LOS ANGELES COUNTY

METROPOLITAN TRANSPORTATION AUTHORITY

LABOR COMPLIANCE MANUAL

REVISED AUGUST 2019

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LABOR COMPLIANCE REQUIREMENTS

TABLE OF CONTENTS

1.0 GENERAL PROVISIONS ---------------------------------------------------------------------------------------- 1

1.1 APPLICABILITY OF PUBLIC WORKS REQUIREMENTS -------------------------------- 1

1.2 DEPARTMENT OF INDUSTRIAL RELATIONS CONTRACTOR

REGISTRATION DATABASE ---------------------------------------------------------------------- 1

1.3 CALIFORNIA PUBLIC WORKS REQUIREMENTS ----------------------------------------- 2

1.4 FEDERAL PUBLIC WORKS REQUIREMENTS ---------------------------------------------- 2

1.5 RESPONSIBILITY TO OBTAIN CURRENT PUBLIC WORKS STATUTES -------- 3

1.6 RESPONSIBILITY OF CONTRACTOR FOR PUBLIC WORK CONTRACT ------- 3

1.7 APPLICABILITY TO SUBCONTRACTING ---------------------------------------------------- 3

1.8 WORKERS’ COMPENSATION CERTIFICATE --------------------------------------------- 4

1.9 EMPLOYMENT OF MINORS PROHIBITED ----------------------------------------------- 4

1.10 TITLE OR STATUS OF EMPLOYEE IRRELEVENT --------------------------------------- 4

1.11 SUMMARY OF CERTAIN CA LA GENERAL PROVISIONS --------------------------- 4

2.0 CONTRACTOR’S DUTY TO COOPERATE -------------------------------------------------------------- 5

2.1 MONITORING ACTIVITIES PERFORMED BY THE AUTHORITY ------------------ 5

2.2 UNUSUAL WORK HOURS ------------------------------------------------------------------------- 5

2.3 RETALIATION AGAINST EMPLOYEES -------------------------------------------------------- 6

2.4 CONVICT LABOR -------------------------------------------------------------------------------------- 6

2.5 REPORTING LABOR COMPLIANCE VIOLATIONS -------------------------------------- 6

2.6 NOTIFICATION OF LABOR DISPUTES ------------------------------------------------------- 6

2.7 SUBCONTRACTOR COOPERATION ---------------------------------------------------------- 6

3.0 PAYMENT OF PREVAILING WAGES ---------------------------------------------------------------------- 7

3.1 GENERAL REQUIREMENT – PAYMENT OF PREVAILING WAGES -------------- 7

3.2 CONTRACTS WITH BOTH PREVAILING WAGE AND LIVING

WAGE REQUIREMENTS ------------------------------------------------------------------------- 8

3.3 AUTHORIZED PAYROLL DEDUCTIONS & FRINGE BENEFITS ------------------- 8

3.4 POSTING OF PREVAILING WAGE DETERMINATION(S) ---------------------------- 8

3.5 FORFEITRURE / WITHHOLDING FOR PREVAILING WAGE VIOLATION ---- 8

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4.0 PAYROLL REPORTS ---------------------------------------------------------------------------------------------- 9

4.1 GENERAL RECORDKEEPING REQUIREMENT -------------------------------------------- 9

4.2 WEEKLY SUBMISSION OF CERTIFIED PAYROLL RECORDS ----------------------- 10

4.3 FORFEITURE FOR FAILURE TO SUBMIT REQUIRED PAYROLLS ---------------- 11

4.4 RETENTION FOR FAILURE TO SUBMIT SATISFACTORY PAYROLLS ---------- 11

5.0 USE OF APPRENTICES UPON PUBLIC WORKS ----------------------------------------------------- 11

5.1 GENERAL REQUIREMENTS -----------------------------------------------------------------------11

5.2 SUMMARY OF PROVISIONS GOVERNING EMPLOYMENT OF

APPRENTICES -------------------------------------------------------------------------------------------- 11

6.0 USE OF TRAINEES UPON PUBLIC WORKS ----------------------------------------------------------- 13

6.1 GENERAL REQUIREMENTS ----------------------------------------------------------------------- 13

7.0 WORKING HOURS / OVERTIME COMPENSATION UPON PUBLIC WORKS---------- 13

7.1 GENERAL REQUIREMENTS ----------------------------------------------------------------------- 13

7.2 FORFEITURE FOR NONCOMPLIANCE ------------------------------------------------------ 14

8.0 NON-DISCRIMINATION UPON PUBLIC WORKS ------------------------------------------------- 14

9.0 REPORTING REQUIREMENTS – LABOR COMPLIANCE FORMS --------------------------- 15

10.0 LABOR COMPLIANCE CLOSE OUT ----------------------------------------------------------------------- 15

11.0 CONTRACT ENFORCEMENT -------------------------------------------------------------------------------- 15

11.1 LABOR COMPLIANCE MONITORING ------------------------------------------------------- 15

11.2 ENFORCEMENT POWER OF DESIGNEE ---------------------------------------------------- 16

11.3 WITHHOLDING PAYMENTS FOR LABOR COMPLIANCE VIOLATIONS ----- 16

12.0 FEDERALLY – ASSISTED CONTRACT PROVISIONS & RELATED MATTERS ------------17

13.0 INDEMNIFICATION --------------------------------------------------------------------------------------------- 20

14.0 INSURANCE --------------------------------------------------------------------------------------------------------- 21

