Is a Private Development a Public Work Project?... 5 How Is the Prevailing Wage Rate Determined?... 7 What Is the Proper Prevailing Wage Rate?... 7 Who Must Be Paid Prevailing Wages?...9 What Must Owners/Public Agencies Do to Comply With the Prevailing Wage Law?...15 Insert Appropriate Language in Contract Documents (Labor Code ) Be Cognizant of Violations (Labor Code 1726) Labor Compliance Programs (Labor Code ) What Is the Prevailing Wage Rate? Published Prevailing Wage Determinations Process by Which Prevailing Wage Rates Are Established (Labor Code and ; 8 CCR ) What Must Public Works Contractors Do to Comply With the Prevailing Wage Law?...22 Maintain and Furnish Records (Labor Code 1776; Cal. Code Regs. Tit , et seq.) Pay the Prevailing Rate to All Workers (Labor Code 1771, 1774, 1813) Comply With the Apprenticeship Requirements (Labor Code ) Prevailing Wage Issues in Complex Development Projects...33 Attachments...35 How to Prevailing Wage Compliance...99 Federal Projects State/Local Projects Project Labor Agreements What Is a PLA? What Is the Legal Validity of a PLA? W PLA? Essential Components of a PLA i

4 Prevailing Wage Law Prepared and Presented by: Roger M. Mason Sweeney, Mason, Wilson & Bosomworth 1

5 2

6 3

7 4

8 5

9 6

10 7

11 8

12 9

13 10

14 11

15 12

16 Prevailing Wage Law Prepared and Presented by: Nina Kani Foley & Lardner LLP 13

17 14

18 III. What Must Owners/Public Agencies Do To Comply With The Prevailing Wage Law? A. Insert Appropriate Language in Contract Documents (Labor Code ) As a general rule, the body awarding any contract for public work, or otherwise undertaking any public work, must specify in the call for bids for the contract, and in the bid specifications and in the contract itself, what the general rate of per diem wages is for each craft, classification, or type of worker needed to execute the contract. 1 However, in lieu of specifying the rate of wages in the call for bids, and in the bid specifications and in the contract itself, the awarding body may, in the call for bids, bid specifications, and contract, include a statement that copies of the prevailing rate of per diem wages are on file at its principal office, and make copies available to any interested party on request. The awarding body must also cause a copy of the determination of the director of the prevailing rate of per diem wages to be posted at each job site. 2 While the obligation to include in the contract specifications, the prevailing wage rate, is statutory, failure to provide the appropriate language does not excuse compliance. The statutory duty to pay the prevailing wage imposed on the contractor is independent of any contractual requirement, and is imposed regardless of whether the contractor and public entity included in the contract language which required compliance with the prevailing wage law. 3 1 Cal. Lab. Code Id. 3 Lusardi Construction Co. v. Aubry (1992) 1 Cal.4th

19 B. Be Cognizant of Violations (Labor Code 1726). The body awarding the contract for public work is statutorily required to be cognizance of violations committed in the course of the execution of the contract related to the prevailing wage obligations, and must promptly report any suspected violations to the Labor Commissioner. 4 If the awarding body determines as a result of its own investigation that there has been a violation of this chapter and withholds contract payments, it should provide a notice of withholding of contract payments to the contractor or subcontractor, if applicable. 5 The notice must be in writing and must describe the nature of the violation and the amount of wages, penalties and forfeitures withheld. In addition, the awarding party must serve a copy of the notice to any bonding company issuing a bond that secures the payment of wages covered by the notice and to any surety on a bond. The affected contractor or subcontract is entitled to seek review of the withholding. 6 Moreover, a contractor may bring a lawsuit to recover, from an awarding body, the difference between the wages actually paid to an employee and the wages that were required to be paid to an employee under this chapter, any penalties required to be paid under this chapter, and costs and attorney s fees related to this action, if: (1) The awarding body previously affirmatively represented to the contractor in writing, in the call for bids, or otherwise, that the work to be covered by the bid or contract was not a public work, or if, (2) The awarding body received actual written notice from the Department of Industrial Relations that the work to be 4 Cal. Lab. Code Cal. Lab. Code Id. 16

20 covered by the bid or contract is a public work, and failed to disclose that information to the contractor before the bid opening or awarding of the contract. 7 C. Labor Compliance Programs (Labor Code ) Awarding bodies are permitted to establish and enforce their own Labor Compliance Program ( LCP ). By doing so, awarding bodies receive certain benefits, including the statutory permission to perform construction projects of up to twenty-five thousand dollars ($25,000) in value or for projects of up to fifteen thousand dollars ($15,000) when the project is for alteration, demolition, repair, or maintenance work, without the requirement that workers be paid prevailing wages. In addition, awarding parties are able to keep any penalties assessed against violators of the prevailing wage law. 8 Furthermore, Labor Code Sections and , awarding bodies must create and enforce LPCs in order to access funds for a public works project from the Kindergarten-University Public Education Facilities Bond Act of 2002 or the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of Moreover, Section will require the awarding body to initiate and enforce an LCP in order to access funds from the Safe, Reliable High Speed Passenger Train Bond Act. The mandatory requirements for an LCP include the following: (1) Appropriate Contract Language: All bid invitations and public works contracts shall contain appropriate language concerning the requirements as set forth in the Labor Code s prevailing wage provisions; 7 Cal. Lab. Code 1726(c). 8 Cal. Lab. Code

21 (2) Pre-Job Conference: A pre-job conference shall be conducted with the contractor and subcontractors to discuss federal and state labor law requirements applicable to the contract; (3) Payroll Records: Project contractors and subcontractors shall maintain and furnish, at a designated time, a certified copy of each weekly payroll containing a statement of compliance signed under penalty of perjury; (4) Review and Audit: The awarding body shall review, and, if appropriate, audit payroll records to verify compliance with this chapter; (5) Withholding: The awarding body shall withhold contract payments when payroll records are delinquent or inadequate; and (6) Contract Payments: The awarding body shall withhold contract payments equal to the amount of underpayment and applicable penalties when, after investigation, it is established that underpayment has occurred. D. What Is the Prevailing Wage Rate? For a particular craft, classification or type of work, in a locality in the in the nearest labor market area, the general prevailing wage rate for per diem wages include the following: (1) Basic Hourly Rate (Straight Time Pay). This basic hourly rate being paid to a majority of workers in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate). If there is no single rate being paid to the majority of workers, then the single rate being paid to the greatest number of workers is considered the prevailing wage rate. This is called the modal rate. If no satisfactory modal rate exists, the Director will establish an alternative rate 18

