Contractor / Subcontractor User Guide August 2016...• Submission of training fund contribution form (CAC-2) if applicable and make sure contribution are being made as required •

Labor Compliance Monitoring Program Contractor / Subcontractor User Guide

August 2016

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Contactor/Subcontractor User Guide - Page 2 of 41

CURRENT REVISIONS- AUGUST 2016

Revision Description Revision Page

Labor Compliance Contractor Violation Escalation Procedures 9


Table of Contents

1. INTRODUCTION ................................................................................................................................. 5

Overview of Contractor/Subcontractor Guide ..................................................................................... 5

Labor Compliance Monitoring System (LCMS) Overview ..................................................................... 5

Applicable Regulatory Requirements ................................................................................................... 5

2. LABOR COMPLIANCE CONTRACTOR VIOLATION ESCALATION PROCEDURES .................................. 9

Escalation Procedures ........................................................................................................................... 9

3. LABOR COMPLIANCE MONITORING SYSTEM (LCMS) SETUP .......................................................... 11

How to access the LCMS ..................................................................................................................... 11

How to login ........................................................................................................................................ 12

How to obtain a forgotten Password .................................................................................................. 12

How to change your password ........................................................................................................... 13

How to Logout ..................................................................................................................................... 14

System “timeout” rule (user inactivity during a session).................................................................... 14

4. MANAGE EXISTING CONTRACTS/PROJECTS USING LCMS .............................................................. 15

How to view and select projects ......................................................................................................... 15

How to verify Contractors and Subcontractors assigned to the project ............................................ 16

How to Add and Edit Contractors/Subcontractors ............................................................................. 18

How to Assign Contractors/Subcontractors to a Project .................................................................... 19

How to view all “Tiered Subcontractors” ............................................................................................ 21

How to setup eSignature Password .................................................................................................... 22

Project Employee “Copy-Over” ........................................................................................................... 23

How to add new employees / edit existing employee information from “copy-over” ...................... 23

5. ENTER PAYROLL INFORMATION AND CERTIFY PAYROLL REPORT .................................................. 26

Enter Payroll ........................................................................................................................................ 26

Perform “Craft Match” on Payroll....................................................................................................... 26

Certify Payroll Records ........................................................................................................................ 27

Edit a Previously Certified Record ....................................................................................................... 28

6. WORKING WITH eDOCUMENTS ...................................................................................................... 29


Download required documents .......................................................................................................... 33

Upload required documents ............................................................................................................... 33

7. NOTICES AND VIOLATION WARNINGS ............................................................................................ 34

To review an Administrator Notice. .................................................................................................... 34

8. CERTIFIED PAYROLL REPORT AUDITS .............................................................................................. 37

How to determine what has been “audited” to date ......................................................................... 37

8. LCMS REPORTS ................................................................................................................................ 38

How to view all projects on which a particular subcontractor is working .......................................... 38

How to show a correction for underpayments in LCMS ..................................................................... 39

How to verify a discrepancy has been corrected by the subcontractor ............................................. 40

9. ATTACHMENTS ................................................................................................................................ 41

ATTACHMENT A – VIOLATION SUMMARY MATRIX ............................................................................ 41

ATTACHMENT B – PUBLIC WORKS COMPLAINT FORM– (Form No. DLSE PW 1A (Rev 8. 2012) ........ 41

ATTACHMENT C – PROCESS TO FILE A PUBLIC WORKS COMPLAINT WITH THE STATE OF CALIFORNIA DEPARTMENT OF LABOR STANDARDS ENFORCEMENT ...................................................................... 41

ATTACHMENT D – CRAFT MATCHING ................................................................................................. 41

Note: Nothing in this guide is intended to provide legal advice. This guide is not intended to, and does not create any rights or benefits, substantive or procedural, enforceable at law or in equity, against SANDAG, its agencies, departments, entities, officers, or employees.


1. INTRODUCTION

Overview of Contractor/Subcontractor Guide

This guide is intended to assist contractors and subcontractors in the understanding of the Labor Compliance Monitoring Program (LCMP) mandated by SANDAG and the usage of the Labor Compliance Monitoring System, an online reporting system that captures the necessary requirements of the California Department of Industrial Relations DIR, the Federal requirements issued by the Department of Labor (DOL), and Davis-Bacon Act, which apply to SANDAG construction projects. For this reason all requirements and forms will be included in this manual for reference to all applicable parties. All applicable forms will also be included through the Labor Compliance Monitoring System (LCMS) under the e-Documents area.

Please note that for purposes of this guide all references to “contractors” or “subcontractors” is meant to include all entities that employ persons working on SANDAG public works projects. Also note that references to “contractors” includes prime contractors and all subcontractors unless otherwise indicated.

Labor Compliance Monitoring System (LCMS) Overview

The LCMS is a web-based reporting system available 24 hours a day, 7 days a week. It allows SANDAG to email directly to contractors regarding any items missing or that need further clarification. It is the SANDAG system for payroll reporting including fringe benefits, training fund contributions, apprenticeship forms, check stub details, canceled checks, etc. All “paperwork” mandated by the State of California and the Federal Department of Labor will need to be uploaded into the LCMS for review. Be aware, however, that information uploaded to the SANDAG LCMS is not sent by SANDAG to the DIR, which means that contractors and subcontractors will be required to also submit information to DIR. This guide will give instructions on how to use the LCMS with screen shots to assist.

Applicable Regulatory Requirements

Standard prevailing wage language is included in all of the SANDAG contracts involving public works. Please review all such language including the correct wage determination applicable.

i) California Labor Code Sections: • Labor Code Section 1774-1775 (the payment of prevailing wages &

documentation). • Labor Code Section 1776 (the keeping and submission of accurate certified

payrolls). • Labor Code Section 1777.5 (the employment of apprentices on public

works). • Labor Code Section 1811-1813 (overtime must be paid for work in excess of

8 hours per day and 40 hours per week).


ii) Specific Requirements: • Special prevailing wage rates generally apply to work performed on

weekends, holidays and for certain shift work. • Depending on the location of the project and the amount of travel incurred

by workers on the project, certain travel and subsistence payments may also be required.

• Contractors should also be aware that some wage rates will increase during the course of the project and are noted on the specific Wage Determination with a single asterisk (*) or a double asterisk (**) after the “Expiration Date.”

