Wage and Hour Division San Diego, California

1. Wage and Hour DivisionSan Diego, California

2. Davis-Bacon Act TrainingYour Trainers Bill Isokait, Associated General Contractors, Counsel for Labor and Employment Law Steve Schultz, Merrill, Schultz & Wolds Tim Helm, Wage and Hour Division, Government Contract Team Leader Richard Cheung, Wage and Hour Division, Regional Wage Specialist Gerri Rimple, Wage & Hour Division Investigator Larry Benjamin, Wage & Hour Division Investigator

3. DAVIS-BACON AND RELATED ACTS

4. Davis-Bacon Act (DBA) • Enacted in 1931 • Protects communities and workers from competition caused by non-local contractors • Requires payment of locally PREVAILING WAGES and FRINGE BENEFITS • Requires pay to all LABORERS and MECHANICS employed on work site at least once a week

5. DBACoverage • Contract in excess of $2,000 • Construction, Alteration, and/or Repair including painting and decorating • Public Buildings or Public Works of U.S. or D.C. • Within geographic limits of U.S.

6. Davis-Bacon And Related Acts (DBRA) Congress extended DB to over 60 related acts that provide federal assistance for construction: • Grants • Loans • Loan Guarantees • Insurance • see Regs. Part 5 section 5.1(a)

7. DBRAEXAMPLES • HUD financed low income residences on housing authority projects • EPA furnishes grant for construction of sewage plant • Federal Highway Admin (FHA) provides grants to states for reconstruction of roads and bridges on interstate highway system

8. DB vs DBRA Direct DB projects: Federal gov’t agency signs contract DBRA projects: Agency other than federal gov’t signs contract

9. Davis-BaconWage Determinations

10. DB Wage Determinations Types • General Wage Determinations • Project Wage Determinations

11. DB Wage DeterminationsSelecting The Proper Wage Determinations • Location: State and County • Type of Construction: Building; Heavy; Highway; Residential • Current WD: question or disputes concerning appropriate classification of project should be submitted to Wage and Hour Division for resolution

12. Project Wage Determinations • Issued on case-by-case basis where no general WD is in effect or where all work on a contract will be performed by a classification that is not listed in general WD • SF-308, “Request for Determination and Response To Request” submitted by agency to request Project WD

13. DB/DBRA Project Wage DeterminationSF-308 • Submitted by agency • Requesting agency should attach info indicating cost breakdown for each type of construction • Obtain form from Mr. George Blyther at (202) 219-8441

14. DB/DBRA Project Wage Determination SF-308 • Anticipate 30 days processing time • Mail to: US Dept. of Labor ESA, Wage and Hour Division Branch of Construction Wage Determinations Washington, DC 20210

15. DB/DBRA Project Wage Determination • Effective for 180 days only • Applicable only to particular project • Request new Project WD if present one appears to be expiring between bid opening and contract award date • Extension possible under limited conditions by Wage and Hour Administrator

16. DB/DBRA Special Project Wage Determination • Issued for retroactive application for DB contracts let without WD or correct WD

17. DB/DBRA Wage DeterminationModifications Both General and Project WDs may be modified: To apply results of new survey To update union rates due to CBAs General Wage Decisions contain “ Supersedes wage decisions” that replace prior general WDs. These begin with Mod. No. 0

18. DB/DBRA Current Wage Determinations • Contracting agency must assure that up to date WD is included in bid/RFP documents, and mods are included up to the time of award • On negotiated contracts (RFPs), contracting agency must use most up to date WD issued at time of contract award date

19. DB/DBRA Current Wage Determination • Mods to DB WDs and supersedes WD issued after award do not apply to contract • During pre-bid conferences, Contractors should be encouraged to review WDs and raise any objections or questions during advertising period. Later complaints may be deemed untimely and not be acted upon

20. DB/DBRA Current Wage Determinations • On competitive bidding contracts, WDs issued within 10 days of opening bid date shall be used unless there is not enough time to notify all bidders • Where General WD applies, if contract not awarded within 90 days new mods must be incorporated or extension applied for and granted. Same for Project WD that expires before award

21. MISCLASSIFICATIONNO CLASSIFICATION

22. MISCLASSIFICATION • Plumber vs Pipelayer (Laborer) • Pipelaying - Inside - Plumber • Outside - Laborer

23. Misclassification • Roofer vs Sheet Metal Worker (Materials) • Roofer - Asphalt & Concrete Tiles • Mop & Hot Tar • Sheet Metal Worker - Flashing/Sheet Metal • Carpentry - Wood Shingles

24. Misclassification • Sheet Metal Workers vs Iron Workers • Gauge of Metal • Lower the number-thicker the metal • (Ironworker)

25. Misclassification • Fence Erector • Chain link - Ironworkers • Wood - Carpentry • Poles - Laborers

26. Misclassification • Laborer vs Final Cleanup Laborer • Laborer - All Phases of Construction • Final Cleanup - After Construction

27. Procedure • Complaint • Investigation • Prevailing Practice • Compliance • Conformance

28. Classification Missing? • Can project work be performed without this class? • New Wage Decision

29. Simple Classification Missing? • Prepare bid with regular rate & conformance criteria in mind. • Request additional classification and wage rate after award.

