HomeMy WebLinkAboutAgenda Report - April 19, 2017 C-18CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE:
MEETING DATE:
PREPARED BY:
AGENDA ITEM
&18
Adopt Resolution Accepting Labor Compliance Program for the Purpose of Fulfilling
Proposition 84 Grant Funding Requirement
April 19, 2017
Public Works Director
RECOMMENDED ACTION: Adopt resolution accepting Labor Compliance Program for the purpose
of fulfilling Proposition 84 grant funding requirement.
BACKGROUND INFORMATION: The City of Lodi Public Works Department is required to have a Labor
Compliance Program (LCP) that is approved by the California
Department of Industrial Relations (DIR) as a condition to receiving
a $4.6 million Proposition 84 grant from the State of California. Grant funds are being used to fund the
White Slough Water Pollution Control Facility Storage Expansion Improvement Project estimated to cost
$6 million.
The LCP formalizes existing Public Works contract policies to ensure that public works contractors comply
with the prevailing wage requirements found in the California Labor Code. The Labor Code establishes
minimum requirements which all LCP's must meet or exceed in carrying out the labor compliance function
such as payment of applicable prevailing wage rates, employment of properly registered apprentices, and
timely submittal of certified payroll records.
The LCP also establishes agency policy for monitoring construction sites for verification of proper employee
payments, conducting pre -job conferences related to labor compliance, withholding contractor payment for
noncompliance and submitting annual reports to DIR for projects that are State and/or federally funded.
Upon Council accepting the LCP, the document will be transmitted to DIR for review and approval, a
process that can take up to 90 days.
Michael Baker International, Inc. currently provides labor compliance services for both the Public Works and
Community Development departments. Because of their familiarity with the City's labor compliance
practices, they were tasked with producing the City's LCP, as well as composing an application to DIR to
request approval of the program. A resolution accepting the LCP by City Council must accompany the
application when submitted.
FISCAL IMPACT: The City is currently receiving project reimbursements from the Proposition 84
grant, however, these reimbursements are subject to the City having an LCP
approved by DIR.
FUNDING AVAILABLE: Not applicable.
Charles E. Swimley, Jr.
Public Works Director
Prepared by Julia Tyack, Transportation Planner
CES/JMT/tdb
Attachment
cc: Wastewater Plant Superintendent
Michael Baker International, Ms. Cynthia Walsh
APPROVED: T__;. \
t ch Ouer,_C y Manager
K:\WP\PROJECTS\0. Labor Compliance Services\2016-17 Labor Compliance Program_ Prop 84 Grar ..l=inai Labor Compliance Program_2-27-17\Council
Communication_Prop 84 Grant.doc 4/3/17
CITY OF LODI
LABOR COMPLIANCE PROGRAM
MARCH 2017
Approved as tali
City" Attorney
TABLE OF CONTENTS
Introduction 1
Section 1 Public Works Subject to Prevailing Wage Laws 2
A. Types of Contracts to Which Prevailing Wage Requirements Apply 2
B. Limited Exemption 2
C. Applicable Dates for Enforcement of the LCP 2
Section 2 Competitive Bidding on City Public Works Contracts 3
Section 3 Pre -Construction Conference 4
Section 4 Wage Decision 7
A. Federal Wage Decision 7
B. State Wage Determination 7
C. Posting the Wage Decision 8
Section 5 Required Forms 9
A. Weekly Forms 9
Section 6 Review of Certified Payroll Records 10
A. Certified Payroll Reports (CPR) Required 10
B. Apprentices 13
C. Audit of Certified Payroll Records 13
D. Final Closing/Closeout Review 13
Section 7 Reporting of Willful Violations to the Labor Commissioner 14
A. Failure to Comply with Prevailing Wage Requirements 14
B. Falsification of Payroll Records, Misclassification of Work, and/or Failure to Accurately Report
Hours of Work 14
C. Failure to Submit Certified Payroll Records 14
D. Failure to Pay Fringe Benefits (Employer Contributions) 14
E. Failure to Pay the Correct Apprentice Rates and/or Misclassification of Workers as Apprenticesl4
F. Taking or Receiving a Portion of an Employee's Wages (Kickbacks) 14
Section 8 Enforcement Action 16
A. Duty of the Awarding Body 16
B. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate 21
C. Withholding for Violation for Not Paying the Per Diem Prevailing Wages 23
D. Forfeitures Requiring Approval by the Labor Commissioner 23
E. Determination of Amount of Forfeiture by the Labor Commissioner 24
F. Liquidated Damages 26
G. Request for Review 26
H. Deposits of Penalties and Forfeitures Withheld 27
I. Debarment Policy 27
Section 9 Notice of Withholding And Review Thereof 29
A. Notice of Withholding of Contract Payments 29
B. Review of NWCP 29
Section 10 Distribution of Forfeited Sums 31
Section 11 Outreach Activities 32
A. Providing Information to the Public 32
B. In-service Management Training on the Labor Compliance Program 32
Section 12 Annual Reports 33
A. Annual Reports on Prevailing Wage 33
B. Annual Report on the LCP to the Director of the Department of Industrial Relations 33
ATTACHMENTS
A. Checklist of Labor Law Requirements for Review at Pre -Construction Conference
B. Audit Record Forms
C. Single Project Labor Compliance Review and Enforcement Report Form
D. Notice of Temporary Withholding of Contract Payments Due to Delinquent or Inadequate Payroll Records
E. Request for Approval of Forfeiture
F. Notice of Withholding of Contract Payments
G. Notice of Opportunity to Review Evidence
H. Notice of Transmittal of Request for Review to DIR Lead Hearing Office
I. Forms
ii
INTRODUCTION
In establishing this Labor Compliance Program (LCP), the City of Lodi adheres to the statutory
requirements as enunciated in Section 1771.5(b) of the California Labor Code. Furthermore, it is the
intent of the City to actively enforce this LCP by monitoring construction sites for the payment of
prevailing wage rates, and by requiring contractors and subcontractors having workers on
construction sites to submit copies of certified payroll records demonstrating their compliance with
the payment of prevailing wage rates.
Should applicable sections of the California Labor Code or Title 8 of the California Code of
Regulations (CCR) undergo alteration, amendment, or deletion, the City of Lodi will modify the
affected portions of this program manual accordingly.
The primary function of the LCP is to ensure that public works contractors comply with the
prevailing wage requirements found in Division 1 Part 7 of the California Labor Code "Public Works
and Public Agencies." This regulation is intended to establish minimum requirements which all LCPs
shall meet or exceed in carrying out that function. Definitions found throughout this regulation are
intended to provide LCPs and representatives of the Department of Industrial Relations and the
Division of Labor Standards Enforcement with common terminology as they each perform their
respective roles in prevailing wage enforcement in furtherance of the Labor Code provisions
establishing LCPs. This regulation is also intended to confirm that the proactive investigation
methods, as described in detail herein, only comprise the minimum obligations required of LCPs to
satisfy their duty to operate an LCP as specified in Sections 16428 and 16434.
This LCP contains the labor compliance standards required by state and federal laws, regulations,
and directives, as well as City policies and contract provisions, which include, but are not limited to,
the following:
1. Contractor payment of applicable general prevailing wage rates.
2. Contractor employment of properly registered apprentices.
3. Contractors providing certified payroll records upon request but not less than weekly.
4. Monitoring of construction sites for the verification of proper payments of prevailing wage
rates and work classification.
5. Conducting pre -job conferences with contractors/subcontractors.
6. Withholding of contract payments and imposing penalties for noncompliance.
7. Preparation and submittal of annual reports.
The City understands all elements of said regulations and it is the City's intention to keep this
program manual updated, reflecting the current amendments to all public works laws and regulations.
The Labor Compliance Officer (LCO) will represent the City of Lodi in enforcement of this LCP.
The LCO will be responsible for the implementation and enforcement of the LCP and may utilize
consultants to support his/her efforts as necessary to meet the requirements of this LCP.
The functions and scope of the LCO will vary based on project funding sources. For detailed labor
compliance requirements, please refer to the applicable funding source.
1
SECTION 1
PUBLIC WORKS SUBJECT TO PREVAILING WAGE LAWS
State prevailing wage rates apply to public works contracts as set forth in Labor Code Sections 1720
et seq., and include, but are not limited to, such types of work as construction, alteration, demolition,
repair or maintenance work. The Division of Labor Statistics and Research (DLSR) predetermines
appropriate prevailing wage rates for particular construction trades and crafts by county.
A. Types of Contracts to Which Prevailing Wage Requirements Apply
The City of Lodi institutes this general Labor Compliance Program (LCP) as provided in Section
1771.5(b) of the Labor Code. When the City determines a project to require prevailing wages, these
sections of the Labor Code will be enforced on such projects.
As provided in Labor Code Section 1771.8(a), an awarding body that chooses to use funds derived
from the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 shall
initiate and enforce a Labor Compliance Program as described in subdivision (b) of Section 1771.5
of the Labor Code with respect to that public works project. Accordingly, upon approval by the
director of the Department of Industrial Relations, the City of Lodi's LCP shall apply to public works
using funds derived from this act.
B. Limited Exemption
As provided in Labor Code Section 1771.5(a), if a City of Lodi public works project would be
otherwise subject to prevailing wage requirements except that the value is $25,000 or less when the
project is for construction or installation work or of $15,000 or less when the project is for alteration,
demolition, repair, or maintenance work, then the City shall not require payment of the general rate
of per diem wages or the general rate of per diem wages for holiday and overtime work for such
projects. A project for construction, installation, alteration, demolition, repair, or maintenance work
shall be identified as such in the call for bids, and in the contract or purchase order.
If, however, the amount of such a contract is changed and, as a result, exceeds the applicable limit
under which the payment of the general rate of per diem wages is not required, workers employed on
the contract after the amount due the contractor has reached the applicable limit shall be paid the
general rate of per diem wages for regular, holiday, or overtime work, as the case may be.
C. Applicable Dates for Enforcement of the LCP
The applicable dates for enforcement of awarding body Labor Compliance Programs are established
by CCR Section 16425. Contracts are not subject to the jurisdiction of the City's LCP until after the
program has received initial or final approval.
2
SECTION 2
COMPETITIVE BIDDING ON CITY PUBLIC WORKS CONTRACTS
The City publicly advertises upcoming public works projects to be awarded according to a
competitive bidding process. All City bid advertisements or bid invitations and public works
contracts contain appropriate language concerning requirements of the Labor Code.
3
SECTION 3
PRE -CONSTRUCTION CONFERENCE
After the City awards the public works contract, and prior to the commencement of the work, a
mandatory pre -construction conference shall be conducted by the LCO with the contractor and those
subcontractors listed in its bid documents.
At that conference, the LCO will discuss the federal and state labor law requirements applicable to
the contract, including prevailing wage requirements, the respective record-keeping responsibilities,
the requirement for the submittal of certified payroll records to the City, and the prohibition against
discrimination in employment.
The LCO will provide the contractor and each subcontractor with a checklist of labor law
requirements (presented as Attachment A to this document) and will discuss in detail the following
checklist items:
1. Payment of Prevailing Wage Rates
The contractor to whom the contract is awarded and its subcontractors hired for the public works
project are required to pay not less than the specified general prevailing wage rates to all workers
employed in the execution of the contract.
The contractor is responsible for ascertaining and complying with all current general prevailing
wage rates for crafts and any rate changes that occur during the life of the contract. Information
on all prevailing wage rates and all rate changes are to be posted at the job site for all workers to
view.
2. Apprentices
It is the duty of the contractor and subcontractors to employ registered apprentices on the public
works project under Labor Code Section 1777.5.
3. Penalties
Penalties are required for the contractor's/subcontractor's failure to pay prevailing wages and for
failure to employ apprentices, including forfeitures and debarment under Labor Code Sections
1775, 1776, 1777.1, 1777.7, and 1813.
4. Certified Payroll Reports
Under Labor Code Section 1776, contractors and subcontractors are required to keep accurate
payroll records showing the name, address, social security number, and work classification of
each employee and owner performing work; also the straight time and overtime hours worked
each day and each week, the fringe benefits, and the actual per diem wage paid to each owner,
journeyperson, apprentice worker, or other employee hired in connection with the public works
project.
Employee payroll records shall be certified and shall be made available for inspection at all
reasonable hours at the principal office of the contractor/subcontractor, or shall be furnished to
any employee, or his/her authorized representative on request, pursuant to Labor Code Section
1776.
Each contractor and subcontractor shall submit its weekly certified payroll reports to the City on
a weekly basis. In the event that there has been no work performed during a given week, the
Certified Payroll Report shall be annotated "No Work" for that week.
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Under Labor Code Section 1776(g), penalties are required for the contractor's/subcontractor's
failure to maintain and submit copies of certified payroll records on request.
The requirement includes and applies to all subcontractors performing work on this project even
if their portion of the work is less than one-half of one percent (0.5%) of the total amount of the
contract.
5. Nondiscrimination in Employment
Prohibitions exist against employment discrimination under Labor Code Sections 1735 and
1777.6, the Government Code, the Public Contracts Code, and Title VII of the Civil Rights Act
of 1964.
6. Kickbacks Prohibited
Contractors and subcontractors are prohibited from recapturing wages illegally or extracting
"kickbacks" from employee wages under Labor Code Section 1778.
7. Acceptance of Fees Prohibited, and the federal Copeland "Anti -kickback" Act (18 USC
Section 874).
A prohibition exists against contractor/subcontractor acceptance of fees for registering any
person for public works under Labor Code Section 1779, or for filling work orders on public
works contracts pursuant to Labor Code Section 1780.
8. Listing of Subcontractors
All prime contractors are required to list properly all subcontractors hired to perform work on the
public works projects covering more than one-half of one percent (0.5%), pursuant to
Government Code Section 4100 et seq.
9. Proper Licensing
Contractors are required to be licensed properly and to require that all subcontractors be properly
licensed. Penalties are required for employing workers while unlicensed under Labor Code
Section 1021 and under the California Contractor License Law found at Business and Professions
Code Section 7000 et seq.
The City will not award contracts to, fund, or otherwise engage the services of any contractor or
subrecipient during any period of debarment, suspension, or placement in ineligibility status
under the provisions of 24 CFR 570 et seq.
10. Unfair Competition and Conflict of Interest Prohibited
Contractors/subcontractors are prohibited from engaging in unfair competition as specified under
Business and Professions Code Sections 17200 to 17208.
