Welcome to our newsletter! You will find important updates and industry related news, along with upcoming speaking events and educational opportunities. Thank you for your interest in CCMI.

Sincerely,




Deborah Wilder
CCMI President 

 
WHATS NEW?
 
The California Department of Industrial Relations clarified two points for me in January.

Weighted Overtime  
 The DIR requires weighted overtime be paid when a worker works at two separate rates in a particular week and the Overtime is NOT the higher of prevailing wage overtime.

For example:
  • Employee works 12 ST hours at $20 an hour
  • Employee works 25 ST hours at $55 an hour
  • Employee then works 10 hours (including 3 ST and 7 OT hours) at the rate of $35
The employee is required to factor all the wages and create a weighted OT rate:
 
(12 X 20 = $240) + (25 x $55 =$1375) + (10 x $35 = $350) =$1965
$1965 ÷ 47 =$41.81

OT is paid at ½ of the weighted average rate: 7 hours at .5 x $41.81= $146.34
$1965 regular wages plus weighted overtime of $146.34 =$2,111.34 total wages for the week.
 
However, if the overtime occurs on a prevailing wage project, the higher prevailing wage overtime will control.
 
Travel Pay
The DIR also confirmed the ruling of Kern Asphalt. This ruling requires the payment of prevailing wage rates for employee travel time to a project from the employer's shop to the jobsite and from the jobsite back to the shop in the classification of work the employee will perform once they reach the jobsite. 

I had argued that the Kern Asphalt decision was issued prior to the DIR establishing drive time rates.  Since prevailing wage is based on the task being performed at the time (driving), I argued that only drive rates should apply to the driving time and not the wage rate the worker would receive once they arrived on the jobsite. The DIR disagreed and reaffirmed the ruling in Kern Asphalt. 

Until this issue is litigated, all employers should be aware that if you require your employees to report to the shop and then dispatch them to the jobsite, you will be required to pay them the prevailing wage rate for their drive time based on the classification of work they will be performing at the jobsite.
 
If employees are to travel from their home to the jobsite, this is considered commute time and any applicable travel and subsistence will apply to this time. If there is no applicable travel and subsistence time, then any reasonable commute time  (less than 2 hours each way) is not subject to any compensation.
 
 
Just a reminder that OSHA 300 forms must be posted February 1st.


UPCOMING EVENTS - Training and Seminars 

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FROM THE INBOX....
You asked, we answered!

QUESTION:
I performed work on a building in California which was privately owned and I was told I had to pay prevailing wages, why was that?
   
 
ANSWER:
There are a couple of reasons that might apply. It could be that the developer obtained the land for "less than market value" from a public agency. That will trigger prevailing wages. Or, if more than 50% of the building is occupied or is going to be occupied by a public agency once completed, prevailing wages have to apply. Agencies, Owners and Contractors should be aware that either of these instances will require the payment of prevailing wages.
   

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CCMI is not just another firm....

We are not merely a "consulting" firm, but rather a team of individuals who understand the needs of the Public Entity and contractors to "get the project done." Our staff includes retired contractors, auditors, attorneys and industry veterans.