Wednesday, October 5, 2016

Utilities and Wages and Hours of Employees on Public Works

     Generally, utilities are not covered workers when attending to their regulated industry activities on public work projects.  It is only when the utility workers go beyond their normal scope of work as part of a public works project that they may be construed as included workers subject to Chapter 104, Hawaii Revised Statutes, Wages and Hours of Employees on Public Works Law.

    In this area, the State generally follows the Federal application of the issue as explained in the Field Operations Manual

        15d09 Public utility installation. (a) Whether or not the employees of a public utility, who perform construction-type work in connection with federal and federal-assisted projects, are covered by the DBRA will depend upon the nature of the contracts involved and the work performed thereunder.
      (b) Where a public utility is furnishing its own materials and is in effect extending its own utility system, such work is not subject to DBRA. The same conclusion would apply where the utility company may contract out such work for extending its utility system. However, where the utility company agrees to undertake a portion of the construction of a covered project such work would be subject to the DBRA labor standards requirements of the construction contract.
     (c) For example, DBRA wage provisions of the U.S. Housing Act do not apply to a contract between a local housing authority and a city water department under which the department installs water mains in streets adjacent to a housing project; connects mains and meters to the project’s plumbing; furnishes water to the project; and operates and maintains such mains and meters without expense to the authority beyond an initial service charge, since the city is engaged essentially in the extension of its water distribution system rather than in the development of the project.
        (d) Also, employees of a telephone company engaged in the installation of ordinary telephone facilities for a government facility under construction are engaged essentially in the extension of the telephone company’s system rather than in government construction and, therefore, are not covered by the DBA. However, removal and relocation of telephone lines at the sole option of the government to eliminate interference of  the lines with construction at the project site is construction work covered by the DBA.         Revision 684 FIELD OPERATIONS HANDBOOK – 03/24/2016

1 comment:

  1. This is actually the kind of information I have been trying to find. Thank you for writing this information.
    John Odom

    ReplyDelete

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