Conduct periodic site inspections of the work to ensure contractor and subcontractor compliance with labor requirements as listed in “Contractor Labor Responsibilities”, above. Ensure that the contract prevailing wage rates are posted on the work site in an area accessible to all contractor and subcontractor employees.

The names of truck owner-operators are to appear on the contractor’s weekly payroll under the heading, “Truck Owner-Operator”. No other information is required.

Recommend the use of the standard job classifications contained in the booklet and Descriptions for Highway, Heavy, Utilities and Industrial Construction in Texas for the contractor’s and subcontractor’s payrolls. The contractor may use other code numbers or abbreviations on the payroll forms, provided the contractor attaches a list of the code numbers or abbreviations with the corresponding title classification to each payroll.

When no work is performed, obtain from the contractor a statement of compliance with the statement “No work done this week”. When no work is performed for long periods of time, the statement “No work until further notice”, should be shown, and weekly statements are not required.

For federally funded projects, conduct at least three employee labor interviews for each project per quarter to determine if the contractor and subcontractors are in compliance with labor laws use Form 2220, “Labor Standards Review”, for the labor interviews. The quarter will be based on a calendar year starting January 1st per the recommendation of the Federal Highway Administration (FHWA). Randomly select employees to be interviewed.

Inform the contractor when payroll errors are found. Refer to the following for guidance in resolving payroll errors.

Payroll Error Problems and Resolution:

Contact CST for additional guidance in conducting wage dispute investigations.

For federally funded projects, review at least 10% of all payrolls for each contract. The use of discretion in determining the composition of this 10% is left to the AE. Verify that the payrolls submitted include the following information for each employee.

NOTE:

Employee’s full name, unique employee identification number, and address need only appear on the first payroll in which the employee’s name appears.

Ensure that legal holiday work is paid at the regular prevailing per diem, wage rate, and overtime pay for actual hours worked in excess of 40 hrs. per workweek is compensated at a rate not less than 1-1/2 times the basic rate of pay.

Review selected payrolls to ensure that employees are compensated at least the appropriate prevailing minimum wage for the actual work performed. Document in the project file the review results, review date and reviewer name. Bring any discrepancies or questionable wage rates to the attention of the contractor for explanation or correction. Bring any contractor failures to correct or adequately address deficiencies and requests for information by the contractor to the attention of the district office. If the contractor still does not address identified issues, request

that the Financial Management Division (FIN) withhold the monthly estimates. Once the problem is corrected, provide notification to FIN to resume monthly estimates.

For payrolls submitted in LCPTracker:

Semiannual Labor Compliance Enforcement Report

(federally funded projects only)

Twice annually, CST will send a request and instructions for completing , “Semiannual Labor Compliance Enforcement Report”, to the districts. Submit completed forms to on or before

April 15

and

October 15

of each year. Reporting periods are October 1–March 31 and April 1–September 30 each year. Provide data for questions 4–11. CST personnel will compile district information received to report statewide information for questions 1–3 and will provide the completed report to USDOL and FHWA.

Wage rate surveys are conducted periodically as mandated by the USDOL and State statutes. These surveys determine applicable prevailing wage rates for the highway construction industry in Texas. CST will extract contractor and subcontractor wage information from the Department's payroll system for this purpose. Payroll accuracy is crucial to improved classification reporting and in determining prevailing wages. Both proper classification and paid hourly wages for the work being performed are key to resulting in an overall decrease of the number of classification requests that need to be submitted. The frequency of the surveys depends on the Department’s survey plan for a given year. Forward questions regarding wage rate surveys to or call the Construction Division at 512-416-2428.