Employing District Residents in the Construction Trades

Employing District Residents in the Construction Trades
D.C. DEPARTMENT OF EMPLOYMENT SERVICES
Workforce Development Bureau – Employer Services Division

Workforce Development
Bureau

 Manages programs and services designed to ensure that District residents are given priority for all new construction and nonconstruction jobs created by municipal financing and development programs.
 Connects regional employers to qualified District job seekers

Employer Services

BUSINESS SERVICES
GROUP

FIRST SOURCE
APPRENTICESHIP

ON-THE-JOB TRAINING (OJT)

EMPLOYER SERVICES

WORK OPPORTUNITY
TAX CREDIT (WOTC)

AMERICAN JOB CENTER

District Contracting & Hiring Mechanisms

First Source Law

First Source Employment Agreement Act assures city residents priority for new jobs created by municipal financing and development programs

Apprenticeship Law

The mandatory apprenticeship requirement applies to new construction, renovation and information technology work on all District government assisted projects, including First Source.

DC Funded Projects Under $5M

Project Requirements

51% of new hires must be DC residents

First Source Law

51% of new apprentices must be DC residents

First Source Law

35% of all apprenticeship hours must be DC residents

Apprenticeship Law

*Not applicable to: • Projects under $300K or • Contractors awarded less that $500K within a 12 month period

DC Funded Projects $5M and Over

20% of journey worker hours must be DC residents 51% of skilled worker hours must be DC residents

First Source Law First Source Law

70% of common labor worker hours must be DC residents
60% of apprentice worker hours must be DC residents

First Source Law First Source Law

35% of all “apprenticable” hours must be DC residents • “Apprenticable” hours pool computed as 25% of “craft hours” (journey + apprentice hours)

Apprenticeship Law

First Source Requirements

 Bids and proposals will include an initial employment plan outlining the offeror’s strategy to meet the local hiring requirements
 Winning bidder will submit a revised employment plan and First Source Employment Agreement at the time of Notice to Proceed
 Each general contractor, prime contractor and subcontractor must submit monthly First Source compliance reports to the Department of Employment Services

First Source Monitoring

 Payroll certification review: Examine contractor’s on-line reporting delineating DC residents and compliance with pay scale
 Site visits: Examine personnel records to verify new and existing employees, and worksites conform to assignments
 Desk review: Review the monthly compliance report submitted by the contractor to confirm compliance with First Source legislation and employment plan; and identify performance requirements

Apprenticeship Requirements

 Apprenticeship Agreement must be executed for each apprentice. Agreements are approved and registered by DC Apprenticeship Council
 Work Assignment period of performance
 Major divisions of the trade and work tasks assignments
 Appropriate time, in hours, months, or percent of apprenticeship
 Wage rate  Number of hours of related instruction

Apprenticeship Monitoring

 Payroll certification review: Examine percentage of DC residents apprentice hours through contractor’s on-line reporting
 Site visits: Examine utilization of District residents as apprentices and numerical ratio (journeyman to apprentice ratio); review apprentice rotation through work process

Apprenticeship Monitoring

 Report Monitoring: Evaluate monthly reports from contractor/subcontractor
 Information that will show the ratio of journey workers to apprentices;
 The number of apprentices on the job and the hours worked by the apprentices; and
 The numbers of hours worked by District residents as apprentices.
*Contractors who violate the apprenticeship laws may be subject to 5% penalty on all direct and indirect costs