15.0 PUBLIC RECORDS ACT ----------------------------------------------------------------------------------------- 21

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16.0 INTEREST ------------------------------------------------------------------------------------------------------------- 21

17.0 ON-LINE SUBMITALL OF PAYROLLS AND RELATED RECORDS --------------------------- 21

18.0 PROJECT LABOR AGREEMENT / CONSTRUCTION CAREERS POLICY ------------------- 21

19.0 COMPLIANCE MONITORING UNIT --------------------------------------------------------------------- 22

20.0 APPENDICES

APPENDIX A CALIFORNIA LABOR CODE 1720 – 1861

PUBLIC WORKS AND PUBLIC AGENCIES

APPENDIX B CALIFORNIA CODE OF REGULATIONS 16000 - 16404

DEPARTMENT OF INDUSTRIAL RELATIONS PUBLIC WORKS

APPENDIX C CODE OF FEDERAL REGULATIONS, TITLE 29 PART 5

PUBLIC WORKS REQUIREMENTS IMPLEMENTING

REGULATIONS

APPENDIX D DAVIS-BACON AND RELATED ACTS

APPENDIX E METRO LABOR COMPLIANCE DOCUMENTS

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LABOR COMPLIANCE REQUIREMENTS

1.0 GENERAL PROVISIONS

1.1 APPLICABILITY OF PUBLIC WORKS REQUIREMENTS

This Contract is subject to the requirements of:

A. California Labor Code (Cal. Lab. Code), Public Works requirements for contracts in excess of $1,000; and in the case of Federally-assisted projects, B. The Davis-Bacon and Related Acts found in Title 29, Code of Federal

Regulations (CFR) for contracts in excess of $2,000.

1.2 DEPARTMENT OF INDUSTRIAL RELATIONS CONTRACTOR REGISTRATION

DATABASE

All Public Works contractors responsible for the payment of prevailing wage are required to register with the Department of Industrial Relations (DIR) Contractor Registration Database (Database). The definition of public works contractor includes non-performing entities subcontracting to contractors performing prevailing wage covered work; sole proprietors and brokers who are responsible for performing prevailing wage covered work. [Cal. Lab. Code § 1771.1]

Registration with the DIR Database is required at the time of bid for all listed contractors and at the time of contract award. Registration is also required throughout the life of the contract.

Contractors subject to registration with the Database must register / renew their registration by July 1st of every fiscal year via the DIR’s online registration website. A yearly fee is associated with this registration.

If a contract initially not subject to prevailing wage requirements is subject to a change order / change of scope that adds prevailing wage covered work, all contractors responsible for the payment of prevailing wage must register with the DIR Database at the time of contract modification.

Contractors bidding on contracts as a joint venture are not required to be registered at the time of bid as long as the contractors that are parties to the

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joint venture are registered with the DIR Database. The joint venture must be registered by contract award.

Contractor Registration is not required for new construction, alteration, installation, demolition or repair contracts valued at $25,000 or less, or for maintenance contracts valued at $15,000 or less. Note that although registration with the DIR Database is not required, all other prevailing wage requirements will still be monitored. [CLC § 1771.1 (n)]

Contractors registered with the DIR Database must also submit certified payroll to the DIR via the DIR’s eCPR system. Contractors subject to PLA requirements do not have to submit eCPR, but must be registered with the DIR Database.

1.3 CALIFORNIA PUBLIC WORKS REQUIREMENTS

The requirements of California law include, but are not limited to the following:

A. California Labor Code (Cal. Lab. Code) Chapter 1, “Public Works of Part 7, “Public Works and Public Agencies” of Division 2, “Employment Regulation and Supervision,” specifically §§1720 through 1861, and other applicable sections;

B. California Code of Regulations (CCR), specifically §§16000 through 16414.

All pertinent California statutes and regulations, including, but not limited to those referred to above, are incorporated herein by reference as through set forth in their entirety.

1.4 FEDERAL PUBLIC WORKS REQUIREMENTS

The requirements of federal law include, but are not limited to, the following:

A. 29 CFR Part 1 – Procedures for Predeterminations of Wage Rates;

B. 29 CFR Part 3 – Contractors and Subcontractors on Public Building or

Public Work Financed in Whole or in Part by Loans or Grants from the United States;

C. 29 CFR Part 5 – Labor Standards Provisions Applicable to Contracts

Covering Federally Financed and Assisted Construction (Also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act);

D. The Davis-Bacon and Related Acts;

E. The Copeland “Anti – Kickback” Act (18 U.S.C §874).

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All Pertinent Federal statutes and regulations, including but not limited to those referred to above, are incorporated herein by reference as though set forth in their entirety. Copies of selected sections of the CFR and Federal Law are provided in Appendix A through D to this Manual.

