[RE-wrenches] HELP! prevailing wage classification?

Thu Feb 12 11:06:16 PST 2009

Hi Geoff,

Ain't rebates great! They sure go a long way toward "keeping solar
affordable"... 

Generally speaking, Prev Wage has several characteristics, not all of which
are "hourly wage". In CA there are wage components like Health & Welfare,
Vacation, Training, Hourly Wage, Per Diem... Maybe something else in there
too. (These are separate from and do not include Unemployment, Worker's Comp
and standard payroll deductions & employer contributions like FICA, State
Income Tax, SSI)

There is often, but not always, a "Certified Payroll" requirement as well.
Each component of the "Wage" as well as deductions and employer
contributions must be itemized and identified on the "Certified Payroll"
report. The wage components are determined by the task being performed,
which should fall under a corresponing Classification. (Similar to the
Rigger / Electrician classifications you described) In general, a Certified
Payroll report must be prepared by either a 3rd Party (Payroll service, CPA,
etc.) or can be generated by a Certified and Audited Accounting Program.
QuickBooks ain't that. The agency requiring the Certified Payroll is the one
who determines what form of Certified Payroll is acceptable and who can
provide it.  (In your case it sounds like it's gonna be the grant
administrator).

If you are not working on a Fed project, your state administers the
Classification definitions and other requirements under a Labor or
Employment Commission / Department. There may also be section of a
Government code/statute that applies. In general, the agency administering
the program/contract/grant has the authority to accept or reject the
classification submitted by the employer (contractor). It is common for
these agencies to suffer from HUA syndrome and not really have it
together... HUA in the public sector is caused by many things, but a common
symptom preceding a full breakout is FBIC (Fat Butt In Chair) syndrome. HUA
in the private sector is granted by business schools in the form of an MBA.
If there is a corresponding Fed Classification Code for the
craft/task/trade, then they normally rubber stamp your paperwork if you use
that.

Since there isn't a "Solar Panel Installer" or "PV Technician"
Classification Code, (biting my tongue really hard here..... ) you're gonna
have to use whatever existing classifications apply and/or the grant
administrator will accept. Laborer, roofer, and electrician (inside wireman)
are common in CA. Payroll gets really burdensome if you have one guy doing
all the above and you want to classify & pay according to the separate
classifications. Be careful how you set yourself up here... If you elect to
"multi-classify", your Worker's Comp (and maybe liability) will end up being
affected. It may not result in you owing more money, but it will end up
causing a paperwork and administrative headache.

It sounds to me like you already multi-classify, and it sounds like you're
using responsible classifications (The actual name of the classification
varies by state). As long as these are acceptable classifications to the
grant administrator, you should be way ahead of the curve. I recommend
submitting the associated craft descriptions (task descriptions & working
conditions, often a copy of a collective bargaining agreement) and the
associated wage breakout to the grant administrator and requesting a formal
opinion. In writing this time!

They may or may not have this figured out yet. I do know that the IBEW had a
very bad case of heartburn over Ohio's grant program, so the fallout from
that might have resulted in an unbalanced or skewed program. Not to be a
conspiracist, but it wouldn't surprise me if non-IBEW applications got lost
&/or delayed at a higher rate than IBEW applications. Fly-on-the-wall
curiosity...

If they haven't gotten it figured out and well-underway yet, your mission
will be to have them accept your current practice. Somewhere back in time
you came up with Laborer / Stager / Electrician / Steel Erector and an
associated wage and classification description... 

1.	

	Go find that paperwork / source. 
2.	

	Make sure you have and are in compliance with the most current
version.
3.	

	Adjust your practice as required by #2 above.
4.	

	Organize and compile the documents by classification.
5.	

	Submit your collection to the grant administrator with a cover
letter requesting an opinon. Express your interest in helping to expedite
this. Be sure to include a note describing how many lost/deferred manhours
of work are incurred by your employees with every hour you have to wait for
an opinion... Ohio jobs.
6.	

	Follow up with a phone call to make sure they received your
submittal.
7.	

	Get the names, phone numbers, email addresses, and titles of
everybody who will be involved in review & rendering of the opinion. Get the
same info on their supervisors just for a little insurance.
8.	

	Request a hard date for when you can expect an answer.
9.	

	Contact up the food chain and be a helpful pest. You don't want this
to linger and you don't want to be on the bottom of the pile.

Good luck!

Matt Lafferty
gilligan06 at gmail.com

  _____  

From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Geoff
Greenfield
Sent: Thursday, February 12, 2009 7:07 AM
To: RE-wrenches
Subject: [RE-wrenches] HELP! prevailing wage classification?

Greetings fellow wrenches!

I am certain (and hopeful) that some of you folks have already been down
this road, and can share some advice (and hopefully documents or references)
regarding this issue.  I have no problem with unions, (They "brought us the
weekend", have done a lot to remedy exploitation and unsafe conditions etc),
but we are an "open shop" in a small family owned company where we have
great relations with our well paid employees.    

Our meager grant program slipped some fine print into the documents implying
that any projects receiving funding (even residential!?) are subject to
prevailing wages etc.  It seems that politics and influence has been working
behind the scenes, and now we need to figure out how to react.

We have done plenty of public work and regularly are on PW jobs... Our
inquiry into "what class is solar" led to the response (that we
unfortunately dont have in writing) to use the classification closest to the
task and pay at that level.  We often use labor rates for staging and
mechanical assembly, electrical rates for wiring and steel erector rates for
wind towers etc...  It was explained to me that "a Rigger would deliver, set
and install a big air handler and an electrician would wire it up".

SO - the "HELP" part-

can any of you point me toward a ruling or interpretation that helps us
defend our practice, or give guidance on the subject?

Thanks in advance!  Lets keep solar affordable and keep small shop wrenches
on the rooftops!

For a brighter energy future,

Geoff Greenfield

Clean Energy - Expertly Installed

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