The purpose of this analysis is to discover improperly supplemented wages of the public works project by the underpaid work on another project.

In this analysis it is important to check the proportions (ratios) of dollars paid per hour for this project compared to the total paid for all projects in a presumed 40 hour week. If the cross-multiplication of the fractions (ratios) equals something far below 1, such as .75 for instance, then it may indicate an improperly low pay rate for work done during the same workweek but on another project.

Ratio is another name for fraction. An equation in which two ratios are equal is called a Proportion. A proportion is an equation with a ratio on each side. It is a statement that two ratios are equal. 3/4 = 6/8 is an example of a proportion.

In any analysis of proportion of pay per hour, the relationship of the second ratio to the first is what is of concern for CPR analysis. Whenever this relationship is less than "1" it means that the wages per hour in the workweek spent on other projects may have been paid at a lower rate than the wages per hours paid for this project.

It is quite possible that on a one or two week basis the total hours worked is truthfully less than 40 due to weather or other temporary layoff situations.   In this case, using a "presumed 40-hour week" would result in less than "1". However, where this ratio analysis becomes important is when there are consistent ratios over several consecutive weeks with a result substantially lower than 1. Since it is standard for people working in construction to put in 40 hours, except for some trades where 35 hours may be the norm, it is reasonable to assume a full workweek in the initial analysis. No conclusive result can be made from this preliminary analysis, yet it is a good cursory check against systematic “Job vs. Job” kickback schemes.

Should a consistent pattern be observed with a low ratio, an audit or other preliminary verification may be indicated.

Reminder: Pursuant to Labor Code §226 there is a requirement that workers be provided a statement showing how they have been paid, among other things. If the hourly rate varies it must be detailed on the wage statement. See §226(a.)(9). See this item in table of contents