UC ANR Business Operations Center

Services & Contracting Out

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Independent Contractors
Prevailing Wage
Resources

 

 

Independent Contractors

California Law states that a worker may be considered an independent contractor if:

(1) the worker has the right to control the performance of services, 
(2) the result of the work is the primary factor bargained for, and not the means by which it is accomplished, 
(3) the worker has an independently established business, and 
(4) the worker's independent contractor status is not a subterfuge to avoid employee status.

The law further states that independent contractor status is evidenced if the worker:

(1) has a substantial investment in the business other than personal services, 
(2) purports to be in business for himself or herself, 
(3) receives compensation by project rather than by time, 
(4) has control over the time and place the work is performed, 
(5) supplies the tools used in the work, 
(6) hires his or her own employees, 
(7) performs work that is not ordinarily in the course of the employer's work, 
(8) performs work that requires a particular skill, 
(9) holds a business license, 
(10) intends to establish an independent contractor relationship, and 
(11) agrees that the relationship is not terminable at will.

The University does not have to withhold or pay any taxes on payments to independent contractors (IRS Treasury Regulation 31.3401(c)-1(b)).

Departments must use the Independent Contractor Pre-Hire worksheet when evaluating a candidate as an independent contractor.

If the W9 has Individual/Sole Proprietor or Single-member LLC marked, then an Independent Contractor Form is required. An Independent Contractor can have a FEIN# or SSN#.

Prevailing Wage

Prevailing wage typically refers to the rate of pay that contractors and vendors must offer their employees when doing business with a government agency. (Typical of Union represented Construction or Construction Related Trades)

Prevailing Wage - Construction and Related Work

(Labor Code 1720(a)(1))
The following are examples of work that are defined as public works when paid in whole/in part with public (state) funds and performed by an outside vendor/not UC employees.

  • Construction (includes pre-construction and post construction)
  • Alteration
  • Demolition
  • Installation
  • Repair
  • Maintenance (Labor Code section 1771, 8 CCR 16000)
Public Works Example Categories: Maintenance
  • Tree Trimming
  • Landscaping Maintenance
  • Equipment Repairs (Pumps, Motors, Belts, etc.)
  • Elevator Maintenance
  • Roofing/Patch Work
  • Drop Ceiling Repair
  • Carpet Replacement
  • Installation of Modular Furniture
  • Painting/Touch-Up Painting
When Does Prevailing Wage Apply?
  • Prevailing Wage includes all services identified as Public Works to be performed for the University at one or more UC Locations.
  • Applicable when the project costs are more than $1,000 (combined total of goods AND services) and involve new construction, alteration, demolition, installation, repair, and (For Maintenance orders over $15k and New Construction/Repairs over $25K a DIR PWC Project number must be created and clearly identified on the Contract/PO) (DIR Project Numbers are created by the UCD Buyer).
  • For Federally funded construction, Federal law also applies (strictest policy applies). Davis-Bacon applies. Additional requirements and guideline are under development.
  • If there are any public funds in a public works project, the entire project is subject to prevailing wage requirements.
  • If a department is buying a piece of equipment that is being installed and that installation involves being electrically hard wired, plumed for water or gas, or seismically bolted to the floor or wall, then it becomes a Prevailing Wage

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Campus Departments: Process for Ensuring Prevailing Wage Compliance

In order to ensure compliance and facilitate timely processing of orders, if a Department believes that an Aggie Enterprise Requisition being submitted to Procurement & Contracting Services involves Prevailing Wage, they should:

  • Ensure that Supplier is Registered with the DIR as a Public Works Contractor (PWC) or is aware of the requirement to register and pay prevailing wage payment requirements (As required by total Cost of PO, If over $15K on Maintenance or $25K on New Construction or Repair the vendor MUST be registered with the DIR).
  • Ensure the Supplier has current Certificate of Insurance (COI) on file. (Note: Confirm that The Regents of the University of California are listed as additionally insured).
  • Make sure that the Labor Rate on the quote being submitted states that it is at the Prevailing Wage Rate or get written confirmation from the vendor that Labor is priced at Prevailing Wage.
  • Give Vendor’s current California Contractor’s License # and DIR PWC # (if available) in the Aggie Enterprise document notes section.
  • Make sure that the “Ship To” address on the Aggie Enterprise document represents the location where the work is actually taking place or add a note to the Aggie Enterprise document indicating the specific physical address. Prevailing Wage rate is determined by the Address/County in which the work takes place, and the proper taxes are calculated off the zip code. (95616-5270 Davis Main Campus)
Additional Information
  • Cannot be paid on P-Card- needs to be on a Purchase Order (PO) so that the project can be tracked per the State requirements.
  • Quote should list labor/service charges and material out separately (itemized). - When processing a purchasing request subject to prevailing wage, be sure to split out the labor/service from the materials component of your Requisition or Purchase Agreement document.
  • Required because the UC is a publicly-funded entity, and all qualified projects are considered Public Works and fall under the State mandated Department of Industrial Relations requirements of Prevailing Wage.
  • Additional information may be obtained at:

 As an example: If a department is buying a piece of equipment that is being installed and that installation involves being electrically hard wired, plumbed for water or gas, or seismically bolted to the floor or wall, then it becomes a Prevailing Wage job.

*Construction, Maintenance, and Repair have the potential to be prevailing wage.

Job Classification Examples

The following are a list of job classifications (as listed on the DIR Project Registration Web Site) that fall under Prevailing Wage. The list is not comprehensive:

  • Asbestos
  • Boilermaker
  • Bricklayer
  • Carpenter
  • Carpet/linoleum
  • Cement mason
  • Drywall finisher
  • Drywall/lather
  • Electricians
  • Elevator mechanic
  • Glaziers
  • Iron worker
  • Laborer
  • Operating engineer
  • Painter
  • Pile driver
  • Pipe trade workers
  • Plasterer
  • Roofer
  • Sheet metal
  • Sound/Comm
  • Surveyor
  • Teamster
  • Tile worker

If you still have questions regarding whether or not work is considered Prevailing Wage, contact the UC ANR Business Operations Center: bocsupport@ucanr.edu.

Resources

Services Explained (What is a service?)
Contracting Out Services Form
Regents Policy 5402: Policy Generally Prohibiting Contracting for Services

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