Contractor Compliance/EEO Training Federal-aid Projects

1. Contractor Compliance/EEO TrainingFederal-aid Projects

2. Course Learning Outcomes • DBE Commercially Useful Function Review • Job Site Posters and EEO Policies • Conduct Contractor Employee Interviews • Review Certified Payrolls and check: • Labor Classifications • Davis Bacon Wage Rates • Fringe Benefits • Payroll Withholding Deductions • Training Special Provisions Compliance • Tribal Employment Rights (TERO)

3. Reading Assignment • Read the attached reading assignment 1. Contract Administration (CA) Manual • Section 112 – Labor Compliance • Section 110 – Contract Civil Rights 2. FHWA-1273 Required Contract Provisions 3. Davis Bacon Wage – General Wage Decision • Can be verified at: http://www.wdol.gov/ 4. Standards for Development of Training Programs • Instructions for Completing Payroll Form, WH-347 • US Dept. of Labor, WH-347 Payroll Form • ITD Certified Payroll Checklist • CA Manual (Sec. 112.12)

4. Forms Used in Contractor Compliance • Read the attached reading assignment or click on each of the following: 8. FHWA Contract Administration Core Curriculum, Pages 72 – 85 9. ITD Form 2014 • Labor Compliance/Employee Interview 10. ITD Form 1701 • Commercially Useful Function (CUF) Review 11. ITD Form 2674 • Resident Engineer’s On-Site Inspection EEO 12. Job Site Posters Checklist

5. What is a Disadvantaged Business (DBE)? • A for-profit small business concern • That is at least 51% owned by one or more individuals who are both socially and economically disadvantaged or, in the case of corporations, in which 515 of the stock is owned by one of more of such individuals; and • Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

6. Disadvantaged Business Enterprise (DBE) • The DBE Special Provisions contain the Contractor requirement to ensure that Disadvantaged Business Enterprises (minority-, woman-, or otherwise disadvantaged-owned firms) have equal opportunity to participate in performance of the contract. • If a DBE goal is included in the contract, the Contractor is required to make a good faith effort to seek out and consider DBE firms for work on the project. The Contractor’s good faith effort is required to be documented on an ITD 2396 (DBE Commitments), which must be submitted at bid opening. 6

7. Commercially Useful Function Report • Check for any DBE subcontractors • Check the ITD DBE Directory and complete a Commercially Useful Function (CUF) Report • Completion of a CUF Report will determine: • If a DBE is responsible for execution of the work of the contract and is carrying out its responsibilities as a DBE • After the CUF Report is completed, also: • Conduct Contractor Employee Interviews on DBE contractors, the Prime, and all subs • Review Certified Payrolls for the Prime & subs

8. Commercially Useful Function • Per 49 CFR 26.55. “A DBE performs a commercially useful function when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved.” • DBE must be responsible for negotiating price, determining quality & quantity, paying for & ordering material • DBE does not perform a CUF if role is limited to that of an extra participant in a transaction through which funds are passed in order to obtain the appearance of DBE participation

9. Commercially Useful Function Report ITD Form 1701

10. Job Site Posters Laminated Wage Rates, Contractor’s EEO Policy, and appointed EEO officer Bulletin Board with pre-printed posters on a white tarp This is a BEST PRACTICE!

11. ITD Job Site Posters Checklist The ITD Job Site Posters Checklist can be found in the Contract Administration Manual at : http://apps.itd.idaho.gov/apps/manuals/ca/Project_Poster_Checklist_Links.pdf

12. Job Site Posters • Required Federal Posters(control Click to view) • EEO is the Law, EEOC-P/E-1 (Revised 11/09) 1A."EEO is the Law" Poster Supplement • Federal-aid Construction Project, FHWA- 1022 (Rev 5/15) • Davis Bacon Act, FHWA 1321 (Revised 04/2009) • OSHA Job Safety and Health, OSHA 3165-04R 2015 • Minimum Wage, WHD Publication 1088 (Rev 07/2016) • Family and Medical Leave Act, WHD Publication1420 • Employee Polygraph Protection Act, WHD Publ. 1462 • Workers with Disabilities, WH 1284 (Revised 07/2009) • Employee Rights on Govt. Contracts, WHD Publ. 1313 • Military Family Leave Poster