No employee, officer, or agent of the City shall participate in the selection, the award, or the
administration of a contract supported by federal funds if a conflict of interest, real or apparent,
would be involved.
No covered persons who exercise or have exercised any functions or responsibilities with respect
to federally assisted activities, or who are in a position to participate in a decision-making
process or gain inside information with regard to such activities, may obtain a direct or indirect
financial interest in any contract, or have a financial interest in any contract, subcontract, or
agreement with respect to the federally assisted activity, or with respect to the proceeds from the
federally assisted activity, either for themselves or those with whom they have business or
5
immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes
of this paragraph, a "covered person" includes any person who is an employee, agent, consultant,
officer, or elected or appointed official of the City, the contractor, or any designated public
agency.
The City will incorporate into every written subcontract the following provision:
"INTEREST OF CONTRACTOR AND EMPLOYEES: The contractor covenants that no
covered person who exercises or has exercised any functions or responsibilities with respect to
federally assisted activities, or who are in a position to participate in a decision-making process
or gain inside information with regard to such activities, will obtain a direct or indirect financial
interest in this contract, or have a financial interest in any contract, subcontract, or agreement
with respect to the federally assisted activity, or with respect to the proceeds from the federally
assisted activity, either for themselves or those with whom they have business or immediate
family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this
statement, a `covered person' includes any person who is an employee, agent, consultant, officer,
or elected or appointed official of the City, the contractor, or any designated public agency."
11. Workers Compensation Insurance
Labor Code Section 1861 requires that contractors and subcontractors be insured properly for
workers compensation.
12. OSHA
Contractors and subcontractors are required to abide by the Occupational Safety and Health
Administration laws and regulations that apply to the particular construction project.
13. Undocumented Workers
Federal law prohibits contractors and subcontractors from hiring undocumented workers and
requires contractors and subcontractors to secure proof of eligibility/citizenship from all workers.
14. Itemized Wage Statements
Contractors and subcontractors are required to provide itemized wage statements to employees
under Labor Code Section 226.
The contractors and subcontractors present at the preconstruction conference will be given the
opportunity to ask questions of the LCO relative to the items contained in the labor law
requirements checklist. The checklist will then be signed by the contractor's representative and a
representative of each subcontractor and the City's LCO.
At the preconstruction conference, the LCO will provide the contractor with a copy of the City's
LCP package which will include: a copy of the approved LCP, the checklist of labor law
requirements, applicable prevailing wage rate determinations, blank certified payroll record
forms, fringe benefit statements, state apprenticeship requirements, and a copy of the Labor Code
relating to Public Works and Public Agencies (Part 7, Chapter 1, Sections 1720-1861).
It will be the contractor's responsibility to provide copies of the LCP package to all listed
subcontractors and to any substituted subcontractors.
6
SECTION 4
WAGE DECISION
A. Federal Wage Decision
Davis -Bacon labor standards stipulate the wage payment requirements for carpenters, electricians,
plumbers, roofers, laborers, and other construction work classifications that may be needed for the
project. The Davis -Bacon wage decision that applies to the project contains a schedule of work
classifications and wage rates that must be followed.
In most cases the wage decision included in the construction contract is "locked in" once the contract
is awarded or when construction begins; no future modifications are applicable to the contract or
project involved. A retainage of ten percent (10%) is recommended on most contracts: five percent
(5%) to ensure that the performance and quality of work being performed is satisfactory and five
percent (5%) to ensure compliance with labor standards. Contracts in excess of $250,000 must enter
the retainage in excess of five percent (5%) into an interest-bearing account. A retainage of less than
five percent (5%) should not be held.
On occasion, the applicable Davis -Bacon wage decision does not contain all of the work
classifications and wage rates needed to complete the construction work. The LCO should request an
additional classification and wage rate. This process will be started once the construction contract has
been awarded. The request will include what the employer (prime contractor or subcontractor) wants
to pay workers performing a particular set of duties.
B. State Wage Determination
State prevailing wage rates apply to all public works contracts as set forth in Labor Code Sections
1720, 1720.2, 1720.3, 1720.4, and 1771. The general prevailing wage determination is established by
the California Department of Industrial Relations, Division of Labor Statistics and Research.
The Department of Industrial Relations' prevailing wage determination can be found at the following
website: www.dir.ca.gov/dirdatabases.htrnl.
Prevailing wage determinations for journeyman as well as apprentice schedules can be accessed from
this site.
Prevailing wage determinations are issued by the Department of Industrial Relations twice a year, on
February 22 and August 22. Wage determinations are referenced by the four -digit year followed by a
dash (-) and then a one (1) or a two (2). A one (1) is for the February 22 determination; a two (2) is
for the August 22 determination. For example, the prevailing wage determinations for 2005 are 2005-
1 and 2005-2.
The correct wage determination for a project is determined by the advertisement date of the invitation
to bid. Projects advertised from February 22 to August 21 would use the yyyy-1 wage determination.
Projects advertised between August 22 and February 21 would use the yyyy-2 wage determination.
1. Predetermined Increase
Contractors must be aware of the single (*) and double (**) asterisks. Within the wage
determination for a specific trade, the expiration date will be followed by a single (*) or double
(**) asterisk. A single asterisk indicates that the rate for that specific classification will be in
effect for the duration of the project. A double asterisk indicates that the rate for that specific
classification is subject to change according to predetermined increases.
7
Example: The 2005-1 prevailing wage determination for a particular craft has an expiration date
of June 18, 2005**. The double asterisk indicates that the rate for that specific classification is
subject to change. To determine the correct wage rate, the predetermined increases need to be
applied. Apply the expiration date and the single (*) asterisk and double (**) asterisk
accordingly.
Each prevailing wage determination will show either a single (*) asterisk or a double (**)
asteri sk.
C. Posting the Wage Decision
If you are the prime contractor, you will be responsible for posting a copy of the wage decision (or
the Project Wage Rate Sheet) and a copy of the Department of Labor Davis -Bacon poster titled
"Employee Rights under the Davis -Bacon Act (Form WH -1321)" at the job site in a place that is
easily accessible to all construction workers employed at the project and where the wage decision
and poster won't be destroyed by wind or rain, etc. The "Employee Rights under the Davis -Bacon
Act" poster is available in English and Spanish online.
8
SECTION 5
REQUIRED FORMS
A. Weekly Forms
These forms are due weekly, unless noted, and must be submitted within one (1) week of the end
date of the pay period.
1. Certified payroll
A sample form is provided, but other formats containing the same information are acceptable.
After the contractor or subcontractor begins work on the project, a Statement of Non -
Performance is required for any week during which no work is performed; Statements of Non -
Performance should be numbered consecutively in coordination with certified payrolls. The last
certified payroll must clearly be marked "FINAL."
2. Fringe Benefit Statement
If an effective date range is noted on the statement and it covers all classifications performing
work on the job, the form does not need to be submitted weekly.
3. Authorization for Deductions
This form is required for the contractor and all subcontractors. Standard deductions, such as for
taxes or state disability insurance, do not need to be included. All other deductions may be
included. Documentation such as court orders or a statement signed by the worker for consistent
deductions may be accepted in lieu of this form.
9
SECTION 6
REVIEW OF CERTIFIED PAYROLL RECORDS
A. Certified Payroll Reports (CPR) Required
The contractor and each subcontractor shall maintain payrolls and basic records (timecards, canceled
checks, cash receipts, trust fund forms, accounting ledgers, tax forms, superintendent and foreman
daily logs, etc.) during the course of the work and shall preserve them for a period of three (3) years
thereafter for all trade workers working on City projects which are subject to the LCP. Such records
shall include the name, address, and social security number of each worker, his or her classification,
a general description of the work each employee performed each day, the rate of pay (including rates
of contributions for, or costs assumed to provide fringe benefits), daily and weekly number of hours
worked, and actual wages paid.
1. Submittal of Certified Payroll Reports
The contractor and each subcontractor shall maintain weekly certified payroll records for
submittal to the City of Lodi LCO as required. The contractor shall be responsible for the
submittal of payroll records of all its subcontractors. All certified payroll records shall be
accompanied by a statement of compliance signed by the contractor or each subcontractor
indicating payroll records are correct and complete, wage rates contained therein are not less than
those determined by the director of the Department of Industrial Relations and classifications set
forth for each employee conform with work performed.
Time cards, front and back copies of canceled checks, daily logs, employee sign -in sheets, and/or
any other record maintained for the purposes of reporting payroll may be requested by the LCO
at any time and shall be provided within ten (10) days following receipt of request.
2. Use of Electronic Reporting Forms
Certified payroll records required by Labor Code 1776 may be maintained and submitted
electronically subject to all of the following conditions:
a. The reports must contain all information required by Labor Code Section 1776,
organized in a manner that is similar to how the information is reported on the
Department of Industrial Relation's "Public Works Payroll Reporting Form" (Form A-
1-131).
b. The reports shall be in a format and use software that is readily accessible and available
to contractors, awarding bodies, Labor Compliance Programs, and the Department of
Industrial Relations.
c. Reports submitted to this Labor Compliance Program must be either (1) in the form of
non -modifiable image or record that bears an electronic signature or includes a copy of
an original certification made on paper, or alternatively (2) printed out and submitted
on paper with an original signature.
d. The requirements for redacting certain information shall be followed when certified
payroll records are disclosed to the public pursuant to Labor Code Section 1776(e),
whether the records are provided electronically or as hard copies.
10
e. No contractor or subcontractor shall be mandated to submit or receive electronic reports
when it otherwise lacks the resources or capacity to do so, nor shall any contractor or
subcontractor be required to purchase or use proprietary software that is not generally
available to the public.
f. Contractors that fail to meet these requirement or are found to have modified or
tampered with the document will not be allowed to use electronic format and will be
required to submit original wet signed paper documents.
Electronic documents not allowed on projects funded by agencies that require original
wet signed paper documentation.
g.
3. Certified Payroll Report Format
CPR information may be submitted in any format provided that the LCO can reasonably interpret
the information to monitor employer compliance with the labor standards.
4. Submission Requirements
CPRs shall be submitted for each employer beginning with the first week such employer
performs work on the work site. CPRs shall be submitted promptly following the close of each'
such pay week.
5. Certified Payroll Report Preparation
CPRs that are prepared by hand shall be prepared in ink; CPRs prepared in pencil are not
acceptable.
6. Payroll Numbering
CPRs should be numbered sequentially beginning with "1." The CPR must identify the name of
the employer, the project for which the CPR is prepared, the week ending date, and the workdays
throughout the workweek. The CPR for the last week of work performed on the project by each
employer should be clearly marked "FINAL."
7. Work Classification
Enter the appropriate work classification for each employee. Note: Only the work classifications
listed on the applicable wage decision may be utilized. If the wage decision does not contain a
work classification and wage rate that is needed for the project, the employer must request an
additional classification and wage rate.
8. Split Classifications
The division of hours worked in different classifications shall be accurately maintained and
clearly reported. The employer may list the employee once for each classification, distributing
the hours of work accordingly, and reflecting the rate of pay and gross earnings for each
classification. Deductions and net pay may be based upon the total gross amount earned for all
classifications.
9. Hours Worked at Other Job Sites
The CPRs should reflect ONLY hours worked at the covered site of work. If an employee
performs work at job sites other than the covered project for which the CPR is prepared, those
hours worked at other job sites should not be reported on the CPR. In such cases, the employer
should list the employee's name, work classification, hours worked, hourly rate of pay, and gross
earnings for the covered project over the gross earnings for all projects/work performed (e.g.,
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$528.00/$816.00). Deductions and net pay should be reported based upon the employee's total
earnings (for all projects) for the week.
10. "No Work" Payrolls
A Statement of Non -Performance must be submitted in weeks when work was not performed.
Statements of Non -Performance should be numbered consecutively along with the certified
payrolls. If work is suspended for more than one week, a single Statement of Non -Performance
can be submitted covering the entire timeframe.
11. Full Accountability
Each individual, laborer, or craftsperson working on this public works contract must appear on
the payroll. The employer who pays the trade worker must report that individual on its payroll.
This includes individuals working as apprentices in an apprenticeable trade. Owner -operators are
to be reported by the contractor employing them; rental equipment operators are to be reported by
the rental company paying the workers' wages.
Sole owners and partners who work on this contract must also submit a CPR listing days and
hours worked and the trade classification descriptive of work actually done.
The contractor shall provide records required under this section to the City of Lodi within five (5)
days of each payday, and shall make these records available for inspection by the Department of
Industrial Relations, and shall permit representatives of each to interview trade workers during
working hours on the project site.
12. Responsibility for Subcontractors
The contractor shall be responsible for ensuring adherence to labor standards provisions by its
subcontractors. Moreover, the prime contractor is responsible for Labor Code violations of its
subcontractors in accordance with Labor Code Section 1775.
13. Payment to Employees
Employees must be paid unconditionally, and not less often than once each week, the full
amounts due and payable for the period covered by the particular payday. Thus, an employer
must establish a fixed workweek (Sunday through Saturday, for example) and an established
payday (such as every Friday or the preceding day should such payday fall on a holiday). On
each and every payday, each worker must be paid all sums due as of the end of the preceding
workweek and must be provided with an itemized wage statement.
If an individual is called a subcontractor, whereas, in fact, he/she is merely a journey level
mechanic supplying only his/her labor, such an individual would not be deemed a bona fide
subcontractor and must be reported on the payroll of the prime contractor as a trade worker.
Moreover, any person who does not hold a valid contractor's license cannot be a subcontractor,
and anyone hired by that person is the worker or employee of the general contractor for purposes
of prevailing wage requirements, certified payroll reporting, and workers' compensation laws.
The worker's rate for straight time hours must equal or exceed the rate specified in the contract
by reference to the Prevailing Wage Determinations for the class of work actually performed.
Any work performed on Saturday, Sunday, and/or on a holiday, or portion thereof, must be paid
the prevailing rate established for those days regardless of the fixed workweek. The hourly rate
for hours worked in excess of eight (8) hours in a day or forty (40) hours in a workweek shall be
premium pay. All work performed on Saturday, Sunday and holidays shall be paid pursuant to
the Prevailing Wage Determination.
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B. Apprentices
Apprentices shall be permitted to work as such only when they are registered, individually, under a
bona fide apprenticeship program registered and approved by the California Division of
Apprenticeship Standards. The allowable ratio of apprentices to journeypersons in any
craft/classification shall not be greater than the ratio permitted to the contractor as to its entire
workforce under the registered program.