1.5 RESPONSIBILITY TO OBTAIN CURRENT PUBLIC WORKS STATUTES

Copies of statutes and regulations included in this Manual, including any summaries thereof, are provided for convenience only. The Contractor is responsible for obtaining a current edition of all applicable Federal Law, CFR, Cal. Lab. Code, CCRs and Statutes; adhering to the latest edition of such statutes and regulations.

As a service to the Contractor, portions of the applicable provisions are summarized, herein. There summaries, however are provided merely as a reminder and as a guide. THIS SUMMARY DOES NOT SUPERSEDE THE FULL

TEXT OF THE CALIFORNIA CODE OR THE FEDERAL CODE. NEITHER DOES

THIS SUMMARY SUPERSEDE THE CFRS OR THE CCRS.

1.6 RESPONSIBILITY OF CONTRACTOR FOR THE PUBLIC WORK CONTRACT

Contractor and any tier Subcontractor by entering into or performing work under this contract agree to comply with all provisions of Federal and California law that apply to public works contracts. Public works includes construction, alteration, demolition, installation or repair work. It includes work performed during the design and preconstruction phases or construction including, but not limited to, inspection and land surveying work. Public works also includes the hauling of refuse from a public works site to an outside disposal location, and maintenance work.

Failure to comply with the requirements found in this Manual, particularly at 29 CFR §5.5, may be grounds for termination of the Contract, and for the debarment as provided in 29 CFR §5.12.

1.7 APPLICABLITY TO SUBCONTRACTING

The Contractor shall not subcontract part of the work covered by this Contract or permit subcontracted work to be further subcontracted without Metro’s prior written approval.

The Contractor shall insert in all construction Subcontracts of any tier the clauses set forth in this Section, and such other clauses as Metro may by appropriate instructions require.

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1.8 WORKERS’ COMPENSATION CERTIFICATE

The Contractor shall secure the payment of compensation for employees in accordance with Cal. Lab. Code §3700 and shall sign and file with the Construction Manager a certification, stating Cal. Lab. Code §1860 and 1861]:

“I am aware of the provisions of §3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Contract.”

1.9 EMPLOYMENT OF MINORS PROHIBITED

The Contractor and any tier Subcontractor shall abide by the provisions of the Cal. Lab. Code regarding the employment of minors.

1.10 TITLE OR STATUS OF EMPLOYEE IRRELEVENT

A worker’s title or status with the employer is not determinative of an individual’s coverage by the prevailing wage laws. What is determinative is whether the duties performed by the individual on a public works project constitute covered work. An individual who performs skilled or unskilled labor on a public works project is entitled to be paid the applicable prevailing wage rate for the time the work is performed, regardless of whether the individual holds a particular status such as partner, owner, owner-operator, independent contractor or sole proprietor, or holds a particular title with the employer such as president, vice-president, superintendent or foreman.

1.11 SUMMARY OF CERTAIN CAL. LAB. CODE GENERAL PROVISIONS

A. It is a misdemeanor to willfully fail to pay over five hundred dollars ($500) in agreed-upon health, pension, welfare, or vacation fund contributions.

[Cal. Lab. Code §227]

B. Any person who does not hold a valid State of California Contractor’s

License issued pursuant to Chapter 9 (commencing with §7000) of Division 3 of the Business and Professional Code, and who employs any worker to perform services for which a license is required, shall be subject to a civil penalty in the amount of two hundred dollars ($200) per employee for each day of such employment.[ Cal. Lab. Code §1021]

C. Contractor, upon request of the State of California Labor Commissioner, is required to withhold penalties and forfeitures from payments due from Subcontractors. Cal. Lab. Code §1727(b) and 1729]

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D. It is a felony to take, receive or conspire to take or receive the wages of a worker or working Subcontractor engaged in a public works contract. [Cal.

Lab. Code §1778]

E. It is a misdemeanor to collect fees for registering a person for public work.

[Cal. Lab. Code §1779]

F. It is a misdemeanor for any person or agent or officer thereof to charge, collect, or attempt to charge or collect, directly or indirectly, a fee or valuable consideration for registering any person for public work, or for giving information as to where such employment may be procured, or for placing, assisting in placing, or attempting to place, any person in public work, whether the person is to work directly for the State, or any political subdivision or for a contractor or subcontractor doing public work. [Cal. Lab.

Code 1779]

2.0 CONTRACTOR’S DUTY TO COOPERATE

The Contractor’s duty to cooperate is a condition of this Contract. The Contractor’s duty to cooperate is more fully described in subparagraphs 2.1 through 2.7, below.