13. Job Site Posters • Required Federal Posters(Continued) 11. Your Rights Under USERRA (Pub. Date 07/2008) • Emergency Phone No. : 29CFR1926.50(f), ITD-2540 • Pay Transparency Nondiscrimination Provision • Recommended Federal Posters • Process Safety Management, OSHA 3316-(01-2009) • Teen Worker / Young Worker, DOL 3231-04R 2012 • Unprotected Trench, OSHA 3215-08R-11 • Union Members (DOL) Poster • Employee Rights Under National Labor Relations Act • Water.Rest.ShadeOSHA 3435-04N 2011 • Fall Prevention Poster, OSHA 3531-04 2012

14. Job Site Posters • Required State Posters (control Click to view) • Idaho Law Prohibits Discrimination Poster • Idaho Unemployment Insurance Poster • Idaho Minimum Wage Poster • Workers Comp Poster (Idaho Law 72-312) • Required Contractors Job Site Posters • Contractor’s EEO Policy Statement  • Letter appointing the company’s EEO Officer • Davis-Bacon Wage Rates from the contract • If required Job Site Posters are not on the Bulletin Board, the contractor must post them as soon as possible

15. Employee Interviews • Employee interviews are to be done on the prime contractor and all subcontractors • Employee Interviews are to be completed at the start of the project, preferably during the first or second pay period • Projects of longer duration may need employee interviews several times during the course of the project • The first check on the employee interviews, CUF reports, and review of the certified payrolls is important as the contractor may have mistakes to correct and learn from

16. Employee Interviews • Employee Interviews are used to determine: • Exactly what work the employee is performing on the project and what the employees proper Payroll Classification/Job Title should be • If the employee knows where the contract wage rates are posted and what the hourly wage and fringe benefit rates are • If the employee believes the correct wages and benefits, including overtime, are being paid • Does the employee pay anyone, or allow a payroll deduction, for the right to work • Using the certified payroll to ultimately determine if the correct wages and benefits are being paid

17. Employee Interviews ITD Form 2014

18. Employee Interviews • After the Interviewer completes the employee interviews they must be signed and dated on the date of the interviews • Follow-up to Employee Interviews: • Determine if employees are being paid the Davis Bacon wages in the contract by checking the certified payrolls • Certified payroll must be submitted within one week following the end of the work covered by the payroll

19. Equal Employment Opportunity (EEO) • What is Equal Opportunity? • Equal opportunity is a stipulation that all people be treated similarly, unhampered by artificial barriers or prejudices or preferences, except when particular distinctions can be explicitly justified. • It is the policy of treating employees and others without discrimination, especially on the basis of race, color, or national origin, sex, age, or disability.

20. Equal Employment Opportunity (EEO) • What is Equal Employment Opportunity? • Equal employment opportunity is an employment practice where employers do not engage in employment activities that the law prohibits. It is illegal for employers to discriminate against an applicant or employee on the basis of race, color, national origin, sex, age, disability, and religion.

21. Equal Employment Opportunity (EEO) • What is Affirmative Action? • Affirmative Action is an active effort to improve the employment or educational opportunities of members of minority groups and women sought to achieve a multicultural staff through affirmative action • It is an overall effort to promote the rights or progress of other disadvantaged persons especially on the basis of race, color, national origin, sex, age, or disability

22. Equal Employment Opportunity (EEO) Resident Engineer’s On-Site Insp. ITD Form 2674

23. Equal Employment Opportunity (EEO) Resident Engineer’s On-Site Insp. • Use ITD Form 2674 to check the following: • EEO Posters on the Job Site Bulletin Board • EEO Policy on the Job Site Bulletin Board • Are employees and Supervisors aware of the company’s EEO policies? • Is anyone in an On the Job Training (OJT) or apprenticeship training program? • Does the contractor’s EEO officer visit the project site? • See the ITD Contract Administration Manual Section 110.03 EEO Special Provisions

