Compliance or confusion? Six important lessons have been learned about the implementation of Labor Compliance Programs since the passage of AB 1506, which introduced districts to new state requirements and more state agency oversight of school facilities projects

Leadership, May-June, 2004 by Ernest Silva, Roland P. Williams

The smaller the contractor, the more complicated the issue can become. With a small firm or a small job a single individual may perform a variety of tasks. The level of job classification detail needed by a contractor may vary greatly from that of the Department of Industrial Relations, which identifies the level of prevailing wage to be paid by job category.

As an example, a contractor may submit an employee as a "journeyman" with no further description. Or, contractors may submit classifications that they have been using in-house that have no relationship to the prevailing wage classifications. Contractors that work primarily on federal projects may use the federal wage classifications.

Once more, providing information to the contractors early in the process will mitigate the occurrence of this type of problem. Identifying Prevailing Wage agency resources gives the contractor an easy way to determine the appropriate classifications. Stressing to the contractor that the first date of the legal advertisement for the project (call for bidders) establishes the applicable date for the wage determinations often clarifies a number of improperly used classifications.

By educating a contractor on the proper way to classify workers, a labor compliance officer minimizes disputes. Exceptions result when an employee changes work responsibilities or a new employee starts work on a project. Ongoing reviews of project documentation alert the LCO to discuss these issues with the contractor to stay in compliance and avoid deficiencies.

Lesson 5: Maintain an FAQ on apprenticeship issues

Apprenticeship compliance by far leads the list of confusing and misunderstood LCP requirements. Apprenticeship is complicated by not only the above classification issues, but by the number of years an individual has in a recognized apprenticeship program.

The Labor Code and the applicable LCP provide documentation and direction to contractors on this issue. The California Apprenticeship Council is a good resource to get the determinations for the majority of the issues that may arise in this area. However, a clear understanding of the requirements by your labor compliance officer will assist the contractors in grasping the intent and letter of the regulations.

Educating contractors early in the process of the expectations, interpretations and applications of the apprenticeship standards greatly reduces the occurrence of conflict or non-compliance. Maintaining a frequently asked question file on apprenticeship issues makes it easy to have that documentation readily available.

Lesson 6: Require bi-monthly Certified Payroll Reports

Certified Payroll Report monitoring is the other significant item of confusion by contractors and districts. The process for submittal of the CPRs, the format and the information they contain are as varied as the participants in the project.

Contractors unfamiliar with LCPs are used to submitting their payroll reports on a monthly basis to a district administrator. District administrators have had flexibility in dealing with CPRs in the past.