Any worker listed on a payroll at an apprentice wage rate who is not registered shall be paid the
journey level wage rate determined by the Department of Industrial Relations for the classification of
the work he/she actually performed. Pre -apprentice trainees, trainees in non-apprenticeable crafts,
and others who are not duly registered will not be permitted on public works projects unless they are
paid full prevailing wage rates as journeypersons.
Compliance with California Labor Code Section 1777.5 requires all public works contractors and
subcontractors to:
1. Submit contract award information to the apprenticeship committee for each apprenticeable
craft or trade in the area of the project.
2. Request dispatch of apprentices from the applicable apprenticeship program(s) and employ
apprentices on public works projects in a ratio to journeypersons which in no case shall be less
than one (1) hour of apprentice work to each five (5) hours of journeyperson work.
3. Contribute to the applicable apprenticeship program(s) or the California Apprenticeship
Council in the amount identified in the prevailing wage rate publication for journeypersons and
apprentices. If payments are not made to an apprenticeship program, they shall be made to the
California Apprenticeship Council, Post Office Box 420603, San Francisco, CA 94142.
4. Provide a certificate of enrollment for the apprentice showing enrollment in the approved
apprenticeship program.
If the contractor is registered to train apprentices, the contractor shall furnish written evidence of the
registration (i.e., Apprenticeship Agreement or Statement of Registration) of its training program and
apprentices, as well as the ratios allowed and the wage rates required to be paid thereunder for the
area of construction, prior to using any apprentices in the contract work. It should be noted that a
prior approval for a separate project does not confirm approval to train on any project. The
contractor/subcontractor must check with the applicable Joint Apprenticeship Committee to verify
status.
C. Audit of Certified Payroll Records
Audits shall be conducted by the LCO, and shall also be conducted at the request of the Labor
Commissioner to determine whether all trade workers on project sites have been paid according to
the prevailing wage rates.
D. Final Closing/Closeout Review
A final closing review of the project file and compliance review records shall be conducted by the
LCO to determine whether any further actions are required. The final review will determine if there
are any unresolved issues that need to be handled prior to the final closing. An escrow deposit
account may be imposed in order for the final closing to occur. The LCO shall issue a final closing
clearance specifying if there are any outstanding issues or conditions prior to closeout.
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SECTION 7
REPORTING OF WILLFUL VIOLATIONS TO THE LABOR COMMISSIONER
If an investigation reveals that a willful violation of the Labor Code has occurred, the LCO will make
a written report to the Labor Commissioner which shall include: (1) an audit consisting of a
comparison of payroll records to the best available information as to the actual hours worked, and (2)
the classification of workers employed on the public works contract. Six (6) types of willful
violations are reported:
A. Failure to Comply with Prevailing Wage Requirements
Failure to comply with prevailing wage rate requirements (as set forth in the Labor Code and City
contracts) is determined a willful violation whenever less than the stipulated basic hourly rate is paid
to trade workers, or if overtime, holiday rates, fringe benefits, and/or employer payments are paid at
a rate less than stipulated.
B. Falsification of Payroll Records, Misclassification of Work, and/or Failure to Accurately
Report Hours of Work
Falsification of payroll records and failure to accurately report hours of work is characterized by
deliberate underreporting of hours of work; underreporting the headcount; stating that the proper
prevailing wage rate was paid when, in fact, it was not; clearly misclassifying the work performed by
the worker; and any other deliberate and/or willful act which results in the falsification or inaccurate
reporting of payroll records.
C. Failure to Submit Certified Payroll Records
The contractors and subcontractors shall have ten (10) days upon notification by the LCO in which to
comply with the requirement of submittal of weekly CPRs and/or to correct inaccuracies or
omissions that have been detected.
D. Failure to Pay Fringe Benefits (Employer Contributions)
Fringe benefits are defined as the amounts stipulated for employer payments or trust fund
contributions and are determined to be part of the required prevailing wage rate. Failure to pay or
provide fringe benefits and/or make trust fund contributions on a timely basis is equivalent to
payment of less than the stipulated wage rate and shall be reported to the Labor Commissioner as a
willful violation, upon completion of an investigation and audit.
E. Failure to Pay the Correct Apprentice Rates and/or Misclassification of Workers as
Apprentices
Contractor's failure to pay the correct apprentice rate or classifying a worker as an apprentice when
not properly registered is equivalent to payment of less than the stipulated wage rate and shall be
reported to the Labor Commissioner as a willful violation, upon completion of an investigation and
audit.
F. Taking or Receiving a Portion of an Employee's Wages (Kickbacks)
Accepting or extracting kickbacks from employee wages under Labor Code Section 1778 constitutes
a felony and may be prosecuted by the appropriate enforcement agency.
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After the LCO has determined that violations of the prevailing wage laws have resulted in the
underpayment of wages and an audit has been prepared, notification shall be provided to the
contractor and affected subcontractor of an opportunity to resolve the wage deficiency prior to a
determination of the amount of forfeiture by the Labor Commissioner pursuant to these regulations.
The contractor and affected subcontractor shall be provided at (east ten (10) days following such
notification to submit exculpatory information consistent with the "good faith mistake" factors set
forth in Labor Code Section 1775(a)(2)(A)(i) and (ii). If, based upon the contractor's submission, the
LCO reasonably concludes that the failure to pay the correct wages was a good faith mistake, and has
no knowledge that the contractor and affected subcontractor have a prior record of failing to meet
their prevailing wage obligations, the LCO shall not be required to request the Labor Commissioner
for a determination of the amount of penalties to be assessed under Labor Code Section 1775 if the
underpayment of wages to workers is promptly corrected and proof of such payment is submitted to
the LCO.
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SECTION 8
ENFORCEMENT ACTION
A. Duty of the Awarding Body
The City of Lodi as the awarding body having an approved LCP has a duty to the director of the
Department of Industrial Relations to enforce the requirements of Division 2, Part 7, Chapter 1 of the
Labor Code in a manner consistent with the practice of the Labor Commissioner. The City's LCO
shall refer to the director's ongoing advisory service of web -posted public works coverage
determinations as a source of information and guidance in making decisions. The primary function of
this LCP is to ensure that public works contractors comply with prevailing wage requirements found
in the Public Works Chapter of the Labor Code. The procedures specified herein, including proactive
investigation methods, comprise the minimum obligations required of this LCP to operate as
specified in 8 CCR Sections 16248 and 16434. The City of Lodi LCP will:
1. Review Payroll Records
Review payroll records furnished by contractors and subcontractors in accordance with
Section 16421(a)(3), and in a format prescribed at 8 CCR Section 16401, as promptly as
practicable after receipt, but in no event more than 30 days after such receipt. "Review" for
this purpose shall be defined as inspection of the records furnished to determine if:
a. All appropriate data elements identified in Labor Code Section 1776(a) have been
reported.
b. Certification forms have been completed and signed in compliance with Labor Code
Section 1776(b).
c. Correct prevailing wage rates have been reported as paid for each classification of
labor listed, with confirmation of payment through worker interviews, examination of
paychecks or paycheck stubs, direct confirmation of payments from third -party
recipients of "Employer Payments" (as defined at 8 CCR Section 16000), or any other
reasonable method.
i. For each month a contractor or subcontractor reports workers employed on the
public work, confirmation of furnished payroll records shall be undertaken
randomly for at least one worker for at least one weekly period within that month.
ii. Confirmation shall be undertaken whenever complaints from workers or other
interested persons or other circumstances or information reasonably suggest
payroll records furnished by a contractor or subcontractor are inaccurate.
2. Conduct In -Person Inspections at Sites Where Public Work Is Being Performed
Such on-site visits may be undertaken randomly or as deemed necessary, but shall be
undertaken during each week that workers are present. On-site visits may include any
activities deemed necessary to corroborate prevailing wage payments reported on payroll
records furnished by contractors and subcontractors.
While on the job site, a representative sample (10%) of all crafts should be interviewed. For
example, if ten (10) carpenters are working on the job site on the inspection day, one (1)
should be interviewed. The interview should not be conducted under the immediate
supervision of any project foremen, so as to provide the worker with privacy. Any suspicious
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behavior such as coaching by the supervisor, or a contractor's unwillingness to allow the
required site interview to take place, will result in a more in-depth investigation to take place.
All on-site visits shall include visual inspection of:
a. The copy of the Department of Industrial Relations wage determination(s) required to
be posted at each job site in compliance with Labor Code Section 1773.2.
b. Notice of Labor Compliance Program Approval required to be posted at the job site in
accordance with Section 16429, including a phone number for inquiries, questions, or
assistance with regard to the LCP.
3. Respond to Receipt of a Written Complaint
Respond to receipt of a written complaint alleging failure of a contractor or subcontractor to
pay prevailing wages by performing all of the following actions:
a. Within fifteen (15) days after receipt of the complaint, send a written acknowledgement
to the complainant acknowledging receipt of the complaint and identifying the name,
address, and phone number of the LCO assigned to the complaint.
b. Within fifteen (15) days after receipt of the complaint, provide the affected contractor
with the notice required under Labor Code Section 1775(c) if the complaint is against a
subcontractor.
c. Notify the complainant in writing of the resolution of the complaint within ten (10)
days after the complaint has been resolved.
d. Notify the complainant in writing at least once every thirty (30) days of the status of a
complaint that has not yet been resolved.
e. Notify the complainant in writing at least once every ninety (90) days of the status of a
complaint that has been resolved by the City's LCO but remains under review or in
litigation before another entity.
4. Apprenticeship Standards
With respect to apprenticeship standards, perform the following:
a. Inform contractors and subcontractors bidding public works about apprenticeship
requirements.
b. Send copies of awards and notices of discrepancies to the Division of Apprenticeship
Standards as required under Labor Code Section 1773.3.
c. Refer complaints and promptly report suspected violations of apprenticeship
requirements to the Division of Apprenticeship Standards.
d. Enforce prevailing wage pay requirements for apprentices consistent with the practice
of the Labor Commissioner to ensure that:
i. Any contributions required pursuant to Labor Code Section 1777.5(m) are paid to
the appropriate entity;
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ii. Apprentices are paid no less than the prevailing apprentice rate;
iii. Workers listed and paid as apprentices on certified payroll records are, in fact,
duly registered as apprentices with the Division of Apprenticeship Standards; and
iv. The regular prevailing wage rate is paid to any worker who is not a duly registered
apprentice and for all hours worked in excess of the maximum ratio permitted
under Labor Code Section 1777.5(g).
5. Maintain Records for Each Public Work Project
Maintain records for each public work project subject to prevailing wage requirements which
include a separate, written summary of labor compliance activities and relevant facts
pertaining to that particular project.
a. The summary shall be maintained using the form "Single Project Labor Compliance
Review and Enforcement Report Form" (in Appendix C) following 8 CCR Section
16434.
b. The summary shall demonstrate that reasonable and sufficient efforts have been made
to enforce prevailing wage requirements consistent with the practice of the Labor
Commissioner.
c. Records for a prevailing wage project shall be retained for the later of:
i. At least one (1) year after the acceptance of the public work or five (5) years after
cessation of all labor on a public work that has not been accepted; or
ii. One (1) year after a final decision or judgment in any litigation under Labor Code
Section 1742.
d. A written summary or report includes information maintained electronically, provided
the summary or report can be printed in hard copy form or is in an electronic format
that can be transmitted by email, compact disc, thumb drive or flash drive and would be
acceptable for the fling of documents in a federal or state court of record in California.
6. Prepare an Audit as a Written Summary When There Has Been a Violation
Prepare an audit as a written summary when there has been a violation of the Public Works
Chapter of the Labor Code resulting in the underpayment of wages.
a. An audit will include prevailing wage deficiencies for each underpaid worker with any
penalties to be assessed under Labor Code Sections 1775 and 1813, as determined after
consideration of the best information available as to actual hours worked, amounts paid,
and classifications of workers employed in connection with the public work. An audit
may include, but is not limited to:
i. Worker interviews;
ii. Complaints from workers or other interested persons;
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iii. All time cards, canceled checks, cash receipts, trust fund forms, books,
documents, schedules, forms, reports, receipts or other evidences which reflect job
assignments;
iv. Work schedules by days and hours; and
v. Disbursement by way of cash, check, or any other method, of funds to a person(s)
by job classification and/or skill pursuant to a public works project.
b. An audit will contain details sufficient to enable the Labor Commissioner, if requested,
to determine the amount of forfeiture under Section 16437, to draw reasonable
conclusions as to compliance with the requirements of the Public Works Chapter of the
Labor Code, and to enable accurate computation of underpayments of wages to workers
and of applicable penalties and forfeitures. To meet such standards, the Audit Reporting
Forms will be utilized:
i. Public Works Investigation Worksheet
ii. Public Works Audit Worksheet
iii. Prevailing Wage Determination Summary
c. An audit report will also include a brief narrative identifying the bid advertisement date
of the contract for public work and summarizing the nature of the violation and the
basis upon which the determination of underpayment was made.
d. Records supporting an audit shall be maintained by the City to satisfy its burden of
coming forward with evidence in administrative review proceedings under Labor Code
Section 1742 and the Prevailing Wage Hearing Regulations found at 8 CCR Sections
17201-17270.
7. Provide Notification of an Opportunity to Resolve a Wage Deficiency
Provide notification of an opportunity to resolve a wage deficiency to the contractor and
affected subcontractor prior to a determination of the amount of forfeiture by the Labor
Commissioner after a determination that violations of the prevailing wage laws have resulted
in the underpayment of wages and an audit has been prepared.
a. The contractor and affected subcontractor shall be granted at least ten (10) days
following such notification to submit exculpatory information consistent with the "good
faith mistake" factors set forth in Labor Code Section 1775(a)(2)(A)(i) and (ii).
b. Based upon the contractor's submission, the City's LCO may reasonably conclude the
failure to pay correct wages was a good faith mistake and the City shall not be required
to request the Labor Commissioner for a determination of the amount of penalties to be
assessed under Labor Code Section 1775 if the following terms are met:
1. The contractor and/or affected subcontractor have no known prior record of failure
to meet their prevailing wage obligations;
ii. Underpayment of wages to workers is promptly corrected; and
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iii. Proof of such payment is received by the City's LCO.
c. For each instance in which a wage deficiency is resolved in accordance with this
regulation, the City's LCO shall maintain a written record of the failure of the
contractor or subcontractor to meet its prevailing wage obligation. The record shall
include:
i. Name and description of the public works project;
ii. Contractor or affected subcontractor involved;
iii. Gross amount of wages paid to workers to resolve the prevailing wage deficiency;
and
iv. A copy of the Audit prepared for this incident including any exculpatory
information submitted by the affected contractor or subcontractor.