• Predetermined increases are published and are available on the DIR Division of Labor Standards Enforcement (DLSE) website http://www.dir.ca.gov/oprl/DPreWageDetermination.htm

• The single asterisk (*) or double asterisk (**), appear in the DIR Classification Wage Determination, after the Expiration Date (show below).

o Expiration Date / Single Asterisk: If there are no predetermined

increases, the expiration date on each prevailing wage determination will be followed by a single (*) asterisk. Single asterisk expiration dates mean the rates listed on that particular wage determination apply for the entire duration of the project.

o Expiration Date / Double Asterisk: If there are predetermined changes (typically increases to the wage rate), the expiration date will be followed by a double (**) asterisk. The new prevailing wage goes into effect on the day following the expiration dated listed in the determination.

• Contractors and subcontractors should also review specific requirements for special rates that apply to holidays, premium pay, shift work and travel and subsistence pay.

http://www.dir.ca.gov/oprl/DPreWageDetermination.htm


iii) Apprentices • In order to work on a public works project and receive apprenticeship

prevailing wage rates, apprentices must be actively enrolled in a California Division of Apprenticeship-Standards approved program.

• Apprentices who are not properly supervised and employed in the appropriate ratio shall be paid the full journeyman wages for the classification of work performed.

• Contractors are required to submit DAS-140 and DAS-142 forms for all applicable projects (When the total amount of prime contract exceeds $30,000). Reference the LCMS eDocuments to view these forms.

iv) Penalties

SANDAG or the California Department of Industrial Relations may impose penalties upon contractors and subcontractors for failure to comply with prevailing wage requirements.

• Section 1775-Up to $200 per day per worker for each wage violation identified

• Section 1776-$100 per day per worker for failure to provide the required paperwork and documentation requested within a 10 day window

• Section 1777.7-$100 per day work is ongoing for failure to comply with Apprenticeship regulations

• Section 1813-$25 per day per worker for any overtime violation v) Conditions of Payment

a) Contractor will supply all applicable and necessary certified payrolls (for

itself and all applicable subcontractors) for the time period covering each payment request. Per Labor Code Section 1720 et seq., certified payroll means any of the items shown below and according to the timetable in the SANDAG Submittal Timeframe (references page 30 of this guide). • Certified Payroll • Fringe Benefit Statements and backup documentation (i.e., monthly

benefit statements). • Employee timecards • Wage statements • Cancelled checks • Submission of training fund contribution form (CAC-2) if applicable

and make sure contribution are being made as required • Apprenticeship forms such as DAS-140 and DAS-142


b) Contractor and all subcontractors are required by Senate Bill 854 to: register with the Department of Industrial Relations and pay the annual fee for registering as a Public Works Contractor for each fiscal year (July 1- June 30)

c) All projects awarded after April 1, 2015, must submit certified payroll and related documents electronically to the DIR on a weekly basis. Failure to submit payrolls to the DIR when mandated by the project parameters may result in the withholding of progress, retention and final payment.

vi) Federally Funded Projects • Federal Davis Bacon requirements must be met IN ADDITION to California

prevailing wage requirements. • Where there is a conflict in laws or regulations, the higher wage rate and

the more restrictive rule will apply. • If you will be using subcontractors, you are REQUIRED to insert these same

contract clauses AND the federal wage rates in your subcontracts. (You may NOT incorporate these provisions by reference).

• Failure to comply with this requirement may make your company liable for any underpayment of federal wages by your subcontractor

• Review the federal wage classifications and compare them to the state wage classifications.

• If California has a wage classification that is not in the federal wage determination, there is a process whereby the contractor and SANDAG may request a federal wage conformance from the US Department of Labor (DOL). The conformance may or may not be granted depending on the circumstances of the request. Conformances are not automatically granted.

• Davis Bacon also requires that apprentices employed on the project be enrolled in a program approved by the DOL’s Bureau of Apprenticeship Training (BAT).

• Any apprentice employed on a project with federal funding must be enrolled in a California approved apprenticeship program AND also a program that has the apprentice listed with the BAT.

• Contractors may be asked for a BAT certificate for each apprentice on the project. This verification can be obtained from the applicable apprenticeship program. It is recommended that contractors inform the apprenticeship program when they are working on a federally funded program, so that all apprentices dispatched meet both state and federal apprenticeship requirements. If an apprentice is enrolled in a California approved program, but not a BAT approved program, the contractor will be required to pay that apprentice full journeyman wages.)


vii) Withholding of Funds • SANDAG may withhold any portion of a payment, including the entire

payment amount, until certified payroll forms and related documentation are properly submitted, reviewed and found to be in full compliance.

• In the event that certified payroll forms do not comply with the requirements of Labor Code Section 1720 et seq. (or federal Davis Bacon requirements when applicable), SANDAG may continue to hold sufficient funds to cover estimated wages and penalties under the contract.

• All contractors/subcontractors and related construction services subject to prevailing wage, including but not limited to: trucking, surveying and inspection work must be registered with the DIR as a “public works contractor”.

Those that fail to register and maintain their status as a public works contractor shall be in violation of their contract with SANDAG, which would constitute just cause for SANDAG to terminate its contract.

2. LABOR COMPLIANCE CONTRACTOR VIOLATION ESCALATION PROCEDURES

Escalation Procedures

As the awarding body for public works construction projects, SANDAG is committed to fulfilling their Labor Compliance Monitoring requirement. As part of these requirements, SANDAG has defined a process by which issues of prevailing wage-related compliance violations by contractors are escalated through SANDAG/consultant team hierarchy. The SANDAG Labor Compliance Roles and Responsibilities are listed below. In addition, SANDAG has developed an Escalation and Resolution process to address violation areas from non-compliant contractors and subcontractors.

Director of Administration (DIR-ADMIN)Executive Management (EM)

ROLE

Reviews PWC and provides recommendations before submission to OGC.Reviews PWC and provides recommendations before submission to OGC.

Reviews PWC and comments prior to escalation to Executive Management.

