Chapter 7: Labor Compliance File

 

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• 7-1  Introduction
• 7-2  Tracking Requirements
  • 7-2-1  Categories
• 7-3  Mail Distribution
• 7-4  Payroll Security
• 7-5  Purging

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7-1 Introduction

File labor compliance documents on Construction-administered projects in accordance with Section 5-102, “Organization of Project Documents,” of the Construction Manual.

All labor compliance files must be maintained to assure that all records and documents are included, particularly in the event of a complaint or audit. Projects in the web-based payroll management system should also have a labor compliance file created, because the payroll management system is inappropriate for Public Records Act requests, processing audits and complaints, and letters or other forms of communication with contractors or subcontractors.

File paper records and documents chronologically, with the most recent date in front. Resident engineers, contract managers and contractors often staple records from different projects together. Separate and read dates, contract numbers, and contractors, before checking documents and filing each record in the labor compliance files. Misfiling can result in erroneous deductions against the contractors or other consequences.

7-2 Tracking Requirements

7-2-1 Categories

State forms are numbered based on categories. For instance, all construction forms start with CEM (Construction Engineering Management), which is followed by the category number plus a two-digit number referencing that unique form. For example: Form CEM-2501, “Fringe Benefit Statement,” would be filed in Category 25, “Labor Compliance and Equal Employment Opportunity.” State forms are located on the Forms page of the Construction website.

Federal form numbers that start with FHWA designate the Federal Highway Administration. Labor compliance staff should file these forms with other forms, according to content.

Labor compliance files are organized into four categories; some categories may not be applicable for service or other contracts:

Category 12: “Contractor”

• Category 12 should contain Form CEM-1201, “Subcontracting Request,” and the subletting subcontracting Fair Practices Act list of contractors.

Category 24: “Disadvantaged Business Enterprises and Disabled Veteran Business Enterprises (DVBE)”

Category 25: “Labor Compliance and Equal Employment Opportunity.” Category 25 may contain the following subcategories:

• 25.1: Correspondence between contractors and Labor Compliance and resident engineers
• 25.12: Employee interviews
• 25.13: Documentation or poster reviews
• 25.2: Pre-job conferences
• 25.3: Apprentice agreements; can be in separate file for all projects
• 25.4: Formal cases sent to headquarters Division of Construction Labor Compliance
• 25.41: Source document audit
• 25.5: Posting sheet log
• 25.51: Estimate Deductions
• 25.6: Payrolls; file prime first with subcontractors following in alphabetical order
• 25.61: Fringe benefit statements
• 25.7: EEO
• 25.71: Reports
• 25.72: Discrimination complaints
• 25.73: Interviews showing discrimination and subsequently sent to the Caltrans Civil Rights Office

Category 46, “Assistant Resident Engineers’ Daily Reports.” Category 46 may contain the following subcategories:

• 46.1: Assistant resident engineer’s daily report
• 46.2: Weekly status reports from resident engineer

File contract special provisions and the contract and proposals in front.

7-3 Mail Distribution

Mail is distributed to staff in accordance with district procedures. Figure 7-A, “Mail Distribution Guidelines,” highlights guidelines.

FIGURE 7‑A: MAIL DISTRIBUTION GUIDELINES

7-4 Payroll Security

Because of the confidential nature of payroll records, they must be secured to ensure security compliance with Deputy Directives:

• DD-55-R3, "Management of Information Assets and Records"
• DD-89, "Security of Portable Computing Devices and Portable Electronic Storage Media"

Pursuant to California Code of Regulations, Title 8, Section 16404, (8 CCR 16404) “Use of Electronic Reporting Forms,” it is recommended that certified payroll records are received in electronic transmissions. Details on this process can be found on the Labor Compliance web page under Electronic Submission of Certified Payroll Records at:

https://dot.ca.gov/programs/construction/labor-compliance

• The contractor or subcontractor should submit the Contractors Acknowledgement to the appropriate Labor Compliance Office.
• The Labor Compliance Office will respond with a username and password for future submissions by the contractor.
  • NOTE: Each district or region has its own secure transfer file that is only accessible using the assigned username and password.
• Once access is granted, contractors should use the file transfer protocol guide on the Labor Compliance web page to submit their certified payroll documents.

If payroll records need to be saved to a separate location, labor compliance staff should contact their district IT office to request a secured network folder or drive to be set up for these purposes. Payroll records should never be stored locally on a computer hard drive.

While Caltrans will continue to accept paper records, for contracts not subject to the contractual requirements of a web-based reporting system, hard-copy payrolls must be:

• Locked in a file cabinet
• Briefly stored where payrolls are not visible to other employees or non-Caltrans staff
• Shredded immediately if they are duplicate payrolls

For projects and payroll records in the web-based payroll management system, do not print the payroll records unless personally identifiable information, such as Social Security numbers, is redacted.

If certified payroll records are lost or the confidentiality is breached, please refer to Deputy Directive DD-55-R3. Report any possible security breach of payroll records to headquarters Labor Compliance as soon as a concern is identified. Refer to the guidelines outlined in SIMM 5340-C, "Requirements to Respond to Incidents Involving a Breach of Personal Information," and complete Form ADM-3040, "Information Security Incident Reporting."

7-5 Purging

Try to avoid any duplication of documents when incorporating them with the project files such as daily reports. This would include certified payroll records and prevailing wage rates applicable to the specific project, plus any other documentation that may not be in the resident engineers’ file. For hard-copy payroll records, a note will be placed in the corresponding section of the resident engineer’s project file directing users to contact the Labor Compliance unit when they require copies of certified payroll records. At the completion of the project and when all the payroll documents are filed and correct, the labor compliance documents will need to be shredded or destroyed to assure personal confidential information is not compromised. 

Keep your backup labor compliance case files in your file. A copy of a formal case sent to Division of Construction should be in the resident engineer’s project files. The completed project files, including payroll records are maintained for three years in accordance with Section 7, “Legal Relations and Responsibility to the Public,” in the Standard Specifications. In the event of a wage case, documentation may need to be kept longer, in accordance with Section 5-104C, “Disposition of Construction Project Records,” of the Construction Manual.

Payroll records in the web-based payroll system should not be printed and stored.

The Standard Specifications do not govern service contracts, and the contract manager should maintain all project files, including payroll records. Payroll records are maintained for three years, but for the other project files, refer to the standards set by your divisional record retention department.