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DWD 294.05(1)(a)(a) The department may, in the public interest, debar a contractor for any of the causes contained in sub. (2), using the procedures in sub. (3). The existence of a cause for debarment, as specified in sub. (2), shall not always require that a contractor be debarred. The seriousness of a contractor's acts or omissions, past compliance history, attitude and any other mitigating factors shall be considered in making any debarment decision.
DWD 294.05(1)(b) (b) Debarment of a contractor constitutes a debarment of all divisions or other organizational elements of the contractor that are engaged in construction business activities, unless the debarment is explicitly limited to specific divisions or organizational elements. The department shall determine whether a debarment shall apply to a contractor affiliated with a debarred contractor. A corporation is an affiliate of another corporation if substantially the same group of persons owns and manages the 2 corporations.
DWD 294.05(1)(c) (c) A contractor may not be debarred from performing work on a project that is being bid or negotiated if a written or oral offer to perform work for another contractor was received or accepted before the name of the contractor making the offer initially appeared on the consolidated list.
DWD 294.05(1)(d) (d) A contractor may not be debarred from completing any work on a project if the contract for the work was awarded to the contractor prior to the date that the name of the contractor initially appeared on the consolidated list.
DWD 294.05(2) (2)Causes for debarment. The department may debar a contractor for any one or more of the following causes:
DWD 294.05(2)(a) (a) A conviction or civil judgment of a Wisconsin court, a finding of any Wisconsin state agency or local governmental unit, a finding of the department or an admission of:
DWD 294.05(2)(a)1. 1. Failing to pay an employe the proper prevailing wage rate determined for a public works project.
DWD 294.05(2)(a)2. 2. Failing to pay an employe at least 1.5 times the proper hourly basic rate of pay for all hours worked in excess of the prevailing hours of labor determined for a public works project.
DWD 294.05(2)(a)3. 3. Inducing any employe to give up, waive or return any part of the proper prevailing wage rate determined for a public works project.
DWD 294.05(2)(a)4. 4. Falsifying, deliberately destroying, or failing to keep required payroll records on a public works project.
DWD 294.05(3) (3)Procedures for debarment.
DWD 294.05(3)(a) (a) Referral. Department employes and all other persons having information appropriate for department consideration under this section shall promptly report that information to the secretary or designated representative.
DWD 294.05(3)(b) (b) Decision-making process.
DWD 294.05(3)(b)1.1. The debarment decision-making process shall be as informal as practical, consistent with fundamental fairness principles. The process shall permit contractors to request a hearing before the department. If a request for a hearing is received by the department, then a hearing shall be afforded to the requesting party.
DWD 294.05(3)(b)2. 2. The hearing shall be conducted by a designated representative and shall:
DWD 294.05(3)(b)2.a. a. Permit the contractor to appear with counsel, to submit documents, to present witnesses and to confront and cross-examine any witness the department presents; and
DWD 294.05(3)(b)2.b. b. Ensure that an accurate written summary or tape recording of the hearing is prepared or taken and made available to the contractor, if one is requested before the hearing.
DWD 294.05(4) (4)Notice of proposal to debar. The department shall initiate a debarment proceeding by notifying the involved contractor by certified mail to its last known address. The mail notice shall state:
DWD 294.05(4)(a) (a) The department is considering a debarment;
DWD 294.05(4)(b) (b) The causes for the proposed debarment in terms sufficient to inform the contractor of the conduct or transaction upon which debarment is proposed;
DWD 294.05(4)(c) (c) The contractor may submit, within 20 calendar days from the date of receipt of the department's mailed notice, a written response or argument in opposition to the proposed debarment;
DWD 294.05(4)(d) (d) The department's procedures governing debarment decision-making as specified in sub. (5);
DWD 294.05(4)(e) (e) The potential effect of the proposed debarment as provided under s. DWD 294.04; and
DWD 294.05(4)(f) (f) The contractor may request a hearing before the department within the period provided for in par. (c).
DWD 294.05(5) (5)Department's debarment decision.
DWD 294.05(5)(a)(a) The designated representative shall issue a proposed findings of fact and order within 60 calendar days after the department received the last written response providing information or arguments in opposition to the proposed debarment as provided for in sub. (4) (c) or within 60 calendar days after a hearing has been held as provided for in sub. (4) (f). Any party to the action may request a copy of the proposed findings of fact and order and appeal it within 20 calendar days from the date of issuance by requesting, in writing, an opportunity to present oral or written arguments to the designated representative.
DWD 294.05(5)(b) (b) If a timely appeal is filed, the designated representative shall hold a hearing or review the written arguments on why the proposed order should be modified or reversed. The designated representative shall issue a findings of fact and final order within 30 calendar days of the receipt of the last argument filed.
DWD 294.05(5)(c) (c) If a timely appeal is not filed, the designated representative shall issue a findings of fact and final order within 20 calendar days after the appeal period expires.
DWD 294.05(6) (6)Notice of debarment decision.