Labor Compliance Consultant acting as SANDAG Designee (LCD)

Project Manager (PM)/Task Order Manager (TM )/Job Order Contract Manager (JM)/Contract Manager (CM)/Resident Engineer (RE)

SANDAG Labor Compliance Analyst (LCS)

Manager, Small Business Development (MSBD)

Office of General Counsel (OGC) Reviews PWC and advises if legal/escalation is required or other action need to be taken before escalation to Director of Mobility Management and Project

Performs final review of PWC and recommends escalation to Department of Labor Standards Enforcement (DLSE) or alternative action.

Works with LCD and RE/PM/TM/JM to resolve contractor deficiencies before a "Public Works Complaint" (PWC) is developed.

RESPONSIBILITYReview contractor prevailing wage documents for timely and accurate submittal. Works with contractor and SANDAG team participants to resolve contractor

Works with the LCD to resolve contractor deficiencies before withholding funds. Assists SANDAG staff in resolving written disputes from contractor.

TEAM PARTICIPANT ROLES AND RESPONSIBILITIES OVERVIEW

Reviews PWC and comments prior to escalation to Executive Management.

Principal Construction Engineer (PCE)

Director of Mobility Management and Project Implementation (DIR-MM

Labor Compliance Monitoring Program


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TEAM PARTICIPANTS STEP 1 STEP 2 STEP 3 STEP 4

LCD, LCS, RE / PM / TM / JM / CM/, PCE/MSBD

LCD notifies the RE/PM/TM/JM and SANDAG LCS of the contractor non-compliance. Requests that they communicate with the contractor to resolve discrepancies.

If after 5 days the contractor remains non-compliant/non-responsive, the LCD prepares and sends a Letter of Non-Compliance and a "Violation Summary Matrix" (Attachment B) to the contractor with a copy to RE/PM/TM/JM/CM and LCS.

If the non-respondent contractor is a subcontractor, the Letter of Non-Compliance (and all subsequent correspondence) should also be sent to the prime contractor. This serves to put the prime contractor on notice and make it aware that their payments could be in jeopardy if the subcontractor does not respond.

If resolution is not reached, RE/PM/TM/JM/CM will withhold funds from the next scheduled progress payment. The recommended withhold is equal to 5% of the payment, a minimum of $1,000 and a maximum of $10,000. See Example 2 in "Violation Summary Matrix" (Attachment B). The RE will decide on how much should be withheld, which in all cases should be an amount sufficient to pay the affected employees the general prevailing rate of per diem wages equivalent to (Total Due).

If same violation is on the next month's deficiency notice, then the LCD will start the escalation process by preparing a Public Works Complaint (PWC) and attach the "Violation Summary Matrix" and other supporting documentation.

LCD, LCS, RE / PM / TM / JM / CM /, MSBD

At this time, another letter is sent from the LCD to the contractor/subcontractor, stating that progress payment is being withheld and a PWC will be imposed if a response is not received within a 5 day period.

The LCD is to submit the PWC and the supporting documents to LCS and MSBD for review.

LCS reviews the PWC with MSBD and provides escalation recommendations.

During this time, the LCS continues to work with the LCD, RE/PM/TM/JM/CM to achieve contractor compliance.

The LCS and MSBD, submits the PWC to OGC for review and legal advice.

MSBD/PCE, OGC, DIR-MMPI, DIR-ADMINOGC reviews PWC and consults with MSBD and PCE. MSBD and PCE provides comments on the PWC and escalates to

DIR-MMPI and DIR-ADMIN. DIR-MMPI and DIR-ADMIN reviews and comments then escalates PWC to EM.

EM

SANDAG EM authorizes recommendation for escalation to Department of Labor Standards Enforcement (DLSE), a subsidiary of Department of Industrial Relations (DIR), or recommends alternative action.

EM notifies contractor via certified mail of SANDAG's intention to submit a PWC to DLSE or suggests alternative action.

Alternative Action: Extension of time, withholding of additional funds, termination of contract.

The letter/notification should indicate that the penalty amount may be waived if the contractor resolves the issue within a new 10-day period or the PWC will be submitted to DLSE.

EM

If contractor is not in full compliance, EM may exercise the right to submit the PWC to DLSE, which will subject the contractor to statutory penalties and fines. Below is an example of the penalties and fines that can be imposed.

EM submits the PWC with supporting documents via certified mail to DSLE and withholds funds based upon the "Total Due" on the "Violation Summary Matrix". The withheld funds are deposited into an escrow account.

If deemed necessary or appropriate, the EM to submit the PWC to DLSE based on the "Process To File A Public Works Complaint" (Attachment D).

Underpayment of Wages Overtime Calculation Violation Outstanding Wages OwedFailure to submit DAS-140, DAS-142 forms, or meet

Apprenticeship Ratios Failure to make Training Fund Contributions

Penalty: $200 per day per employee - Labor Code 1775(a)(1).

Fine: $40 per day per employee - Labor Code 1775(B)(i).

Penalty: $25 per day per employee - Labor Code 1813. Liquidated Damages (equal to wages owed). Penalty: $100 per day per employee - Labor Code 1777.7(a)(1). Penalty: $100 per day per employee - Labor Code 1777(a)(1).

100 Days (after initial request to comply)

Penalty: $100 per day per employee - Labor Code 1776(h).

VIOLATIONS AND STATUTORY PENALTIES

TIMEFRAME(After First 30 Days)


Actions Taken by Team Participant (Escalation Process)

Escalation process begins after 30 day corrective action/deficiency notice issued to the contractor to resolve has not been successful



10 Days(after initial 30 day corrective action/deficiency

notice request to comply)

If contractor does not respond/comply within 10 days, it can be considered delinquent according to Labor

Code 1776(d) and subject to withholding and penalties, according to Labor Code 1776(h).

Missing/Delinquent Certified Payroll Reports / Fringe Benefit Statement



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3. LABOR COMPLIANCE MONITORING SYSTEM (LCMS) SETUP

How to access the LCMS

a) Using the SANDAG website, click the Contracts tab. b) Scroll down to the Labor Compliance Monitoring System section and click the LCMS

web page link. c) The LCMS (LCPtracker) login screen will display.

Your User ID

Your User ID will be assigned to you in the initial email. It will be your contractor’s license number or telephone number as input by the SANDAG Administrator when you are added to the system.



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Your password

Your password is initially assigned to you in the welcome email. You must change your password to something only you know the first time you login.

How to login

a) In the User ID box, enter the user name provided to you in the initial email (i.e., your contractor license number or telephone number).

b) In the Password box, enter your personal password.

c) Click Login.

