PRE-CONSTRUCTION CONFERENCE - LABOR COMPLIANCE OUTLINE

I. PREVAILING WAGES

State and Local Contracts:

You can access this information via the Internet at: www.dir.ca.gov/dlsr/DPreWageDetermination.htm.

Check the expiration dates for each of the crafts of work. The single asterisk* shown after the expiration date means the wage rate will not change for the life of the contract. The double asterisks ** mean the rate will expire on the date shown and a new rate will go into effect the following day.

The rates to be used for this contract may be found under the NORTHERN or SOUTHERN California wage determination in the first portion of the wage determination. Proceed to the back portion of the book and find the applicable county for each craft you are utilizing.

State and Local Contracts with Federal Aid:

The Federal Prevailing Wage Rates are listed in the Proposal and Contract. Review and compare the Federal and State wage rates and pay the higher of the two rates. If the Federal wage rate prevails, that rate will be in effect for the life of the contract.

The type of work your employees will be performing (classification) must be acknowledged in both the Federal and State prevailing wage determinations in order to be used on a project with both Federal and State funding. A classification such as Laborer Helper is recognized by the State but not in the Federal prevailing wage listing. Therefore, you cannot use this classification and pay that wage rate on a federally funded contract.

Please make copies of the applicable wage rate sheets representing all crafts of work used on the project and display them at the job site.

Footnotes at the bottom of wage rate sheets indicate special information pertinent to that craft, such as the ratios that need to be adhered to, i.e., the Pipe Tradesman ratio is: "The first worker will be a journeyman plumber. There must be at least one journeyman or apprenticeship for each tradesman used."

Subsistence, when applicable, must be shown on the payroll, as it is money that is paid directly to the employee. If it is not shown on the payroll and you charge it on Extra Work Bills, the Resident Engineer (RE) may ask for proof it has been paid. Note: There are areas in the Central Region that require subsistence payments.

Overtime is paid for work performed in excess of 8 hours in a day and 40 hours in a week. Saturdays, Sundays and Holidays are overtime days of work. Some classifications allow for Saturdays in the same workweek to be worked at the straight-time rate for the first 8 hours, if the employee was unable to complete the 40 hours during the normal workweek. Check the footnotes for the classification you are using to determine the appropriate overtime rates to be used for weekends.

II. PAYROLLS Payroll forms to be used for Caltrans contracts are (Local Agencies may have their own versions):

CEM-2501: Fringe Benefit Statement - Complete all applicable boxes, sign and date. The information on the form is required for companies employing union employees. Submit updated information as benefit plans change.

CEM-2502 with DC-CEM-2503: Contractor Payroll/Subcontractor Payroll and Statement of Compliance - This is the mandatory payroll form to be used by all companies that do not have a computerized system. Caltrans WILL NOT accept other payroll form(s). Please destroy obsolete Caltrans payroll forms.

CEM-2503: Statement of Compliance - This form should be used by companies submitting a computerized payroll form. If companies do not wish to use this form, they must provide a form that contains identical wording. This form must accompany all payroll documents and have an original (wet ink) signature. Signature stamps are not acceptable on this form.

CEM-2505: Owner-Operator Listing - Companies employing owner-operators are required to submit this form reporting the gross sums received by the owner-operator, hours worked, rate of pay and information identifying the vehicle and individual driver. This form is to be completed by the company that directly hires and pays the owner operator and will not be accepted from the owner-operator himself/herself.

All prime contractors should keep a supply of payroll related forms in their office and provide them to subcontractors, as needed. In the interest of keeping the copies clear and legible, we ask that you provide original forms to subcontractors instead of faxed versions. Illegible payroll documents will not be accepted.

CEM-2510: TruckOwner-Operator Certification of Ownership - The truck owner-operator uses this form to identify the vehicle used and certify ownership or lease of the vehicle. This form should be submitted once per project to the district labor compliance office unless changes to the data would necessitate a new form. See Section 8-1, "Labor Compliance," of the Caltrans Construction Manual for more information.

Name, address and SSN are required on the first payroll. Subsequent payrolls need only list the employee's name, unless an employee's address changes.

Classifications and group numbers are required on each payroll. Refer to the General Prevailing Wage Rates. Example: A general laborer would be shown on the payroll as Laborer Group 1 for the North or Laborer Group 3 for the South.

Make sure hours worked on the job are reported accurately. Payrolls must show all hours an employee worked for contract item work and extra work.

Deductions are taken for missing or late certified payrolls, related documents, or wage underpayments. If a deduction has been taken it will be reported on the monthly Progress Pay Estimate, under "Schedule of Deductions" as an LCV (Labor Compliance Violation). The prime contractor will also receive a form from the Labor Compliance Office that explains the LCV deductions(s). The amount withheld for the month represents 10% of the Progress Pay Estimate. A minimum deduction of $1,000 and maximum deduction of $10,000 may be withheld. The money withheld is not intended to be a permanent deduction. When acceptable documents are received and issues resolved by the 15th of the month, funds will be released on the following month's Progress Pay Estimate. There is no limit to the number of monthly deductions that can be taken.

Faxes are sent to the prime contractor upon completions of the monthly Progress Payments. The fax will contain an itemized list of missing payrolls, describe any discrepancies in a received payroll, or notify of any other missing documents. The fax will also include a current status of deductions and release of deductions. You may expect to receive this faxed correspondence with a monthly update by the 22nd of the month provided that this date does not fall on a weekend.

III. OTHER REQUIRED DOCUMENTS

Apprenticeship Agreement - This must be submitted with the first payroll that shows the apprentice working. The Apprenticeship Agreement must be issued by the State of California, Division of Apprenticeship Standards. A letter from the Department of Apprentice stating that the employee is an indentured apprentice will also be accepted.

IV. GENERAL INFORMATION

The prime contractor is responsible for all subcontractors. Make sure all requirements (the prevailing wage rates, the due dates for payrolls, the deduction process for missing payrolls, etc.) are covered with the subcontractors and the office staff that is responsible for paying the employees and submitting the payroll documents. All wage rates updates provided to prime contractors should be copied and distributed to subcontractors.

The contract number is required on all payrolls, Fringe Benefit Statements, Statements of Compliance, correspondence, etc.

Commercial/Material Suppliers - Certified payrolls are not required for suppliers or deliveries. However, should that company stay on the job site and physically work they are subject to prevailing wage rates and a payroll is required.

Trucking - All trucking within the job site is covered work, as is trucking of materials off the job site to another public works site. Trucking activities will be monitored by the Resident Engineer and staff and will be recorded on a diary and on the Weekly Status Report. Truckers must be paid the prevailing wage rate for their work and certified payroll documents or owner-operator forms are required.

V. MISCELLANEOUS ITEMS

The Labor Compliance package contains posters, which must be displayed at the job site along with copies of all the wage rate sheets representing crafts that will be used on this job.

Retain all paperwork for at least 3 years past the job completion date, i.e. canceled checks, bank statements, time cards, and tax records.

Reminder of DBE goals - You are expected to use the companies listed in your bid documents. If the DBE cannot perform the job, you must contact the R.E. immediately to discuss the process for substitution. Do not perform the DBE's work, as this will likely result in nonpayment for the item of work involved. Please review Sections 2 and 5 of the Special Provisions.