DWD 294.05(6)(a) (a) If a debarment is imposed, the department shall promptly notify the contractor by certified mail to its last known address, of the following:
DWD 294.05(6)(a)1. 1. Reference to the notice of proposed debarment that initiated the action under sub. (4);
DWD 294.05(6)(a)2. 2. Reasons for debarment; and
DWD 294.05(6)(a)3. 3. Period of debarment, specifying the effective and termination dates.
DWD 294.05(6)(b) (b) If debarment is not imposed, the department shall give prompt notice of that fact to the contractor by certified mail to its last known address.
DWD 294.05(7) (7)Period of debarment.
DWD 294.05(7)(a) (a) Debarment shall be for a period commensurate with the seriousness of the cause or causes for debarment. Debarment shall not exceed 3 years. Debarment begins on the date the department issues its notice of debarment, or on the date of final disposition by a court of competent jurisdiction, whichever is later.
DWD 294.05(7)(b) (b) The department may terminate a debarment, or may reduce the period or extent of a debarment, upon the contractor's request, for reasons considered appropriate by the department, such as:
DWD 294.05(7)(b)1. 1. Newly discovered relevant evidence;
DWD 294.05(7)(b)2. 2. Reversal of the conviction or judgment upon which the debarment was based;
DWD 294.05(7)(b)3. 3. A bona fide change in ownership or management of the contractor; or
DWD 294.05(7)(b)4. 4. Elimination of the cause or causes for which the debarment was imposed.
DWD 294.05(7)(c) (c) A contractor may not request the department to terminate or reduce the period or extent of a debarment until full restitution of any unpaid wages has been made to all employes.
DWD 294.05 History History: Cr. Register, August, 1987, No. 380, eff. 9-1-87; correction in (4) (e) made under s. 13.93 (2m) (b) 7., Stats., Register, April, 1996, No. 484; am. (2) (a) (intro.), 4., (3) (b) 2. b. and (5), Register, July, 2000, No. 535, eff. 8-1-00.
DWD 294.06 DWD 294.06Notification to state agencies and local governmental units.
DWD 294.06(1)(1)The department shall notify all state agencies and local governmental units of the names of all debarred contractors by providing them with a copy of the most current consolidated list available at the same time that the department issues a prevailing wage rate determination to them.
DWD 294.06(2) (2)Local governmental units exempted from applying to the department for prevailing wage rate determinations, pursuant to s. 66.0903 (6), Stats., and all state agencies shall be sent a copy of the most current consolidated list at least quarterly, if any addition or deletion was made to the most current list.
DWD 294.06 Note Note: Section 66.0903 (6) was repealed by 2011 Wis. Act 32, removing exemptions for local governmental units. Sub. (2) will be repealed by future rulemaking.
DWD 294.06 History History: Cr. Register, August, 1987, No. 380, eff. 9-1-87; am. Register, July, 2000, No. 535, eff. 8-1-00; correction in (2) made under s. 13.93 (2m) (b) 7., Stats., Register, July, 2000, No. 535.
DWD 294.07 DWD 294.07Distribution of consolidated list to the general public. To ensure that the general public is kept fully informed of the names of the debarred contractors, the department shall supplement the notification requirements provided under s. DWD 294.06 by distributing a copy of the current consolidated list, using a variety of methods including, but not limited to, the use of the state newspaper, press releases and the periodicals of associations that have members who are affected by, or are interested in, the information on the list.
DWD 294.07 History History: Cr. Register, August, 1987, No. 380, eff. 9-1-87; correction made under s. 13.93 (2m) (b) 7., Stats., Register, April, 1996, No. 484.
DWD 294.08 DWD 294.08Disclosure of ownership of other construction business that failed to observe prevailing wage law. On the date a contractor submits a bid to or completes negotiations with a state agency or local governmental unit, the contractor shall disclose the name of any other construction business which the contractor, or a shareholder, officer, or partner of the contractor, owns or has owned within the preceding 3 years only if both of the following apply:
DWD 294.08(1) (1)The contractor, or a shareholder, officer or partner of the contractor, presently owns or has owned, within the preceding 3 years, at least a 25% interest in the other construction business; and
DWD 294.08(2) (2)The department has determined that the other construction business failed to pay the prevailing wage rate or at least 1.5 times the hourly basic rate of pay for hours worked in excess of the prevailing hours of labor to any employe at any time within the preceding 3 years.
DWD 294.08 Note Note: “Disclosure of Ownership," form ERD-7777, may be obtained at no charge from the Department of Workforce Development, Equal Rights Division, P.O. Box 8928, Madison, WI 53708 or the DWD web site at http://www.dwd.state.wi.us/er/pdfforms.htm.
DWD 294.08 History History: Cr. Register, August, 1987, No. 380, eff. 9-1-87; r. and recr. (1) (a), Register, October, 1990, No. 418, eff. 11-1-90; am. (intro.), Register, July, 2000, No. 535, eff. 8-1-00.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.