How to obtain a forgotten Password

From the LCMS (LCPtracker) home page:

a) Below User ID and Password Login boxes, click Password Help.

b) This screen will allow you to send a password reminder email.

c) Enter your User ID and Email Address fields and click Submit.



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d) An email reminder will be sent to you within minutes.

How to change your password

After logging into the system, the LCMS Home Page will be displayed. From the Home Screen:

a) Click the Setup tab.

b) From the Setup screen, click on the Change Password button.

This screen will allow you to change your password.



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a) In the Current Password field, type your current password.

b) In the New Password and Repeat Password fields, type your new password.

c) Click Save.

d) Your new password is effective immediately.

How to Logout

From any LCMS screen, click the Logout button at the top right portion of the screen.

System “timeout” rule (user inactivity during a session)

If you leave your desk or sit idle for fifteen (15) minutes or longer on any one screen, the LCMS will automatically logout. You will need to login again to access the system. Any work not saved prior to the logout will be lost.



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4. MANAGE EXISTING CONTRACTS/PROJECTS USING LCMS

How to view and select projects

a) From the LCMS home page, click on the Projects tab.

This screen displays all applicable projects for which you have been assigned work.

If one of your assigned projects does not appear on the list proceed as follows:

• Subcontractors should contact their Prime Contractor. • Prime Contractors should contact their Construction Management (CM) Consultant

OR the SANDAG Labor Compliance Analyst. • Prime Contractors may also contact the Account Administrator whose information

appears on the Projects – Project Assignments tab located on the right side of the screen ([email protected]).

mailto:[email protected]



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How to verify Contractors and Subcontractors assigned to the project

a) From any LCMS screen, click the Set Up tab.

b) Click on the Subcontractor Setup button.

c) Click on Subcontractor Assignment.



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d) All contractors assigned to the project will display.

e) The Sub To column will display the “tiered” subcontractors. f) To modify or delete a Subcontractor Assignment you will need to contact the

Consultant/Prime Approver.



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How to Add and Edit Contractors/Subcontractors

**Refer to Attachment E before entering subcontractor in LCMS**

a) From the Set Up tab screen, select the Subcontractor Setup option.

b) Click on Add/Edit Subcontractor

The Add/Edit screen will display.



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c) Click on the “Select a contractor to edit…” drop down menu to see if the contractors

name appears in the list. d) If the contractor name is now shown, then complete items marked with a red asterisk

(required) on this screen. • If the contractor appears on the list, and you only wish to edit their information,

then change the relevant fields and click Save. e) When finished, click Save. f) Once the Contractor has been entered, the system will generate and send a Welcome

Email to the Contractor. • The email will also contain their Username and a temporary Password.

How to Assign Contractors/Subcontractors to a Project

a) From any LCMS screen, click the Set Up tab. b) Select Subcontractor Setup. c) Select Subcontractor Assignment.



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d) Click on Add Subcontractor Assignment. e) Complete the required fields on the Add Assignment screen and click Save.

The contractor must be “assigned” to the project in order to enter and upload their Certified Payroll information. f) A Welcome Email will be sent to notify the contractor/subcontractor of the assignment.



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How to view all “Tiered Subcontractors”


b) Select Contractor/Subcontractor Assignment.

c) Select the project for which you wish to review the Tiered Subcontractors. The screen

will show the Tiered Subcontractors in the Sub To column.



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How to setup eSignature Password


b) Select Edit eSignature.

c) Choose an eSignature as follows: • 6-20 characters in length • 1 upper case letter • 1 lower case letter



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Project Employee “Copy-Over”

All employees who were on past projects with SANDAG will automatically populate into the LCMS for the new project once the Contractor has been assigned. The only field that will not transfer between projects is the Work Classification. You will need to select a classification the first time the employee is retrieved in the LCMS for a new project. It will be saved after the first time entered.

How to add new employees / edit existing employee information from “copy-over”


b) Select Add/Edit Employee.



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c) Enter/revise the information as needed:



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• Input the applicable Apprentice information if needed, Default Hourly Paid Fringes, Pre-

Tax Voluntary Employee Contributions and Default Other Deduction Notes. • Information entered here will be saved from week to week so that it does not need to

be re-entered until there is an update.



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5. ENTER PAYROLL INFORMATION AND CERTIFY PAYROLL REPORT

Enter Payroll

Once the LCMS setup is complete for the project employees, you may enter the payroll information on the Payroll Records tab.

a) Enter/Select the following, then click Next. • Project • Week End Date • Employee • Add Classification

b) Enter all hours worked, fringe benefits, and deductions. c) The draft payroll will be saved in the system.

Perform “Craft Match” on Payroll

This LCMS feature is used to find the higher of two wages between the Federally-issued and State-issued prevailing wage rates on dual funded projects.

Refer to Attachment A at the end of this User Guide for specific directions on how to perform a “Craft Match.”



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Certify Payroll Records

a) Select the Certification tab. b) Complete the applicable information on the screen.

• If there was no work performed for one or more weeks, you must account for that time of nonperformance by selecting the appropriate option on the screen.

c) Click Next.

d) The system will generate a Legal Statement regarding the submission of the payroll records. Use this screen to enter any remarks you wish to convey to the Administrator.

e) When finished enter your eSignature password to certify the payroll record.



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Edit a Previously Certified Record

a) Select the Certification tab. b) Select the Project and Week End Date for the payroll you wish to edit. c) Once you have completed the edit process, you will need re-certify the payroll. This

allows the Administrator to review and approve the revised version.



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6. WORKING WITH eDOCUMENTS

a) From any LCMS screen, click the eDocuments

b) Click the View Documents button to define selection criteria

c) Select criteria from the dropdown menus as follows.

Projects: View eDocuments by Project

Contractor: View eDocuments submitted by specific contractors or subcontractor



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Document Type: Search for specific eDocuments, such as Fringe Benefit Statements, Apprentice forms, etc.