8. Recommend a Withhold
Recommend a withhold of penalties, forfeitures, and underpayment of wages for violations of
the requirements of this program.
9. Ensure Accord with Labor Code
Ensure accord with Labor Code Section 1771.5(b) that this LCP requires, at a minimum, the
inclusion of appropriate language in bid requests, design -build requests, the contract, and
purchase orders concerning California Labor Code Division 2, Part 7, Chapter 1:
a. Provision that contract payments are not made when payroll records are delinquent or
inadequate; and
b. A pre -construction conference with listed contractors and subcontractors to discuss
applicable federal and state labor law requirements as outlined in the Checklist of
Labor Law Requirements (see Attachment A) with copies of forms furnished and
discussed.
10. Take Cognizance of Prevailing Wage Violations
Take cognizance of prevailing wage violations under California Labor Code Section 1726
and take any appropriate action pursuant to and in accordance with that responsibility
and authority.
11. Enforce Prevailing Wage Requirements
Enforce prevailing wage requirements, consistent with the policy of the state, by taking
reasonable, vigorous, and prompt action to determine whether violations exist and enforce
compliance, including through imposition of appropriate penalties and formal
enforcement action, when violations are found. This LCP shall neither avoid use of its
enforcement authority based on cost considerations nor use its authority in an unreasonable
manner to gain leverage over a contractor or subcontractor. Unreasonable use of enforcement
authority includes, but is not limited to, prolonged or excessive withholdings of contract
payments without making a determination a violation has occurred.
To the extent authorized by law, the City, or a Joint Powers Authority to which the City is a
party, may contract with a third party to initiate and enforce all or part of its LCP provided
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the third party is approved by the director to operate an LCP. This shall not limit the City's
authority to contract for services for the operation of its own approved LCP, including
services by persons licensed or certified by the State of California to practice law,
architecture, engineering, or accounting.
A private entity approved by the director to operate an LCP and that operates an LCP
pursuant to a contract with the City or a Joint Powers Authority with the City as a party shall
have the same rights and responsibilities as the City in administering the LCP. This includes
but shall not be limited to complying with the conflict of interest provisions of the Political
Reform Act including disclosure requirements for LCP employees and consultants who
participate in making governmental decisions as defined under 2 CCR Section 18701 and
maintaining, disclosing, or keeping confidential personnel information, payroll records, and
other information and records in accordance with the Labor Code Section 1776, the
California Public Records Act, and the Information Practices Act of 1977.
12. Pursue Continual Development of Abilities
Pursue continual development of abilities to perform labor compliance oversight including
securing training on enforcement of prevailing wage requirements, monitoring and
investigation, and procedural requirements and responsibilities.
13. Designate Employees for This Program
Designate employees for this program who participate in making decisions for this LCP and
require those employees to file Statements of Economic Interest (FPPC Form 700) through
the filing officer for the City of Lodi and to comply with other applicable requirements of the
Political Reform Act (commencing with Section 87100 of the Government Code) in
connection with this work.
14. Any Failure
Any failure of this LCP to comply with any requirement shall not of itself constitute a
defense to the failure to pay prevailing wages or meet other obligations imposed by
California Labor Code Division 2, Part 7, Chapter 1.
B. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate
1. "Withhold" means to cease payments by the awarding body, its agents, or others who pay on
its behalf to the contractor. Where the violation is by a subcontractor, the contractor shall be
notified of the nature of the violation and reference made to its rights under Labor Code
Section 1729. A release bond under Civil Code Section 3196 may not be posted for release of
funds being withheld for the violation of the prevailing wage law.
2. "Contracts" except as otherwise provided by agreement, means only contracts under a single
master contract, or contracts entered into as stages of a single project which may be the
subject of withholding, pursuant to Labor Code Sections 1720, 1720.2, 1720.3, 1720.4, 1771,
and 1771.5.
3. "Delinquent payroll records" means those not submitted on the basis set forth in the City
Contract and the LCP.
4. "Inadequate payroll records" are any one of the following:
a. A record lacking the information required by Labor Code Section 1776.
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b. A record which contains the required information but which is not certified, or certified
by someone not an agent of the contractor or subcontractor.
c. A record remaining uncorrected for one payroll period after the awarding body has
given the contractor notice of inaccuracies detected by audit or record review, provided,
however, that prompt correction will stop any duty to withhold if such inaccuracies do
not amount to one percent (1%) of the entire certified weekly payroll in dollar value
and does not affect more than half the persons listed as workers employed on that
certified weekly payroll, as defined in Labor Code Section 1776 and 8 CCR Section
16401. Prompt correction will stop any duty to withhold if such inaccuracies are de
minimus.
5. When payroll records are delinquent or inadequate, the withholding of contract payments is
required by Labor Code Section 1771.5 (b)(5) and does not require the prior approval of the
Labor Commissioner. The City shall only withhold those payments due or estimated to be
due to the contractor or subcontractor whose payroll records are delinquent or inadequate,
plus any additional amount that the City's LCO has reasonable cause to believe may be
needed to cover a back wage and penalty assessment against the contractor or subcontractor
whose payroll records are delinquent or inadequate. A contractor shall be required in turn to
cease all payments to a subcontractor whose payroll records are delinquent or inadequate
until the City's LCO provides notice that the subcontractor has resolved the delinquency or
deficiency.
a. When contract payments are withheld under this section, the City's LCO shall provide
the contractor and subcontractor, if applicable, with immediate written notice that
includes all of the following:
i. A statement that payments are being withheld due to delinquent or inadequate
payroll records, and that identifies what records are missing or states why records
that have been submitted are deemed inadequate;
ii. The specific amount being withheld; and
iii. Notification of the contractor's or subcontractor's right to request an expedited
hearing to review the withholding of contract payments under Labor Code Section
1742, limited to the issue of whether the records are delinquent or inadequate or
the City's LCP has exceeded its authority under this section.
b. No contract payments shall be withheld solely on the basis of delinquent or inadequate
payroll records after the required records have been produced.
c. In addition to withholding contract payments based on delinquent or inadequate payroll
records, penalties shall be assessed under Labor Code Section 1776(g) for failure to
timely comply with a written request for certified payroll records. The assessment of
penalties under Labor Code Section 1776(g) does require the prior approval of the
Labor Commissioner under Section 16436 of these regulations. Pursuant to Labor Code
Section 1776, the contractor shall, as a penalty to the City, forfeit twenty-five dollars
($25) for each calendar day, or portion thereof, for each worker, until strict compliance
is effectuated.
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C. Withholding for Violation for Not Paying the Per Diem Prevailing Wages
1. Where the violation is by a subcontractor, the general contractor shall be notified of the
nature of the violation and reference made to its rights under Labor Code Section 1729.
2. "Amount equal to the underpayment" is the total of the following determined by payroll
review, audit, or admission of the contractor or subcontractor.
a. The difference between the amounts paid to workers and the correct general prevailing
wage rate of per diem wages as defined in 8 CCR Section 16000 et seq.
b. The difference between the amounts paid to workers and the correct amounts of
employer payments, as defined in 8 CCR Section 16000 et seq. and determined to be
part of the prevailing rate costs of contractors due for employment of workers in such
craft, classification, or trade in which they were employed and the amounts paid.
c. Estimated amounts of "illegal taking of wages."
d. Amounts of apprenticeship training contributions paid to neither the program sponsor's
training trust nor the California Apprenticeship Council.
e. The withholding of contract payments when, after investigation, it is established that
underpayment or violations have occurred requires the prior approval of the Labor
Commissioner under Sections 16436 and 16437 of these regulations.
3. Provisions relating to the penalties under Labor Code Sections 1775 and 1813:
a. Pursuant to Labor Code Section 1775, the contractor shall, as a penalty to the City,
forfeit up to fifty dollars ($50) for each calendar day, or portion thereof, for each
worker paid less than the prevailing wages.
b. Pursuant to Labor Code Section 1813, the contractor shall, as a penalty to the City on
whose behalf the contract is awarded, forfeit twenty-five dollars ($25) for each worker
employed in the execution of the contract by the contractor or by any subcontractor for
each calendar day during which such worker is required or permitted to work more than
eight (8) hours in any one calendar day and forty (40) hours in any one calendar week.
D. Forfeitures Requiring Approval by the Labor Commissioner
1. "Forfeitures" are the amounts of unpaid penalties and wages assessed by the City's LCO and
proposed to be withheld pursuant to Labor Code Section 1771.6(a) and includes:
a. The difference between prevailing wage rates and the amount paid to each worker for
each calendar day or portion thereof for which each worker was paid less than the
prevailing wage rate by the contractor or subcontractor.
b. Penalties assessed under Labor Code Sections 1775, 1776, and 1813.
2. "Failing to pay the correct rate of prevailing wages" means those public works violations
which the Labor Commissioner has exclusive authority to approve before they are
recoverable by the LCP and which are appealable by the contractor before the director of the
Department of Industrial Relations under Labor Code Sections 1742 and 1742.1 pursuant to
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CCR, Title 8, Chapter 8, Subchapter 8 (Section 17201 through 17270). Regardless of what is
defined as "prevailing wages" in contract terms, noncompliance with any of the following is
considered a failure to pay prevailing wages:
a. Nonpayment of items defined as Employer Payments and General Prevailing Rate of
Per Diem Wages in 8 CCR Section 16000 and Labor Code Section 1771.
b. Failure to provide complete and accurate payroll records, as required by Labor Code
Section 1776.
c. Paying apprentice wages lower than the journey level rate to a worker who is not an
apprentice as defined in Labor Code Section 3077, working under an apprentice
agreement in a recognized program.
d. Accepting or extracting kickbacks, in violation of Labor Code Section 1778.
e. Engaging in prohibited actions related to fees for registration as a public works
employee, in violation of Labor Code Section 1779.
f. Failure to pay overtime for work over eight (8) hours in any one (1) day or forty (40)
hours in any one (1) week, in violation of Labor Code Sections 1813 or 1815, or 8 CCR
Section 16200(a)(3)(F).
3. If the aggregate amount of forfeitures assessed as to a contractor or subcontractor is less than
$1,000.00, the forfeitures shall be deemed approved by the Labor Commissioner upon
service and the Labor Commissioner's receipt of copies of the following: (1) the Notice of
Withholding of Contract Payments authorized by Labor Code Section 1771.6(a); (2) an
audit as defined in Section 16432(e) of these regulations, and (3) a brief narrative identifying
the bid advertisement date of the contract for public work and summarizing in nature of the
violation, the basis of the underpayment, and the factors considered in determining the
assessment of penalties, if any, under Labor Code Section 1775.
4. For all other forfeitures, approval by the Labor Commissioner shall be requested and
obtained in accordance with Section 16437.
E. Determination of Amount of Forfeiture by the Labor Commissioner
1. Where the City's LCP requests a determination of the amount of forfeiture, the request shall
include a file or report to the Labor Commissioner which contains at least the following
information:
a. The date that the public work was accepted and the date that a notice of completion was
filed.
b. Any other deadline which, if missed, would impede collection.
c. Evidence of violation in narrative form.
d. Evidence that an "audit" or "investigation" occurred in compliance with 8 CCR Section
16432.
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e. Evidence that the contractor was given the opportunity to explain why it believes there
was no violation, or that any violation was caused by mistake, inadvertence, or neglect
before the forfeiture was sent to the Labor Commissioner, and the contractor either did
not do so or failed to convince the awarding body of its position.
f. Where the City seeks not only amounts of wages but also a penalty as part of the
forfeiture and the contractor has unsuccessfully contended that the cause of violation
was a mistake, inadvertence, or neglect, a statement should accompany the proposal for
a forfeiture with a recommended penalty amount, pursuant to Labor Code Section
1775.
g.
Where the City seeks only wages or a penalty less than fifty dollars ($50) per day as
part of the forfeiture and the contractor has successfully contended that the cause of
violation was a mistake, inadvertence, or neglect, then the file should include the
evidence as to the contractor's knowledge of its obligation, including the LCO's
communication to the contractor of the obligation in the bid invitations, in the
preconstruction conference agenda and records, and any other notice given as part of
the contracting process. Included with the file should be a statement similar to that
described in subsection (e) above -and recommended penalty amounts, pursuant to
Labor Code Section 1775.
h. The previous record of the contractor in meeting prevailing wage obligations.
i. Whether the City's LCP is approved on an interim or temporary basis under Sections
16425 or 16426 above or extended approval under Section 16427.
2. The file or report shall be served on the Labor Commissioner as soon as practicable after the
violation has been discovered, and not less than 30 days before the final payment, but in no
event less than 30 days before the expiration of the limitations period set forth in Labor Code
Section 1741.
3. A copy of the file or report shall be served on the contractor at the same time it is sent to the
Labor Commissioner. The City may exclude from the documents served on the
contractor/subcontractor or surety copies of documents secured from these parties during an
audit, investigation, or meeting if those documents are clearly referenced in the file or report.
4. The Labor Commissioner shall affirm, reject, or modify the forfeiture in whole or in part as
to penalty and/or wages due.
5. The determination of the forfeiture by the Labor Commissioner is effective on the following
date for LCPs having initial approval pursuant to Section 16426 of the California Code of
Regulations:
a. On the date the Labor Commissioner serves by first class mail on the City and on the
contractor an endorsed copy of the proposed forfeiture, or a drafted forfeiture statement
which sets out the amount of forfeiture approved. Service on the contractor is effective
if made on the last address supplied by the contractor in the record. The Labor
Commissioner's approval, modification, or disapproval of the proposed forfeiture shall
be served within thirty (30) days of receipt of the proposed forfeiture.
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b. If the City's LCP is operating with extended authority under Section 16427, approval is
effective twenty (20) days after the requested forfeitures are served upon the Labor
Commissioner, unless the Labor Commissioner serves a notice upon the parties, within
that time period, that this forfeiture request is subject to further review. In such cases, a
notice that approval will follow such a procedure will be included in the transmittal of
the forfeiture request to the contractor. If the Labor Commissioner notifies the parties
of a decision to undertake further review, the Labor Commissioner's final approval,
modification, or disapproval of the proposed forfeiture shall be served within thirty (30)
days of the date of notice of further review.