2.1 MONITORING ACTIVITIES PERFORMED BY METRO

The Contractor and any tier Subcontractor shall cooperate fully with representatives of Metro’s Diversity and Economic Opportunity Department (DEOD) in their monitoring of compliance with the provisions of this Contract and provisions of California and Federal law that pertains to public works. The Contractor agrees that any representatives of the DEOD have the right to conduct employee interviews without interference or obstruction by the Contractor or any tier Subcontractor. No employee of a Contractor or Subcontractor who is interviewed by a DEOD representative or a representative of the State of California or Federal labor compliance agency, shall be threatened, intimidated or coerced in relation to the interview or as a result of such interview with DEOD, State of California or Federal labor compliance agency representatives.

2.2 UNUSUAL WORK HOURS

The Contractor shall notify the Construction Manager and the DEOD in writing prior to performing work subject to this Contract on any Sunday, on any holiday, and on any day work is performed before 7:00 a.m. or after 5:30 p.m.

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Alternative work weeks are not allowed on public works contracts. If a non-standard work week is required, the contractor must provide DEOD with a letter from Metro Project Management stating so.

Certain work classifications have specific overtime and holiday pay requirements. All contractors must review these requirements, available on the Department of Industrial Relation’s website, and ensure that they are followed.

All employees must be compensated according to their classification’s regulations.

2.3 RETALIATION AGAINST EMPLOYEES

The Contractor and any tier Subcontractor agrees that no worker performing work subject to this Contract shall be discharged, disciplined, or in any other manner discriminated against by any contractor because such employee has made a complaint to their employer, has filed any governmental complaint, has instituted or caused to be instituted any proceeding, or has testified or is about to testify in any proceeding that is related to the labor standards applicable under this Contract.

2.4 CONVICT LABOR

In connection with the performance of work under this Contract, the Contractor and any tier Subcontractor agrees not to employ any person undergoing sentence of imprisonment at hard labor. This does not include convicts who are on parole or probation.

2.5 REPORTING LABOR COMPLIANCE VIOLATIONS

The Contractor shall promptly report in writing to the DEOD all violations of the labor standards governing all work subject to this contract.

2.6 NOTIFICATION OF LABOR DISPUTES

Whenever the Contractor has knowledge that any actual or potential labor dispute may delay or threaten the timely performance of this Contract, or to interfere with or delay work by other contractors, the Contractor shall immediately give written notice thereof, including all relevant information, to the Construction Manager and the DEOD.

2.7 SUBCONTRACTOR COOPERATION

The Contractor shall take such action with respect to any Subcontractor as may be directed by the Construction Manager as a means of enforcing provisions of this Manual, including remedies for noncompliance.

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3.0 PAYMENT OF PREVAILING WAGES

3.1 GENERAL REQUIREMENT – PAYMENT OF PREVAILING WAGES

A. The Contractor and any tier Subcontractor shall not pay less than the specified prevailing wage rate to all workmen employed in the execution of Contracts awarded by Metro [Cal. Lab. Code §1774 and §1771, 29 CFR §5.5]

B. Prevailing wage rates applicable to this contract have been established by the Director of Industrial Relations (DIR) [Cal. Lab. Code §1770] and, for Federally-assisted contracts, the U.S. Department of Labor, Wage and Hour Division (DOL-WHD) [29 CFR Part 1]. Copy of the prevailing wage determination(s) applicable to this contract are available from the DEOD at its headquarters office and are included in this contract by reference. On Federally-assisted Contracts, a copy of the Federal wages shall be included in the solicitation documents, in accordance with Federal requirements. In the case of Federally-assisted contracts, the prevailing wage rate applicable to any craft or classification used on the Project shall be the higher of the prevailing wage rates specified for that craft or classification by the DIR and the DOL-WHD. Contractor and any tier Subcontractor shall comply with any revision by the DIR and the DOL-WHD prevailing wage determinations applicable to this Contract at no additional cost to Metro.

C. Every Apprentice shall be paid the prevailing wage rate of per diem wages for apprentices in the trade to which the apprentice is registered.

Apprentices who work unsupervised or violate the journeyperson to apprentice ratio will be paid at the full journeyperson rate [Cal. Lab. Code §1777.5(b) and 29 CFR §5.5(a)(4)]

D. For Federally assisted contracts, every Trainee must be paid at not less than the rate specified in the approved program for the trainee’s level or progress. Any employee listed on the payroll at a trainee rate that is not registered and participating in a training plan approved by the Bureau of Apprenticeship and Training shall be paid not less than the prevailing wage determined by the DOL-WHD for the craft or classification of work actually performed. [29 CFR §5.5(a)(4)]

E. Contractors utilizing any class of laborers or mechanics, including apprentices and trainees, not listed in the applicable Federal prevailing wage determination, shall complete and submit a Request for Authorization of Additional Classification and Rate to Metro. [29 CFR §5.5(a)(1)(ii)(A)]. In the event Contractor is unable to find a classification in conformance with the applicable prevailing wage determination, remedies provided in the State of California and, if applicable, Federal labor code shall apply.

F. For Federally-assisted contracts, all disputes concerning the payment of prevailing wage rates or classifications shall be promptly reported to Metro, LWRP LCM - 8 REVISION 4 for the referral to the Secretary of Labor. The decision the Secretary of Labor, as the case may be, shall be final.

