LABOR COMPLIANCE PROGRAM - San Diego

1 LABOR COMPLIANCE PROGRAM November 2009 1200 Third Avenue, Suite 200 Mail Station 56P San Diego , CA 92101 Phone 619/235-5785 Fax 619/235-5209 Jerry Sanders Mayor Jay M. Goldstone Chief Operating Officer Wally Hill Assistant Chief Operating Officer Debra Fischle-Faulk Director of Administration CITY OF SAN Diego LABOR COMPLIANCE PROGRAM IMPLEMENTATION, OPERATION, PROCEDURES Contents I. City of San Diego LABOR COMPLIANCE PROGRAM II. Implementation Plan III. Operational Manual IV. Procedures V. Forms CITY OF SAN Diego LABOR COMPLIANCE PROGRAM PREFACE The City of San Diego institutes this LABOR COMPLIANCE PROGRAM for the purpose of implementing its policy relative to the LABOR COMPLIANCE provisions of State and Federally funded public works contracts.

2 This PROGRAM is applicable to all public works projects which are designated as requiring prevailing wages. California LABOR Code Section 1770, et seq. requires that contractors on public works projects pay their workers based on prevailing wage rates established and issued by the Department of Industrial Relations, Division of LABOR Statistics and Research. California LABOR Code requires an awarding body to identify prevailing wage requirements in bid invitations, contract language and at pre-construction conferences, to review payroll records to verify COMPLIANCE with the LABOR Code, and to withhold contract payments when payroll records are delinquent or inadequate or when underpayments have occurred. California LABOR Code Section 1776 requires contractors to keep accurate payroll records of trades workers on all public works projects and to submit copies of certified payroll records upon request.

3 California LABOR Code Section requires contractors to employ registered apprentices on public works projects. This LABOR COMPLIANCE PROGRAM ( LCP ) contains LABOR COMPLIANCE standards required by State and Federal laws, regulations, and directives, as well as policies and contract provisions, which include, but are not limited to, the following: Contractors payment of applicable general prevailing wage rates. Contractors employment of properly registered apprentices. Contractors provision of certified payroll records upon request, but not less than weekly. PROGRAM s monitoring of City construction sites for verification of proper payments of prevailing wage rates and work classification. PROGRAM s presentation at pre-construction conferences with contractors/ subcontractors. PROGRAM s withholding of contract payments and imposing penalties for noncompliance.

4 PROGRAM s preparation and submittal of annual reports. LABOR COMPLIANCE Officers ( LCOs ) will represent the City of San Diego in enforcement of this LCP. SECTION I CITY OF SAN Diego LABOR COMPLIANCE PROGRAM General LABOR COMPLIANCE PROGRAM CITY OF SAN Diego LABOR COMPLIANCE PROGRAM TABLE OF CONTENTS Introduction Page I. Public Works Subject to Prevailing Wage 1 A. Types of Contracts to Which Prevailing Wage Requirements 1 B. Limited 1 C. Applicable Dates for Enforcement of the 1 II. Competitive Bidding on City Public Works 2 III. Pre-Construction 2 IV. Review of Certified Payroll 4 A. Certified Payroll Records 4 B. 6 C. Audit of Certified Payroll 7 V. Reporting of Willful Violations to the LABOR 7 A. Failure to Comply with Prevailing Wage 7 B.

5 Falsification of Payroll Records, Misclassification of Work, Failure to Accurately Report Hours of 7 C. Failure to Submit Certified Payroll 7 D. Failure to Pay Fringe 7 E. Failure to Pay Correct Apprentice Rates and/or Misclassification of Apprentices .. 8 F. Taking of 8 VI. Enforcement 8 A. Duty of the Awarding 8 B. Withholding Contract Payments When Payroll Records are Delinquent or 14 C. Withholding for Violation for Not Paying the Per Diem Prevailing 15 D. Forfeitures Requiring Approval by the LABOR 16 E. Determination of Amount of Forfeiture by the LABOR 17 F. Liquidated 19 G. Request for 19 H. Deposits of Penalties and Forfeitures 20 I. Debarment 20 VII. Notice of Withholding and Review 21 A. Notice of Withholding of Contract Payments (NWCP).. 21 B. Review of 21 VIII. Distribution of Forfeited 22 IX. Outreach 23 A. Providing Information to the 23 B. In-service Management Training on the LABOR COMPLIANCE 23 Table of Contents (Continued) X.

6 annual 24 A. Prevailing Wage annual Report .. 24 B. annual Report on the LCP to the Director of the Department of Industrial 24 ATTACHMENTS A. Checklist of LABOR Law Requirements for Review at Pre-Construction Conference B. Audit Record Form C. Single Project LABOR COMPLIANCE Review and Enforcement Report Form D. Notice of Deadlines for Forfeitures E. Notice of Withholding of Contract Payments F. Notice of Transmittal G. Notice of Opportunity to Review Evidence Pursuant to LABOR Code Section 1742(b) H. Prevailing Wage Hearing Regulations, 8 CCR Sections 17201-17270 INTRODUCTION The City of San Diego institutes this general LABOR COMPLIANCE PROGRAM ( LCP ) for the purpose of implementing its policy relative to LABOR COMPLIANCE provisions of State and Federally-funded public works contracts and additionally to comply with the provisions of LABOR Code section pertaining to the use of funds derived from the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002.

7 This LCP contains LABOR COMPLIANCE standards required by State and Federal laws, regulations and directives, as well as policies and contract provisions. The California LABOR Code Section 1770, et seq., requires contractors on public works projects to pay their workers based on prevailing wage rates established and issued by the Department of Industrial Relations, Division of LABOR Statistics and Research. In establishing this LCP, the City adheres to statutory requirements as enunciated in Section (b) of the LABOR Code. Further, on applicable projects, the City intends to actively enforce this LCP by monitoring City construction sites for payment of prevailing wage rates and to require contractors and subcontractors with workers on applicable City projects to submit copies of certified payroll records demonstrating their COMPLIANCE with payment of prevailing wage rates. The City s LCP includes January 21, 2009, revisions to Title 8 of the California Code of Regulations Sections 16000 16404 and 16421 16802.

8 Should applicable sections of the LABOR Code or undergo alteration, amendment or deletion, the City of San Diego will modify the affected portions of this PROGRAM accordingly. SECTION I 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 San Diego institutes this general LABOR COMPLIANCE PROGRAM [LCP] as provided in Section (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.

9 As provided in LABOR Code section (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 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 San Diego s LCP shall apply to public works using funds derived from this Bond Act. B. Limited Exemption As provided in LABOR Code Section (a), if a City of San Diego 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.

10 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 Section 16425 of the California Code of Regulations. Contracts are not subject to the jurisdiction of the City s LCP until after the PROGRAM has received initial or final approval. 1 SECTION II COMPETITIVE BIDDING ON CITY PUBLIC WORKS CONTRACTS The City publicly advertises upcoming public works projects to be awarded according to a competitive bidding process.