22 by considering the appropriate collective bargaining agreements, federal rates, and other data such s wage surveys. 9 (2) Holiday or Overtime Work. When the basic hourly rate is based upon a collective bargaining agreement, then the prevailing rate for holiday and overtime work are the also established by those agreements. If the basis hourly rate is not based on a collective bargaining agreement, then holidays and overtime pay included with the prevailing wage determinations will be the prevailing rate. For each prevailing wage determination, the prevailing hourly wage rate for holiday work is based upon all holidays set forth in the respective collective bargaining agreements on file with the Director. If the prevailing wage rate is not based upon a collective bargaining agreement, then holidays are paid as provided in the California Government Code section 6700, which lists state holidays. (3) Travel and Subsistence Payments. Travel and subsistence payments are required by the California Labor Code sections and These are derived verbatim from the collective bargaining agreement(s) adopted by the DLSR as the basis for the prevailing wage determination. (4) Other Employer Payments. The prevailing rate of employer payments for any or all programs or benefits for employees, their families and dependents, and retirees which are of the types enumerated below: Medical and hospital care, prescription drugs, dental care, vision care, diagnostic services, and other health and welfare benefits; Retirement plan benefits; Vacations and holidays with pay, or cash payments in lieu thereof; 9 Cal. Code Regs (a); Cal. Labor Code (a). 19

23 activity; Compensation for injuries or illnesses resulting from occupational Life, accidental death and dismemberment, and disability or sickness and accident insurance; Supplemental unemployment benefits; Thrift, security savings, supplemental trust, and beneficial trust funds otherwise designated, provided all of the money except that used for reasonable administrative expenses is returned to the employees; Occupational health and safety research, safety training, monitoring job hazards, and the like, as specified in the applicable collective bargaining agreement; Other bona fide benefits for employees, their families and dependents, or retirees as the Director may determine However, (b) The term general prevailing rate of per diem wages does not include any employer payments for: Job related expenses other than travel time and subsistence pay; Contract administration, operation of hiring halls, grievance processing, or similar purposes except for those amounts specifically earmarked and actually used for administration of those types of employee or retiree benefit plans enumerated above; Union, organizational, professional or other dues except as they may be included in and withheld from the basic taxable hourly wage rate; Industry or trade promotion; Political contributions or activities; Any benefit for employees, their families and dependents, or retirees including any benefit enumerated above where the contractor or subcontract is required by federal, state or local law to provide such benefit; Benefit required to be provided by state or federal law; and Other payments as the Director may determine to exclude. 20

24 E. Published Prevailing Wage Determinations The general prevailing wage rates are published twice a year, on February 22 and August 22. They become effective 10 days after publication. 10 The awarding body must provide the general prevailing wage rate for each craft, classification or type of worker needed for the contract in the call for bids, bid specifications and in the contract itself, or, include in the call for bids, bid specifications and the contract, a statement that copies of the prevailing wage rate for per diem wages is on file at this principle office, and make them available to any interested party upon request. F. Process By Which Prevailing Wage Rates Are Established (Labor Code and ; 8 CCR ) The prevailing wage rate is determined by the Director of Industrial Relations ( Director ) through the Division of Labor Statistics and Research ( DLSR ). 11 To determine the appropriate wage rate, the Director and/or the DLSR considers the rates established by collective bargaining agreements as well as federal works projects that exist in the same locality. If the collective bargaining agreement do not meet the same wage rates that are actually prevailing in the locality, the Director and/or DLSR may also seek information from employer organizations and unions in a particular craft, classification or type of work involved. 12 Such information may include wage surveys Cal. Code Regs Cal. Lab. Code 1773; 8 Cal. Code Regs , Cal. Lab. Code Cal. Code Regs. Id., tit. 8, 16200(d). 21

25 For a wage survey to carry weight with the Director, it must reflect the actual rates being paid on public and private projects under construction or recently completed in the locality, and in the nearest labor market. Further, the survey must demonstrate the actual hourly rate being paid to a majority of workers engaged in particular crafts, classifications or types of work within the locality and in the nearest labor market if a majority o such workers is paid at a single rate, or, if there is no single rate being paid to a majority of such workers, then the survey must establish the single rate (or model rate) being paid to the greater number of employees A wage surveys that provides only a summary or surveys the average, medium, or range : of wage rates will have no effect upon the termination of the prevailing wage rate by the Director. 14 The Director will issue a general determination, on a county to county basis, when he or she determines that the general prevailing wage rate of per diem wages for particular craft, classification or type of work is uniform through the local area. 15 The determination becomes effective ten (10) days after issuance of the determination, and it will usually contain an expiration date. 16 IV. What Must Public Works Contractors Do To Comply With The Prevailing Wage Law? A. Maintain and Furnish Records (Labor Code 1776; Cal. Code Regs. Tit , et seq.). 1. The Requirement to Maintain Payroll Records A contract or subcontractor is required to maintain and furnish accurate payroll records. In particular, the payroll records must show the name, address, social security number, 14 Id. 15 Id, tit. 8, Id., tit. 8,

26 work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, and it must state both of the following: (1) The information contained in the payroll record is true and correct and (2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project. The payroll records must be certified and available for inspection at all reasonable hours at the principal office of the contractor. Specifically, a certified copy of an employee's payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request. Moreover, a certified copy of all payroll records must be made available for inspection or furnished upon request to a representative of the body awarding the contract, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards of the Department of Industrial Relations. Further, a certified copy of all payroll records must be made available upon request by the public for inspection or for copies of the records. However, a request by the public must be made through either the body awarding the contract, the Division of Apprenticeship Standards, or the DLSE. The public may not be given access to the records at the principal office of the contractor. The certified payroll records must either be on forms provided by the DLSE or contain the same information as the forms provided by the division. The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts 23