• Types of eDocuments: o LCMP Labor Law Checklist: This is a page from Labor Compliance Monitoring

Program packet that indicates all applicable regulations have been given and received by Contractor.

o DAS 140: Registration for working on a Public Works Project with Apprenticeable trades.

o DAS 142: Apprentice Request form for each trade employed on the project. o Fringe Benefit Statements: Includes accompanying backup documents (i.e., union

contribution forms, 3rd Party contribution forms from healthcare, pension, life insurance, etc.).

o Certified Payroll Report (CPR): Payroll information will need to be input for all week endings from first week onsite until FINAL.

o Statement of Compliance: LCMS will auto-generate this form once CPR is correct and will need to be verified by eSignature.

o Statement of Non-Performance: Submittal of a No-Work Week in LCMS for any weeks when personnel are not performing work but will be back onsite prior to FINAL week.

o Owner Operator CPR & Statement of Compliance: As Applicable Owner Operators are to use these forms for reporting work.

o CAC2: Training Verification form for state funded projects is required when training funds are being paid to the California Apprenticeship Council (as opposed to an authorized Apprenticeship Training Program).

o Training Fund Contribution Form: Any funds paid to a State Approved Training Program, other than CAC, need to be detailed by hours worked, rate and craft and uploaded to LCMS.

o Training Contribution Check: Copy of check verifying funds have been paid to CAC or other applicable training program.

o Child Support, Garnishment or other Court Ordered Deduction: Must provide the documentation from the Court designating this amount is mandated and authorized.

o “Other” Deduction Sign-off Form: All “other” deductions must be delineated on the payroll records and contractor must provide evidence of a court order or the employee’s authorization for said deduction.

o Apprentice Certificates: All apprentices onsite must be enrolled in a State Approved Apprentice program; for Federally, or dual funded projects Apprentices must also provide a BAT form {Bureau of Apprenticeship Training.



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o Proof of Wage Restitution/Canceled Check Documentation: For any wage restitutions due, a copy of the wage statement and canceled check (copy front and back) must be uploaded for verification of correction.

o Daily Reports: Site Logs tracking subcontractors onsite, man hours, and daily work performed are required to be uploaded.

o Other Forms: Any documentation that modifies a certified payroll record but is not specifically delineated above but necessary to show compliance.

o Authorization Certification: Company Officer designates personnel to prepare and submit payroll records.

o Paychecks: One random paycheck for each month, for each subcontractor, may be requested for verification of payroll data reported.

o Public Works Affidavit: Affidavit affirming that all regulations of the California Prevailing Wage Laws have been observed under penalty of perjury.

o Contractor Trade List: Listing of all applicable trades that are anticipated to be performing work onsite by Contractor. (Subcontractor shall submit own list and upload.)

o Prevailing Wage Document Submittal Timeframe Guideline: This worksheet lists all applicable forms and the dates of required submission for each. Some documents may be due only at project start (i.e.: Child Support or other Court Ordered Deductions, DAS-140), while others are required during the course of the project (i.e.: apprenticeship forms for each apprentice that comes onsite). This is given as a quick reference/checklist to ensure all documents are submitted within a timely manner.



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See timeline matrix below:



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Download required documents

• From the e-Documents tab click on Download Document Templates. (A sample or blank form of each required document is shown on the list).

Upload required documents

• From the e-Document tab click Upload Documents. Complete in applicable information and save.



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7. NOTICES AND VIOLATION WARNINGS

To review an Administrator Notice.

The “Notices” indicates when the Administrator has submitted a message to the contractor to resolve an issue for a payroll that has already been certified.

a) From any LCMS screen, click the Notices tab.

b) Select the tab Administrator Notices and then Details to view comments from the Administrator:



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• Interpret/resolve a WARNING: The system has various validation settings that have been mandated by the Administrator. If there is a WARNING this is a potential error that a contractor will want to look into prior to certifying the payroll. (i.e., verifies that the check amount is greater than the total deductions). If the WARNING has been read and the issue was an error on data entry, the contractor has an opportunity to correct, resave and certify the payroll. If the contractor does not feel the WARNING is applicable, they may proceed to certify with the WARNING.

• Interpret/resolve a NOTICE: The system has various validation settings that have been mandated by the Administrator. A NOTICE is a validation setting that cannot be overridden (e.g., overtime worked but paid at straight time wage rate).

If a NOTICE is in the system, a contractor may not certify the payroll record until the item has been corrected.



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c) What to do for errors that should have been resolved but are still “flagged”: Contractors may contact the Administrator whose contact information appears on the Projects Tab under “Show Info.” This should be the main point of contact from the Construction Management Firm.

d) Getting Help on system related issues: Contact LCPtracker Technical Support 714-669-0052 EXT: 4. •



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8. CERTIFIED PAYROLL REPORT AUDITS

In LCMS, the term “audit” means that SANDAG has reviewed the payroll record submitted, including all applicable eDocuments (fringe benefit statement, training fund contributions, and apprentice verifications).

How to determine what has been “audited” to date

a) Select the Projects tab, and then select Certifications. b) SANDAG (or its designee) will Approve or Reject the payroll record.

• If the payroll has been Approved you will see the notation in the column Prime Approval.

• If the payroll has been REJECTED you will see the notation in the column Accept Status and you will be contacted via email regarding corrections needed for that payroll record.

• If the payroll has yet to be reviewed the Prime Approval column will be blank.



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8. LCMS REPORTS

a) From any LCMS screen, click on the Reports tab.

b) Select the report you wish to view.

Important: Not all reports shown in the screen below are available to Contractors.

How to view all projects on which a particular subcontractor is working

a) Select the Contractor Assignments Report. b) You may search by contractor name and all projects to which that contractor is assigned

will show.



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How to show a correction for underpayments in LCMS

a) Select the Projects tab, then click Certifications. Select the week that needs Editing.

b) You will need to make a notation about why the payroll is being edited under REMARKS.



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c) You may edit the individual employee’s record to include additional check numbers issued or edit hours/days worked, etc.

d) Be sure to resave and certify with your eSignature so the Administrator may view the changes.

How to verify a discrepancy has been corrected by the subcontractor

• Once the subcontractor has edited and recertified their payroll in the LCMS under Reports Tab, Certified Payroll Reports, Select the Project & Subcontractor and the Process Status will state Superseded.



