Welcome to the Subcontractors Academy! Contract Management Department Goals: Ensure all interested subcontractors have access to information, resources and tools they need to be successful in their City contracts. Provide subcontractors an opportunity to network with, and learn alongside, government contracting officials to gain a better understanding of the City processes, roles, and responsibilities associated with City government contracting. Brought To You By: City of Austin Contract Management Department In partnership with

Contract Management Department Subcontractors Academy Wage Compliance Program WAGE RATES AND PAYROLL REPPORTING (SECTION 00830) Marisol Claudio-Ehalt, Program Consultant City of Austin – Contract Management Department This Month’s Featured Speakers: David Prado, Contract Compliance Specialist, Sr. Baldemar Maldonado, Contract Compliance Specialist Sr. June 22, 2015

Labor and Wage Laws Davis-Bacon and Related Acts (DBRA) Contract Work Hours and Safety Standards Act (CWHSSA) Copeland Act (Anti-Kickback Act) Fair Labor Standards Act (FLSA) Government Code, Title 10 Chapter 2258, Prevailing Wage Rates (State) City of Austin Ordinance 030508-31 (Local) Child Labor Laws

Prevailing Wages Workers must be classified and paid accordingly, based on the type of work they perform. There’s a whole Section of the City’s contract devoted to it, and it’s required of all tiered subcontracts. The City makes sure that all “Laborers and Mechanics” are paid no less than the minimum prevailing wage in the contract. Employers on City construction projects must keep accurate payroll records, and the City can require you to furnish them for review. Every worker is either an employee or a subcontractor.

The City of Austin monitors and enforces prevailing wages on its construction projects pre-construction meetings on-site observations bulletin boards – wage postings worker interviews complaint investigation wage audits corrective actions – There’s always a way to make things right.

Wage Rates and Payroll Reporting (How to Comply) Section 00830 City of Austin Construction Contract Wage Rate Determinations (Wage Scales)

00830BC Building Construction 00830HH Heavy and Highway Construction

Wage Rate Determinations

Record Keeping The City can request any payroll records up to (3) three years or more after the project is completed.

Forms every employee should have on file: Employee Certification Project Employer Wage Classification Pay Rate Wage Scale Total Wage Obligation Payroll Deduction Authorization Form Not For Taxes Explains “Other” Deductions

Building Construction Every Employee Needs a Certification, and a Payroll Deduction Authorization Form

Heavy and Highway Every Employee Needs a Certification, and a Payroll Deduction Authorization Form

Forms every employer must have: Weekly Certified Payroll Report Signed Wage Compliance Statement Apprentice Registration for all Apprentices Standards of Apprenticeship

Statement of Compliance

Apprentices must be registered. City contracts require apprentices to be enrolled in a US Department of Labor – recognized apprenticeship program, or to be paid full journeyman’s wage rates. A State of Texas Apprentice License does not satisfy the requirement.

Administrative Actions Voluntary Corrective Action Plan (VCAP). Withholding of monthly estimate. May withhold, $60 for each worker employed for each calendar day or part of the day that the worker is paid less than the wage rates stipulated in the contract. OWNER may withhold or cause to be withheld from CONTRACTOR as much of the accrued payments as necessary to pay laborers and mechanics employed by CONTRACTOR, Subcontractors, or Sub-subcontractors the amount of wages required to comply with the Contract. In the event of nonpayment of wages to laborers or mechanics working on the site of the Work of this Contract, OWNER may, after Written Notice to CONTRACTOR, take such action as may be necessary to cause suspension of any further payments or advance of funds to CONTRACTOR until such violations have ceased and until restitution has been made. Payments may also be withheld if CONTRACTOR fails to maintain weekly payroll reports or fails to provide copies in a timely manner upon request of Owner. Source: Wage Rates and Payroll Reporting / 00830

Contractors may not: Prohibit employees from discussing their pay rate with other employees. Retaliate against employees who provide information during an employee interview or investigation. Source: Wage Rates and Payroll Reporting / 00830

Other Contracting Authorities The City of Austin does not monitor prevailing wage compliance in projects from other entities such as: Austin Independent School District Austin Community College University of Texas Travis County Travis County Commissioners Court State of Texas Federal Government Private Developers

You will see us onsite: Verifying bulletin board postings. Observing workers performing work. Taking photos Interviewing workers. Verifying subcontractors onsite.

Contractor shall keep payroll records as indicated in the contract. Wage rates and payroll reporting requirements apply to both contractors and subcontractors. Workers on City of Austin Projects shall be paid not less than wage rates listed in the contract. Wage rates shall be used throughout the duration of the Contract. Wage rates shall be posted by contractor at sites(s) of Work in prominent, easily accessible places where they can be seen by all workers. Employees are required to be paid one and one-half the basic rate of pay for all hours in excess of (40) forty hours in such workweek. Apprentices will be permitted to work as such only when they are registered, individually under a bonafide Apprenticeship or Trainee program registered with the Bureau of Apprenticeship and Training, United Sates Department of labor (USDOL). Contractor shall keep payroll records as indicated in the contract. The pre-construction conference is a great opportunity to do so. 2. Also, notify others of any limits of authority of those individuals. This information should be made known to all parties during the preconstruction conference. The “Do it later” approach does not work. It often leads to a huge amount of time spent on the back end trying to resolve disputes that could have been avoided if changes were dealt with in writing before the work was done to ensure that the contractor, subcontractors and owner agreed on and understood the scope of work and price for the proposed change. Many disputes between the parties arise simply because they honestly had different perceptions of the requested changes. The timely issuance of change orders can prevent excessive costs, delays and friction between the parties.

City of Austin Contract Management Department 512-974-7181 Contract Development & Administration Division Cynthia Gonzales, Division Manager Wage Compliance Team: Rick Wilson – Team Supervisor Russell Kyle Baldemar Maldonado David Prado Sam Hernandez Beatriz Guereca

Questions? Comments? For additional Information: http://austintexas.gov/department/contract-management Next Class: July 20, 2015 Job Order Contracting (JOC) 9 – 10 am One Texas Center Suite 1045