27 contain the same information as the forms provided by the division and the printouts are verified. 17 A contractor or subcontractor must file a certified copy of the payroll records with the entity that requested the records within 10 days after receipt of a written request. 18 Any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body, the Division of Apprenticeship Standards, or the DLSE must be marked or obliterated to prevent disclosure of an individual s name, address, and social security number. 19 The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) must marked or obliterated only to prevent disclosure of an individual s name and social security number. A joint labor management committee may maintain an action in a court of competent jurisdiction against an employer who fails to comply with Section The court may award restitution to an employee for unpaid wages and may award the joint labor management committee reasonable attorney's fees and costs incurred in maintaining the action. An action under this subdivision may not be based on the employer's misclassification of the 17 Cal. Labor Code 1771(c). 18 Cal. Labor Code 1771(d). 19 Cal. Labor Code 1771(e). 20 Id. 24

28 craft of a worker on its certified payroll records. Nothing in this subdivision limits any other available remedies for a violation of this chapter. 21 The contractor is required to inform the body awarding the contract of the location of the payroll records, including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address. 22 The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the payroll records enumerated. 23 If the contractor or subcontractor fails to comply within the 10-day period, he or she will be penalized. As penalty, he or she must forfeit twentyfive dollars ($25) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards or the DLSE, these penalties are withheld from progress payments then due. A contractor is not subject to a penalty assessment due to the failure of a subcontractor to comply. 24 The body awarding the contract should insert in the contract stipulations to effectuate these requirements Requests for Certified Payroll Records Any person may make requests for certified copies of payroll records. Such requests must be made to the body awarding the contract, the DLSE or the Division of Apprenticeship Standards ( DAS. ) 26 Any such request must be in writing and must contained, 21 Id. 22 Cal. Labor Code 1771(f) 23 Cal. Labor Code 1771(g). 24 Id. 25 Cal. Labor Code 1771(h). 26 Cal. Code Regs. tit. 8,

29 at a minimum the following information: (1) the body awarding the contract; (2) the contract number and/or description, (3) the particular job location if more than one; (4) the name of the contractor; and (5) the regular business address, if known. 27 If a request is made for records of more than one contractor or subcontract, the request must list the information regarding that contractor individually, even if all requests pertain to the same particular public works project. Blanket requests covering an entire public works project will not be accepted, unless the contractor and subcontractor responsibilities regarding the project are not clearly defined. 28 When a request is received, the public entity receiving the request for payroll records is required to acknowledge receipt of the request and indicate the cost of providing the payroll records based on an estimate by the contractor, subcontractor or public entity. 29 The public entity will, in turn, contact the contractor or subcontract regarding the request for payroll records. 30 This request can be in any form or method, but must include the following: (1) identify the specific records to be provided and the form upon which the information is to be provided, (2) conspicuous notice that the person certifying the records, if not the contractor, is the agent of the contract, and that failure to comply with the request within ten (10) days will subject the contractor to a penalty of $25 per day for each worker until strict compliance is achieved; (3) payment of the costs of preparation, and (4) provide for inspection Id., tit. 8, 16400(b). 28 Id. 29 Id., tit. 8, 16400(c). 30 Id., tit. 8, 16400(d). 31 The person seeking to obtain payroll records must provide in advance, and prior to the release of the documents, the cost of preparing records to each contractor, subcontractor or public entity. Costs include $1 for the first page and $0.25 for each page thereafter, and an 26

30 3. Responding To Requests For Certified Payroll Records Following receipt of a written notice of a request for certified payroll records, a contractor has ten (1) days in which to comply. The format for reporting the payroll records must be on a form provided by the public entity. Copies of the forms may be obtained at any office of the DLSE in the state of California, or by writing to the following address: 32 Division of Labor Statistics & Research P.O. Box 603 San Francisco, CA Attention: Prevailing Wage Unit An alternate form may be used so long as it contains all of the information required pursuant to Labor Code section 1776 (i.e., name, address, social security number, work classification, straight time worked each day and week, overtime worked each day and week, and per diem wages paid.) 33 B. Pay The Prevailing Rate To All Workers (Labor Code 1771, 1774, 1813) Except for public works projects one $1,000 or less, all workers employed on a public works projects must be paid not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which eh public works is performed an not less than eh general prevailing rate of per diem wages for holiday and overtime work fixed. This applies for contracts let for maintenance work. 34 The contractor or subcontractor, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, must forfeit twenty-five dollars ($25) for each additional $10 to the contractor or subcontractor for handling costs. See Cal. Code Regs. Id., tit. 8, Id., tit. 8, Id. 34 Cal. Lab. Code 1771,

31 worker employed in the execution of the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. 35 C. Comply With The Apprenticeship Requirements (Labor Code ). The California Prevailing Wage law requires contractors who employ workers in any apprenticeable trade or craft on a public works project to employ apprentice in a specified minimum ratio of journeymen to apprentices and in accordance with a state approved apprenticeship training program. 36 Only apprentices who are training under the Apprenticeship Standards approved by the Chief of DAS are eligible to be employed by contractors parties to an apprenticeship agreement with the local apprenticeship committee that the apprentice wage rate on public works projects. The requirements for employment and training such individuals must be in accordance with the Apprenticeship Standards or the apprenticeship agreements under which the individual is training, or the rules of the California Apprenticeship Council. 37 Apprenticeship standards include the terms and conditions for the qualification, recruitment, selection, employment, training, working conditions, wages, employee benefits and other compensation for apprentices and other provisions as required by the labor Code. A list of 35 Cal. Lab. Code Cal. Lab. Code (g). This requirement does not apply to contracts of general contractors or to contracts of specialty contractors not bidding through a general or prime contractor where the contract of the general contractor or those specialty contractors involve less than $30, Id., (c). 28

32 the Apprenticeship Standards for apprenticeable trades, crafts, and occupational classification is listed in section the California Code of Regulations, Title 8, section

33 30

34 Prevailing Wage Issues in Complex Development Projects Prepared and Presented by: Jon Welner Paul, Hastings, Janofsky & Walker LLP *The Westlaw documents in this section have been reprinted with permission from Westlaw. 31