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9. ATTACHMENTS

ATTACHMENT A – VIOLATION SUMMARY MATRIX

ATTACHMENT B – PUBLIC WORKS COMPLAINT FORM– (Form No. DLSE PW 1A (Rev 8. 2012)

ATTACHMENT C – PROCESS TO FILE A PUBLIC WORKS COMPLAINT WITH THE STATE OF CALIFORNIA DEPARTMENT OF LABOR STANDARDS ENFORCEMENT

ATTACHMENT D – CRAFT MATCHING


Contactor/Subcontractor User Guide

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ATTACHMENT A

Example 1: Violation Summary Matrix Example: (Information from Detailed Matrix Per Employee)

Project Information:Contractor Information:

Employee Name:

Total Hrs Worked

Wages Found Due

No of Days Worked X

Penalty Per Day

Total 1775 Penalty

Days with OT Violation X

Penalty Per Day

Total 1813 Penalty

Total Violation Penalties Training Due

Employee #1 22.50 99.64 3.00 X 200.00 600.00 3.00 X 25.00 75.00 675.00 18.00

Employee #2 15.00 61.13 2.00 X 200.00 400.00 2.00 X 25.00 50.00 450.00 12.00

Totals 37.50 160.77 5.00 1000.00 5.00 125.00 1125.00 30.00

Outstanding Wages Due 160.77

Liquidated Damages (equal to wages due) 160.77

1125.00

Training Due 30.00

1476.54

Example 2: Payment Withholds Example

Monthly progress pay estimate has a value of $9,500.

Value of the withhold is 5 % of $9,500 which is $475.

Therefore, the RE could withhold the "Total Due" amount of $1,476.54 since it is higher than 5%.

The example below illustrates the process to decide whether to use the "Total Due" amount or 5% of the progress payment, whichever is higher.

Violation Summary Matrix

The Labor Compliance Designee (LCD) will advise the Resident Engineer (RE) when funds should be withheld during a payment period. The LCD will provide the RE with this Violation Summary Matrix for each contractor that is not in compliance. The recommended withhold is equal to 5% of the progress payment, a minimum of $1,000 to a maximum of $10,000. The RE will decide on how much should be withheld, which in all cases should be an amount sufficient to pay the affected employees the general prevailing rate of per diem wages.

The following example illustrates the "Violation Summary Matrix" which will have a "Total Due" that is prepared by the LCD and submitted to the RE. If the total due is more than 5% of the progress payment, the higher amount prevails and should be withheld from the progress payment. The retention must not be released until all violations are cleared.

Total Due

Penalties Due



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ATTACHMENT B

Labor Commissioner, State of California Department of Industrial Relations Division of Labor Standards Enforcement TAKEN BY:

DIVISION USE ONLY:

CASE #

DATE TAKEN: ASSIGNED TO:

OFFICE: DATE RECEIVED:

DATE ASSIGNED:

PUBLIC WORKS – PUBLIC COMPLAINT The following information is important and must be provided.

Complainant Information

1. FIRST NAME 2. LAST NAME 3. COMPANY NAME 4. WORK/CELLULAR NO

5. CONTACT ADDRESS 6. CITY 7. STATE / ZIP CODE 8. EMAIL ADDRESS

Project Information

Note: A separate form must be completed for each project in which you are alleging a violation of prevailing wages.

9. PROJECT NAME (If known)

10. LIST ADDRESS(ES) OF PROJECT WHERE WORK WAS PERFORMED:

Complaint Against 11. NAME OF BUSINESS/CONTRACTOR/EMPLOYER 12. CONTRACTOR’S STATE LIC.

NO

13. ADDRESS OF BUSINESS/CONTRACTOR/EMPLOYER (Include Zip Code) 14. BUSINESS TEL. NO

15. E M A I L A D D R E S S 16. NAME OF PERSON IN CHARGE 17. TITLE

Awarding Body18. NAME OF PUBLIC AGENCY/AWARDED CONTRACT ENTITY

19. ADDRESS OF AWARDING BODY 20. BUSINESS TEL. NO/

21. EMAIL ADDRESS 22. NAME OF PERSON IN CHARGE / TITLE 23. AMOUNT OF CONTRACT

24. FIRST BID AD DATE 25.DATE PROJECT BEGAN 26. PROPOSED FINISH DATE 27. DATE OF NOTICE OF COMPLETION

General Contractor (Prime Contractor) 28. NAME OF GENERAL CONTRACTOR 29. CONTRACTOR’S STATE LIC.

30. ADDRESS 31. BUSINESS TEL. NO

32. EMAIL ADDRESS 33. NAME OF PERSON IN CHARGE 34. TITLE

Prevailing Wage Issues (Attach statements substantiating the allegation) 35. BRIEF EXPLAINATION OF ISSUES: (Check all applicable boxes)

Non-payment /Underpayment of wages

Unpaid overtime/Sat/Sun/Holiday rate

Not paid travel and subsistence

Misclassification of worker

Under reporting of hours

Insufficient fund check

Fringe benefits not paid Other

Apprentice Violations 1777.5 proceed to the next page

DLSEPW 1A (Rev 8.2012)

kre

Typewritten Text

40. Check the box if Proof of Service upon affected contractor and the General Contractor is attached.

I hereby certify that this is a true statement to the best of my knowledge and belief.

MY NAME MAY BE USED IN THIS INVESTIGATION. Yes No

Signature Date

DLSE PW 1A (Rev 8. 2012)

Apprentice Violations 1777.5

37. If the contractor is approved to train- Name of the Apprenticeship Committee:_______________________________________________________________________

38. Was there a LABOR COMPLIANCE PROGRAM on this project? Yes No If Yes, Name of the LCP: ______________________________________________ LCP Telephone Number: _________________________

Apprentice Issues ( List any documentation attached substantiating the allegation)

39. BRIEF EXPLAINATION OF ISSUES: (Check all applicable boxes)

Failed to provide Contract award information (DAS 140). California Code of Regulations 230

_______________________________________________________________________________________________________________________

Failed to request dispatch of apprentices (DAS 142). California Code of Regulations 230.1

_______________________________________________________________________________________________________________________

Failed to employ registered apprentices in the correct ratio or not at all. California Code of Regulations 230.1

_______________________________________________________________________________________________________________________

Failed to make apprenticeship training fund contributions. California Code of Regulations 230.2

_______________________________________________________________________________________________________________________

Other (give clear concise statement of the facts constituting the basis of your complaint)

_______________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________

Proof of Service

Apprentice Occupation 36. Trades and Classifications: _______________________________________________



