WHAT'S NEW?  

California Expansion of Prevailing Wage to Include Paving Material Deliveries

In 2023, the California legislature clarified and expanded prevailing wage to cover the delivery of certain paving materials. While these had previously been sometimes included and sometimes excluded as supplier deliveries, the legislature expanded prevailing wage coverage if these materials were incorporated into the construction project near the time of delivery. That condition has created some confusion.

What is Paving Grading and Fill (PGF) materials? There is no complete list of PGF materials. Some examples of PGF materials are: “sand, gravel, crushed rock, coal, or bituminous paving materials.” (See Dictionary of Occupational Titles (4th Ed., Rev. 1991) 902.683-010 DUMP-TRUCK DRIVER (any industry).

What does “integrated into the flow of the construction” mean? In simple terms: if the materials are being stockpiled for future use, then this delivery does not fall within the definition of prevailing wage. If instead the materials are being mixed, or placed in the road bed or lot at or about the time of the delivery, then this installation works will trigger the prevailing wage coverage.

What Prevailing Wage rates applies? The applicable wage rate in most instances is The “Driver" (On/Off-Hauling To/From Construction Site). Five counties use the Teamster Rate (Solano, Sonoma, Yolo, Marin and Napa).

The DIR has issued this memo https://www.dir.ca.gov/division/Hauling-under-Labor-Code-Section-1720.3_FAQ.pdf

Training Opportunities

August 18^th in person training -6 hours What Every Contractor Should Know About Prevailing Wage sponsored by ABC Southern California. For more information or to register, go to:  jthomas@abcsocal.net

August 25^th in person training – 1:30-3:00 p.m. Creating Your Own Prevailing Wage Checklist California Special District Association Annual Conference Palm Dessert. For more information, contact www.csda.net

Aug 28^th ABC San Diego What Every Contractor Should Know About Prevailing Wage all day in person workshop. For more information, go to: www.abcsd.org

October 2^nd in person training – 6 hours Everything You Should Know About Prevailing Wages sponsored by Humboldt Builders Exchange. For more information or to register, contact info@humbx.com

If you need more training, Deborah Wilder is the presenter on the LCPtracker Academy Prevailing wage workshops. Go to www.LCPtracker.com and select the education tab.

Want to schedule your own prevailing wage workshop?

We will customize a workshop or webinar for you and your Agency/Account. Contact us at: info@ccmilcp.com 

ANSWER: 

While getting an audit letter can be unsettling, there is no need to panic. Contact your attorney or labor compliance consultant. Chances are they have previously dealt with the US DOL. It is a matter of calmly collecting all of the documents needed and making those available to the US DOL. In past audits, CCMI has contacted the US DOL and set a mutually convenient date for the audit, reviewed the documentation before the meeting and was prepared to answer the DOL’s questions during the audit. Having your documents organized and complete can go a long way to shortening the audit. If underpayments are identified, prompt payment of that restitution is appropriate. Sometimes the US DOL will want you to sign a consent decree. This is an agreement with the US DOL (that has the same effect as a court order) declaring the company will recognize compliance requirements and take certain steps moving forward on future Davis Bacon projects.