F. Liquidated Damages
1. In accordance with Labor Code Section 1742.1(a), after sixty (60) days following the service
of a civil wage and penalty assessment under Section 1741 or a notice of withholding under
subdivision (a) of Section 1771.6, the affected contractor, subcontractor, and surety on a
bond or bonds issues to secure the payment of wages covered by the assessment or notice
shall be liable for liquidated damages in an amount equal to the wages, or portion thereof,
that still remains unpaid.
a. If the assessment or notice subsequently is overturned or modified after administrative
or judicial review, liquidated damages shall be payable only on the wages found to be
due and unpaid.
b. If the contractor or subcontractor demonstrates to the satisfaction of the director
of the Department of Industrial Relations substantial grounds for appealing the
assessment or notice with respect to a portion of the unpaid wages covered by the
assessment or notice, the director may exercise discretion to waive payment of the
liquidated damages with respect to that portion of the unpaid wages.
2. Any liquidated damages shall be distributed to the employee along with the unpaid wages.
3. Section 203.5 shall not apply to claims for prevailing wages under this chapter.
4. If within sixty (60) days following service of the assessment or notice, the full amount
including penalties has been deposited with the Department of Industrial Relations to hold in
escrow pending administrative and judicial review, there shall be no liability for liquidated
damages, under Section 1742.1 (b) notwithstanding subdivision (a). The department will
release such funds, plus any earned interest, at the conclusion of all administrative and
judicial review to the persons or entities found to be entitled to such funds.
G. Request for Review
1. A contractor or subcontractor may request a settlement meeting pursuant to Labor Code
Section 1742.1(b) and may request review of a City of Lodi LCP enforcement action in
accordance with Labor Code Sections 1771.6(b) and 1742 and regulations found in 8 CCR
Sections 17201-17270.
2. The City's LCP shall have the rights and responsibilities of the enforcing agency (as defined
in 8 CCR Section 17202(0), in responding to such a request for review, including but not
limited to:
a. Serving notices.
26
b. Transmitting the Request for Review to the hearing office.
c. Providing an opportunity to review evidence in a timely manner.
d. Participating through counsel in all hearing proceedings.
e. Meeting the burden of establishing prima facie support for the Notice of Withholding
of Contract Payments.
3. If a contractor or subcontractor seeks review of a City LCP enforcement action, the Labor
Commissioner may intervene to represent the City or to enforce relevant provisions of the
Labor Code consistent with the practice of the Labor Commissioner, or both.
4. Except in cases where the Labor Commissioner has intervened, the City's LCP has the
authority to prosecute, settle, or seek the dismissal of any Notice of Withholding of Contract
Payments issued pursuant to Labor Code Section 1771.6 and any review proceeding under
Labor Code Section 1742, without any further need for approval by the Labor Commissioner.
5. The City's LCO shall document the reasons for any settlement or request for dismissal and
make that documentation available to the Labor Commissioner upon request whenever
the City settles in whole or in part or seeks and obtains the dismissal of a Notice of
Withholding of Contract Payments or a review proceeding under Labor Code Section 1742.
H. Deposits of Penalties and Forfeitures Withheld
1. Where the involvement of the Labor Commissioner has been limited to a determination of the
actual amount of penalty, forfeiture, or underpayment of wages and the matter has been
resolved without litigation by or against the Labor Commissioner, the City shall deposit
penalties and forfeitures into its General Fund.
2. Where collection of fines, penalties, or forfeitures results from court action to which the
Labor Commissioner and the City are both parties, the fines, penalties, or forfeitures shall be
divided between the General Funds of the State and City, as the court may decide.
3. All amounts recovered by suit brought by the Labor Commissioner, and to which the City is
not a party, shall be deposited in the General Fund of the State of California.
4. All wages and benefits which belong to a worker and are withheld or collected from a
contractor or subcontractor, either by withholding or as a result of court action pursuant to
Labor Code Section 1775, and which have not been paid to the worker or irrevocably
committed on the worker's behalf to a benefits fund, shall be deposited with the Labor
Commissioner, who will deal with such wages and benefits in accordance with Labor Code
Section 96.7.
I. Debarment Policy
It is the policy of the City that the public works prevailing wage requirements set forth in the
California Labor Code, Sections 1720-1861, be strictly enforced. In furtherance thereof, construction
contractors and subcontractors found to be repeat violators of the California Labor Code shall be
referred to the Labor Commissioner for debarment from bidding on or otherwise being awarded any
public work contract, within the State of California, for the performance of construction and/or
maintenance services for the period not to exceed three (3) years in duration. The duration of the
27
debarment period shall depend upon the nature and severity of the Labor Code violations and any
mitigating and/or aggravating factors, which may be presented at the hearing conducted by the Labor
Commissioner for such purpose.
28
SECTION 9
NOTICE OF WITHHOLDING AND REVIEW THEREOF
A. Notice of Withholding of Contract Payments
After determination of the amount of forfeiture by the Labor Commissioner, the City shall provide
notice of withholding of contract payments to the contractor and subcontractor, if applicable. The
notice shall be in writing and shall describe the nature of the violation and the amount of wages,
penalties, and forfeitures withheld. Service of the notice shall be completed pursuant to Section
1013 of the Code of Civil Procedure by first-class and certified mail to the contractor and
subcontractor, if applicable. The notice shall advise the contractor and subcontractor, if applicable, of
the procedure for obtaining review of the withholding of contract payments. The awarding body shall
also serve a copy of the notice by certified mail to any bonding company issuing a bond that secures
the payment of wages covered by the notice and to any surety on a bond, if their identities are known
to the awarding body. A copy of the Notice of Withholding of Contract Payments (NWCP) to be
utilized by the City is found as Attachment F to this document.
B. Review of NWCP
1. An affected contractor or subcontractor may obtain review of an NWCP under this chapter
by transmitting a written request to the office of the LCP that appears on the NCWP within
sixty (60) days after service of the NWCP. If no hearing is requested within sixty (60) days
after service of the NWCP, the NWCP shall become final.
2. Within ten (10) days following the receipt of the request for review, the LCP shall transmit to
the Office of the Director -Legal Unit the request for review and copies of the NWCP, any
audit summary that accompanied the notice, and a proof of service or other documents
showing the name and address of any bonding company or surety that secures the payment of
the wages covered by the notice. A copy of the required Notice of Transmittal to be utilized
by the City is found as Attachment H to this document.
3. Upon receipt of a timely request, a hearing shall be commenced within ninety (90) days
before the director, who shall appoint an impartial hearing officer possessing the
qualifications of an administrative law judge pursuant to subdivision (b) of Section 11502 of
the Government Code. The appointed hearing officer shall be an employee of the Department
of Industrial Relations, but shall not be an employee of the Division of Labor
Standards.
Enforcement. The contractor or subcontractor shall be provided an opportunity to review
evidence to be utilized by the LCP at the hearing within twenty (20) days of the receipt of the
written request for a hearing. Any evidence obtained by the LCP subsequent to the twenty
(20) day cutoff shall be promptly disclosed to the contractor or subcontractor. A copy of a
Notice of Opportunity to Review Evidence Pursuant to Labor Code Section 1742(b) form is
found as Attachment G to this document.
The contractor or subcontractor shall have the burden of proving that the basis for the NWCP
is incorrect. The NWCP shall be sufficiently detailed to provide fair notice to the contractor
or subcontractor of the issues at the hearing.
Within forty-five (45) days of the conclusion of the hearing, the director shall issue a written
decision affirming, modifying, or dismissing the assessment. The decision of the director
29
shall consist of a notice of findings and an order. This decision shall be served on all parties
pursuant to Section 1013 of the Code of Civil Procedure by first-class mail at the last known
address of the party on file with the LCP. Within fifteen (15) days of the issuance of the
decision, the director may reconsider or modify the decision to correct an error, except that a
clerical error may be corrected at any time.
The director has adopted regulations setting forth procedures for hearings under this
subdivision. The regulations are found as Attachment G to this document.
4. An affected contractor or subcontractor may obtain review of the decision of the director by
filing a petition for a writ of mandate to the appropriate Superior Court pursuant to Section
1094.5 of the Code of Civil Procedure within forty-five (45) days after service of the
decision. If no petition for writ of mandate is filed within forty-five (45) days after service of
the decision, the order shall become final. If it is claimed in a petition for writ of mandate that
the findings are not supported by the evidence, abuse of discretion is established if the court
determines that the findings are not supported by substantial evidence in the light of the
whole record.
5. A certified copy of a final order may be filed by the Labor Commissioner in the Office of the
Clerk of the Superior Court in any county in which the affected contractor or subcontractor
has property or has or had a place of business. The clerk, immediately upon the filing, shall
enter judgment for the state against the person assessed in the amount shown on the certified
order.
6. A judgment entered pursuant to this procedure shall bear the same rate of interest and shall
have the same effect as other judgments and shall be given the same preference allowed by
law on other judgments rendered for claims for taxes. The clerk shall not charge for the
service performed by him or her pursuant to this section.
7. This procedure shall provide the exclusive method for review of an NWCP by the City to
withhold contract payments pursuant to Section 1771.7.
30
SECTION 10
DISTRIBUTION OF FORFEITED SUMS
Before making payments to the contractor of money due under a contract for public work, the
City shall withhold and retain therefrom all amounts required to satisfy the NWCP. The amounts
required to satisfy the NWCP shall not be disbursed by the City until receipt of a final order that is
no longer subject to judicial review.
Pending a final order or the expiration of the time period for seeking review of the notice of the
withholding, the City shall not disburse any contract payments withheld.
From the amount recovered, 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 employed on the public works project who are paid Tess than the prevailing wage
rate and who shall have priority over all Stop Notices filed against the prime contractor.
Wages for workers who cannot be located shall be placed in the Industrial Relations Unpaid
Fund and held in trust for the workers pursuant to Section 96.7. Penalties shall be paid into the
General Fund of the City pursuant to Section 1771.7.
31
SECTION 11
OUTREACH ACTIVITIES
To ensure the successful implementation of the City's LCP, there shall be several outreach activities
initiated and maintained.
The Labor Compliance Officer (LCO) will represent the City of Lodi in enforcement of this LCP.
The LCO will be responsible for the implementation and enforcement of the LCP and may utilize
consultants to support his/her efforts as necessary to meet the requirements of this LCP.
The functions and scope of the LCO vary based on project funding sources. For detailed labor
compliance requirements, please refer to the applicable funding source
A. Providing Information to the Public
The LCO shall be responsible for communication and outreach activities relative to public
information on the City's LCP:
1. Regular presentations to contractors at all City pre-bid conferences and preconstruction
conferences.
2. Ongoing communication via correspondence and with workers at City job sites when review
of the certified payroll records reveals the possibility of prevailing wage violations.
3. Periodic meetings with contractor organizations, prime contractors, and subcontractors
interested in public works contracting with the City.
B. In-service Management Training on the Labor Compliance Program
1. The LCP shall provide ongoing management in-service training and workshops for City
staff relative to the terms, requirements, and administration of this LCP.
32
SECTION 12
ANNUAL REPORTS
A. Annual Reports on Prevailing Wage
1. The City's LCO will submit to the Mayor with copies to City Council members an annual
report on prevailing wage monitoring in the format required by the Department of Industrial
Relations (LCP AR1) which will include the following information:
2. Progress report on the LCP in sufficient detail to afford a basis for evaluating the scope and
level of enforcement activity of the LCP.
a. Annual reporting period (based on Department of Industrial Relations designation)
summary of:
i. Monitoring activities;
ii. Record-keeping activities;
iii. Labor Code violations identified and reported to the Division of Labor Standards
Enforcement;
iv. Statistical analysis of the prevailing wage violations on City public works projects;
v. Summary of outreach activities;
vi. Certification of compliance with conflict of interest disclosure requirements as
defined by 2 CCR Section 18701; and
vii. Current statement disclosing information required under Section 16426 (a)(2), (3)
and (5).
B. Annual Report on the LCP to the Director of the Department of Industrial Relations
The City's LCO will submit to the director of the Department of Industrial Relations an annual
report on the operation of its LCP within sixty (60) days after the end of its annual reporting period
as designated by the department's approval of the LCP. The annual report shall be made on the
appropriate form LCP-ARI and will contain, as a minimum, the following information:
1. Number of public works contracts awarded which are subject to prevailing wages and their
total value.
2. A summary of wages due to workers resulting from failure by contractors to pay prevailing
wage rates, the total amount withheld from money due the contractors, and the total amount
recovered by action in any court of competent jurisdiction.
3. A summary of penalties and forfeitures imposed and withheld or recovered in a court of
competent jurisdiction.
4. A special summary of all audits that were conducted upon request of Labor Commissioner.
33
5. A certification of compliance with conflict of interest disclosure requirements by employees
and consultants who participate in making governmental decisions, as defined under 2 CCR
Section 18701 and a current statement disclosing the information required under Section
16426(a)(2), (3) and (5).
6. Information in the annual report shall be reported in sufficient detail to afford a basis to
evaluate the scope and level of enforcement activity of the LCP.
Copies of this report will be distributed to the Director of the Department of Industrial
Relations and the Chief Operating Officer.
34
ATTACHMENT A
CHECKLIST OF LABOR LAW REQUIREMENTS
FOR REVIEW AT PRE -CONSTRUCTION CONFERENCE
(In accordance with CCR Section 16421 and 16430)
Federal and State labor law requirements applicable to the contract are composed of, but not
limited to, the following:
1. Payment of Prevailing Wage Rates
The award of this public works contract requires that all workers employed on this project be
paid not less than the specified general prevailing wage rates by the contractor and its
subcontractors.
The contractor is responsible to obtain and comply with all applicable general prevailing
wage rates for tradesworkers and any rate changes which may occur during the term of the
contract. Prevailing wage rates and rate changes are to be posted at the job site for workers to
view.
2. Apprentices
It is the duty of the contractor and subcontractors to employ registered apprentices on this public
works project per Labor Code Section 1777.5.
3. Penalties
Penalties, including forfeitures and debarment, shall be imposed for contractor/subcontractor
failure to pay prevailing wages, failure to maintain and submit upon request accurate certified
payroll records, failure to employ apprentices and failure to pay employees for all hours worked
at the correct prevailing wage rate in accordance with Labor Code Sections 1775, 1776, 1777.7,
and 1813.
