Public Works Compliance Monitoring Unit 1
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Public Works
Compliance Monitoring Unit
1
AB 436 and the new CMU regulations went live on 1/1/2012. Public Works Contracts Awarded on or after 1/1/2012 are subject to CMU requirements
Contracts awarded prior to 1/1/2012 are subject to the old rules for the life of the project.
CMU requirements apply to –♦ Projects funded by any state bond with the exception of Proposition 84♦ Projects under 14 other statutes will require CMU♦ Projects undertaken by an awarding body that chooses to use the CMU on all of
its projects
CMU APPLICABILITY
2
3
Use of previously approved in house LCP
Projects covered by qualified project labor agreement
Proposition 84-funded projects: LCP required (no alternatives or exceptions)
EXCEPTIONS
4
Bid and Contract Language
Notice to the Department of Industrial Relations (PWC 100 form)
Job Site Postings
Fees to the Department
Vigilance and Cooperation; Comply with withholding orders
Awarding Body Requirements
5
Required Awarding Body Notice to DIR
On-line capability
The PWC 100 fulfills the requirement of notification from:♦ DAS – has all the information from the DAS 13
On-line Electronic Mail Correspondence from DIR♦ Project was successfully submitted to DIR♦ DLSE staff will contact the Awarding Body within 10 business days
PWC 100 – Required Notification
5
6
PWC – 100 FORM
7
Job Site Posting
8
DLSE will review electronic Certified Payroll Records (eCPR) within 30 days of receipt
Confirm accuracy of payroll reports randomly
Conduct on-site visits
Summary – CMU Responsibilities
9
May verify compliance with other laws enforced by the DLSE
May prepare an Audit to reflect prevailing wage deficiencies for each underpaid worker and penalties
May issue civil assessments, withhold payments, debar contractors from public works and initiate criminal investigations
Summary CMU Responsibilities
11
Division of Labor Standards Enforcement District Office605 West Santa Ana Blvd., Bldg. 28 Room 625
Santa Ana, CA 92701(714) 558-4910
Public Works Task ForceOrange County District Attorney Office
401 Civic Center Drive WestSanta Ana, CA 92701
(714) 648-3605
Submit certified payroll records (CPRs) to the CMU and awarding body using the CMUs eCPR system – My LCM.
CPRs must be submitted at least monthly, or more frequently if required by the public works contract.
Require subcontractors working under you to submit certified payroll records (CPRs) to the CMU, the awarding body and you using the CMU’s eCPR system –My LCM.
To Enroll in My LCM go to the third party non-government website at: https://app.mylcm.com
Projects Subject to DIR Monitoring and Enforcement:
12
13
Increased penalties for prevailing wage and payroll record violations
Expanded list of recipients of unredacted CPRs
Potential debarment for failure to submit CPRs
Some Other Legal Changes You Should Know About…AB 551 & AB 766
14
Labor Code Section 1775: Prevailing wage penalties changed from $50 to $200maximum per worker per day
Note: All statutory minimum penalties
Increased from $10 to $40, $20 to $80 & $40 to $120 Labor Code Section 1776: Penalties for failure to submit payroll records changed
from $25 to $100 per worker per day
Legal Changes: Increased Penalties
15
Labor Code Section 1777.1: If (sub)contractor fails to timely respond to request for CPRs by DLSE, DAS or Awarding Body …
Step 1: Labor Commissioner “shall” notify (sub)contractor that subject to debarment if it fails to comply within 30 days
Step 2: 1 to 3 year debarment unless circumstances outside of (sub)contractor’s control
Enforcement????