G. Contractor shall monitor the payment of the specified prevailing wage rate of per diem wages by any tier Subcontractor to the employees, by periodic review of the certified payroll records of the Subcontractor. [Cal. Lab. Code §1775(b)(2)]. Upon becoming aware of failure of the Subcontractor to pay prevailing wages, the Contractor is to receive an affidavit signed under penalty of perjury from Project Subcontractors that prevailing wage rate requirements have been satisfied prior to making final payment to Subcontractor. [Cal. Lab. Code §1775(b)(4)]

3.2 CONTRACTS WITH BOTH PREVAILING WAGE AND LIVING WAGE

REQUIREMENTS

Certain contracts are subject to prevailing wage as well as Metro’s Living Wage / Service Contract Worker Retention Policy (LW/SCWRP) requirements.

Contractors must comply with both prevailing wage and LW/SCWRP requirements. Contractors must also pay the higher of either wage for their covered classifications. For more information on Living Wage, please refer to DEOD’s Living Wage / Service Contract Worker Retention Policy Manual

3.3 AUTHORIZED PAYROLL DEDUCTIONS AND FRINGE BENEFITS

A. Per Diem wages, as provided in Cal. Lab. Code §1773.1, includes but is not limited to, employer payments for health and welfare, pension, vacation, travel time, ,subsistence pay and apprenticeship or other training programs authorized by Cal. Lab. Code §3093.

B. For Federally-assisted contracts, authorized payroll deductions shall be in accordance with the Copeland Act found at 29 CFR §3.5 and 3.6.

3.4 POSTING OF PREVAILING WAGE DETERMINATIONS

The Contractor shall post on each job site, in a location readily available to the workers, a copy of all applicable prevailing wage determinations. [Cal. Lab.

Code §1773.2 and 29 CFR §5.5(a)(1)]

3.5 FORFEITURE / WITHOLDING FOR PREVAILING WAGE VIOLATIONS

A. If an underpayment is identified, restitution will be paid by the Contractor or Subcontractor to each affected worker. [Cal. Lab. Code §1775(a)(2)]

B. As required by Labor Code Section 1775, the Contractor shall forfeit to the

DIR up to two hundred dollars ($200) per calendar day or portion thereof for each worker working for them or for any tier Subcontractor working under them who is paid less than the prevailing wage rate called for in this

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Contract. Metro may withhold payment from the Contractor to ensure that the Contractor’s obligation to pay prevailing wage rates is met. [Cal. Lab.

Code §1775]

C. For Federally-assisted contracts, Metro may alternatively withhold or cause to be withheld from the Contractor so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices and trainees, employed by the Contractor or any tier Subcontractor on the Project, the full amount of wages required by the Contract. In the event of failure to pay any laborer or mechanic, including any apprentice or trainee, employed or working on the site of the Work, all or part of the wages required by the Contract, Metro may, after written notice to the Contractor, take such action as may be necessary to cause the suspension of further payment, advance or guarantee of funds until such violations have ceased. [29 CFR §5.5(a)(3)].

4.0 PAYROLL REPORTS

4.1 GENERAL RECORDKEEPING REQUIREMENT

A. The Contractor and tier Subcontractor must keep and certify on a weekly basis an accurate payroll record in accordance with Cal. Lab. Code §1776(a) and, for Federally-assisted contracts, 29 CFR §3.3 and 29 CFR5.5(a)(3).

B. The certified payroll records shall be submitted via DEOD’s online reporting system. The information submitted online shall contain all information as indicated in CLC § 1776 and in the case of federally- assisted contracts, Department of Labor form WH-347.

C. The Contractor and any tier Subcontractor shall keep an accurate record showing the name and actual hours worked each day of the week, for each worker on the Project. [Cal. Lab. Code §1812]

D. Copies of payroll records shall be available for inspection at the

Contractor’s principal office. [Cal. Lab. Code 1776(b)(1)-(2) and 29 CFR § 3.4(b)]. The location of the records shall be provided to Metro promptly, upon demand. [Cal. Lab. Code §1776(g)]

E. Contractor and any tier Subcontractor shall preserve their weekly payroll records for a period of not less three (3) years [29 CFR §3.4(b)], from the date of completion of the Contract and must conform to Cal. Lab. Code requirements relative to the preservation of records.

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4.2 WEEKLY SUBMISSION OF CERTIFIED PAYROLL RECORDS

A. The Contractor and any tier Subcontractor shall submit weekly, at no cost to AUTHORITY a certified copy of all payroll records via DEOD’s online monitoring system.. Payrolls shall be submitted weekly after the first week of work on the job site and submitted weekly thereafter. The payroll documents are to be submitted in accordance with the Cal. Lab. Code §1776(d) and, in the case of Federally-assisted contracts, 29 CFR §3.3(b) and 29 CFR §5.5(a)(3). Contractors employing apprentices or trainees under an approved program shall include annotation on the first weekly certified payrolls submitted to Metro, that their employment, is pursuant to an approved program, and shall identify the program. The Labor Compliance Document Submittal Schedule is attached to the Manual in Appendix E provides the timeframe for submittal.