4. Certified Payroll Records
Per Labor Code Section 1776, contractors and subcontractors are required to keep accurate
payroll records which reflect the name, address, social security number and work classification
of each employee; the straight time and overtime hours worked each day and each week; the
fringe benefits; and the actual per diem wages paid to each journeyperson, apprentice, worker
or other employee hired in connection with this public works project.
Employee payroll records shall be certified and shall be made available for inspection at all
reasonable hours at the principal office of the contractor/subcontractor, or shall be furnished to
any employee, or to his or her authorized representative on request.
Contractors and subcontractors shall maintain their certified payrolls on a weekly basis and shall
submit said payrolls weekly. If there has been no work performed during a given week, the
Certified Payroll Record for that week shall be annotated, "No Work."
5. Nondiscrimination in Employment
1
Prohibitions against employment discrimination are contained in Labor Code Sections 1735
and 1777.6; the Government Code; the Public Contract Code; and Title VII of the Civil Rights
Act of 1964, as amended. All contractors and subcontractors are required to implement equal
employment opportunities as delineated below:
Equal Employment Poster. The equal employment poster shall be posted at the job site in a
conspicuous place visible to employees and employment applicants for the duration of the
project.
Records. The contractor and each subcontractor shall maintain accurate records of employment
information as required by the Monthly Employment Report. This report shall specify
ethnicity and gender for each employee in a craft, trade or classification.
Reports. A Monthly Employment Report for the contractor and for each of its subcontractors is
required to be completed and submitted each month by no later than the fifth day of that month.
Reports are to be for the previous month's work and are to be project specific. If no work was
performed during that month, the form shall clearly state "No Work."
6. Kickback Prohibited
Per Labor Code Section 1778, contractors and subcontractors are prohibited from accepting,
taking wages illegally, or extracting "kickback" from employee wages.
7. Acceptance of Fees Prohibited
Contractors and subcontractors are prohibited from exacting any type of fee for
registering individuals for public work [Labor Code Section 1779] or for filling work orders
on public works contracts [Labor Code Section 1780].
8. Listing of Subcontractors
Contractors are required to list all subcontractors hired to perform work on a public works
project when that work is equivalent to more than one-half of one percent (0.5%) of the total
effort [Government Code Section 4100, et seq.].
9. Proper Licensing
Contractors and subcontractors are required to be properly licensed. Penalties will be
imposed for employing workers while unlicensed [Labor Code Section 1021 and Business and
Professions Code Section 7000, et seq. under California Contractors License Law].
10. Unfair Competition Prohibited
Contractors and subcontractors are prohibited from engaging in unfair competition [Business
and Professions Code Sections 17200-17208].
11. Workers' Compensation Insurance
All contractors and subcontractors are required to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of Labor Code
Section 3700 [Labor Code Section 1861].
12. OSHA
2
Contractors and subcontractors are required to comply with the Occupational, Safety and Health
laws and regulations applicable to the particular public works project.
13. Hiring Undocumented Workers
Contractors and subcontractors are required to follow federal regulations prohibiting the hiring
of undocumented workers and requiring proof of eligibility/citizenship from all workers.
14. Itemized Wage Statements
Contractors and subcontractors are required to observe Labor Code section 226 and provide
itemized wage statements to employees.
15. Public Works Affidavit
Prior to release of the final payment to the subcontractors, the prime Contractor shall obtain a
Public Works Affidavit (signed under penalty of perjury) from the subcontractor stating that the
subcontractor paid the specified prevailing wage rates to its workers (CLC §1775.5 (b) (4)).
Certification
I acknowledge that I have been informed of and am aware of the foregoing requirements and that I
am authorized to make and sign this certification.
Contractor Name:
Contractor Signature; Date:
Labor Compliance Officer Signature Date:
Awarding Body
Project Name or Number
3
ATTACHMENT B
AUDIT RECORD FORMS
(For Use with CCR Section 16432 Audits)
• Public Works Investigation Worksheet
• Public Works Audit Worksheet
• Prevailing Wage Determination Summary
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ATTACHEMENT C
SINGLE PROJECT LABOR COMPLIANCE REVIEW AND ENFORCEMENT REPORT FORM
(Appendix C following 8 CCR §16434)
Single Project Labor Compliance Review and Enforcement Report Form
[Appendix C following 8 CCR § 16434]
Awarding Body:
Project Name:
Name of Approved Labor Compliance Program:
Bid Advertisement Date:
Acceptance Date:
Notice of Completion Recordation Date:
Summary of Labor Compliance Activities
1. Contract Documents Containing Prevailing Wage Requirements (Identify)
2. Prejob Conference(s) -- Attach list(s) of attendees and dates
3. Notification to Project Workers of Labor Compliance Program's Contact Person. (Explain
Manner of Notification for each project work site.)
4. Certified Payroll Record Review
a. CPRs Received From:
Contractor/Subcontractor For weeks ending ("w/e") through w/e
b. Classifications identified in CPRs and applicable Prevailing Wage Determinations
Classification Determination No.
5. Further investigation or audit due to CPR review, information or complaint from worker or other
interested person, or other reason:
a. Independent Confirmation of CPR Data
Contractor/Subcontractor
Worker Interviews Reconciled CPRs with Pay-
(Yes/No) checks or Stubs (Yes/No)
b. Employer Payments (Health & Welfare, Pension, Vacation/Holiday) Confirmation
Recipients of Written confirmation
Contractor/Subcontractor Employer Payments Obtained (Yes/No)
c. Contributions to California Apprenticeship Council or Other Approved Apprenticeship
Program
Contractor/Subcontractor
Recipients of
Contributions
Written confirmation
Obtained (Yes/No)
d. Additional Wage Payments or Training Fund Contributions Resulting from Review of
CPRs
Contractor/Subcontractor
Additional amounts Additional Expla-
Paid to Workers Training Fund nation
* Use separate page(s) for explanation
6. Complaints Received Alleging Noncompliance with Prevailing Wage Requirements.
Name of
Complainant
Date Received
Resolution or
Current Status
*
*
*
*Use separate page(s) to explain resolution or current status
7. Requests for Approval of Forfeiture to Labor Commissioner
Contractor/Subcontractor
Date of Request Approved/Modified/Denied
8. Litigation Pending Under Labor Code Section 1742
Contractor/Subcontractor DIR Case Number
9. (Check one): Final report this project Annual report this project
Authorized Representative for Labor Compliance Program
ATTACHMENT D
NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS DUE TO
DELINQUENT OR INADEQUATE PAYROLL RECORDS
(8 CCR § 16435)
[Name and Contact Information for person issuing Notice]
Date:
Case or Contract No.:
NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS DUE
TO DELINQUENT OR INADEQUATE PAYROLL RECORDS (8 CCR §16435)
Awarding Body:
Work performed in County of:
Project Name and Number (if any):
Prime Contractor:
Subcontractor:
Pursuant to Labor Code §1771.5(b)(5) and 8 CCR §16435, contract payments are being withheld due to
delinquent or inadequate payroll records.
Contractor or subcontractor whose payroll records are delinquent or inadequate:
❑ The following payroll records are delinquent (specify weeks and due dates):
❑ The following payroll records are inadequate (specify weeks and ways in which records are
deemed inadequate under 8 CCR §16435(d)):
Estimated amount of contract payments due to contractor or subcontractor that are being withheld
pursuant to this Notice:
See page 2 for additional information, including appeal rights.
Labor Compliance Officer
Prime Contractor Obligations: If contract payments are being withheld due to the delinquency or
inadequacy of your subcontractor's payroll records, you are required to cease all payments to that
subcontractor until the Labor Compliance Program provides notice that the subcontractor has cured the
delinquency or deficiency.
Notice of Right to Obtain Review — Expedited Hearing
An affected contractor or subcontractor may request review an expedited hearing to review this Notice
of Withholding of Contract Payments under Labor Code §1742. The only issue in any such review
proceeding is whether the specified payroll records are in fact delinquent or inadequate within the
meaning of 8 CCR §16435 or whether the Labor Compliance Program has exceeded its authority under
8 CCR §16435. To obtain an expedited hearing, a written request must be transmitted to the both
the Labor Compliance Program and to the Lead Hearing Officer for the Director of the
Department of Industrial Relations, as follows:
[Name of Labor Compliance Officer,
address, and fax number]
Office of the Director — Legal Unit
Attention: Lead Hearing Officer
Expedited Hearing Request
Fax to: (415) 703-4277
The request for expedited hearing should specify the basis for challenging this Notice and include a copy
of this Notice as an attachment. The request should also identify and provide contact information for the
person who will represent the contractor or subcontractor at the hearing.
Important Additional Information: This is a Notice of Temporary Withholding of Contract Payments
for Delinquent or Inadequate Payroll Records only. This is not a determination of liability for wages or
penalties under Labor Code §§1775 and 1776 or any other statute. Contract payments cannot continue
to be withheld pursuant to this notice, once the required records have been produced. However, the
contractor and subcontractor may still be subject to the assessment of back wages and penalties and the
withholding of contract payments if, upon investigation, a determination is made that the contractor or
subcontractor violated the public works requirements of the Labor Code.
This Notice only addresses rights and responsibilities under state law. Awarding bodies, labor
compliance programs, and contractors may have other rights or responsibilities under federal or local
law, where applicable, and may also have additional rights or remedies under the public works contract.
Enclosure — text of 8 CCR § 16435
§16435. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate.
(a) "Withhold" means to cease payments by the Awarding Body, or others who pay on its behalf, or agents, to the
general contractor. Where the violation is by a subcontractor, the general contractor shall be notified of the nature
of the violation and reference made to its rights under Labor Code Section 1729.
(b) "Contracts." Except as otherwise provided by agreement, only contracts under a single master contract,
including a Design -Build contract, or contracts entered into as stages of a single project, may be the subject of
withholding.
(c) "Delinquent payroll records" means those not submitted on the date set in the contract.
(d) "Inadequate payroll records" are any one of the following:
(1) A record lacking any of the information required by Labor Code Section 1776;
(2) A record which contains all of the required information but is not certified, or is certified by someone who is
not an agent of the contractor or subcontractor;
(3) A record remaining uncorrected for one payroll period after the Labor Compliance Program has given the
contractor or subcontractor notice of inaccuracies detected by audit or record review. However, prompt
correction will stop any duty to withhold if such inaccuracies do not amount to one (1) percent of the entire
Certified Weekly Payroll in dollar value and do not affect more than half the persons listed as workers employed
on that Certified Weekly Payroll, as defined in Labor Code Section 1776 and section 16401 of Title 8 of the
California Code of Regulations.
(e) The withholding of contract payments when payroll records are delinquent or inadequate is required by Labor
Code Section 1771.5(b)(5), and it does not require the prior approval of the Labor Commissioner. The Awarding
Body shall only withhold those payments due or estimated to be due to the contractor or subcontractor whose
payroll records are delinquent or inadequate, plus any additional amount that the Labor Compliance Program has
reasonable cause to believe may be needed to cover a back wage and penalty assessment against the contractor or
subcontractor whose payroll records are delinquent or inadequate; provided that a contractor shall be required in
turn to cease all payments to a subcontractor whose payroll records are delinquent or inadequate until the Labor
Compliance Program provides notice that the subcontractor has cured the delinquency or deficiency.
(f) When contract payments are withheld under this section, the Labor Compliance Program shall provide the
contractor and subcontractor, if applicable, with immediate written notice that includes all of the following: (1) a
statement that payments are being withheld due to delinquent or inadequate payroll records, and that identifies
what records are missing or states why records that have been submitted are deemed inadequate; (2) specifies the
amount being withheld; and (3) informs the contractor or subcontractor of the right to request an expedited
hearing to review the withholding of contract payments under Labor Code Section 1742, limited to the issue of
whether the records are delinquent or inadequate or the Labor Compliance Program has exceeded its authority
under this section.
(g) No contract payments shall be withheld solely on the basis of delinquent or inadequate payroll records after
the required records have been produced.
(h) In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties
shall be assessed under Labor Code Section 1776(g) for failure to timely comply with a written request for
certified payroll records. The assessment of penalties under Labor Code Section 1776(g) does require the prior
approval of the Labor Commissioner under section 16436 of these regulations.
ATTACHMENT E
REQUEST FOR APPROVAL. OF FORFEITURE
(Appendix D following 8 CCR § 16437)
Labor Compliance Program Regulations — APPENDIX D
REQUEST FOR APPROVAL OF FORFEITURE -- Suggested fartnat
1. AWARDING BODY / THIRD PARTY LCP:
Name and Contact Information:
Date of Request:
Name and Contact Information for Awarding Body if different
from LCP:
LCP Approval Status (specify if either
interim or temporary or if LCP has
extended authority):
2. PROJECT INFORMATION:
Project Name:
Contract Number:
Project Location:
Bid Advertisement Dates:
Estimated Date Project is to be completed:
Acceptance Date of Project by the Awarding
Body:
Notice of Completion/Date Recorded with County
Recorder:
Other Relevant Deadline (specify):
Amount being held in Retention:
3. CONTRACTOR INFORMATION:
Name and address of Affected Contractor:
Name and address of Affected Subcontractor:
General Description of Scope of Work of the Entire Project:
General Description of Scope of Work covered in the proposed Forfeiture (describe and attach relevant
portions of contract or subcontract):
1
4. LABOR COMPLIANCE PROGRAM INVESTIGATION AND FINDINGS:
Total Amount of Request for Notice of Withholding of Contract Payments:
Wages Due:
Training Funds
Due:
Total Penalties Due:
Potential Liquidated Damages
[Wages + Training Funds]:
LC 1775 Penalties Due:
LC 1813 Penalties
Due:
LC 1776 Penalties Due:
Other:
[Provide narrative summaries covering the following]:
A. Statement of Issues.
B. Investigative Report (detailed narrative including but not limited to how the investigation was
conducted including worker declarations, reviewing certified payroll records, verification of employer
payment contributions, etc.).
C. Audit Report (detailed explanation of how audit was completed addressing each of the issues above).
D. Affected contractor and subcontractor information (how affected contractor and subcontractor were
informed of potential violations; summary of their response with respect to violations and penalty issues;
and any other information considered in determining recommended penalties).
E. Recommended penalties under Labor Code Section 1 775(a) and basis for recommendation,
including how factors in subsection (a)(2) of Section 1775 were applied to arrive at the recommended
amount(s).