30. CONFORMANCE CRITERIA • Classification requested is not performed by class in wage decision. • Class is used by construction industry in the area. • Requested rate is similar to the rates contained in the decision.

31. Davis-BaconSurvey Process

32. DB Survey ProcessAnnual Plan • Survey activities planned using Regional Survey Planning Report (RSPR) and Uniform Survey Planning Procedure (USPP) • Information about procurement agency construction is obtained • Geographic area identified and included on an annual survey plan • Survey plan distributed to interested parties

33. DB Survey ProcessInitiating And Conducting • Interested parties and identified contractors are contacted by letter requesting their participation • Contractors identified by F.W. Dodge Reports • Wage data: verified as to area, time, time frame, construction type, timeliness • Data compiled and analyzed (4 to 8 months)

34. DB Survey ProcessImportance of Participation • Accuracy and comprehensiveness dependent upon interested party participation • Participation by federal agencies is sometimes required to issue new schedule

35. DB Survey ProcessKey Classes Adequate data to establish rates for at least 1/2 of the key classes for a given type of construction: • Building • Heavy • Highway • Residential

36. DB Survey ProcessBuilding • Heat/Frost Insulators • Bricklayers • Boilermakers • Carpenters • Cement Masons • Electricians • Iron Workers • Laborers - common

37. DB Survey ProcessBuilding • Painters • Pipefitters • Plumbers • Power Equip Operators (Operating Eng.) • Roofers • Sheet Metal Workers • Tile Setters • Truck Drivers

38. DB Survey ProcessHeavy And Highway • Carpenters • Cement Masons • Electricians • Iron Workers • Laborers - common • Painters • Power Equip Operators • Truck Drivers

39. DB Survey ProcessResidential • Bricklayers • Carpenters • Cement Masons • Electricians • Iron Workers

40. DB Survey ProcessResidential • Painters • Plumbers • Power Equip Operators • Roofers • Sheet Metal Workers • Truck Drivers

41. DB Survey ProcessImpact of Participation • Accuracy dependent upon interested party participation • Complete WD dependent upon participation and construction activities • Prevailing wages mirror data submitted • Participation by federal agencies sometimes required

42. DB Survey ProcessPlanning • Regional Survey Planning Report (RSPR) and Uniform Survey Planning Procedure (USPP) used to plan survey activity • RSPR shows construction activity in current year and basis for prevailing rates • USPP directs selection of survey areas by date of last survey, number of projects, cost of projects, agency plans, survey requests • Info on agency procurement most important • Pre-survey meetings with interested parties

43. DB Survey ProcessConduct • Nat’l and local interested parties notified • Letters sent to contractors • Follow-up for non-response • Contractors called to obtain missing data • Wage data submissions are verified • Data analyzed and area practice issues resolved

44. DB Survey ProcessConduct • Wage data tabulated by computer/prevailing wage and fringe benefits calculated • Wage rates tested for accuracy • Wage determinations developed and issued • Surveys take 4 to 8 months • Accuracy dependent on participation • Completeness dependent on participation and construction activities

45. DB/DBRA Compliance PrinciplesArea Practice Survey • Used to determine proper classification for work performed on DB project • Limited Area Practice Survey when all parties agree on accuracy of preliminary data • Full Area Practice Survey when preliminary data is disputed - involves similar projects in area for prior year

46. DB/DBRA Compliance PrinciplesLimited Area Practice Survey - Union Rates • Contact Unions that have jurisdiction over the work in question to determine if unions worked on similar projects in same county during prior year • Survey each union about how workers were classified • Info from unions should be confirmed by collective bargaining reps of contractors

47. DB/DBRA Compliance PrinciplesLimited Area Practice Survey - Open Shop Rates • Contact open shop contractors to determine if they worked on similar projects in same county during prior year • If so, ask how workers were classified • If all or a majority of contractors agree, the area practice is established

48. DB/DBRA Compliance PrinciplesLimited Area Practice Survey - Mixed Rates • Contact Unions, union shop and open shop contractors to determine if they worked on similar projects in same county during prior year • If all parties, or a majority agree, area practice is established

49. DB/DBRA Compliance PrinciplesFull Area Practice Survey • Identify similar projects in same county as project which were in progress during one year prior to start of project under investigation • Determine what firms performed work in question and contact those that are either open shop or union depending on the basis for the wage rates issued in applicable WD

50. DB/DBRA Compliance PrinciplesFull Area Practice Survey • Determine for each contractor the week in which the greatest number of employees performed the work in question and determine how they were classified • Compile info received and total the number of employees in each classification which performed work in question • Classification which has clear majority (60%) of employees is proper classification