24. Certified Payroll • WH-347 at https://www.dol.gov/whd/forms/wh347.pdf

25. Certified Payroll

26. Certified Payroll • Instructions For Completing Payroll Form WH-347 • Contractor is required to furnish weekly a statement with respect to the wages paid each employee during the preceding week. Form WH-347 has been made available for the convenience of contractors • Under the Davis-Bacon and related Acts, the contractor is required to pay not less than prevailing wage, including fringe benefits, as predetermined by the Department of Labor • The contractor's obligation to pay fringe benefits may be met either by payment of the fringe benefits to bona fide benefit plans, funds or programs or by making payments to the covered workers (laborers and mechanics) as cash in lieu of fringe benefits

27. Certified Payrolls • Compare Labor Classifications on the payroll to labor classification determined during employee interviews • Check Davis Bacon Wage Rates in the contract to Wages on the Certified Payroll • Fringe Benefits • Paying fringe benefits to approved plans, funds, or programs • Cash paid in lieu of fringe benefits • Overtime is not calculated using fringe benefits • Payroll Withholding Deductions • Must clearly justify all deductions

28. Contract of Davis Bacon Wages

29. Davis Bacon Wages

30. Davis Bacon Wages Rates Fringes

32. Certified Payroll Checklist • Use the payroll checklist (CA Manual 112.12) in conjunction with the Instructions for Completing Payroll Form WH-347 • Is the project number/project description on the payroll? • Does the payroll show the payroll period covered? • Is the employee's full name shown? • Are classifications complete and in accordance with the contract wage decision?

33. Certified Payroll Checklist 5. From your knowledge (or an employee interview), are workers properly classified for work performed? 6. If codes are used for classifications, has a copy of the codes been submitted? 7. From your knowledge, are all hours worked each day shown on the payroll? 8. Has the Work Hours Standard Act been complied with, as to payment of wages for work, in excess of 40 hours a week? 9. Are wage rates at least equal to those in the contract wage decision?

34. Certified Payroll Checklist 10. Are fringe benefits paid as required by the contract wage decision? 11. Does the payroll show net wages paid? 12. Are all deductions allowable or authorized? 13. Are all apprentices and trainees in an FHWA approved program, and is their status shown? 14. Is the payroll mathematically correct? 15. Does the payroll include the required statement of compliance?

35. Certified Payroll Checklist • 16. Has the certified payroll been submitted within one week following the end of the work covered by the payroll? • 17. The employees address is notto be shown on the payroll. • 18. The Social Security Number is notto be shown on the payroll. The last four digits may be used. • If any of the above items are incorrect or missing, the contractor must provide a revised payroll

36. Certified Payroll 1 3 4 2 8 9 5 6 7 10 11 12 • Firm's name and Address • Payroll No. • Week Ending • Project Name, Location, Contract No. • Name and Individual Identifying Number of Worker • Work Classifications • Hours worked • Rate of Pay (Including Fringe Benefits) • Gross Amount Earned • Deductions • Net Wages Paid for Week • Is the payroll mathematically correct?

37. Certified Payroll 14. Check paragraph 4(b) to indicate the payment of fringe benefits in cash directly to the workers. 15. Note any exceptions in section 4(c). • FRINGE BENEFITS - If paying all fringe benefits to approved plans, funds, or programs, check paragraph 4(a)

38. Certified Payroll • 12. • 16. Statement Required by Regulations, Parts 3 and 5: While the "statement of compliance" need not be notarized, the statement (on page 2 of the payroll form) is subject to the penalties provided by 18 U.S.C. § 1001, namely, a fine, possible imprisonment of not more than 5 years, or both. Accordingly, the party signing this statement should have knowledge of the facts represented as true.

39. Training Special Provisions Compliance • The primary purpose of the Training Special Provisions Program (TSP) is to train and upgrade minorities and women toward journey-level status in crafts where they are underrepresented. • The contract will specify the number of training hours to be filled.The Contractor should assign training hours to crafts where minorities or women are underutilized.