B. The copy of the payrolls submitted to Metro shall be certified by a statement, signed with an electronic signature by the Contractor’s designated payroll agent (see next paragraph), attesting that the payrolls are correct and complete and that the wage rates contained therein are not less than those set by the applicable prevailing wage determination incorporated into this Contract. [Cal. Lab. Code §1776(b)]

C. Prior to commencing work on the job site the Contractor and any tier

Subcontractor shall submit to the DEOD a completed Certificate Appointing Payroll Officer form (See Appendix E) designating the person who will certify the Contractor’s payroll. This form must be uploaded to DEOD’s online monitoring system.

D. Following a review by the DEOD for compliance with State of California and

Federal labor laws, the payroll copy shall be retained by Metro.

E. The Contractor hereby acknowledges the foregoing language as a written request for such records (including those of Project Subcontractors) and waives any right to further notice of that request. The Contractor shall be responsible for the submission of certified copies of payrolls of all Subcontractors

F. Payroll reports pertaining to owner-operators must be submitted weekly to the DEOD.

G. Contractors affected by concrete delivery requirements, must submit, via Metro’s online monitoring system, certified payroll and well as all other required labor compliance documents, as requested by Metro. The minimum documents required set by California Assembly Bill 219 do not exempt concrete delivery drivers from other prevailing wage requirements set by DEOD. [CLC §1720.9]

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4.3 FORFEITURE FOR FAILURE TO SUBMIT REQUIRED PAYROLLS

As required by Cal. Lab. Code §1776 (h) the Contractor shall be subject to penalties of up to one hundred dollars ($100) per day, per worker, for failing to comply strictly with requests by Metro for adequate payroll records. Metro shall withhold the amount of penalties from Contractor payments for violation of Cal.

Lab. Code §1776.

4.4 RETENTION FOR FAILURE TO SUBMIT SATISFACTORY PAYROLLS

If, on or before the tenth (10th) of the month, the Contractor has not submitted satisfactory payrolls to the DEOD for all work performed during the monthly period ending on or before the first (1st) of the month, Metro, on the recommendation of the DEOD will retain from the next monthly estimate an amount equal to ten percent (10%) of the estimated value of work performed during the month except that such retention shall not exceed ten thousand dollars ($10,000) nor be less than one thousand dollars ($1,000). This section does not modify the Contractor’s obligation to submit payroll records on a weekly basis.

Retention for failure to submit satisfactory payrolls shall be in addition to all other retention provided for this Contract. The retention for failure to submit satisfactory payrolls for any monthly period will be released for the first payment scheduled to be made following the date that satisfactory payrolls for that monthly period are submitted to the DEOD.

5.0 USE OF APPRENTICES UPON PUBLIC WORKS

5.1 GENERAL REQUIREMENTS

The Contractor and any tier Subcontractor, shall comply with the requirements of the apprenticeship provisions of the Cal. Lab. Code, including, but not limited to §1777.5, and in the case of Federally-assisted contractors, the provisions of the Code of Federal Regulations, including, but not limited to §5.5(a)(4). The Contractor is responsible for compliance with this section for all apprenticeable occupations. [Cal. Lab. Code §1777.5(n)]

All contractors on public works projects valued at $30,000.00 or more are obligated to utilize apprentices, regardless of subcontract value. [Cal. Lab. Code 177.5]

5.2 SUMMARY OF PROVISIONS GOVERNING EMPLOYMENT OF APPRENTICES

A. Only apprentices approved by the Chief of California Division of Apprenticeship Standards (DAS) are eligible to be employed at the apprentice wage rate on public works. [Cal. Lab. Code §1777.5(c)]

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B. On Federally-assisted contracts, apprentices will be permitted to work at less than the predetermined rate for work they perform when they are employed and individually registered in a bonafide apprenticeship program registered with the U.S. Department of Labor, Bureau of Apprenticeship and Training, or with a state apprenticeship agency recognized by the bureau, or if a person has been certified by the Bureau of Apprenticeship and Training, or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. [29 CFR §5.5(a)(4)]

C. Contractor and any tier Subcontractor shall employ apprentices in the ratio set forth by the labor code, or the ratio established under a recognized properly registered program that the contractor participates in, for any work under the Contract performed by workers in an apprenticeable craft or trade [Cal. Lab. Code §1777.5(d) and 29 CFR(a)(4)]. This ratio should not be less than one hour of apprentice work for every five hours of journeyperson work on the Project. [Cal. Lab. Code §1777.5(g)]

D. The contractor and any tier Subcontractor shall submit contract award information to an applicable apprenticeship program, including estimate of journeyperson hours, number of apprentices proposed to be employees, and dates of apprentice utilization. Within 60 days after concluding work, each contractor shall submit to AUTHORITY and apprenticeship program a verified statement of the journeyperson and apprentice hours performed on Project. [Cal. Lab. Code §1777.5(e)]. The applicable apprenticeship program(s) shall also be forwarded this information.