ATTACHMENTS
1. Audit Summary (Appendix B)
2. 1 S` Bid Advertisement Publication
3. Notice of Completion
4. Scope of Work
5. Complaint form(s) and Declarations, if any
Send the Request and all Attachments to:
Division of Labor Standards Enforcement
Bureau of Field Enforcement
Attn.: Regional Manager
300 Oceangate Blvd., No. 850
Long Beach, CA 90802
COPIES OF THIS REQUEST, INCLUDING ALL ATTACHMENTS, SHALL BE SERVED ON
THE AFFECTED CONTRACTOR AND AFFECTED SUBCONTRACTOR AT THE SAME TIME
THAT IT IS SENT TO THE DIVISION OF LABOR STANDARDS ENFORCEMENT.
ATTACHMENT F
NOTICE OF WITHHOLDING OF CONTRACT PAYMENTS
[Labor Code § 1771.6]
Labor Compliance Program
(SEAL )
Project Name
a Project No;
Prime Contractor
Phone:
Fax:
Date:
In Reply Refer to Case No.;
Notice of Withholding of Contract Payments
Awarding Body
a Work Performed in County of
Project Name
a Project No;
Prime Contractor
Subcontractor
After an investigation concerning the payment of wages to workers employed in the execution of the contract
for the above-named public works project, the Labor Compliance Program for
(Awarding Body) has determined that violations of the California Labor Code
have been committed by the contractor and/or subcontractor identified above. In accordance with Labor
Code sections 1771.5 and 1771.6, the Labor Compliance Program hereby issues this Notice of Withholding
of Contract Payments.
The nature of the violations of the Labor Code and the basis for the assessment are as follows:
The Labor Compliance Program has determined that the total amount of wages due is:
The Labor Compliance Program has determined that the total amount of penalties assessed under Labor
Code sections 1775 and 1813 is: $
The Labor Compliance Program has determined that the amount of penalties assessed under Labor Code
section 1776 is: $
LABOR COMPLIANCE PROGRAM
By:
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code sections 1742 and 1771.6, an affected contractor or subcontractor may obtain
review of this Notice of Withholding of Contract Payments (NWCP) by transmitting a written request to the
office of the Labor Compliance Program that appears below within 60 days after service of the notice. To
obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Compliance Program
Review Office -Notice of Withholding of Contract Payments
A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments from
which review is sought, including the date of the notice, or it shall include a copy of the notice as an
attachment, and shall also set forth the basis upon which the notice is being contested. In accordance with
Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review
evidence to be utilized by the Labor Compliance Program at the hearing within 20 days of the Labor
Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for
Review will result in a final order which shall be binding on the
contractor and subcontractor, and which shall also be binding, with
respect to the amount due, on a bonding company issuing a bond that
secures the payment of wages and a surety on a bond. Labor Code
section 1743.
In accordance with Labor Code section 1742(d), a certified copy of a final order may be filed by the Labor
Commissioner in the office of the clerk of the superior court in any county in which the affected contractor
or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall
enter judgment for the State against the person assessed in the amount shown on the certified order.
(continued on next page)
Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (c), the Labor Compliance Program shall, upon receipt of a
request from the affected contractor or subcontractor within 30 days following the service of this Notice of
Withholding of Contract Payments, afford the contractor or subcontractor the opportunity to meet with the
Labor Compliance Program's designee to attempt to settle a dispute regarding this Notice. The settlement
meeting may be held in person or by telephone and shall take place before the expiration of the 60 -day
period for seeking a hearing as set forth above under the heading Notice of Right to Obtain Review. No
evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the
settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. No
writing prepared for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a fmal
settlement agreement, is admissible or subject to discovery in any administrative or civil proceeding. This
opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal
hearing, and a settlement meeting may be requested even if a written Request for Review has already been
made. Requesting a settlement meeting, however, does not extend the 60 -day period during which a formal
hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a dispute
regarding this notice must be transmitted to at the following address:
Liquidated Damages
In accordance with Labor Code section 1742.1 (a), after 60 days following the service of this Notice of
Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or bonds
issued to secure the payment of wages covered by the notice shall be liable for liquidated damages in an
amount equal to the wages, or portion thereof that still remain unpaid. If this Notice subsequently is
overturned or modified after administrative or judicial review, liquidated damages shall be payable only on
the wages found to be due and unpaid. If the contractor or subcontractor demonstrates to the satisfaction of
the Director of the Department of Industrial Relations that he or she had substantial grounds for believing
this Notice to be an error, the Director shall waive payment of the liquidated damages.
Notwithstanding the above, in accordance with Labor Code 1742.1 (b), there shall be no liability for
liquidated damages if the full amount found due in this Notice, including penalties, has been deposited with
the Department of Industrial Relations, within 60 days following service of this Notice, for the Department
to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus
any interest earned, at the conclusion of all administrative and judicial review to the persons and entities
who are found to be entitled to such funds.
In lieu of a cash deposit, the contractor may post an undertaking with the Department in full amount of the
Notice of Withholding of Contract Payments. The undertaking shall be on the condition that, if any decision
is issued by the Director upholding this Notice in any respect, the contractor shall pay the amount owed
pursuant to a decision that is final under Labor Code Section 1742, unless the parties have executed a
settlement agreement for the payment of some other amount, in which case the contractor shall pay the
amount that the contractor is obligated to pay under the terms of the settlement agreement. The undertaking
must provide that if the contractor fails to pay the amount owed within 10 days of the date the decision is
final or the execution of the settlement agreement, a portion of the undertaking equal to the amount owed, or
the entire undertaking if the amount exceeds the undertaking is forfeited to the Labor Commissioner for the
State of California for the purpose of satisfying the amounts owed under this Notice. A payment bond
obtained by a contractor for the public works project which is the subject to this Notice shall not be accepted
as an undertaking unless the following two conditions are completely satisfied: (1) the payment bond
provides the payment of the full amount of this Notice, including but not limited to, all wages, training, trust
contributions, and penalties, and (2) the conditions of payment set forth above are expressly agreed to by the
affected contractor(s) and the surety which issued the payment bond. The undertaking should be forwarded
to the Department as directed below. The Department's Accounting Office will hold the undertaking until
the administrative and judicial review is completed. The disbursement of the bond funds will follow the
same process as described above for a cash deposit.
Deposits must be made by check or money order payable to the Department of Industrial Relations with a
letter and a copy of the Notice of Withhold Contract Payments and mailed to:
Department of Industrial Relations
Attention Cashiering Unit
P.O. Box 420603
San Francisco, CA 94142
The Amount of Liquidated Damages Available Under this Notice is $
Distribution: Attach:
Prime Contractor Audit Summary
Subcontractor Proof of Service
Surety(s) on Bond
ATTACHMENT G
NOTICE OF OPPORTUNITY TO REVIEW EVIDENCE
[Labor Code § 1742(b) and 8 CCR § 17224]
LABOR COMPLIANCE PROGRAM
(SEAL )
Review Office - Notice of Withholding
of Contract Payments
Phone:
Fax:
Date:
In Reply Refer to Case No.:
Notice of Opportunity to Review Evidence Pursuant to Labor Code Section 1742(b)
To: Prime Contractor
Subcontractor
Please be advised that this office has received your Request for Review, dated
and pertaining to the Notice of Withholding of Contract Payments issued by the Labor
Compliance Program in Case No.
In accordance with Labor Code section 1742(b), this notice provides you with an opportunity to
review evidence to be utilized by the Labor Compliance Program at the hearing on the Request
for Review, and the procedures for reviewing such evidence.
Rule 17224 of the Prevailing Wage Hearing Regulations provides as follows:
"(a) Within ten (10) days following its receipt of a Request for Review, the
Enforcing Agency shall also notify the affected contractor or subcontractor of its
opportunity and the procedures for reviewing evidence to be utilized by the
Enforcing Agency at the hearing of the Request for Review.
(b) An Enforcing Agency shall be deemed to have provided the opportunity to
review evidence required by this Rule if it (1) gives the affected contractor or
subcontractor the option at said party's own expense to either (i) obtain copies of
all such evidence through a commercial copying service or (ii) inspect and copy
such evidence at the office of the Enforcing Agency during normal business
hours; or if (2) the Enforcing Agency at its own expense forwards copies of all
such evidence to the affected contractor or subcontractor.
(c) The evidence required to be provided under this Rule shall include the identity
of witnesses whose testimony the Enforcing Agency intends to present, either in
person at the hearing or by declaration or affidavit. This provision shall not be
construed as requiring the Enforcing Agency to prepare or provide any separate
listing of witnesses whose identities are disclosed within the written materials
made available under subpart (a).
(d) The Enforcing Agency shall make evidence available for review as specified
in subparts (a) through (c) within 20 days of its receipt of the Request for Review;
provided that, this deadline may be extended by written request or agreement of
the affected contractor or subcontractor. The Enforcing Agency's failure to make
evidence available for review as required by Labor Code section 1742(b) and this
Rule, shall preclude the enforcing agency from introducing such evidence in
proceedings before the Hearing officer or the Director.
(e) This Rule shall not preclude the Enforcing Agency from relying upon or
presenting any evidence first obtained after the initial disclosure of evidence under
subparts (a) through (d), provided that, such evidence is promptly disclosed to the
affected contractor or subcontractor. This Rule also shall not preclude the
Enforcing Agency from presenting previously undisclosed evidence to rebut new
or collateral claims raised by another party in the proceeding."
In accordance with the above Rule, please be advised that the Labor Compliance Program's
procedure for you to exercise your opportunity to review evidence is as follows:
Within five calendar days of the date of this notice, please transmit the
attached Request to Review Evidence to the following address:
Attention:
To:
From:
Request to Review Evidence
Regarding Notice of Withholding of Contract Payments Dated
Our Case No.:
The undersigned hereby requests an opportunity to review evidence to be utilized
by the Labor Compliance Program at the hearing on the Request for Review.
Phone No.:
Fax No.:
ATTACHMENT H
NOTICE OF TRANSMITTAL OF REQUEST FOR REVIEW TO DIR LEAD HEARING
OFFICER
[8 CCR § 172231
LABOR COMPLIANCE PROGRAM
(SEAL )
Review Office - Notice of Withholding
of Contract Payments
Phone:
Fax:
Date:
In Reply Refer to Case No.:
Notice of Transmittal
To: Department of Industrial Relations
Office of the Director -Legal Unit
Attention: Lead Hearing Officer
P. O. Box 420603
San Francisco, CA 94142-0603
Enclosed herewith please find a Request for Review, dated , postmarked
, and received by this office on
Also enclosed please find the following:
Copy of Notice of Withholding of Contract Payments
Copy of Audit Summary
LABOR COMPLIANCE PROGRAM
By:
cc: Prime Contractor
Subcontractor
Bonding Company
Please be advised that the Request for Review identified above has been received and
transmitted to the address indicated. Please be further advised that the governing
procedures applicable to these hearings are set forth at Title 8, California Code of
Regulations sections 17201-17270. These hearings are not governed by Chapter 5 of
the Government Code, commencing with section 11500.
ATTACHMENT I
FORMS
FORMS SUBMITTAL SCHEDULE
Document Name
Frequency
Submittal Due Date
Notes
LCP Checklist
1 -time submittal
At preconstruction/ LCP
meeting
Must be submitted by all listed contractors and
subcontractors
Certification of
Understanding and
Authorization
Certification Concerning
State Labor Standards and
Prevailing Wages
1 -time submittal
Prior to start of work
Must be submitted by all listed contractors and
subcontractors. Should a new payroll officer be
designated during the project, a new form must
be submitted.
Fringe Benefit Statement
1 -time submittal,
then as benefit
amounts change
sc
Submitted with 1 CPR,
then as contribution
amount changes
In the event fringe benefits are paid "in cash" to
workers, contractor should indicate "fringe
benefits paid in cash" across this form. Note:
Training contributions should be paid to the
CAC or an approved apprenticeship training
program; not to the employee.
Authorization for
Deductions
As amounts are
deducted.
Submitted with
accompany CPRs '
Must be completed for CPRs that include
deductions not authorized by the DIR.
Statement of Compliance
Certified Payroll Report
(CPR)
Statement of Non-
Performance
Weekly
Within 10 days of end of
payroll period
CPRs to be submitted to the Labor Compliance
Officer within 10 days from the end of the
payroll period.
All inactive workweeks (after the submission of
the 1st CPR) should be reported on a "Statement
of Non -Performance"
Form DAS-140 Public
Works Contract
Award Info Form DAS-142
1 -time submittal
Prior to start of work
A copy must be forwarded to the Labor
Compliance Officer.
A DAS-142, making a request for the dispatch
of an apprentice is required. Therefore, the
submittal of a DAS-142 is recommended, as it
serves as proof the request was made.
Contractor's Notification of
Subcontracts Awarded
1 -time submittal,
then as new
subcontracts are
awarded
Prior to start of work
Must be submitted to include all subcontractors
on the project prior to work being started.
Monthly Employment
Report
Monthly
Within 1 month of the
reporting month
Must be submitted to include all workers on site
for each month.
Public Works Affidavit
1 -time submittal
At conclusion of work
To be submitted to the Labor Compliance
Officer by the prime and each sub at the
conclusion of the work and prior to release of
retention
CERTIFICATION OF UNDERSTANDING AND AUTHORIZATION
Project Name:
Contractor:
Tax ID#:
Address:
CA Contractor License #:
This is to certify that the principals, owners and officers of the contracting firm above, including the
authorized payroll officer, have read and understand the minutes of the pre -construction conference and the
labor standards clauses pertaining to the project named above.
The following person is designated as the Payroll Officer for the contracting firm and is hereby authorized
to sign the Statement of Compliance which will accompany each weekly certified payroll reports for this
project.
Designated Payroll Officer:
Name:
Title:
Signature:
Date:
Authorized by
Name:
Title:
Signature:
Date:
CONTRACTOR'S/SUBCONTRACTOR'S CERTIFICATION
CONCERNING STATE LABOR STANDARDS AND PREVAILING WAGES
Project Name:
All contractors and subcontractors shall give the following certification to the City and forward this certification to
the City within 10 days after the execution of any contract or subcontract.
A. "I am aware of the provisions of Section 1720 et seq. of the California Labor Code which requires that the State
prevailing wage rate shall be paid to employees where this rate exceeds the Federal wage rate."