Legal Changes: Potential Debarment for Failure to Submit CPRs
16
Labor Code Section 1776: Upon request, Awarding Body must provide access to unredacted CPRs to:
“Agencies that are included in the Joint Enforcement Strike Force on the Underground Economy…” and
“Other law enforcement agencies investigating violations of law”
Public Works Task ForceOrange County District Attorney Office
401 Civic Center Drive WestSanta Ana, CA 92701
(714) 648-3605
Legal Changes: Increased Access to Unredacted CPRs
17
All Public Works Projects:
Comply with all prevailing wage and other public works requirements
Keep Certified payroll records in accordance with Labor Code section 1776
Ensure that subcontractors working under you comply with these requirements
What Contractors Must Do
18
CMU website: http://www.dir.ca.gov/cmu
18
Home Page for MYLCMhttps://app.mylcm.com
19
Once registered, just click the login button and it will direct users to the login screen.Your Company only should register once.
Contractor Registration Form
20
You will need to select the Agency you will be working for, complete all general information, contact Information, Company Profile fields – Note: All bold texts are mandatory fields.
You will receive a message “Your registration is successful” and will be logged into the MYLCM application.
21
Final Registration
General Contractors: After you complete registration form send an email with Name of your Company, Project Name, and Project Number
To us and the Compliance Monitoring Unit at:
[email protected] and [email protected]
The CMU will then attach your company to the project for submitting your eCPR. This process takes approximately 1-2 business days before you will see the projecton your mylcm.com
Subcontractors: send your email to us and your contractor in which you are working under. You do not need to send to the CMU
22
All contractors must register to use the MYLCM eCPR.Contractors must assign subcontractors to the project. When your firm is assigned, the contractor will receive an e-mail indicating this has taken place. The project will appear on the list of Contracts.
Registering Subcontractor(s) to Project
23
A subcontractor has to be assigned to a project prior to submitting certified payrolls.To perform this function:
1. Select a project to which you need to assign subcontractors.2. Select from the Project menu “Assign Subcontractor.” These firms will beexpected to enter weekly payrolls.
Note: The prime contractor must assign first-tier subcontractors beforefirst-tier contractors can assign their own subcontractors. If the project(s)
is not listed, contact the prime to determine the status.
Assigning Subcontractors
24
A new screen will appear showing a list of available subcontractors and a list ofassigned contractors.
Enter the contract value into the contract amount box.Save the assignment by clicking on “Submit.”
Assigning Subcontractor(s) Continued
25
When contractors submit CPRs, they are automatically logged for easy agency review and retrieval. CMU may also use the log to quickly determine
which, if any, contractors are behind on their submittals of CPRs.
26
CMU has the ability to accept or reject any CPR whether or not the application finds them to be compliant.
Once a CPR has been accepted the contractor will receive an email notifying them that the CPR has been accepted.
If a CPR has been rejected the CMU will provide remarks to the contractor and an email of these comments will be sent to the contractor notifying them that this payroll has been rejected.
27
MYLCM System performs each of the checks listed below to verify if a Certified Payroll Report is compliant based on the DIR rules.
If the reported basic hourly rate is less than the prevailing wage basic hourly rate, then theCPR will be marked non-compliant.
If the reported total hourly rate (standard-time basic hourly rate + supplemental benefit is lessthan the prevailing wage total hourly rate (prevailing wage basic hourly rate + prevailing wagefringe benefit hourly rate), then the CPR will be marked non-compliant.
If the reported overtime basic hourly rate is less than the prevailing wage overtime rate, thenthe CPR will be marked non-compliant.
If any hours are reported on Saturday, Sunday or holidays, then the CPR will be markednon-compliant unless it was a make-up day.
If the standard hours reported for any given day are greater than ten, then the CPR will be marked non-compliant.
What is Considered a Non-compliant Certified Payroll Report
28
Manual Certified Payroll Reporting Form
29
Manual Certified Payroll Certification
30
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&group=01001-02000&file=1770-1781
Full Labor Code can be viewed at:
31
Labor Code Section 1775
1775. (a) (1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not
more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
2) (A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following: (i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
Penalties
32
Labor Code Section 1775(B) (i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may
not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than
one hundred twenty dollars ($120) for each calendar day, or portion
thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1.
