1. 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

2. 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

3. 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 (Local)
Child Labor Laws

4. 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.

5. 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.

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

7. 00830BC
Building Construction
00830HH
Heavy and Highway Construction

8. Wage Rate Determinations

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

10. 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

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

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

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

15. Statement of Compliance

16. 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.

17. 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

18. 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

19. 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

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

21. 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.

22. 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

23. Questions? Comments? For additional Information:
Next Class: July 20, 2015
Job Order Contracting (JOC)
9 – 10 am
One Texas Center
Suite 1045