CHAPTER 6: WAGES AND PAYROLLS - Florida …

1 Topic No. 275-020-005 Effective: August 17, 2016 Equal Opportunity construction Contract Compliance ManualPage 121 CHAPTER 6: WAGES AND GENERAL State and Federal Minimum WageTable State of Florida and Federal Minimum wage wage Determinations Based on Type of Department of Labor wage DeterminationTable Common USDOL Rules Guiding wage Fringe Benefits Required in wage Posting REQUESTING ADDITIONAL wage Requirements and wage Payments While Awaiting Additional Classification Directions for Completing the Additional Classification Request Form(Form No. 700-010-07) EMPLOYEE LABOR/EEO Monthly Interview payroll Reporting RequirementsTable Race and Sex DeductionsTable Deductions Generally Allowed Without ContractorApplication to or Permission from the US Dept.

2 Of LaborTable Four Criteria Required by US Dept. of Labor in GrantingPermission for Other Requesting US Dept. of Labor Permission for Work in More than One Working Foremen/womenTopic No. 275-020-005 Effective: August 17, 2016 Equal Opportunity construction Contract Compliance ManualPage Independent Truck Certified payroll for Warranty Time Frame for Submittal of Contractor s Retention of payroll Department s Storage and Retention of payroll The wage and Hour NOTIFICATION OF payroll Violation TypesTable payroll Violation Correction Processing Supplemental Payments when the Employee cannot belocatedAttachment Standard Form wage Purpose and Data FRINGE General Fringe Statements on wage Fringe Calculation Fringe Benefits.

3 Work Hour and Overtime Bona Fide Fringe Benefit Benefit Administrative Reporting Payment of Fringe Benefits on the Statement of Fringe Benefit Record Keeping Additional Information onDavis-BaconFringe BenefitsTopic No. 275-020-005 Effective: August 17, 2016 Equal Opportunity construction Contract Compliance ManualPage GENERAL PurposeContractors that perform work onDavis-Bacon Act(DBA) covered projects must paywages in accordance with those predetermined by the Secretary of the United StatesDepartment of Labor (USDOL). This CHAPTER offers guidance and information surroundingthe requirements of payment of predetermined WAGES , record keeping and overtimerequirements.

4 Contracting agencies must monitor and keep records of payments toemployees as required by , this CHAPTER provides a uniform process for reviewing and processingcontractor payroll submittals, conducting labor interviews, issuing violations and addingwage classifications to the contract. As applicable, information concerning other laborlaws and regulations is also ScopeContract wage requirements are included in every federally funded FDOT constructioncontract award of $2,000 or more. These requirements apply to the prime and every level(tier) of subcontract, regardless of the amount of the government contract acts (Davis-Bacon Act, the Copeland Act and the ContractWork Hours and safety Standards Act) regulate: payment of WAGES , record keepingand reporting, and overtime pay respectively on these contracts.

5 Compliance with these government contract acts is enforced on a day-to-day basis by the FDOT, as thecontracting contracts which require compliance with the government contract acts includeSpecial Provision Sub-article which invokes the FHWA 1273, Required ContractProvisions- Federal Aid construction Contracts. Also included in the Special Provisionsof these Federal Aid contracts is Sub-article 7-16, wage Rate for Federal Aid Projects which specifies the wage table(s) applicable to the specific contract. All FDOT contractsinclude Standard Specification 7-1, which requires adherence to all applicable laws;(federal, state and local).

6 Guidance for FDOT s in-house procedures for monitoring this area of compliance iscontained in the latest version of the construction Project Administration manual (CPAM). State and Federal Minimum WageAll FDOT projects are governed by theFair Labor Standards Act(FLSA) which requiresthat a minimum wage , overtime pay, and child labor standards be met. FLSA is enforceddirectly by the State of Florida has a minimum wage law. This rate is reviewed annually formodification based upon inflation and cost of living. A new rate typically goes in effect onJanuary 1stof each No. 275-020-005 Effective: August 17, 2016 Equal Opportunity construction Contract Compliance ManualPage 124 State and Federal minimum WAGES are summarized in Table of Florida and Federal Minimum WagesFlorida Minimum WageFederal Minimum WageEffective Beginning.

7 Hourly MinimumEffective BeginningHourly MinimumJanuary 1, 2015-Present$ 1, 2014$ 1, 2013$ 1, 2012$ 1, 2011$ 1, 2010$ 24, 2009$ 1, 2009$ 24, 2008$ 1, 2008$ 24, 2007$ 1, 2007$ s minimum wage law applies to workers on all FDOT construction projects,federal-funded, and state (Non-FAP) federally-funded construction projects, where the Florida minimum wage is higherthan a required minimum rate on a wage Determination, the Florida minimum must bepaid. Compliance personnel on FDOT federally funded construction projects will issue aNotification of payroll Violation (Form 700-010-59) for a code four violation (hourly ratepaid is less than minimum authorized) in the event workers are paid less than Florida sminimum.

8 If that violation is not resolved within 20 days of the Notification a PerformanceDeficiency letter will be issued and the monthly estimate will be withheld. The StateAttorney General s office will be informed of the contractor s failure to correct theunderpayment of Florida s minimum RequirementsThe following elements comprise the contractor s responsibility involving wagecompliance for Federal Aid contracts: wage Determinations The prime contractor, as outlined in Section of this CHAPTER Requesting Additional wage Classifications, must request approval of classificationsand wage rates for classifications of work not covered by the applicable WageDetermination(s).

9 Topic No. 275-020-005 Effective: August 17, 2016 Equal Opportunity construction Contract Compliance ManualPage 125 Reporting and Recordkeeping Contractors must submit weekly-certified PAYROLLS andstatements of compliance as required. PAYROLLS and basic records relating thereto shallbe maintained by the contractor during the course of the work and preserved for threeyears following the project s completion date, for all laborers and mechanics working atthe site of the Payments All overtime hours (all those over 40 in a workweek) shall be paidat rates no less than times the employee's basic rate of pay. Contractors are requiredto pay laborers or mechanics overtime for any hours over 40 in a Pursuant to theCopeland Act, any deduction from employee s pay mustmeet specified requirements and the contractor/subcontractor must request and receiveUSDOL approval for payroll deductions unless such deductions are specifically listed asnot needing such approval (see Table for listing).

10 Deductions from employee paymust conform to the requirements of theCopeland Act, including documented approvalwhere Agency Projects Federal-aid construction projects on roadways functionallyclassified as local roads or rural minor collectors could be exempt to the requirements ofDavis-Bacon. This would depend on the funding. If you think that your project may beexempt, you should check with the State wage Rate Coordinator or your District ContractCompliance Repair Work Davis-Baconrequirements do apply to emergency repairwork that is performed by contractors or subcontractors using the Force account does not apply to work that is performed by State or Local government forces becausesuch agencies are not considered wage PurposeA wage Determination (WD) is the listing of wage rates and fringe benefit rates for eachclassification of laborers and mechanics which the Administrator of the wage and HourDivision of the U.