Penalties Continued
33
Labor Code Section 1776
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state
or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards
or the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
Penalties Continued
34
Labor Code Section 1777.1
(c) Whenever a contractor or subcontractor performing a public works project has failed to provide a timely response to a request by the Division of Labor Standards Enforcement, the Division of Apprenticeship Standards, or the awarding body to produce certified payroll records pursuant to Section 1776, the Labor Commissioner shall notify the contractor or subcontractor that:
In addition to any other penalties provided by law, the contractor or subcontractor will be subject to debarment under this section if the certified payroll records are not produced within 30 days after receipt of the written notice.
If the commissioner finds that the contractor or subcontractor has failed to comply with Section 1776 by that deadline, unless the commissioner finds that the failure to comply was due to circumstances outside the contractor's or subcontractor's control, the contractor or subcontractor or a firm, corporation, partnership, or association in which the contractor or subcontractor has any interest is
Ineligible for a period of not less than one year and not more than three years to do either of thefollowing:
(1) Bid on or be awarded a contract for a public works project(2) Perform work as a subcontractor on a public works project.
Penalties Continued
35
Public Works Complaint
36
Where Do I File A Complaint ?
37
On-Line Complaint Form
38
Department of Industrial Relations: http://www.dir.ca.gov/
Compliance Monitoring Unit (Contractors): http://www.dir.ca.gov/dlse/cmu/CMU_Contractors.html
CMU’s eCPR system – My LCMhttps://app.mylcm.com/Production/Login.aspx?ReturnUrl=%2fProduction%2fdefault.aspx
Director’s General Prevailing Wage Determinationshttp://www.dir.ca.gov/dlsr/DPreWageDetermination.htm
Division of Apprenticeship Standards http://www.dir.ca.gov/das/das.html
Division of Labor Standards Enforcement (DLSE) - California Labor Codehttp://www.dir.ca.gov/dlse/dlseLaws.html
Public Works Payroll Reporting Formhttp://www.dir.ca.gov/dlse/DLSEFormA-1-131.pdf
Helpful Website Addresses:
39
Background Of The New SB293 Law
40
Senate Bill No. 293 (Padilla) amended Public Contract Code section 7201, with requirements regarding retention, prompt payment by general contractors, and notice on payment bond claims.
It applies to contracts entered into after January 1, 2012.
SB 293 sunsets on January 1, 2016,unless extended by the legislature.
What is SB 293?
41
Law limits retention on public works projects to 5%. The current standard (not set by statute) is 10%.
Retention proceeds in excess of 5% of the progress payment/contract price are prohibited except under specified conditions. (Pub. Cont. Code, § 7201.)
How Does SB 293 Affect School Districts?
42
Retention may exceed 5% where the governing body of the local public entity, or its designee, has approved or ratified by a majority vote during a properly noticed and normally scheduled public hearing prior to bid that the project is substantially complex and therefore requires a higher retention amount than 5%, and includes this finding and the actual retention amount in the bid documents. (Pub. Contract Code, §7201(b)(4).)
Conditions To Exceed 5% Retention
43
Process For Making And Substantiating Findings That A District’s Project Is “Substantially Complex”
44
General contractors must pay subcontractors within 7 days after receipt of each progress payment (Bus.& Prof. Code, § 7108.5; Pub. Cont. Code,§§ 10262 and 10262.5)
Claims against the general contractor’s payment bond cannot be made unless the subcontractors have met these requirements:
a) 20-day preliminary notice is filed;
b) The general contractor has made all progress payments (except for good faith disputed amounts) to the first tier subcontractor; or
c) The first tier subcontractor has been terminated, and the general contractor made all progress payments to the terminated subcontractor (except for good faith disputed amounts)
If all of the above requirements have been met, then your claim(s) should be made within 15 days of the recording of the Notice of Completion or 75 days following completion if no recording of the Notice of Completion.
Laborers do not have to give a preliminary lien notice.
We recommend you consult your legal counsel regarding SB 293.
Miscellaneous Provisions Of SB 293
45
Pay Applications
Sign in and out
Subcontractors No Contractual agreement to provide status on payment obligations
http://www.sausd.us/page/1163
Sign in handout
Closing
Related Documents
