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Goals:1.Ensure all interested subcontractors have access to information, resources and tools they need to be successful in their City contracts.2.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.

In partnership with

City of Austin Contract Management Department

Brought To You By:

Welcome to the Subcontractors Academy!

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Wage Compliance ProgramWAGE RATES AND PAYROLL REPPORTING

(SECTION 00830)

Marisol Claudio-Ehalt, Program ConsultantCity of Austin – Contract Management Department

This Month’s Featured Speakers:David Prado, Contract Compliance Specialist, Sr.Baldemar Maldonado, Contract Compliance Specialist Sr.City of Austin – Contract Management Department

June 22, 2015

Contract Management Department

Subcontractors Academy

Labor and Wage LawsDavis-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 3

Prevailing WagesWorkers 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. 4

The City of Austin monitors and enforces prevailing wages on its construction projectspre-construction meetingson-site observations

bulletin boards – wage postingsworker interviews

complaint investigationwage audits

corrective actions – There’s always a way to make things right.

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Wage Rates and Payroll Reporting

(How to Comply)

Section 00830City of Austin Construction Contract

Wage Rate Determinations (Wage Scales)

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00830HHHeavy and Highway Construction

00830BCBuilding Construction

Wage Rate Determinations

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Record KeepingThe City can request any payroll records up to (3) three years or

more after the project is completed.

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Forms every employee should have on file:Employee Certification

Project EmployerWage ClassificationPay RateWage ScaleTotal Wage Obligation

Payroll Deduction Authorization FormNot For TaxesExplains “Other” Deductions

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

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Building Construction

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

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Heavy and Highway

Forms every employer must have:Weekly Certified Payroll Report

Signed Wage Compliance Statement

Apprentice Registration for all Apprentices

Standards of Apprenticeship

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Statement of Compliance

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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.

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Administrative ActionsVoluntary 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.

17Source: 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.

18Source: Wage Rates and Payroll Reporting / 00830

Other Contracting AuthoritiesThe City of Austin does not monitor prevailing wage compliance in projects from other entities such as:

Austin Independent School DistrictAustin Community CollegeUniversity of TexasTravis CountyTravis County Commissioners CourtState of TexasFederal GovernmentPrivate Developers

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You will see us onsite:Verifying bulletin board postings.

Observing workers performing work.

Taking photos

Interviewing workers.

Verifying subcontractors onsite.

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1. Wage rates and payroll reporting requirements apply to both contractors and subcontractors.

2. Workers on City of Austin Projects shall be paid not less than wage rates listed in the contract.

3. 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.

4. 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.

5. 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).

6. Contractor shall keep payroll records as indicated in the contract. 21

City of AustinContract Management Department512-974-7181

Contract Development & Administration DivisionCynthia Gonzales, Division Manager

Wage Compliance Team:Rick Wilson – Team SupervisorRussell KyleBaldemar MaldonadoDavid PradoSam HernandezBeatriz Guereca

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Questions? Comments?For additional Information:http://austintexas.gov/department/contract-management

Next Class: July 20, 2015Job Order Contracting (JOC)9 – 10 amOne Texas CenterSuite 1045

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