35 32

36 33

37 34

38 35

39 36

40 37

41 38

42 39

43 40

44 41

45 42

46 43

47 44

48 45

49 46

50 47

51 48

52 49

53 50

54 51

55 52

56 53

57 54

58 55

59 56

60 57

61 58

62 59

63 60

64 61

65 62

66 63

67 64

68 65

69 66

70 67

71 68

72 69

73 70

74 71

75 72

76 73

77 74

78 75

79 76

80 77

81 78

82 79

83 80

84 81

85 82

86 83

87 84

88 85

89 86

90 87

91 88

92 89

93 90

94 91

95 92

96 93

97 94

98 95

99 96

100 VI. How to Prevailing Wage Compliance Laura E. Innes, Esq. 97

101 98

102 A. FEDERAL PROJECTS a) How To Obtain Rates On federal projects, the prevailing wage rates are physically included within the contract documents. The federal agency has the responsibility of giving the contractor the correct prevailing wage determination. Under federal law, these wages cannot be raised or lowered within ten days before the bid due date unless the agency gives special advance notice to all contractors. Furthermore, the rates cannot be changed after the bid due date. If the awarding body fails to incorporate the prevailing wage determination in the bid specifications, the Department of Labor may incorporate the provisions after the contract has been let, or the DOL may terminate and re-solicit the contract. Beware that a contractor is expected to be cognizant of the prevailing wage rate if the wage determination is referenced in the contract or if the Davis-Bacon clause is set forth, even if the actual wage determination is not attached as required. Specification packages are occasionally distributed with incomplete attachments and exhibits. Be sure to secure the referenced wage determination from the awarding body prior to bidding. 99

103 However, if the bid documents omit a classification, the contractor should notify the awarding federal agency in writing of the amount the contractor intends to pay employees within that classification. The awarding agency will then contact the Department of Labor and submit the proposed wage rates. If the DOL approves the proposed wage rate, the contract will be "conformed" to include the wage. The DOL has the option of modifying the proposed wage or creating a new classification for the work. See subsection 3 below Conformance Rates. b) How the DOL Determines Prevailing Wage Rates The Department of Labor's wage determination procedures may be summarized in four steps: First, the Regional Office notifies national and local interested parties of the survey, its scope, and the survey cut-off date. Then, the Regional Office requests wage data from all contractors and subcontractors, following up with non-responding contractors, and clarifying ambiguous and/or inconsistent data. Next, the Regional Office analyzes and tabulates wage and fringe benefit data, and determines the adequacy of data provided. Finally, the National Office reviews and evaluates the survey. Based upon established criteria, it makes changes as required and issues the prevailing wage rates for the defined area. 100

104 Where it has been determined that a majority of workers in a particular trade have historically been members of a particular labor union, the collectively bargained rate by that union will be considered "prevailing" and surveys will not be conducted until it is shown that the union no longer employs a majority of such workers. Once a collectively bargained rate is found to be "prevailing," it is very difficult to overturn that presumption. The prevailing wage rate may be issued as either a "general" or a "project" wage determination. General Wage Determinations are usually issued whenever the wage patterns for a given location and type of construction are well settled and it appears that there will be a recurring need for determined rates. Such determinations are published in General Wage Determinations Issued Under the Davis-Bacon and Related Acts, with notice in the Federal Register. General wage decisions contain no expiration date and remain in effect until changed. Project Wage Determinations are issued at the specific request of a contracting agency, are applicable to the named project only, and expire 180 calendar days from the date of issuance. c) Conformance Rates 101

105 Anytime after a contract is awarded, the contracting agency may request the Wage-Hour Administrator to add a needed classification and wage rate to the wage determination for that contract. Such an action is called a "conformance" or "additional classification." Such request may be made even after a project has been completed. Every conformance request is analyzed to verify that the following criteria have been met: - The work to be performed is not performed by a classification already in the wage determination. - There is information to indicate that the classification is utilized in the area by the construction industry. - The proposed wage rate, including any bona fide fringe benefits, is conformable; i.e., bears a reasonable relationship to the wage rates in the determination. - There is agreement among the parties (including the contracting agency, the contractor, and its employees) involved. (Agreement is not actually necessary. All interested parties, however, including employees and their representatives, if any, must have been contacted and given an opportunity to provide input regarding the description of duties and rates sought.) 102

106 - The request is not for apprentices or trainees. The conformance request should be answered within 30 days. As a practical matter, however, an answer may easily be delayed from 18 to 24 months. During the pendency of the request for a conformance rate, further processing of any pending Department of Labor audit with regard to the classification in which a conformance rate is sought, is held in abeyance. An "interested person" may seek review and reconsideration from the Administrator of the Wage and Hour Division of a wage determination, with regard to wage rates or application to a contract, or of a decision in a conformance action. Interested persons include contractors, contractor associations, construction workers (laborers and mechanics), labor unions, and federal, state and local agencies. A request for review and reconsideration must be written. Except for conformance appeals (which may be made at any time), it must be made before any contract is awarded and, in most cases, before the bid opening date if any wage rate changes are contemplated. The request for review and reconsideration should be accompanied by supporting data or information. Persons seeking reconsideration should be aware that a survey may be necessary to resolve the issue, and that surveys generally require a significant amount of time. If 103

107 reconsideration has been sought and denied, an interested person may appeal to the Wage Appeals Board for review of the Administrator's decision. In determining the proper wage for an omitted classification, the DOL will generally consider the wage rates for similar classifications. Contractors should anticipate this and base their own proposed wage upon the wage rate paid to employees who do similar work. If more than one classification performs similar work, the contractor should be prepared to pay the higher rate of the similar categories because a rate determination by the DOL applies retroactively back to the beginning of the work. This means that if the contractor selected the lower rates and the DOL selects the higher rates, the contractor is in violation of the prevailing wage laws and must make back wage restitution. A contractor in such a situation should inform the contracting agency of the need for a conformance rate and should be prepared to substantiate the duties, justify the rate requested and show that employees (or their representative) had been notified of the request. In such situations, the contractor should consider requesting a change order for a conformance rate requested which is higher than the rate used for bid development. Ensure that any such request is timely made and properly documented. d) Rate Escalation 104