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ATTACHMENT C

[Type text]

PROCESS TO FILE A “PUBLIC WORKS COMPLAINT” WITH THE

STATE OF CALIFORNIA DEPARTMENT OF LABOR STANDARDS ENFORCEMENT

1. Labor Compliance Consultant/Designees (LCD)

Upon following the “Labor Compliance Contractor Violation Escalation Procedure” foundin the Consultant/Contractor/Subcontractor User Guide and determining that a “PublicWorks Complaint” (PWC) needs to be prepared by the LCD for a non-compliant contractor,LCD is to submit the following documents to SANDAG for review and possible submissionto the Department of Labor Standards Enforcement (DLSE).

a. Complete the on-line PWC form and print out when completed. The “Complainant”is San Diego Association of Governments. Do not sign. TheSANDAG Labor Compliance Analyst name is the Complainant and that person willsign the form. Form is found at the link below:Form: PW1A-PublicComplaintFinal.pdf

b. Violation Summary Matrix (Attachment B) – completed by LCDc. Back-up documentation – Dependent on violation (certified payrolls, fringe benefit

statement, copies of employer payments, etc.)

2. PWC and support documents reviewed and approved by SANDAG for escalation toExecutive Management (EM).

3. EM

Upon review of the PWC form and supporting documents, if EM decides to submit theinformation to the DLSE for further action, the steps below need to be taken.

a. Photocopy all documents prior to submittingb. Submit the documents below:

Public Works Complaint form Violation Summary Matrix – prepared by LCD Back-up documentation– Dependent on violation (certified payrolls, fringe

benefit statement, copies of employer payments, etc.)c. Submit by mailing documents to:

DLSE – Bureau of Field Enforcement (BOFE) Public WorksAttn: Complaints Unit300 Oceangate, Suite 850Long Beach, CA 90802

4. Department of Labor Standards Enforcement (DLSE)

a. After filing the complaint, SANDAG will receive a “Notification of Complaint Filed”with the name of the DLSE/BOFE investigator assigned to the case.

[Type text]

If the Public Works Unit finds a violation, an investigator with the Labor Commissioner will issue a Civil Wage and Penalty Assessment which determines the amount of unpaid wages owed to workers, as well as penalties the contractor or subcontractor owes.

A contractor may appeal the assessment within 60 days. If the contractor loses the appeal, the Labor Commissioner will file a judgement and collect the assessment amount. If a contractor or subcontractor cannot pay the amount assessed, the Labor Commissioner can obtain the amount owed from the awarding body (SANDAG).



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ATTACHMENT D


Contractor/Subcontractor User Guide - Page 1 of 9

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IMPORTANT DIRECTIONS FOR ALL CONTRACTORS *Please make sure that any Subcontractors your company may hire also receive a copy of thisguide.

Parts 1 & 2 1. Directions for “Craft Matching” on Payroll Entry pages 1-62. “Where to Look” or “Who to Contact” when in need of assistance on varying items page 7

PART 1. DIRECTIONS FOR “CRAFT MATCHING” ON PAYROLL ENTRY Find Section Applicable for Your Company

A. Description of why you will be “craft matching” for this project. Page 1

B. Directions for entering payroll for Journeymen Page 2C. Directions for entering payroll for Apprentices Page 5

D. Tips for Contractors that upload payroll data into LCPtracker—either with a file thatLCPtracker created for your company through the “DPI process” or an Excel spreadsheetcreated by your own company page 6

Section A. Description of Why You are Craft-Matching

LCPtracker has been working with several agencies and companies to come up with the best way to monitor prevailing wage on dual-funded projects, or public works projects that must meet the “higher of the two” wages between the Federally-issued and State-issued prevailing wage rates.

This new addition will add one extra step in the payroll entry process that has been standard in LCPtracker for many years. Because this is a rather new feature, those companies who may have used LCPtracker for other Administrators, may not have utilized this before and are encouraged to review this guide, just as any new user would.

What remains the same is that all employees working on the jobsite, must have certified payroll submitted weekly by their hiring company, reporting hours worked and wages earned.



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In order to find “the higher of the two rates”, be it in LCPtracker or done on paper manually, a person has to know what craft on one wage decision “matches” with another on the second set of wage rates to be able to compare. This is what we call a “craft match”.

Section B. Directions for Entering Payroll for Journeymen

For every employee entered each week on your certified payroll, you will now be required to pick 2 different crafts for each person, in what we call a “craft match”. *This is extremely important to remember.*There are TWO different lists of craft/classifications assigned to each project.We call each list a “Jurisdiction”.

One is the standard CA State Prevailing Wage determination published by the DIR. The Jurisdiction name is simply “California”.

The second is the Federal DOL-Issued Wage Decision and this Jurisdiction will have the word “Federal” included.

While many “matches” are going to be found quite easily, there are a few job titles that are more difficult to make, and this guide should be used to assist in finding those matches as well.

Keep in mind that once a “craft match” is found for an employee, that match will now be used for the remainder of the project, that is, unless this person works more than one craft/classification, so you only need to make the match one time!

EXAMPLE 1: EASY CRAFT MATCH SCENARIO

In the screenshot below, a user has selected one craft name from each Jurisdiction, just as you will be doing for each employee. This “craft match” for an employee doing mechanical work on elevators was easy!



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EXAMPLE 2: WHEN FINDING A MATCH IS A BIT MORE HARD TO FIND

You have an employee that is working as an Operating Engineer. In the “California” Jurisdiction, your specific Craft/Classification is easy to find and is listed with all pertinent Groups and shifts.

Now you have to pick a “match” from the 2nd Jurisdiction “Federal Wages”.

This craft-match is a bit more challenging than our Bricklayer in example #1.

The Federal Wage Decision does not contain any craft with the specific words “Operating Engineers”, because the DOL refers to these employees as “Power Equipment Operators”!

So what do you do?

Here are some tips to find the answer: 1) Look at the specific scope of work that this employee was doing on the jobsite instead of the

very broad craft name of “Operating Engineer”. This may mean consulting with a co-workerfamiliar with specific work performed on the jobsite.

2) You may need to reference the full DOL-issued wage decision with full descriptions of eachcraft and scope of work, or vice versa with the CA State determination.This should be in your contract for the project or you can pull either one online.



