Labor Compliance for Disadvantaged Business Enterprise (DBE)
IFC shall provide assistance to government agencies, construction
management, and prime contractors with all DBE related documents for
agencies, construction management firms, city and county to comply with the
Federal Disadvantaged Business Enterprise Regulations under Title 40 CFR
Part 33, Participation by Disadvantaged Business Enterprises in US
Environmental Protection Agency Programs and Title 49 CFR Part 26,
Participation by Disadvantaged Business Enterprises in Department of
Transportation Financial Assistance Programs.
IFC shall provide assistance in updating, maintaining, DBE programs,
including assisting agencies with developing Annual DBE Goals and
interpreting DBE policies and procedures. We shall provide training to
contractors and their sub-contractors on new labor compliance and DBE
regulations and processes. IFC shall provide the following DBE Monitoring
· Monitor and assess Contractor´s ongoing GFE and DBE goal
activities to comply with DBE program requirements
· Receive, review, and reconcile various contractor report and
submittals in conformance with contract requirements.
· Prepare weekly or monthly reports detailing discrepancies and/or
· When applicable, make recommendations and coordinate with
government agencies, City and County staff to withhold progress or
retention payments if Contractor fails to abide by any DBE requirements
· Assist agencies, city, and CM firms with completion of all
required federal and state documents per contract requirements
Overview of Compliance Monitoring Services IFC Provides:
– Federal Davis Bacon and State labor compliance monitoring.
– Review certified payrolls for compliance and ensure employees are paid
the correct prevailing wage rate.
– Verify contractor registration for all contractors
– Conduct periodic on site employee interviews.
– Communicate with awarding agency and the Department of Labor.
– Investigate all claims submitted by workers.
– Verify apprentice certifications
– Review fringe benefit withholdings.
– Identify payroll violations and administer compliance according to
Federal Davis Bacon regulations and/or State Regulations
– Report enforcement violations to the Department of Labor.
– Provide monthly, semi-annual and annual labor compliance status reports.
– Assist in the development of training materials.
– DBE Monitoring
– Section 3 Monitoring
– MBE/WBE Monitoring
– HUD Reporting
Prevailing Wage Requirements
– Department of Industrial Relations (DIR) Labor Code § 1776(a)
requires each public works contractor and subcontractor to keep accurate
payroll records, including the name, address, social security number, work
classification, straight time and overtime hours worked each day and week,
and the actual wages paid to each worker. The “work classification” refers
to the craft classification (or type of work performed) as fixed by the
Director and specified by title on the prevailing wage determinations
published and maintained by the California Office of Policy, Research and
Legislation (OPRL). (Labor Code § 1773 and 8 CCR § 16203.)
– Payroll records which do not identify the Director’s specified title (e.g.,
records which only identify a worker by status, such as “journeyman” or
“apprentice” or “partner,” and do not refer to the Director’s published
classification, such as “Laborer Group 1” or “Carpenter”) are not
acceptable. Payroll records shall be on forms provided by the California
Division of Labor Standards Enforcement (DLSE) or in a manner containing
the same information or verbiage as the forms provided by the DLSE.
– The DLSE form (DIR Form A -1-131) is available on the DLSE
website in the Public Works/prevailing wage section.
Links to certified payroll forms:
Federal – https://www.dol.gov/whd/forms/wh347.pdf
Contractors’ Obligations to Comply with Apprenticeship Standards.
DIR Labor Code § 1777.5 identifies the obligations of contractors
(including subcontractors) to employ apprentices on public works projects.
The requirements to employ apprentices does not apply to “contracts of
general contractors or to contracts of specialty contractors not bidding
for work through a general or prime contractor when the contracts of
general contractors or those specialty contractors involves less than
thirty -thousand dollars ($30,000).” Labor Code § 1777.5(o).)
Contractors who “knowingly violate” any of these requirements are subject
to monetary penalties (up to $300.00 for each full calendar day of
noncompliance) under Labor Code § 1777.7, and may also be “debarred,” i.e.,
denied the right to bid on or be awarded a contract for public works, or
perform work as a subcontractor on a public works project, for up to a
period of three years.
Payroll Records Must be Certified:
Labor Code § 1776(b) requires that payroll records, as defined above, shall
be “certified,” that is, verified by written declaration made under penalty
of perjury, that the information contained in the records is true and
correct. (8 CCR § 16000.) The certification language is found on the back
of the form furnished by the DLSE. Payroll records furnished to DLSE which
are not certified are inadequate.
Contractors’ Obligation to Electronically Submit Certified Payroll Records
DIR Labor Code Section 1771.4 was added to the Public Works Chapter by the
Legislature as part of the Public Works Reforms contained in SB854 which
became effective on June 20, 2014. Labor Code Section 1771.4(a)(3) requires
each contractor and subcontractor to furnish “the records specified in
Section 1776 directly to the Labor Commissioner.”
General Accounting and Administrative Duties
IFC provides various administrative and accounting support for construction
projects. Duties include project management assistance, Office Engineer
assistance and various clerical support tasks.