108 Davis-Bacon wage determinations on federal projects do not change during the course of the project. e) Determining Job Classifications Under federal law, the contractor must use the "prevailing" classification, even if there are two or more appropriate classifications. If there is no "prevailing" classification, any classification that is used by a substantial percentage of the workforce in the trade may be used. The determination as to which of one or more appropriate rates is "prevailing," is made by the Department of Labor. This may involve conducting an area practice survey. If the employer is unsure which of two or more job classifications applies to an employee, the employer is safest in paying the higher wage rate of the possible classifications. In this way, the employer protects itself from later penalties if the Department of Labor decides that the employee is classified under the higher paying job class. However, the safest route is also the most costly. Alternatives to paying the higher rate include: (1) requesting a determination as to what job classification a particular worker is entitled; or (2) paying the lower rate and fully documenting the reasons for 105

109 classifying the worker in that category. The documentation would include, for example, a written job description of the employee, a written explanation of why the employee was so classified and, if possible, a survey of other workers in the area doing the same work and how they have been classified. f) Classifying Employees Performing Multiple Job Duties Some employees perform work under more than one job classification. In such situations, a strict accounting of the employee's time must be made in order to determine how many hours were worked under each classification. Employees must be compensated at the rate specified for the time actually worked in each such classification. In order to be sure that employees in these special circumstances are correctly compensated, it may be necessary to have them fill out special time cards, have a supervisor keep a close watch on them, and limit their transfer from one job classification to another job classification as much as possible. If the monitoring proves too difficult and costly, it may be preferable to pay the worker the higher wage at all times in order to avoid sanctions. g) Payment of Overtime 106

110 Overtime wages under federal law are determined by multiplying the base rate by one and one-half (½) for each hour over forty (40) worked during the week. A contractor may exclude the amount of his/her contributions or costs for fringe benefits from the determination of the base rate as long as the exclusion does not push the base rate below the prevailing rate. Thus, on a purely federal construction project, a contractor can schedule workers for work weeks such as four, ten-hour days. h) Fringe Benefit Requirements Like the base rate, the fringe benefit portion of the prevailing wage is a component of the public works "minimum" wage. The full prevailing wage (base and fringes) must be paid for each covered hour worked. This includes both straight time and overtime hours. Under the Davis-Bacon Act, "wages" means the basic hourly rate of pay and: "[a]ny contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to a bona fide fringe benefit fund, plan or program; and the rate of cost to the contractor or subcontractor which may be reasonably anticipated in providing fringe benefits to laborers and mechanics pursuant to an enforceable commitment to carry out a financially 107

111 responsible plan or program which was communicated in writing to the laborers and mechanics effected." 29 CFR 5.2(p). The fringe benefits enumerated in the Davis-Bacon Act include: (1) medical or hospital care; (2) pension on retirement or death; (3) compensations for injuries or illness resulting from occupational activity; (4) insurance to provide any of the foregoing; (5) unemployment benefits; (6) life insurance; (7) disability insurance; (8) sickness insurance; (9) accident insurance; (10) vacation or holiday pay; (11) deferring cost of apprenticeship or other similar programs; or (12) other bona fide fringe benefit programs. Fringe benefits do not include benefits required by federal, state, or local laws. Non-bona fide benefits include those for tools and equipment, and vehicle and travel expenses. See, Tom Mistick & Sons v. Reich (D.C. Cir. 1995) 2 WH2d These non-bona-fide fringe benefits may not be credited to the prevailing wage obligation. On federally-regulated projects, the contractor may pay a combination of cash equivalent and fringe benefit contributions. For example, contributions may be made on the employer's behalf to a health insurance fund, a pension fund, and the rest of the permissible fringe benefit amount may be paid to the worker in cash (as additional wages). In any case, 108

112 the total amount paid by the contractor for wages and benefits cannot be less than the amount specified in the wage determination. A contractor working on a federal Davis-Bacon job can pay any combination of fringes and wages so long as it equals or exceeds the prevailing wage determination. Of course, the contractor is not required to establish bona fide fringe benefit plans for purposes of Davis-Bacon Act compliance. It may pay the fringe benefit amount as part of the base wage. Even though required fringe benefits are paid in cash, they do not become part of the base wage for overtime calculation purposes. Fringe benefit plans must comply with DOL and ERISA requirements. If an employer is signatory to a union contract, it usually has no practicable alternative to participating in union fringe benefit plans. If, on the other hand, an employer has an open shop, it has several avenues open to meet its fringe benefit requirements under federal or state law. The employer can provide the benefit as set forth in the wage determination; the employer may fund another bona fide fringe benefit of comparable value; or the employer can pay the hourly cash equivalent of the fringe benefit. i) Annualization 109

113 An employer must also be sensitive to "annualization" rules as they relate to fringe benefit plans. This issue should be addressed with legal counsel before taking a credit toward the prevailing wage for pension plan contributions. Annualization requires a contractor to determine the annual cost of the fringe benefit, and divide it by all hours worked during the year on both private and public works jobs to get the hourly equivalent of the annual benefit. For example, a contractor who pays a monthly medical insurance premium for purposes of providing a designated fringe benefit should take full credit for that payment by ascertaining its hourly value and applying the value as a credit to the fringe benefit required. Thus, an employer who provides medical coverage should determine the hourly value of that premium in a given week as follows: multiply the monthly premium by 12 to determine the annual premium; divide by 52 to determine the weekly premium; each week, divide the weekly premium by the employee's hours worked (on all jobs) to determine the hourly premium for that week for the medical premium. The hourly premium will fluctuate from week to week as an employee's weekly hours fluctuate from week to week. If the medical premium in a given week is worth $1.00 an hour, the contractor may take that 110