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After looking at the specific scope of work that the employee performed, the “craft match” is going to be:

EXAMPLE 3: WHEN FINDING A MATCH IN THE “FEDERAL” JURISDICTION LIST IS MORE CHALLENGING TO FIND SCENARIO (MAYBE NON-EXISTANT AT FIRST GLANCE!)

This is a list of crafts from the CA State wage determination:

This is a list of crafts from the Federal Wage Decision:



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Creating a “Match”:

Section C. Directions for Entering Payroll for Apprentices

The Federal DOL does not publish prevailing wage rates for Apprentice Crafts on their published wage decisions. These are always crafts that have to be added in to the system in order for a payroll to be entered.

Apprentices are not excluded from having a “craft match” though because of how this dual-funded process works in LCPtracker.

To simplify this, most Administrators have LCPtracker pull ALL of the Apprentice Craft and Classifications from the CA State determination and then COPY it into the Federal Wage decision so that there will be an EXACT MATCH.



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SO be careful when selecting “matches” on the Federal list because it might be a mixture of Journeymen and Apprentices with different naming conventions!

Section E. Tips for Contractors that upload payroll data into LCPtracker (Either with a file that LCPtracker created for your company through the “DPI process” or an Excel spreadsheet created by your own company)

• If you have had LCPtracker “map” out your payroll as part of our DPI module for anotherAdministrator’s account in the past, you will need that DPI “mapping model” copied from thatdatabase into this new Administrator’s account.

This has to be performed by LCPtracker staff on the back-end of the system.If this has not already been done, please send your request for this transfer to happen to LCP’sSupport Team(714)669-0052 ext 4 or email [email protected]

• Once your model has been copied over, you will need to complete the “craft-matching”process in this new Admin account so that the system knows what Craft/Classifications to listfor each employee once your spreadsheet has been uploaded.




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At this time, Craft Matching cannot be copied from one Admin database (say, City of Oakland) to another so this step has to be done again in the new Admin’s account. **Don’t confuse DPI Craft-Matching with that of the “match” you will need to make for the Federal/CA State Jurisdiction feature that has been explained in previous steps. ** If you need a refresher on how to do this DPI “craft-matching” then please go to eTraining link at the top of all pages >>> Contractor Support Documents >> scroll to “CRAFT MATCHING (REQUIRED FUNCTION TO USE WITH DATA UPLOAD)”

• Once you have entered in all of your Craft Names (or Codes), you will then continue to

Add/Edit Craft Match in your Set Up Tab Here is where the most confusing step in possibly all of LCPtracker is written out: You are going to need to make 2 different “craft matches” for each and every craft name/code you have entered when performing each “DPI craft-match”! Let’s explain that with some visuals . . .

NEED HELP WITH LCPtracker?

WHO DO I CALL?! If you are new to LCPtracker know that our company offers several different training options free of charge for you. We have:

• Webinars with a live trainer 3 times every single week • Many training documents and manuals with clear pictures to guide you through • Videos you can watch in your own time



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Once you have received your login to your account, please click on to button “Training Materials” at the top of each screen where you will find documents on specific issues, a complete User Manual, videos and how to sign up for our awesome webinars!

Please try Training Materials first to have a question answered!

WHAT IF I CAN’T FIND THE ANSWER?

What if you can’t find an answer to a problem or question in LCPtracker’s Training Materials section? That depends!

The LCPtracker Support Team should be contacted for assistance for about 90% of the questions or issues that Contractors have—almost all of the time. What about that other 10%?

There are a handful of things that LCPtracker is not able to assist with, most of these because of legal reasons, and this guide is here to tell you what those things are to help make it easy on you! (It also helps us cut down on our Support load making it easier for us to help those people in need!).

To contact the LCPtracker Support Team

call* (714) 669-0052 ext 4 or email: [email protected] *Always leave a voice message if you are prompted. You WILL get a call back as quickly as possible.

WHO DO I CALL THEN, FOR THAT 10%?

If your question or issue is one of those that are listed on the next page, it means that it is outside of the scope of LCPtracker Support. That is not a bad thing—you just need to contact the right person—which in your case will be your Administrator!

Your Administrator contact info will be specified when clicking “Show Info” on the Contractor’s Projects screen. (See below)




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HERE IS “THE LIST”! The following is a list of conditions in which a Contractor should contact their Administrator (and NOT LCPtracker Support) to get the proper help.

• You do not know what Craft//Classification to choose for your employee(s).

• You do not know the difference between certain Classifications of a Craft.

• You need to Edit a payroll you have already certified in LCPtracker but the system has “locked it”.

• You need to Delete a Certified Payroll. (Note that this is rare. CPR’s are editable for most things)

• You do not understand what eDocument it is that you need to upload into the system.

• You accidentally uploaded the wrong eDocument.

• You do not see an eDocument template for something you do not have.

• You set up your Subcontractor with a new account and realized you assigned them to the wrong project.

• You receive an email from the system and do not understand what the content means. These are called

“Admin Notices” and may be because of CPR Rejection, Permit Edit email or any other email sent through

LCPtracker to you—typically from your Administrator.



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ATTACHMENT E

Labor Compliance Monitoring Program Adding Subcontractor’s to LCMS

August 2016

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1

*IMPORTANT NOTICE*

Before Creating Any New Contractor Account

It is the full responsibility of the Prime Contractor to create any and ALL Subcontractor database accounts for any Subcontractor on their project regardless of tier either entering them through CIS or the Labor Compliance Monitoring System (LCMS).

Subcontractors

Please DO NOT create any new accounts in LCMS (LCPtracker). If you are bringing on your own Subcontractor to the project, and they need to be set up with an LCMS account, please send the request to the Prime Contractor using the Subcontractor Data Entry Sheet or an equivalent form.

Prime Contractors - Directions

If you are creating a new database for a Subcontractor please follow these guidelines precisely.

• First-Tier Subcontractors need to be set up in CIS (B2Gnow) system.

• Any DBE or SB Subcontractor (of any tier) needs to be set up in CIS system.

• Any lower-tier Subcontractor (that is not DBE or SB) needs to be set updirectly within LCMS and NOT in CIS.

• Before you create any new account, make sure you check the drop-downmenu of existing accounts to make sure that they do not already exist inLCMS.



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