E. For Federally-assisted contracts, the Contractor and any tier Subcontractor will additionally be required to furnish Metro or a representative of the DOL-WHD written evidence of the registration of its program and apprentices as well as the appropriate ratios and wage rates (expressed in percentages of the journeyperson hourly rates), for the area of construction prior to using any apprentices on the Contract Work. [29 CFR §5.5(a)(4)]

F. The Contractor and any tier Subcontractor shall contribute to the California

Apprenticeship Council in accordance with that specified by the DIR in the prevailing wage determination. [Cal. Lab. Code §1777.5(m)(1)]

Contractors that are signatory to unions must submit training funds via trust fund payments and provide proof of payment to DEOD via Metro’s online monitoring system.

G. The Contractor shall continually monitor a Subcontractor’s use of apprentices required to be employed on the public works project, including, but not limited to periodic reviews of the certified payroll of Subcontractor [Cal. Lab. Code 1777.7(d)(2)]. Upon becoming aware of a failure of the Subcontractor to employ the required number of apprentices, the

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Contractor shall take corrective action, such as retaining funds due Subcontractor, until failure is corrected. [Cal. Lab. Code $1777.7(d)(3)]

H. Prior to making final payment to the Subcontractor, the Contractor shall obtain a declaration signed under the penalty of perjury from the Subcontractor that the Subcontractor has employed the required number of apprentices on the public works project. [Cal. Lab. Code §1777.7(d)(4)]

I. Metro is required to withhold penalties upon determination of non-compliance with the apprenticeship provisions of Cal. Lab. Code §1777.5.

[Cal. Lab. Code §1777.7(a)(1)]

6.0 USE OF TRAINEES UPON PUBLIC WORKS

6.1 GENERAL REQUIREMENTS

A. For Federally-assisted contracts, the Contractor and any tier Subcontractor shall comply with all requirements of the trainee provisions of the Code of Federal Regulations, including, but not limited to §5.5(a)(4).

B. For Federally-assisted contracts, except as provided in 29 CFR §5.15, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which as received prior approval, evidenced by formal certification, by the U.S. Department of Labor, Bureau of Apprenticeship and Training. [29 CFR §5.5(a)(4)]

C. The ratio of trainees to journeypersons shall not be greater than that permitted under the plan approved by the Bureau of Apprenticeship and Training.

D. The Contractor and any tier Subcontractor will be required to furnish Metro or a representative the DOL-WHD written evidence of the certification of this program, the registration of the trainees and the ratio and wage rates prescribed in that program. In the event the Bureau of Apprenticeship and Training withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

7.0 WORKING HOURS / OVERTIME COMPENSATION UPON PUBLIC WORKS

7.1 GENERAL REQUIREMENT

A. Eight (8) hours shall constitute a legal day’s work. [Cal. Lab. Code §1810]

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B. The Contractor and any tier Subcontractor shall not employ a worker more than eight (8) hours in a calendar day or forty (40) hours in a calendar week except upon compensation of at least one and one-half (1 ½) times the basic rate of pay for all hours works in excess of eight (8) hours per day and forty (40) per week. [Cal. Lab. Code §1811 and §1815, and 29 CFR§5.5(a)(10)(iii)(b) and §5.8]

C. The prevailing wage determination(s) deemed applicable to the Contract may require greater rates for overtime, holiday and weekend work that must be paid by the Contractor and any tier Subcontractor.

7.2 FORFEITURE FOR NONCOMPLIANCE

A. The Contractor shall forfeit to the DIR not more than twenty-five dollars ($25) per day, for each worker who is employed in excess of eight (8) hours per day or forty (40) hours per week without appropriate compensation paid [ Cal. Lab. Code §1813]. Metro may withhold penalties and forfeitures from payments dues to the Contractor for non-compliance. [Cal. Lab. Code §1727(a)]

B. For Federally-assisted contracts, Contractor and any tier Subcontractor shall be liable to any affected employee for work performed over forty (40) hours per week where that worker is not compensated at one and one-half (1 ½) times the basic hourly prevailing wage rate. Additionally, Contractor and Subcontractor shall be liable to the United States for liquidated damages.

Such liquidated damages shall be computed with respect to each individual laborer or mechanic employed in violation of the requirements set forth in this Section, in the sum of ten dollars ($10) for each calendar day on which such employee was required or permitted to work in excess of forty (40) hours without payment of the overtime wages required in this Section. [29 CFR §5.5(a)(10)(iii)(b)(2)]

C. For Federally-assisted contracts, Metro may withhold, from any monies payable on account of work performed by the Contractor or Subcontractor, such sums as may administratively be determined to be necessary to satisfy any liabilities of the Contractor or is Subcontractor for unpaid wages and liquidated damages as specified in this Section. [29 CFR §5.5(a)(10)(iii)(b)(3)]

8.0 NON-DISCRIMINATION UPON PUBLIC WORKS

Contractor and any tier Subcontractor shall not discriminate in the employment of persons upon public works on the grounds of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical

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condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status of any person, (or any basis listed in subdivision a of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code). [Cal. Lab. Code §1735]

Contractor and any tier Subcontractor shall not refuse to accept otherwise qualified employees as registered apprentices on any public works, on the ground of race, religious creed, color, national origin, national origin, ancestry, sex or age. [Cal. Lab. Code §1777.6]

The utilization of apprentices, trainees and journeypersons under this part shall be in conformity with the equal opportunity requirements of Executive Order 11246, as amended and 29 CFR Part 30.