114 amount toward the aggregate hourly fringe benefit required on hours worked in that week. There is one exception to the annualization requirement. There is no need to annualize prevailing wage contributions to an hours bank pension plan when the contributions are irrevocable and immediately, fully vested. Full credit can be taken for such contributions toward the prevailing wage benefit requirement. j) Certified Payroll Requirements (1) Form of Recordkeeping Under the Davis-Bacon Act, the Copeland Anti- Kickback Act and the Contract Work Hours Safety Standard Act, mechanics and laborers employed "on the site" must be paid at least once a week. Payroll records and basic records must be kept for three years. These include only records created during the course of work for all workers employed "at the site" of the public works contract. The records should contain: 1) Name; 2) Address; 3) Social Security number; 4) Correct job classification; 5) Hourly rate of wages paid; 6) Rates of contributions or costs anticipated for fringe benefits or the cash equivalents; 7) Daily and weekly hours worked; 8) Deductions 111

115 made and actual wages paid; and 9) Evidence of the registration of apprentices and trainees, their ratio in the work force, and their applicable rate of wage. As a practical matter, all persons at the job site should be listed on the certified payroll records. This is true even if such persons were supervisors not working, owners, or visitors. Such persons' names can be listed and a description of their purpose at the job site noted alongside their name. No work hours or payroll information need follow those names, although some contractors list hours worked at the site by owner-operators in anticipation of a later compliance audit. The purpose of that listing is to forestall questions a contractor may face when a "head count" taken at the job site does not correspond to the number of names listed on the payroll. "Head counts" are increasingly used as a measure of a contractor's compliance with prevailing wage law. They may be done by the contracting agency, a competitor, a union business agent or by an employee of private third-party monitoring organizations such as the Foundation for Fair Contracting (FFC). Such organizations generally "target" open shop contractors and monitor their compliance with prevailing wage law. The Davis-Bacon Act requires weekly submission 112

116 of all payroll records to the contracting agency. These records must include all of the information listed above. There is no set form for the records so they may be submitted in any form desired. (2) Certification Along with the payroll, both the Davis-Bacon Act (Regs. 5.5(a)(3)(ii)(B)) and the Copeland Anti-Kickback Act (40 U.S.C. 276(c)) require that a statement of compliance be submitted to the contracting agency. The statement is signed by the contractor or agent supervising the payroll and certifies the following: (1) the information submitted is correct and complete; (2) each worker employed on the contract has received the full weekly wages earned without indirect or direct rebate, without deductions other than those authorized by law; and (3) each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits for the classification of work performed. B. State/Local Projects a) How To Obtain Rates In most state and local government contracts, there is a "Notice to Bidders." This notice will routinely state that the correct prevailing wages have been determined by the Director of Industrial Relations 113

117 and are on file with the contracting agency. Unlike the federal contract documents, the actual prevailing wage rates are not usually set forth in the contract materials. Accordingly, the recommended procedure is to obtain a copy of the prevailing wage determinations that are on file with the agency. In most cases, however, the agency has not collected the rates and they are not actually on file. Even if the agency does not have the determination on file, the contractor is not relieved from his/her responsibility to comply with the prevailing wage statutes; thus, the contractor must contact the Department of Industrial Relations, Division of Labor Statistics and Research ( DLSR ), directly to obtain the appropriate prevailing wage rate. The good news is that the wage determinations and the collective bargaining agreements which are referenced in the prevailing wage determination footnotes are on the internet and may be obtained directly from DLSR s website. Wage determinations are available on the internet at: " From that home page, follow the prompts to the prevailing wage determinations. b) Special Determinations In the event a contractor does not agree with the wage determination or believes that the Department of Industrial Relations has 114

118 failed to issue a wage determination for a particular classification of work, a special determination may be requested. However, certain time limits must be met. A petition to review a determination or a request for special determination must be made within "twenty days after commencement of advertising of a call for bids by any awarding body." (Once this deadline is passed, it is highly unlikely that the contractor will receive a special determination.) Without a special determination, a contractor is likely to end up paying a higher wage rate based upon the general craft description that is closest to the work to be performed. If a contractor has any question about the controlling nature of the specifications, the determination provisions provided for in the Labor Code should be utilized. c) Effective Dates One must always check the date on the prevailing wage rate documents to ensure that they are applicable to the project in question. The date applicable is the rate in effect on the bid advertisement date. (Use the last advertisement date if it ran more than once.) If the published rate has expired as of the last bid advertisement rate, but a new rate has not yet become effective, the expired rate controls. d) The Model Rate 115

119 Effective July 1, 1999 the definition of prevailing rate was codified by Labor Code Section to provide that when there is no single rate paid to a majority of workers, then the prevailing rate is the modal rate or the rate being paid to the greatest number of workers. In most instances the rate will be the rate contained in a collective bargaining agreement covering a particular craft in a particular geographic area of work regardless of the number of employees actually receiving the pay rate. e) Union Contract Rates It should also be noted that prevailing wage laws create only a minimum wage. It is possible that a company with union contracts may be required to pay higher wages than the state or federal requirements. Conversely, a contractor with a union agreement must still comply with the prevailing wage requirements even if her/her contract permits lower wages. A contractor's prevailing wage responsibilities are independent of his/her obligations pursuant to agreements with his/her own employees or employees covered by union contracts. f) Rate Escalation Under the state prevailing wage determination, when wage increases in rates are scheduled under the collective bargaining agreements 116

120 upon which prevailing wage so heavily relies, the contractor is required to observe the increased rates during the life of the project. Such rate increases are signaled by a double asterisk appearing on the determination immediately to the right of the expiration date denoting that rate increases have been determined and are on file with the Division of Labor Statistics and Research. Those increases can be obtained by clicking on the button for increases which will appear on the internet page containing the wage determination. g) Determining Wage Classifications For each craft wage determination, there is a written Scope of Work provision. The Scope of Work descriptions are available from the Division of Labor Statistics and Research (the DLSR ) through their office and on the internet, at the DLSR s prevailing wage information. [ This material is taken straight from the applicable collective bargaining agreements. This becomes a complicated issue when the Scope of Work for more than one trade describes the activity at issue. There are no written resources which address the issue of which classification, as between more than one arguably correct classification, should be used. While in the past the Department of Industrial Relations maintained that it is the responsibility of 117