40. Training Special Provisions Compliance • Minorities and women in training positions can be counted toward the EEO goals. RE’s should encourage Contractors to bring trainees into the work force early in the contract to provide adequate opportunity for trainees and apprentices to complete their programs, and to reduce the risk of being found in non-compliance with the Training Special Provisions. • The Contractor shall submit to the RE a plan showing how the Contractor will meet the TSP requirements before construction begins. • This plan will include the number of trainees to be trained, the crafts that the training will cover and the approved training programs to be used.

41. Training Special Provisions Compliance • All training programs must be approved by FHWA and ITD before commencing work. • This plan must also show the starting date for the training in each craft, and the minimum length and training type for each classification. • Use the following ITD forms to document Training Special Provisions compliance: Training Action Request (ITD 2775), Trainee Monthly Progress Record (ITD 2776), and On the Job Training Agreement (ITD 2777).

42. Tribal Employment Rights Ordinance • TERO Ordinances requires all employers engaging in operating a business on reservations to give preference to qualified Indians in all aspects of employment, contracting, and other business activities. • Tribes established TERO Offices and are empowered to monitor and enforce the requirements of the tribal employment rights ordinance.

43. Tribal Employment Rights (TERO) • All Federal-aid projects located, in whole or in part, on Indian lands (meaning that construction limits are physically within reservation boundaries) are subject to TERO governing employment practices and taxes. TERO requirements are identified in the contract proposal under the heading "Tribal Special Provisions". • Before the Contractor can begin work on a project covered by TERO, the RE must receive a copy of the executed TERO agreement between the Contractor and the Tribal Representative establishing preferential employment rights for Native Americans and the TERO tax amount, if applicable.

44. Tribal Employment Rights (TERO) • The District Engineer, or designated representative must periodically (at least monthly) contact the appropriate TERO Representative to assure that the agreement is being honored. A memo documenting the contact must be transmitted to the ITD headquarters Contract Compliance Officer (CCO). • TERO taxes must match the same rate applied to all other contracts on the reservation. Differential or special treatment of Federal-aid highway construction contracts will make the TERO tax ineligible for Federal-aid reimbursement

45. Tribal Employment Rights (TERO) • ITD should work with the tribal government(s) and their Tribal Employment Rights Office (TERO) to develop contract provisions which will promote employment opportunities for Native Americans on eligible FA highway projects. • Reasonable overall employment goals for Native Americans and the methods to achieve those goals should be agreed upon in advance and made part of the contract documents.

46. Tribal Employment Rights (TERO) • A reasonable Indian employment preference goal should factor in the Contractor’s employment requirements other than core crewmembers as follows: • A contractor’s core crew is composed of full time employed individuals necessary to satisfy his/her reasonable needs for supervisory or specialty experienced personnel to assure an efficient execution of the contract work. • The availability of skilled and unskilled Indian workers. • The type of work to be performed.

47. Tribal Employment Rights (TERO) • The employment goals for minorities and women established for the area by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs. • For state funded projects that are on reservations, the Department is not involved in the review or approval of any agreements between the tribe and the Contractor, and is not involved in TERO compliance.

48. Summary of Learning Outcomes • DBE Commercially Useful Function Review • Job Site Posters and EEO Policies • Conduct Contractor Employee Interviews • Review Certified Payrolls and check: • Labor Classifications • Davis Bacon Wage Rates • Fringe Benefits • Payroll Withholding Deductions • Training Special Provisions Compliance • Tribal Employment Rights (TERO)

49. Summary of Learning Outcomes • DBE Commercially Useful Function Review • Job Site Posters and EEO Policies • Conduct Contractor Employee Interviews • Review Certified Payrolls and check: • Labor Classifications • Davis Bacon Wage Rates • Fringe Benefits • Payroll Withholding Deductions • Training Special Provisions Compliance • Tribal Employment Rights (TERO)

50. Check for Understanding