PREVAILING WAGE & QUALIFICATION BASED SELECTION David E. Woolley, PLS

California enacted its first prevailing wage law in 1931 California enacted its first prevailing wage law in 1931. Enacted to move employees away from daily pay to hourly pay.

PREVAILING WAGE V. DAVIS-BACON ACT

DAVIS-BACON ACT The Davis–Bacon Act of 1931 is a United States federal law that establishes the requirement for paying the local prevailing wages on public works projects for laborers and mechanics.

Stanislaus County Stanislaus County has a population of 515,200 people and 158,500 wage and salary jobs, most of them located in the largest city, Modesto. The per capita income in Stanislaus County is $32,130, and the average salary per worker is $46,900.

Stanislaus County

Prevailing wage is required for all projects related to construction.

What does related to construction mean?

California Labor Code 1720 1720. (a) As used in this chapter, "public works" means: (1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, "construction" includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, "installation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

For purposes of this paragraph, "construction" includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the postconstruction phases of construction,

CITY OF LONG BEACH, Plaintiff and Respondent. V CITY OF LONG BEACH, Plaintiff and Respondent. V. DEPARTMENT OF INDUSTRIAL RELATIONS, Defendant and Appellant July 14, 2003

WINZLER & KELLY (and four other cases) Plaintiffs and Respondents, v WINZLER & KELLY (and four other cases) Plaintiffs and Respondents, v. DEPARTMENT OF INDUSTRIAL RELATIONS, et al., Defendants and Appellants, Western Association of Engineers, Operating Engineers Local Union No. 3, Intervenors and Respondents. Civ. 50341 | June 17, 1981. | As Modified June 29, 1981

Constructing a facility to be used by the general public the facility is a “public work” within the meaning of Labor Code section 1720 and therefore subject to the state’s prevailing wage law.

Status as a charter city does not exempt the project from the state’s prevailing wage law

The DIR interprets “construction” broadly to include the planning, design and pre-building phases of a project such as architectural design, project management and surveying – all of which were undisputedly paid out of the City’s financial contribution to the project at issue here.

…the duty to pay prevailing wages does not depend on who awards the contract but on whether the contract is for public works.

Payment of the prevailing rate of per diem wages to workers employed on public works is necessary to attract the most skilled workers for the project and to ensure that work of the highest quality is performed on these projects

Government Funding Gas Tax DMV Fees Currently about 7,000 public agencies in California.

Department of Industrial Relations Oversees Prevailing Wage Issues/Compliance http://www.dir.ca.gov/

SB 854 Passed in June of 2014 The public works reforms brought about by Senate Bill 854 (Stat. 2014, chapter 28) made several changes to the laws governing how the Department of Industrial Relations (DIR) monitors compliance with prevailing wage requirements on public works projects.

SB 854 III. FURNISHING OF ELECTRONIC CERTIFIED PAYROLL RECORDS TO LABOR COMMISSIONER All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement). The phase-in timetable for this requirement is as follows: June 20, 2014: Any project that was being monitored by the CMU/Labor Commissioner prior to the adoption of SB 854 will continue to be monitored by the Labor Commissioner afterward; and the contractors on those projects must continue to furnish certified payroll records to the Labor Commissioner until the project is complete. April 1, 2015: For all new projects awarded on or after this date, the contractors and subcontractors must furnish electronic certified payroll records to the Labor Commissioner. January 1, 2016: As of this date, all contractors (except those listed as Exemptions just below) must furnish electronic certified payroll records to the Labor Commissioner in our eCPR data system.

Enforcement & Gaming the System

Business Math

Stanislaus County CHIEF OF PARTY 8/22/2015 02/29/2016** 38.070 13.030 LOCALITY: STANISLAUS COUNTY   DETERMINATION: STA-2015-2 EMPLOYER PAYMENTS STRAIGHT-TIME OVERTIME HOURLY RATE CRAFT (JOURNEY LEVEL) ISSUE DATE EXPIRATION DATE BASIC HOURLY RATE HEALTH AND WELFARE PENSION VACATION/ HOLIDAY TRAINING OTHER PAYMENTS HOURS TOTAL HOURLY RATE DAILY SATURDAY SUNDAY AND HOLIDAY R CHIEF OF PARTY 8/22/2015 02/29/2016** 38.070 13.030 S 10.640 T 3.410 0.770 0.160 8.0 66.080 U 85.110 V 104.150 INSTRUMENTMAN 34.980 62.990 80.480 97.970 CHAINMAN/RODMAN 32.100 60.110 76.160 92.210

Enforcement: Local District Attorney’s Office

Questions? David Woolley, PLS OC-CLSA Past President