121 awarding bodies, and not the Division of Labor Standards Enforcement, to determine the appropriate job classifications on public works projects, that is no longer the agency s position. To avoid mistake, contractors are encouraged to seek written classification determinations from the DLSR before bidding the job and to keep a written record of the response. If an issue arises during a job, a contractor should seek clarification from DLSE. h) Classifying Employees Performing Multiple Job Duties Some employees perform work under more than one job classification. In such situations, a strict accounting of the employee's time must be made in order to determine how many hours were worked under each classification. Employees must be compensated at the rate specified for the time actually worked in each such classification. Blended rates cannot be used. Proportional estimates of time cannot be used. In order to be sure that employees in these special circumstances are correctly compensated, it may be necessary to have them fill out special time cards, have a supervisor keep a close watch on them, and limit their transfer from one job classification to another job classification as much as possible. If the monitoring proves too difficult and costly, it may be 118

122 preferable to pay the worker the higher wage at all times in order to avoid sanctions. The bottom line is that the employer's payroll records must accurately set forth the time spent in each classification in which work is done, if the employer desires to pay less than the amount of the highest paying job classification in which the employee worked during the week. i) Payment of Overtime State public works overtime wages are determined in one of two ways. If the Director of Industrial Relations has determined the prevailing wage by reference to a collective bargaining agreement and the agreement includes an overtime provision, that provision will determine the prevailing overtime rate if it exceeds time and one-half for overtime after 8 hours of work in a day. Cal. Admin. Code In all other situations, the overtime pay will be one and one-half (1-1/2) times the base rate of pay after eight (8) hours of work in a day. Four-ten workweeks still require the payment of overtime after 8 hours in a day on California public works notwithstanding the terms of a collective bargaining agreement to the contrary. Labor Code

123 The premium rates for daily, Saturday, Sunday and holiday hours are set forth on the state wage determination. Be sure to use the premium rate published. Do not attempt merely to multiply the base rate by one and one-half or by two. Certain of the fringe benefit portions of the wage, such as vacation and holiday pay, may be included in the premium rates. Note also that premium rates apply for work on weekends, holidays, and during certain hours of the day ("clock pattern" overtime), even if the worker has not worked more than eight daily hours or forty weekly hours on such days. Clock pattern overtime requirements will be found in the footnotes on the wage determination. j) Fringe Benefit Requirements Like the base rate, the fringe benefit portion of the prevailing wage is a component of the public works "minimum" wage. The full prevailing wage (base and fringes) must be paid for each covered hour worked. This includes both straight time and overtime hours. Section of the California Labor Code provides that prevailing wages "shall be deemed to include employer payments for health and welfare, pension, vacation, travel time and subsistence pay, apprenticeship or other training programs... and similar purpose..." The 120

124 specific fringe benefits and the amount of contribution permitted under state law are set forth in the wage determination; the specific fringes and amounts listed are not critical it is the aggregate fringe total that matters. Like federal law, under state law, the contractor has flexibility to mix and match wage and fringe benefit rates. The contractor will receive credit toward satisfying the prevailing wage for all amounts paid for qualifying fringe benefits. Overpaying one listed fringe benefit in a state prevailing wage specification offsets any other category of fringe benefit. (Provided, however, the amount listed for training should be paid to an approved training program, or to the California Apprenticeship Council ( CAC ).) k) Annualization On July 1, 2001, amendments to the Prevailing Wage statutes became effective severely limiting a contractors ability to take full credit against prevailing wage for hours bank benefit contributions. Pursuant to these new requirements, the credit for employer payments must be computed on an annualized basis where the employer seeks credit for payments that are higher for public works projects than for private construction performed by the same employer, except: payments made for 121

125 training contributions to approved apprenticeship training programs or to the California Apprenticeship Council; or pursuant to a project labor agreement. "Annualization" requires an employer to average the total annual contributions made on behalf of an employee across the total annual hours an employee works. Thus, if an employee were to spend half of his annual working hours on private works projects and half on public works projects; and if the employer contributed $10.00 per hour to the hours bank pension plan for all public works projects, but $0 per hour for the private work, the average would be $5.00 per hour and the employer would only be able to take that $5.00 per hour credit toward the fringe benefit obligation. To take credit for contributions made to pension or profit sharing plans, the contributions should be funded no less frequently than quarterly and must be annualized. There is one exception to the annualization requirement -- there is no need to annualize prevailing wage contributions to an hours bank pension plan when the contributions are irrevocable and immediately, fully vested. Full credit can be taken for such contributions toward the prevailing wage benefit requirement. This exception is consistent with the federal rule (which applies to federal prevailing wage projects). 122

126 Relevant Labor Code Sections Payment of Prevailing Wage Labor Code Section 1774 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 workmen employed in the execution of the contract. Joint and Several Liability Labor Code Section 1743 The contractor and subcontractor shall be jointly and severally liable for all amounts due pursuant to a final order under this chapter or a judgment thereon. The Labor Commissioner shall first exhaust all reasonable remedies to collect the amount due from the subcontractor before pursuing the claim against the contractor. (b) From the amount collected, the wage claim shall be satisfied prior to the amount being applied to penalties. If insufficient money is recovered to pay each worker in full, the money shall be prorated among all workers. 123

127 (c) Wages for workers who cannot be located shall be placed in the Industrial Relations Unpaid Wage Fund and held in trust for the workers pursuant to Section Penalties shall be paid into the General Fund. (d) A final order under this chapter or a judgment thereon shall be binding, with respect to the amount found to be due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. The limitations period of any action on a payment bond shall be tolled pending a final order that is no longer subject to judicial review. General Can Avoid Sub s Penalties Labor Code Section 1775(b) a)prime not liable for penalties unless prime had knowledge of sub s violation or failed to comply with due diligence requirements set forth in Labor Code Section 1775(b)(1), (2), (3), (4). Contract contains copy of Labor Code Sections 1771, 1775, 1776, , 1813 and Monitor and review sub certificates 124

128 Take prompt corrective action (including withholding) Prior to final payment obtain affidavit from sub that prevailing wage and Section 1813 requirements met Overtime Labor Code Sections Overtime after 8 hours No 4/10 workweeks on public works Wage Order 16 meal/rest period provisions also apply on public works $25.00 per day per worker penalty for OT violations Certified Payroll Records Labor Code Section 1776 Contractor must keep accurate certified payroll records Available for inspection by employee or authorized representative Available for inspection or furnished upon request to awarding body, DLSE, DAS and DIR Available to public through awarding body, DAS or DLSE (cost of copies must be advanced) 125