9.0 REPORTING REQUIREMENTS – LABOR COMPLIANCE FORMS

The Contractor and any tier Subcontractors shall be required to submit labor compliance reports throughout the life of the contract. Copies of the required forms are available on Metro’s online monitoring system and included in Appendix E of this Manual.

10.0 LABOR COMPLIANCE CLOSE OUT

A. FINAL CERTIFICATE

Upon completion of the Contract, the Contractor shall submit to Metro and to the DEOD, with its voucher for the final payment for any work performed under the Contract, a certificate concerning wages and classifications for laborers and mechanics, including apprentices and trainees employed on the project. A copy of the required forms is available on Metro’s online monitoring system and in Appendix E of this Manual.

11.0 CONTRACT ENFORCEMENT

11.1 LABOR COMPLIANCE MONITORING

Ultimate authority for Labor Compliance enforcement is vested in the Metro’s DEOD. Enforcement activities performed by the DEOD will be consistent with all applicable Federal and State of California requirements, including Cal. Lab.

Code §1771.6. In addition to any other remedies Metro may have at law or under the contract, Metro may suspend or terminate a Contract, or, subject to a Board approved debarment process, debar a Contractor or Subcontractor

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from future Contracts with Metro, for breach of the Labor Compliance requirements set for herein.

11.2 ENFORCEMENT POWER OF DESIGNEE

The DEOD or its named Representative(s) will perform the following functions:

A. Participate in a pre-construction conference to present Labor Compliance requirements under the contract.

B. Receive and process all required documents via DEOD’s online monitoring system from Contractor and Subcontractor(s).

C. Review and, if appropriate, audit payroll reports.

D. Request the withholding of contract payments when labor compliance violations have been identified. The withholding amounts requested will be equal to the amount of identified prevailing wage underpayment and applicable penalties. Upon notification by the DEOD of a breach of the Labor Compliance requirements set forth in this Manual, Metro shall impose forfeitures.

E. Issue appropriate notices when Contractor or any tier Subcontractor is in violation of the requirements of this Manual.

F. Conduct investigations in coordination with outside enforcement agencies, when appropriate.

G. Conduct any necessary hearings on Labor Compliance complaints.

H. Request a Contractor or Subcontractor’s debarment or dismissal for willful, flagrant, or repeated violations.

I. Represent Metro as co-chairperson of the Joint Management /Labor Oversight Committee.

J. Interview employees of Contractors and Subcontractors.

11.3 WITHHOLDING PAYMENTS FOR LABOR COMPLIANCE VIOLATIONS

In the event of repeated violations by a Contractor or any tier Subcontractor, Metro may, in addition to other remedies, take the following action:

A. On the recommendation of the DEOD, Metro shall withhold any payment due the Contractor at five hundred dollars ($500) per day, for breach by the Contractor for any Subcontractor of the following Provisions for the

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contract’s Labor Compliance Requirements. The amount represents AUTHORITY damages for breach by failure to:

1. Pay general prevailing wage rates and/or fringe benefits;

2. Make payments to a health and welfare fund, pension fund, apprentice fund, vacation fund, or any other such fund for the benefit of employees;

3. Make payments to an industry promotion fund to which the employer has agreed to make payments;

4. Submit certified payroll records and related documents;

5. Pay overtime compensation;

6. Provide access to payroll records or;

7. Employ only duly licensed construction Contractors or Subcontractors

B. Metro shall withhold the sums set forth in paragraph A above after notice and an opportunity to be heard is afforded the Contractor, and the DEOD thereafter makes a determination that the Contractor is in violation of the Labor Compliance requirements of the Contract.

12.0 FEDERALLY ASSISTED CONTRACT PROVISIONS & RELATED MATTERS

For Federally-assisted contracts in excess of $2,000, the following provisions of 29 CFR §5.5 shall apply:

(a) The Agency head shall cause or require the contracting officer to insert in full in any contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in § 5.1, the following clauses (or any modifications thereof to meet the particular needs of the agency, Provided, That such modifications are first approved by the Department of Labor):

(1) Minimum wages. (i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics.

Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4).

Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.

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(ii)(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:

( 1 ) The work to be performed by the classification requested is not performed by a classification in the wage determination; and

( 2 ) The classification is utilized in the area by the construction industry; and

( 3 ) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S.

Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii) (B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.

(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.

(iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.

(2) Withholding. The (write in name of Federal Agency or the loan or grant recipient) shall upon its own action or upon written request of an authorized representative of the Department of…