Metra Construction Contractor Prevailing Wage Workshop On Track to Success Metra Construction Contractor Prevailing Wage Workshop Presented by: Christine Murphy Metra Labor Compliance Specialist Welcome My name is Christine Murphy I will be presenting information regarding Prevailing Wage Requirements Any Construction Contractor who wishes to bid on, or perform work on, Metra Construction projects needs to be familiar with prevailing wage requirements.

Contract Prevailing Wages Who must pay Prevailing Wages? What are Prevailing Wages? Where do Prevailing Wages apply? When do Prevailing Wages apply? Why are there Prevailing Wages? I will provide the Who, What, Where, When and Why of Prevailing Wages. Who must pay prevailing wages? What are prevailing wages? Where do prevailing wages apply? When do prevailing wages apply? And Why are there prevailing wages? Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Who must pay Prevailing Wages? All Metra Contractors and their Subcontractors who employ workers, laborers, or mechanics to perform work on a public works or federally funded construction projects. First, Who must pay prevailing wages? All Metra Contractors who employ workers, labors, or mechanics to perform work on a public works or federally funded construction project. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages What are Prevailing Wages? Prevailing Wages are Minimum Hourly Rates Established by either: The United States Department of Labor; or The Illinois Department of Labor for construction workers based on what is prevailing in the specific county/locality of the work. What are Prevailing Wages? Prevailing wages are specific to construction work. Prevailing Wages are Minimum Hourly Rates That have been established by either the United States Department of Labor or The Illinois Department of Labor For construction workers based on what either of the Departments of Labor has found by survey to be the prevailing rate of pay for the work, the “prevailing” rate of pay. Words found to define prevailing are -- predominant, prevalent, current, usual, established, widespread Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Where do Prevailing Wages apply? At the “site of work” as defined under the applicable prevailing wage act. In the specified county/locality/region of the project “site of work.” Where do Prevailing Wages apply? Prevailing wages apply at the “site of work” for both federal and non-federal funded work and are specific to the county in which the “site of work” exists. Under the Illinois Prevailing Wage Act, prevailing wages also apply in the transportation of materials and equipment to or from the site by laborers, workers and mechanics. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages When do Prevailing Wages apply? When a publicly funded or federally assisted agency solicits bids for work, and for the term of contract when awarded. When the solicited scope of work is covered by the definition of work under the applicable prevailing wage act. Prevailing Wages apply when a publicly funded, or federally assisted agency, such as Metra, solicits bids and contracts for work. Each of the prevailing wage acts, the Davis-Bacon and the Illinois Prevailing Wage Act, has its own definition of the types of work that are covered. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Why are there Prevailing Wages? The following Prevailing Wage Acts were enacted in 1931: The Davis-Bacon Act applies to federal funded construction The Illinois Prevailing Wage Act applies to Illinois publicly funded construction Why are there prevailing wages? There are prevailing wages because two acts that I have referred to, the Davis-Bacon Act and the Illinois Prevailing Wage Act, were enacted in 1931. First, the federal government enacted the Davis-Bacon Act then Illinois followed by enacting the Illinois Prevailing Wage Act. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Why are there Prevailing Wages? To ensure that construction workers will not see their wages and benefits undercut by government spending practices. The Davis-Bacon Act was written to ensure That construction workers will not see their wages and benefits undercut by government spending practices and As we have witnessed in several states recently, one of the first items that government officials target in budget cuts are worker wages. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Why are there Prevailing Wages? To protect against under-bidding by contractors from other areas who might import workers or offer the same jobs for less pay. To protect against underbidding by contractors from other areas who might import workers or offer the same jobs for less pay. I have witnessed this first-hand when a contractor utilized an excavator located in Indiana for a station renovation in a south suburb. Bid specifications contain the prevailing wage requirements and minimum wages that must be paid by all. This levels the playing field and takes worker wages out of the competitive bid. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Metra Prevailing Wage Responsibilities Metra is required to: Include the applicable Prevailing Wage Act requirements (based on funding source) in: bid specifications and contract documents. Metra, as a public agency, receives both federal and state funds for capital projects. As a result of funding agreements, Metra must comply with the Davis-Bacon and Related Acts as well as the Illinois Prevailing Wage Act. Metra must include the applicable prevailing wage act requirements (Davis-Bacon or Illinois Prevailing Wage) in its bid specifications and contract documents. A construction project that will utilize any amount of federal funds is covered under the Davis-Bacon Act. Any non-federal funded construction project in Illinois is covered under the Illinois Prevailing Wage Act. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Metra Prevailing Wage Responsibilities Metra is required to: Inform contractors of the applicable Prevailing Wages (minimum wages) for a project. Metra is also required to inform its contractors of the minimum wages that must be paid to workers on the project. Under Davis-Bacon requirements, Metra must attach a current USDOL wage decision (the minimum wages) as part of the bid specifications and contract documents. The USDOL wage decision remains for the full term of the contract. Those are the wages that must be met at a minimum for the full term of the contract. The Illinois Prevailing Wage Act allows Metra to direct contractors to regularly visit the IDOL Web site for the minimum wages. The Illinois Prevailing Wage Act requires contractors to meet the minimum wages posted on its Web site at the time the work is performed. The wages may change from time to time. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Metra Prevailing Wage Responsibilities Metra is required to: Collect Certified Payrolls. Review Certified Payrolls to ensure that Contractors are complying with the Prevailing Wage requirements. Metra is required to collect and review contractor Certified Payrolls to ensure that they meet the requirements of the applicable prevailing wage act. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Contractor Prevailing Wage Responsibilities A Metra Construction Contractor is required to: Know what prevailing wage requirements apply. Request additional work classifications or clarification if the wage decision does not include a work or worker classification needed for the scope of work to be performed. A contractor’s prevailing wage responsibilities are many. 1st a contractor should verify the prevailing wage requirements that apply to the bid or contract. A contractor should check the work classifications and types of work on the applicable prevailing wage determination to make sure that what is needed to perform the work is represented. If not, Metra’s Procurement Officer needs to be notified. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Contractor Prevailing Wage Responsibilities A Metra Construction Contractor is required to: Inform its subcontractors of the applicable prevailing wage requirements by inserting them into the subcontracts. Post the Prevailing Wages at the work site. Post the Davis-Bacon poster at the work site. Once a contract is awarded, a contractor is required to inform all subcontractors of the applicable prevailing wage requirements by inserting the them into the subcontract documents. A contractor must also post the prevailing wages and a Davis-Bacon poster at the work site in a place easily accessible to all workers. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Contractor Prevailing Wage Responsibilities A Metra Construction Contractor is required to: Pay its workers prevailing wages. Collect and submit Certified Payrolls for all work performed to Metra. All contractors working at the site are required to pay the workers at least the minimum prevailing wages The prime is responsible for submitting Certified Payrolls from all contractors performing work at the site. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Contractor Prevailing Wage Responsibilities A Metra Construction Contractor is required to: Maintain specific payroll data; Report specific payroll data; and Provide an Affidavit or Statement of Compliance with reported payroll data. Metra contractors need to become familiar with both the Davis-Bacon Act and the Illinois Prevailing Wage Acts. Each have three specific requirements for Certified Payrolls that differ for: Maintained Payroll Data Reported Payroll Data; and Affidavit or Statement of Compliance The USDOL and the IDOL both provide forms that may be used by contractors to complete the Certified Payrolls. The forms are not interchangeable. They are distinctly different because the requirements of each of the laws differ. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Contractor Prevailing Wage Responsibilities A Metra Construction Contractor should be aware of the differences in: Work and Worker Classifications; Minimum wages; Requirements for reporting Fringes and deductions. Some of the distinct differences between the two are: Worker classifications are much more detailed on the USDOL Wage Decisions. Laborers, Equipment Operators require a work type and Group Number identifying the tools and/or equipment used in the work. Worker classifications must be in conformance with the applicable wage determination. Wages must meet or exceed the minimum of the contract wage determination. USDOL looks at the total paid in base rate plus fringes to meet the total. IDOL looks at each separately to meet the minimum – base rate and fringes. “Other” Deductions must be described on Page 2 of the USDOL Statement of Compliance. Deductions are not required reported data for the IDOL CP. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Q. My workers are paid the required union wage. Do I have to provide Certified Payrolls? A. Yes. Payment of Union wages is not a guarantee that prevailing wages have been met. My workers are union and are paid the union wage. Do I have to submit Certified Payrolls? Yes. Payment of Union wages is not a guarantee that prevailing wages have been met. Certified Payrolls must be submitted by all contractors performing work. Certified Payrolls are a statement of compliance, or affidavit, that prevailing wages have been paid. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Q. Why am I required to submit Certified Payrolls? A. Certified Payrolls are required of construction contractors as a result of the funding used by Metra to pay for its construction projects. Certified Payrolls are a requirement as a result of the funding used to pay for the construction project. The Certified Payrolls are a statement by the contractor payroll supervisor that the company has paid prevailing wage to all its workers. That the falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. Under Illinois, the contractor or subcontractor is aware that filing a certified payroll that he or she knows to be false is a Class A misdemeanor. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Q. I was told that your office is holding my payment request. Why? A1. If the Office of Business Diversity and Civil Rights is holding your company’s payment application, a representative of your company should have received an explanatory email. If not, please call. Certified Payrolls and payment of prevailing wage are contract requirements. Your payment application may be held if your company is not compliant with those requirements. Your company will be sent an email notifying you if a payment is being held due to non-compliance issues. You will be informed of all issues and the steps that need to be taken to resolve the issues in order to release the payment. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages A2. The email outlines the Certified Payroll non- compliance issues that were found and provides steps to be taken to resolve the issues in order to release the payment application to Metra’s Accounts payable department. Your company will be sent an email notifying you if a payment is being held due to non-compliance issues. You will be informed of all issues and the steps that need to be taken to resolve the issues in order to release the payment. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages A3. Examples of reasons for our office to hold your payment application are as follows: The Certified Payroll indicates that prevailing wage was not paid; The Certified Payroll is not completely filled out; The Certified Payroll is not signed; Work classifications are not in conformance with the contract wage determination; Certified Payrolls have not been submitted for the billed work period. Some examples of what can hold up your payment are: The Certified Payroll indicates that prevailing wage has not been paid; The Certified Payroll is not completely filled out; The Certified Payroll is not signed; Prevailing wage payment cannot be verified, because the reported work classification is not in conformance with the wage determination; Certified Payrolls have not been submitted for the billed work performed during the payment application work period. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Q. Are there any other issues that you commonly find for which you cannot approve the Certified Payroll? A. Yes. The most common reasons for a Certified Payroll not to be approved are: No explanation is provided for “Other” deductions; The work location and project are not identified; Hours are listed in the OT row rather than ST row; The wrong form is filled out. Other issues that may not hold up a payment application but are not compliant. No Explanation has been provided for Other deductions. The work location and project are not identified The hours listed are in the OT row rather than the ST row. The wrong form is filled out. Metra Construction Contractor Prevailing Wage Workshop

Contract Prevailing Wages Additional Q & A Do you have any questions? Thank you for coming. Metra Construction Contractor Prevailing Wage Workshop