MDOT Prevailing Wage Compliance
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1 MDOT Prevailing Wage Compliance Introduction - MDOT Oversight / Labor Standards Statutes Chris Roe MDOT Prevailing Wage Compliance (517) [email protected] Contract Documents Wage Decisions Wage Rate Interviews Certified Payrolls Truck Drivers 1
2 Labor Statutes The Davis-Bacon Act (DBA) Davis-Bacon and Related Acts (DBRA) Fair Labor Standards Act (FLSA) Contract Work Hours and Safety Standards Act (CWHSSA) Copeland Anti-Kickback Act (CA) Michigan Prevailing Wage Law Public Act 166 of
3 Prevailing Wage Example Base Hourly Rate + Fringe = Total Package $22.00 $8.00 $30.00 The contractor can comply by paying: (29 CFR 5.31) 1. $30.00 in wages 2. $22.00 plus, $5.00 in health insurance benefits, and $3.00 contributions in a 401k account 3. $19.00 plus $11 in 401k contributions or any other bona fide fringe benefit that would have a value of $11 3
4 MDOT Prevailing Wage Compliance Introduction - MDOT Oversight / Labor Standards Statutes Contract Documents Wage Decisions Wage Rate Interviews Certified Payrolls Truck Drivers Chris Roe MDOT Prevailing Wage Compliance (517) [email protected] 4
5 BOHIM Delinquent Notice procedure (pg 8 of 25) 5
6 BOHIM Delinquent Notification Example 6
7 Required Certified Payroll Info (more in the Certified Payroll module) 7
8 BOHIM Deficient Notice procedure (pg 13 of 25) 8
9 BOHIM Deficient Notification Example 9
10 BOHIM Non-Compliance Damages 10
11 BOHIM Restitution Notice procedure Drafting the Prevailing Wage Noncompliance Violation letter Explain the noncompliant violation. Explain what is expected of the Contractor. Pay restitution as outlined Provide detailed documentation that supports their certified payroll Combination of the above Detail what will happen if the violation is not corrected. Explain the intent of the notice 11
12 BOHIM Restitution Notice procedure If restitution is required in a prevailing wage violation, the C&T Divisions prevailing wage compliance specialist is to be notified. The prime contractor will be notified along with any involved subcontractor of the violation and restitution amount. Intent of the first notice of violation and restitution. Immediately withhold the amount of the violation, if known. 60 days to resolve the violation or the intent will be to withhold payment for the offending contractor s items. 12
13 BOHIM Restitution Notice procedure Intent of the second notice of violation and restitution. Begin to withhold payment for the offending contractor s items. If not resolved with in 30 days of the second notice, NON- COMPLIANT DAMAGES will be accessed back to the date of the first notice. The damages will continue until the violation is resolved. The contractor is also responsible for any and all cost associated with the investigation and audit procedures. 13
14 FHWA 1273 The Form FHWA-1273: Is a convenient collection of contract provisions and proposal notices that are required by regulations of various federal agencies including the FHWA Required by FHWA to placed into federal aid contracts Located at the back of every proposal 14
15 FHWA-1273 Page 1 15
16 FHWA-1273 Section IV Page 3 1. General: 16
17 FHWA-1273 Section IV Page 4 1. General: 17
18 FHWA-1273 Section IV Page 4 4. Apprentice Trainees and Helpers a. Apprentices 18
19 FHWA-1273 Section V Page 6 Statements and Payrolls 19
20 FHWA-1273 Section V Page 6 2. Payroll and Payroll Records 20
21 STATE DBRA 21
22 MDOT Prevailing Wage Compliance Introduction - MDOT Oversight / Labor Standards Statutes Contract Documents Wage Decisions Wage Rate Interviews Certified Payrolls Truck Drivers Chris Roe MDOT Prevailing Wage Compliance (517) [email protected] 22
23 Highway (MI7) Wage determination Classifications 23
24 Typical Roadway Section 24
25 Common Wrong Classifications used for Roadway & Bridge Construction 25
26 Common Wrong Classifications used for Roadway & Bridge Construction 28
27 MDOT Prevailing Wage Compliance Introduction - MDOT Oversight / Labor Standards Statutes Contract Documents Wage Decisions Wage Rate Interviews Certified Payrolls Truck Drivers Chris Roe MDOT Prevailing Wage Compliance (517) [email protected] 31
28 Form 1156-T1 32
29 Wage Rate Interview The interviewer will complete form 1156-T1, NOT the worker. Interview at least one worker in each classification represented for each contractor on the project during each construction season.. To ensure privacy of workers, coworkers and supervisors (foreman) are NOT allowed to be present during the interview. Conduct interviews in the early stages of the project to verify prevailing wage compliance. Check the certified payroll against the wage rate interview in a timely manner so the issues can be resolved in a timely manner. 33
30 Wage Rate Interview form 1156-T1 34
31 Wage Rate Interview (WRI) form 1156-T2 35
32 MDOT Prevailing Wage Compliance Introduction - MDOT Oversight / Labor Standards Statutes Contract Documents Wage Decisions Wage Rate Interviews Certified Payrolls Truck Drivers Chris Roe MDOT Prevailing Wage Compliance (517) [email protected] 36
33 1955 Contractor Report filled out by the prime contractor when submitting sub contractor certified payrolls 37
34 38
35 39
36 CP-347 example icons 40
37 CP-347 Instructions 41
38 Certified Payrolls Apprentice / OJT Certified payrolls are required to include the identification of trainees and apprentices and the program levels 42
39 Certified Payrolls Owners Contract Ownership may qualify for exempt status of paying prevailing wages by using the Ownership Test. They are at least 20% EQUITY owner, and They are actively engaged in the management of the enterprise. 43
40 MDOT Prevailing Wage Compliance Introduction - MDOT Oversight / Labor Standards Statutes Contract Documents Wage Decisions Wage Rate Interviews Certified Payrolls Truck Drivers Chris Roe MDOT Prevailing Wage Compliance (517)
41 Example of DBRA Truck Driver Fringe Benefit Calculation 45
42 Truck Drivers Covered by State Prevailing Wage Law IN GENERAL, when a driver is performing work for the sole intended purpose of the covered project, all time spent is covered under state prevailing wage laws. NOTE: THE DE MINIMIS TIME DOES NOT APPLY 46
43 Truck Drivers NOT Covered by State Prevailing Wage Law A driver employed by a material supplier, not by the contractor, to deliver materials to a project site and who performs no other work on the project is not covered. Additional Understanding: If the material supplier does not own their own trucks and utilizes broker trucking to deliver their product to the job site and this broker truck has no contractual relationship with an onsite contractor or subcontractor the driver of such trucks are not covered. Owner/Operators are not covered 47
44 ? 48
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