129 Certifieds on forms provided by DLSE or must contain the same info Records disclosed by public agency or awarding body must delete employee names, addresses, and social security numbers (except joint-labor management committee can obtain addresses) $25 per day per worker penalty if records not produced within 10 days of receipt of notice 126

130 Prevailing Wage Compliance Estimator/Project Manager s Checklist 1. Pre-Award If general includes required Labor Code Sections as addendum to each subcontract. Verify which craft classifications will be used on the project. Wage Determination For each Determination, note effective date and expiration date; calendar expiration date for rate change (if the expiration date is noted with a double asterisk ("**") Prior to the expiration of a rate which has a double asterisk, contact the DLSR to determine the rates to be used upon the current rate s expiration. For each classification, determine base and fringe totals, and overtime rates use overtime rates as listed on the wage determination do not merely multiply the base rate by 1.5 and add the fringe benefit totals it doesn t always work out that simply. Note footnotes any "clock pattern" overtime requirements? 127

131 Any rate available for a limited number of hours? (E.g., trainee rate for first 1000 hours of employment in the trade.) Determine the number of premium pay holidays. Determine apprentice rates and number of apprentice hours for each classification. 2. Post -Award Complete and submit DAS 140 forms for each apprenticeable craft (within 10 days of award) Make request for apprentices (48 hours in advance of time needed.) Ensure accuracy and detail of jobsite recording re: hours worked. Prevailing Wage Compliance Bookkeeper s Checklist Verify which craft classifications will be used on the project. Wage Determination For each Determination, note effective date and expiration date; calendar expiration date for rate change (if the expiration date is noted with a double asterisk ("**") Prior to the expiration of a rate which has a double asterisk, contact the DLSR to determine the rates to be used upon the current rate s expiration. 128

132 For each classification, determine base and fringe totals, and overtime rates use overtime rates as listed on the wage determination do not merely multiply the base rate by 1.5 and add the fringe benefit totals it doesn t always work out that simply. Note footnotes any "clock pattern" overtime requirements? Any rate available for a limited number of hours? (E.g., trainee rate for first 1000 hours of employment in the trade.) Will apprentices be used on the project? If so, collect the indenture papers for the payroll file. Calculate the value of any benefit plan contributions paid on behalf of employees: The amount listed as the training contribution must be paid to an approved apprenticeship program or to the CAC monthly. This amount does not go to the employee directly. Health insurance monthly premium paid? To determine the dollar value of this benefit, multiply the monthly premium by 12 and divide 52 weeks, and then divide by the total hours worked in the week for hourly credit or divide the employer paid portion 129

133 of the monthly premium by the total number of hours worked by the employee in the month (private and public works) this will give you the hourly value of the premium to credit toward the fringe benefit total due. Pension plan contributions which are funded no less frequently than quarterly may be credited. Divide the employers contribution by all hours worked (private and public) during the period covered by the contribution to get the hourly rate. Provided, however, if the pension is an ERISA qualified hours bank plan that is immediately fully vested, the hourly rate contributed for each prevailing wage hour worked can be fully credited toward the hourly fringe benefit total due. Calculate weekly payroll based on time cards submitted. An employee may work in more than one craft classification in a week or in a day if the duties are broken out on the time card with start and stop times. (E.g., in a day that is listed as: operate backhoe 6:30 to 10:00, lay pipe in trench 10:00 to 12:30, lunch 12:30 to 1:00, joint pipe 1:00 to 2:30, site clean up 2:30 to 3:00 you might have three different trades operating engineer, pipefitter and laborer.) 130

134 Calculate training fund contributions once a month. Checklist for Ensuring Subcontractor Prevailing Wage Compliance Required Labor Code provisions attached to Subcontract? DAS 140 forms Contract Award Information Sheet submitted by the Subcontractor one for each craft to be employed by the subcontractor on the project. (These should have been submitted within ten days after bid award.) Complete and submit certified payroll records. Records should list weekly hours/wages, but Subcontractor may actually cut a payroll as infrequently as twice a month. For any apprentice listed, provide copies of indenture papers. Note classifications used confirm with the Project Manager or Job Superintendent that the classifications listed are consistent with the work being performed. Verify rates used: gather applicable wage determinations; calendar expiration date for double asterisk ("**") rates; confirm that new rates are immediately in use following the expiration of double asterisk rates. Request and provide to contractor fringe benefit statements and proof of payment of fringe benefits made to insurance plans, trust funds, etc. 131

135 Periodically spot check the body count confirm with the Project Manager or Job Superintendent that the number of workers listed on the Certified Payroll Record are consistent with the number he/she noted in his/her Job Diary for that same day. Confirm Apprentice dispatch requested. Secure copies of dispatch request forms and provide to contractor. Request copies of monthly training fund contribution transmittals and provide to contractor. Provide an affidavit of compliance to Contractor. Obtain copy of verification of apprentice hours and provide to contractor. 132

136 Project Labor Agreements Prepared and Presented by: Roger M. Mason Sweeney, Mason, Wilson & Bosoworth 133

137 134

138 135

139 136

140 137

141 138

142 139

143 140

144 141

145 142

146 143

147 144

148 145

149 146

150 147

151 148

152 149

153 150

154 151

155 152

156 153

157 154

158 155

159 156

160 157

161 158

162 159

163 160

164 161

165 162

166 163

167 164

168 165

169 166

170 167

171 168

172 169

173 170

174 171

175 172

176 173

177 174

178 175

179 176

180 177

181 178

182 179

183 180

184 181

185 182

186 183

187 184

188 185

189 186

190 187

191 188

192 189

193 190

194 191

195 192

196 193

197 194

198 195

199 196

200 197

201 198

202 199

203 200

204 201

205 202

206 203

207 204

208 205

209 206

210 207

211 208

212 209

213 210

214 211

215 212

216 213

217 214

218 215

219 216

220 217

221 218

222 219