STATE OF CALIFORNIA DEPARTMENT OF INDUSTRIAL …

1 NoticeofWithholdingissuedby:CaliforniaDe partmentofTransportationDECISIONOFTHEDIR ECTOROFINDUSTRIALRELATIONSA ffectedcontractorSouthlandConstruction(S outhland)submitteda timelyrequestforreviewoftheNoticeofWithh olding(Notice)issuedbyCaliforniaDepartme ntofTransportation( caltrans )withrespectt othereplacementandupgradeofbridgerailing constructionona StatehighwayinandnearLaCanada-Flintridge andPasadenaatvariouslocationsfromtheLaCa nadaArchBridgetotheSidehillViaductBridge (Project) $17, ,March22,March24,September6,andSeptember 7,2011,IinLosAngeles, CALIFORNIA , ,owner, ,2011,afterpost~.

2 WhethertheNoticecorrectlyfoundthatSouthl andhadfailedtoreportandpaytherequiredpre vailingwagesforallhoursworkedontheProjec tbytheaffectedworkers. WhethertheNoticecorrectlyreclassifiedthe affectedworkersfromtheLaborer,Group1 prevailingwageratetotheOperatingEngineer Group3 or4 orTeamster1 Therewasa fivemonthinterruptionbetweencommencement andcompletionofthehearingbecaliseofadocu mentedmedicalnecessityonthepartofSouthla nd' WhetherSouthlandfailedtopaytheapplicable trainingfundfeesforitsemployeestotheCali forniaApprenticeshipCounciloranapproveda pprenticeshiptrainingtrustfundasrequired .

3 "WhetherCaltrans'September15,2010,Notice ofWithholdingwasservedwithinthestatutory timelimit. WhetherCaltransabuseditsdiscretioninasse ssingpenaltiesunderLaborCodesection17752 atthemaximumrateof$ WhetherSouthlandfailedtopaytherequiredpr evailingwageratesforovertimeworkandis thereforeliableforpenaltiesundersection1 813.".WhetherSouthlandhasdemonstratedsub stantialgroundsforappealingtheNotice,ent itlingittoa 'NoticewastimelyandthatSouthlandhasfaile dtocarryitsburdenofprovingthatthebasisof theNoticewasincorrect, , , ""thecontracttoSouthlandonDecember29,200 8,toperformstructuralandnon-structuralre trofitworkonthreehighwaybridgesthatrequi redtheupgradeofconcretebarriersand.

4 " ,Inc.(ACL)andACL' ,includingtrafficcontrol,demolitionandre movalofthebridgedeck,constructionandinst aIIationofmetalrails,pavingwithasphalt,i nstallingsignageandwaterpoIIutioncontrol s,washandledbySouthland' ,2009,throughDecember19,2 AllfurtherstatutoryreferencesaretotheC"a liforniaLaborCode, ;theydugupandremovedasphalt,installedmet alrailings,andlaidorsetcarbonfiber, , (PWDs):ThefollowingapplicablePWDsandscop esofworkwereineffectonthebidadvertisemen tdate:Laborer,Group1 (SC-23-102-2-2008-l):Thisistherateusedin theNoticeforworkinvolvingAsphaltMaterial ;Concrete;Demolition;Flagmen.

5 Laborer,GeneralorConstruction;Laborer,Ge neralClean-up;Plugging,FillingofShee-Bol tHoles,DryPackingofconcreteandPatching;P ostHoleDigger(Manual;TarmenandMortarMen) ;TrafficControlbyanymethodandWireMeshPul ling;ExpansionJointCaulkingbyanymethod(i ncludingpreparationandclean-up),Laborer, ConcreteandTrafficControlPilotTruck, VehicleOperatorinconnectionwithLaborers' ,Group3 (SC-23-63-2-2008-2)thisistherateusedinth eNoticeforworkinvolvingAsphaltRubberBlen dOperator,orBobcatorsimilartype(SkidStee r) ,Group4 (SC-23-63-2-2008-2)Thisistherateusedinth eNoticeforworkinvolvingAsphaltPlantForem an,BackhoeOperator(min-manorsimilartype) ,boringmachineoperator,BoxmanorMixerman( asphaltorconcrete),ExcavatorTracklRubber - Tired(operatingweightunder21,000lbs)