B. "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured
against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that
Code, and I will comply with such provisions before commencing the performance of the work of this contract."
C. "It is further agreed that, except as may be provided in Section 1815 of the California Labor Code, the
maximum hours a worker is to be employed is limited to eight hours a day and 40 hours a week and the
subcontractor shall forfeit, as a penalty, $25 for each worker employed in the execution of the subcontract for each
calendar day during which a worker is required or permitted to labor more than eight hours in any calendar day or
more than 40 hours in any calendar week."
Contractor/Subcontractor Name
Signature Date
Printed Name and Title
STATEMENT OF NON-PERFORMANCE
Payroll No.: Date:
Name of Contractor:
I do hereby state that no persons were employed on the construction site of
Project: during the payroll period
commencing on the day of , 20 and ending on the day of
20
Signature of authorized person
Title
Date
Final Payroll: Yes No
This statement is not required to be submitted until after submission of the initial payroll report. It must then be submitted
by the contractor for each week, in place of a certified payroll, where no work is preformed until the fmal certified payroll
is submitted.
CONTRACTOR'S NOTIFICATION OF SUBCONTRACTS AWARDED.
Project: Month of:
Subcontractor Name
Trades to be used Contract Amount
Start Date
Completion Date
The undersigned hereby certifies that: (a) The Equal Opportunity Clauses are indicated in each of the
Listed Subcontracts; (b) Each subcontractor or lower tier subcontractor has been notified in writing prior to
their beginning construction, of his respective obligations under the Affirmative Action Requirements, if
applicable.
Prime Contractor:
Signature Printed Name and Title
Date
AUTHORIZATION FOR DEDUCTIONS
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STATEMENT OF COMPLIANCE
Date
Payroll Number
1, do hereby certify under penalty of perjury:
(Name of Signatory Party) (Title)
(1) That I pay or supervise the payment of the persons employed by on
(Contractor or Subcontractor)
, that during the payroll commencing on the day of
(Project Title)
20 and ending the day of , 20 , all persons employed on said project have been paid their full weekly wages earned, that no rebates
have
been or will be made either directly or indirectly to or on behalf of said from the full weekly wages eamed
(Contractor or Subcontractor)
by any person and that no deductions have been made either directly or indirectly from the full wages earned by any person, other than permissible deductions, as
described below:
(2) That any payrolls otherwise under this contract required to be submitted for the above period are correct and complete; that the wage rates for laborers or mechanics
contained therein are not less than the applicable wage rates contained in any wage determination incorporated into the contract; that the classification set forth therein for
each laborer or mechanic conform with the work he or she performed.
(3) That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by
the Bureau of Apprenticeship and Training, United States Department of Labor, or if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship and
Training, United States Department of Labor.
(4) That:
(a) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS OR PROGRAMS
❑
In addition to the basic hourly wage rates paid to each laborer or mechanic listed in the above referenced payroll, payments of fringe benefits as listed in
the contract have been or will be made to appropriate programs for the benefit of such employees, except as noted in Section 4(c) below.
(b) WHERE FRINGE BENEFITS ARE PAID IN CASH
❑Each laborer or mechanic listed in the above referenced payroll has been paid as indicated on the payroll, an amount not less than the sum of the
applicable basic hourly wage rate plus the amount of the required fringe benefits as listed in the contract, except as noted in Section 4(c) below:
(c) EXCEPTIONS
EXCEPTION (CRAFT)
EXPLANATION
REMARKS:
NAME AND TITLE
SIGNATURE
On Federally funded projects, permissible deductions are defined in Regulations, Part 3 (29 CFR Subtitle A), issued by the Secretary of Labor under the Copeland Act,
as amended (48 Stat. 948 63 Stat. 108, 72 Stat. 967; 76 Stat. 357; 40 U.S.C. 276c).
Also, the willful falsification of any of the above statements may subject the contractor or subcontractor to civil or criminal prosecution (see Section 100 1) of Title 18
and Section 231 of Title 31 of the United States Code).
PUBLIC WORKS CONTRACT AWARD INFORMATION
Contract award information must be sent to your Apprenticeship Committee if you are approved to train. If you are not approved to train, you
must send the information (which may be this form) to ALL applicable Apprenticeship Committees in your craft or trade in the area of the site
of the public work. Go to: http://www.dir.ca.gov/das/PublicWorksForms.htmfor information about programs in your area and trade. You may
also consult your local Division of Apprenticeship Standards (DAS) office whose telephone number may be found in your local directory under
California, State of, Industrial Relations, Division of Apprenticeship Standards.
Do not send this form to the Division of Apprenticeship Standards.
NAME OF YOUR COMPANY
CONTRACTOR'S STATE LICENSE NO
MAILING ADDRESS- NUMBER & STREET, CITY, ZIP CODE
AREA CODE & TELEPHONE NO.
NAME & ADDRESS OF PUBLIC WORKS PROJECT
DATE YOUR CONTRACT EXECUTED
DATE OF EXPECTED OR ACTUAL START OF PROJECT
NAME & ADDRESS OF PUBLIC AGENCY AWARDING CONTRACT
ESTIMATED NUMBER OF JOURNEYMEN HOURS
OCCUPATION OF APPRENTICE
THIS FORM IS BEING SENT TO: (NAME & ADDRESS OF APPRENTICESHIP PROGRAM(S))
ESTIMATED NUMBER OF APPRENTICE HOURS
APPROXIMATE DATES TO BE EMPLOYED
This is not a request for dispatch of apprentices.
Contractors must make a separate request for actual dispatch, in accordance with Section 230.1(a) California Code of Regulations
Check One Of The Boxes Below
We are already approved to train apprentices by the
Apprenticeship Committee. We will employ and train under their Standards.
2. 1 We will comply with the standards of
Enter name of the Committee
Apprenticeship Committee for the duration of this job only.
Enter name of the Committee
We will employ and train apprentices in accordance with the California Apprenticeship Council regulations,
including § 230.1 (c) which requires that apprentices employed on public projects can only be assigned to
perform work of the craft or trade to which the apprentice is registered and that the apprentices must at all
times work with or under the direct supervision of journeyman/men.
DAS 140 (REV. 1/04)
Signature
Typed Name
Title
Date
State of California - Department of Industrial Relations DIVISION
OF APPRENTICESHIP STANDARDS
EQUEST FOR DISPATCH OF AN APPRENTICE - DAS 142 FORM
DO NOT SEND THIS FORM TO DAS
You may use this form to request dispatch of an apprentice from the Apprenticeship Committee in the craft or
trade in the area of the public work. Go to: http://www.dir.ca.gov/DAS/PublicWorksForms.htm for information
about programs in your area and trade. You may also consult your local Division Apprenticeship Standards
(DAS) office whose telephone number may be found in your local directory under California, State of, Industrial
Relations, Division of Apprenticeship Standards. Except for projects with less than 40 hours of journeyman
work, you must request and employ apprentices in no less
than 8 hour increments.
Date:
Contractor Requesting Dispatch:
Name:
To Applicable Apprenticeship Committee: i
Name:
Address:
Address:
License No.
Tel. No. Fax No.
Tel. No. Fax No.
Project Information:
Contract No.
Name of the Project:
Address:
Dispatch Request Information:
Number of Apprentice(s) Needed: Craft or Trade:
Date Apprentice(s) to Report: (72 hrs. notice required) Time to Report:
Name of Person to Report to:
Address to Report to:
You may use this form to make your written request for the dispatch
writing and submitted at (east 72 hours in advance (excluding weekends
of submission may be required. Please take note of California
of an apprentice. Requests for dispatch must be in
and holidays) via first class mail, fax or email, Proof
Code of Regulations, Title 8, § 230.1 (a) for all applicable
Works SUM mary0fReQttirements. htm
requirements regarding apprenticeship requests and/or
visit hltp://www. dir. ca. qov/DAS/DA SApprenticesOnPublic
DAS 142 (Revised 12/11)
CONTRACTOR FRINGE BENEFIT STATEMENT
Contract Number / Name:
Contract Location:
l oday's Date:
Contractor / Subcontractor Name:
Business Address:
In order that the proper Fringe Benefit rates can be verified when checking payrolls on the above contract, the hourly rates for fringe benefits,
subsistence and/or travel allowance payment made for employees on the various classes of work are tabulated below.
Classification:
Effective Date:
Subsistence or Travel Pay:
$
FRINGE BENEFITS
Health & $
Welfare
PAID TO:
Name:
Address:
Pension $
PAID TO:
Name:
Address:
Vacation/ $
Holiday
PAID TO:
Name:
Address:
Training $
and/or Other
PAID TO:
Name:
Address:
Classification:
Effective Date:
Subsistence or Travel Pay:
$
FRINGE BENEFITS
Health & $
Welfare
PAID TO:
Name:
Address:
Pension $
PAID TO:
Name:
Address:
Vacation/ $
Holiday
PAID TO:
Name:
Address:
Training $
And/or Other
PAID TO:
Name:
Address:
Classification:
Effective Date:
Subsistence or Travel Pay:
$
FRINGE BENEFITS
Health & $
Welfare
—
PAID TO:
Name:
Address:
Pension $
PAID TO:
Name:
Address:
Vacation/ $
Holiday
PAID TO:
Name:
Address:
Training $
And/or Other
PAID TO:
Name:
Address:
.
[
Supplemental statements must be submitted during the nroeress of work should a chance in rate of anv of the classifications be made,
Submitted: Contractor / Subcontractor
By: Name /Title
11. Company Official's Signature and Title
Grand Total
Total Trainees
Total Apprentices
Total Journey Worker
CONSTRUCTION
TRADE
Reporting Period
From
N
c
7
o
Trainee
Apprentice
Journey Worker
fA
c
Q
o
Trainee
Apprentice
Journey Worker
fR
c
O'
0
0
Trainee
Apprentice
Journey Worker
Sub -Total
Trainee
Apprentice
Journey Worker
co
c
Q
0
Trainee
Apprentice
Classifications
Journey Worker
0
Total All
Employees
By Trade
M F
I CONSTRUCTION WORK HOURS
Name and Location of Contractor
Black
(Not of Hispanic
Origin)
M I F I.
Hispanic
M r F
12. Telephone Number
Asian or
Pacific
Islander
M F
American
Indian or
Native American
M i F
Minority
Percentage
13. Date Signed
Female
Percentage
Total
Number of
Employees
M I F
O
W
CO
m
Funding
Agency
Total Number of
Minority Employees
M I F
1lodai luawAoldwi AlyluoW
PUBLIC WORKS AFFIDAVIT
California Labor Code §1775(b)(4)
The undersigned Contractor/Subcontractor has complied with the provisions of the
California Labor Code §1771, §1773.1, §1775, §1776, §1777.5, §1813 and §1815, and
has paid all employees the specified general prevailing rate of per diem wages to its
employees, and any amounts due pursuant to §1813, on the public project:
Project Name:
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
Executed this day of 201 at
. California.
(Company Name)
(Company Representative's Name/Title)
(Signature of Company Representative)
(Approved by Labor Compliance Officer/Program Manager)
NOTE: No final payment or retention shall be paid to the contractor until it certifies that all
benefit payments owed by the contractor are made or otherwise guaranteed.
RESOLUTION NO. 2017-71
A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING
LABOR COMPLIANCE PROGRAM FOR THE PURPOSE OF
FULFILLING PROPOSITION 84 GRANT FUNDING REQUIREMENT
WHEREAS, the City of Lodi Public Works Department is required to have a Labor
Compliance Program (LCP) that is approved by the California Department of Industrial
Relations (D1R) in order to receive grant funds from Proposition 84 (Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006); and
WHEREAS, the LCP formalizes existing Public Works Department contract policies to
ensure that public works contractors comply with the prevailing wage requirements found in the
California Labor Code, which establishes minimum requirements which all LCP's must meet or
exceed in carrying out the labor compliance function, such as payment of applicable prevailing
wage rates, employment of properly -registered apprentices, and timely submittal of certified
payroll records; and
WHEREAS, the LCP also establishes agency policy for monitoring construction sites for
verification of proper employee payments, conducting pre job conferences related to labor
compliance, withholding contractor payment for noncompliance, and submitting annual reports
to D1R for projects that are State and/or federally funded; and
WHEREAS, Michael Baker International, Inc., currently provides labor compliance
services for both the Public Works and Community Development departments, and was tasked
with producing the City's LCP, as well as composing an application to DIR to request approval
of the program; and
WHEREAS, a Resolution accepting the LCP by the City Council must accompany the
application to DIR; and
WHEREAS, the City of Lodi is required to submit evidence of qualification to operate a
successful LCP, such as possession of an effective and up-to-date program manual,
experience, and training of staff that will operate the LCP, and access to legal support; and
WHEREAS, staff recommends that the City Council accept the Labor Compliance
Program for the purpose of fulfilling Proposition 84 grant funding requirements.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby accept
the Labor Compliance Program on file with the Public Works Department for the purpose of
fulfilling Proposition 84 grant funding requirements.
Dated: April 19, 2017
I hereby certify that Resolution No. 2017-71 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 19, 2017 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and
Mayor Kuehne
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
COUNCIL MEMBERS — None
NNIFER
dity Clerk
2017-71
FERRAIOLO
CITY COUNCIL
DOUG KUEHNE, Mayor
ALAN NAKANISHI,
Mayor Pro Tempore
MARK CHANDLER
BOB JOHNSON
JOANNE MOUNCE
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706 / FAX (209) 333-6710
EMAIL: pwdept@lodi.gov
www.Iodi.gov
April 13, 2017
Michael Baker International, Inc.
2729 Prospect Park Drive, Suite 220 Rancho Cordova, CA 95670
STEPHEN SCHWABAUER
City Manager
JENNIFER M. FERRAIOLO
City Clerk
JANICE D. MAGDICH
City Attorney
CHARLES E. SWIMLEY, JR.
Public Works Director
SUBJECT: Adopt Resolution Accepting Labor Compliance Program for the Purpose of
Fulfilling Proposition 84 Grant Funding Requirement
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, April 19, 2017. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the consent calendar and is usually not discussed unless a
Council Member requests discussion. The public is given an opportunity to address
items on the consent calendar at the appropriate time.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Jennifer M. Ferraiolo, City Clerk, at (209) 333-6702.
If you have any questions about the item itself, please call Julia Tyack at (209) 333-6706.
Chaliles E. Swimley, Jr.
Public Works Director
CES/tdb
Enclosure
cc: City Clerk