Prevailing Wage Compliance Principles

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Prevailing Wage Compliance Principles

• Jeffery Peyton
• Office of Contracts
• Ohio Department of Transportation

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Prevailing Wage Compliance Topics

• Who needs to be paid prevailing wages?
• Site of Work
• Trucking
• Review of the Certified Payrolls
• Project Site Visits
• Reporting Requirements

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2011 Threshold Levels

• Construction work over 2000 on Federal contracts
• over 78,258 (new construction) and 23,447
  (reconstruction, alteration and repair) on
  projects that are 100 State funded.
• Construction includes
• new construction, reconstruction, alteration,
  and repair of a public improvement over the
  established dollar threshold.

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Who needs to be paid Prevailing Wages

• Prevailing Wage laws apply to all laborers and
  mechanics performing work on the Site of Work
• Must be paid not less often than weekly
• Correct wage determination must be posted at the
  job site, and readily accessible

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Laborers and Mechanics

• Are defined as
• Workers whose duties are manual or physical in
  nature - Includes apprentices
• Does not include
• Executive, administrative, and professional
  employees (i.e. timekeepers, inspectors,
  architects, engineers)
• Non-working foremen

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Apprentices

• 2 Key Points.
• Must be registered in a bona fide apprenticeship
  program registered with DOL or a DOL approved
  State apprenticeship agency
• Must not exceed the allowable ratio of
  apprentices to journeymen specified in the Wage
  Determination or approved plan

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Site of the Work

• Two prong test to determine the Site of Work
• Proximity
• Must be located adjacent or virtually adjacent
  to the project limits
• This has been established to be 1 mile as the
  crow flies
• Exclusive
• Must be dedicated exclusively to or nearly so, to
  the performance of the contract or project.

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Site of the Work

• Site of Work does not include a contractors or
  subcontractors ..
• permanent home office
• commercial batch plants quarries
• other facilities not specifically established
  for the project at hand.

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Truck Drivers

• Employee Truck drivers are covered by Davis-Bacon
  for time
• Spent moving material directly on the project
• Hauling material on or off the project from a
  dedicated source or location considered to be
  within the Site of Work
• Time spent loading or unloading materials or
  supplies on the site of the work, if such time
  is equal to or greater than 20 of the drivers
  total work week

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Site of the Work

• Again, Site of Work must meet the 2 prong
  test..
• Proximity
• Must be located adjacent or virtually adjacent
  to the project limits (1 mile)
• and
• Exclusive
• Must be dedicated exclusively to the performance
  of the contract or project.

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Owner /Operator Requirements

• Must demonstrate a significant and real financial
  commitment
• Lease must be long term (1 year )
• Can not be subject to cancellation at any time.
• Must maintain full control over the use and
  operation of the truck.
• Must assume responsibility for all aspects of
  operating that truck.
• Fuel
• Repair costs
• Vehicle insurance / Permits Fees

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Certified Payrolls

• Must be submitted weekly
• Rates of pay must meet or exceed the rate listed
  in the wage determination
• Project owner / LPA must perform a review of not
  less than 30 of the payrolls received.

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Wages Fringe Benefits

• The total prevailing wage rate (TPWR) is composed
  of 2 parts
• The basic hourly rate (BHR) and
• The fringe benefit package

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Fringe Benefit Example

• BHR 20.00
• FB
  10.00
• Total prevailing wage 30.00
• The contractor may comply by paying..
• 30.00 in cash wages
• 20.00 in cash wages plus 10.00 for FB
• 19.00 in cash wages plus 11.00 for FB

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Examples of Fringe Benefits

• Life Insurance
• Health Insurance
• Pension
• Vacation
• Holiday
• Sick Leave

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Project Site Visits

• Regular project site visits should be conducted
  to interview employees to ensure Prevailing Wage
  compliance.
• Project Bulletin Board must also be reviewed to
  ensure that all of the required posters are in
  place

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Reporting Requirements

• Monthly Wage / EEO report must be completed by
  the LPA for each active project and returned to
  the ODOT district office by the 7th of every month

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Prevailing Wage Reference Sources

• Federally Funded Projects
• Davis-Bacon and Related Acts
• 29 CFR Parts 1, 3, 5, 6, and 7
• 100 State Funded Projects
• ORC 4115, Wages and Hours on Public Works

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Wage Determination Websites

• USDOL
• http//www.wdol.gov/dba.aspx0
• Ohio Department of Commerce, Wage and Hour
  Division
• http//www.com.ohio.gov/laws/

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Questions?????