6 ,GuardRailPostDriverOperator,PowerConcre teSawOperator,RollerOperator,ScreedOpera tor(asphaltorconcrete).53 Throughouttherelevanttimeperiod,thepreva ilinghourlywagedueundertheLaborer,Group1 PWHwas$ $ ,fringebenefitstotaling$ trainingfundcontributionof$ ,theprevailinghourlywagedueundertheOpera tingEngineerGroup3 PWHwas$ $ ,fringebenefitstotaling$ trainingfundcontributionof$ ,theprevailinghourlywagedueundertheOpera tingEngineerGroup4 PWHwas$ baserateof$ ,fringebenefitstotaling$ trainingfundcontributionof$ ,GroupIII(SC-23-261-2-2008-1)Thisis therateusedintheNoticeforworkinvolvingDr iversofVehiclesorCombinationofVehicles- 3axles, ,GroupIV(SC-23-261-2-2008-1)

7 Thisis therateusedintheNoticeforworkinvolvingDr iversofTransitMixTruck-under3 yards,DumpcreteTruckLessthan6Y2yardswate rlevel, ,someforthestructuralworkandsomeforthe"d istrict"work,whichwasperformedprimarilyb ySouthlandandincludeddemolition, ,RupeliDuncan,a consultantinspectoremployedbyAECOMC orporationTechnologies,acontractortoCalt rans,wasthefull-time inspectorforstructuralwork,andMansurRazi ani, "threebridgeproject"whichheidentifiedasi ncludingworkontheLaCanadaArchBridge, :thetotalnumberandthenamesoftheemployees workingontheProjectforSouthlandandeachof itssubcontractors,theequipmentusedandbyw hom,theworkperformedbyeachoftheworkers,a ndthehoursworked,whichwerenormally7 ' ,theresidentengineerfortheProject,AliSha lviri, ,backhoeandbobcatequipmenttoremovethe6 Throughouttherelevanttimeperiod,thepreva ilinghourlywagedueundertheTeamsterGroupI IIPWHwas$ baserateof$ ,fringebenefitstotaling$ trainingfundcontributionof$ ,theprevailinghourlywagedueundertheTeams terGroupIVPWHwas$ baserateof$.

8 Fringebenefitstotaling$ trainingfundcontributionof$ "district" ,anda dumptrucktotakethematerialfi' (aka"Enaro")Banos( )asthe"lead"handontheproject,who,alongwi thothers,operatedtheBobcatanda Backhoewitha roller,a Hondagenerator, ,manyofwhomwererelated,butonlyreportedtw elveworkersonitsCertifiedPayrollRecords( CPRs).Southlandclassifiedalloftheworkers it reportedasLaborer,Group1 regardlessofthenatureoftheworktheyperfor med. 'sCPRs:FidelVargas,JavierVasquez,Leopold oOrtiz,HernanBanos( )andAlfredoCisneros; 'sowner,RezaMohamedi,admittedthatthosefi veworkerswerenotlistedonSouthland'sCPRsb utassertedthattheywerepaidatthesameratea salltheotherworkersintheamountof$ ,anamountinexcessoftheLaborer,Group1,str aight-timerateof$ ,CandidoDelgado-Diaz(Delgado),andJoseAlf redBanos-Martel(Banos-Martel).

9 Theworkers'whotestifieddidnotdispute thatSouthlandworkers, , :OsbaldoAlvarez,whoworkedontheProjectfro mOctober24,2009toDecember4,2009,andEsqui vel,whoworkedontheProjectforonlya fewdaysbetweenOctober23andOctober30, ,whotestifiedathearing,claimedthatheoper atedthebackhoeduringmostofthetimeheworke dontheprojectbutwasnotpaidat theOperating' ,RazianiandtwootherCaltransinspectorsonF riday,September2,2011,forthemtotestifYat HearingonSeptember6, ,Caltransagreedtoprovideindividualsthatw ereavailableonSeptember7, $ ,but,Mohamediinstructedhim,ifasked,totel lanyinspectorsthathereceived$ (Southlandchecknumber5057for$ ).

10 ThesecondSouthlandcheck,number5067,wasma deouttoEsquivelfor$ , ;EsquivelcontendsthatMohameditookitbacka fterdirectingEsquiveltosignit,butcopieso fthecheckappearinevidencewithbothEsquive landBanos-Martel'sendorsements; favortoEsquivelbecauseEsquiveldidnothave a ,however,deniedaskingBanos-Marteltogiveh immoneyforthecheckanddemonstratedthathec ashedthefirstcheckfor$ a bankwithlittledifficulty(afterthebanktel lercalledMohameditoinquirewhetherthechec kwasproperlywrittenit wascashed).Thecopyofthesecondcheck endorsedbybothBanos-MartelandEsquiveldoe snotcontaina 'spractices: HeassertedthatMohamedirequiredthathepayb acknearly$ "taxes.