Public Works Contractor Registration

[Jim Frame]

A particular sticking point for nonunion contractors; if they already have private health coverage for their employees they end up double paying benefits if they participate in a project.

"Double paying" may be a little more than the truth, as the PLA health benefit contribution is probably higher than the employer's health plan contribution. Still, it's a substantial added cost for the non-signatory employer that puts him at a competitive disadvantage.

[DWoolley]

Jim,

I can see why it may seem like the idea of an owner "double paying" would "be a little more than the truth". An impossibility, right? Indeed, Land Butcher is 100% correct. When a public works project with a project labor agreement (PLA) is present the non-union owner is required to pay the union the entire fringe benefit cost - roughly $23.00 an hour locally. Yes, the entire fringe benefit amount with no deductions. As compared to a public works project for which there is no PLA the owner can deduct the annualized health insurance, vacation, pension etc. and then, pay the employee the difference. If the employer is paying the union the entire fringe benefit cost and maintaining a health insurance policy, vacation etc. he is in fact double paying. The troubling issue is what does the union do with the money to benefit my employee? Nothing.

The owner cannot cancel or prorate the employees insurance month to month as the employee bounces in and out of public works projects with or without a PLA in place. The prevailing wage laws were not set up to accommodate a land surveying businesses. We operate differently than most trades - we're not on a job everyday for long durations of time. This results in our industry taking it in the shorts in most every instance. Restated, the prevailing wage laws have unintended adverse effects in our industry.

However, as demonstrated, adverse or not, violate these laws and you can expect to serve some time in the Skookum-house.

DWoolley

PS Not all PLAs are the same. The owner, director, officer or manager must read the applicable agreement. There is sure to be agreements in which the owner can take deductions and then, write a check for the balance to the union.

PSS I got the question for a definition of "manager". I am going to look it up on the DIR website. Jim Frame summed it up well as a "known or should have known" position.

[mpallamary]

This is a very important topic. Is there any way CLSA is not taking an active role in investigating and educating folks? Any reason no one is putting a seminar on? Just curious.

[DWoolley]

The best definitions of a manager are found by searching manager vs supervisor.

I like this particular site:

http://keydifferences.com/difference-be ... nager.html

DWoolley

[Mr. Smith]

Just got this email from DIR:
DIR Notice to Public Works Contractors and Subcontractors: eCPR System on Hold Pending Upgrades
The Department of Industrial Relations (DIR) has posted a notice informing contractors and subcontractors that enforcement of the requirement to post payroll online using its electronic certified payroll reporting (eCPR) system is temporarily on hold.
Contractors and subcontractors will not be required to submit certified payroll records (CPRs) into DIR’s eCPR system until the online system is upgraded. The upgrades, which are slated for completion by June 2016


Looks like the DIR has failed to adequately prepare, do you think if "lets say AMAZON"
was is charge the site would already be catching cheaters, FOR LESS TAX $?


Brian

[Jim Frame]

Looks like the DIR has failed to adequately prepare, do you think if "lets say AMAZON"
was is charge the site would already be catching cheaters, FOR LESS TAX $?

I have no reason to believe that would be the case. Amazon is very good at online merchandising, but that's a very different environment from the one in which DIR has to work. Without any specific knowledge about the eCPR system, the one thing I'd be willing to bet on is that it isn't being developed in-house. Something this ambitious is almost certainly in the hands of a big contractor with plenty of relevant experience.