Post on 17-Dec-2015
transcript
LABOR STANDARDS COMPLIANCE
Jeff KormannLabor Standards SpecialistCDBG Program
LAWS AND REGULATIONSDAVIS-BACON ACT
Enacted by Congress in 1931 (amended 1935 & 1964)
Intent was to protect local/area wage scales from common practice of “importing” low-cost labor
Applies to Federal contracts > $2000
Sets prevailing wage rates for laborers/mechanics while working on job site
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LAWS AND REGULATIONSDAVIS-BACON ACT
Includes alteration, repair, painting, decorating
Requires weekly payment of wages
Extended to Federally-assisted projects through various “Related Acts”
Applies to construction work financed “in whole or in part” through CDBG program
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LAWS AND REGULATIONSCOPELAND “ANTI-KICKBACK” ACT
Enacted in 1934
Prohibits “kickbacks” of pay (hence the name)
Requires weekly certified payrolls
Regulates payroll deductions from wages
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LAWS AND REGULATIONSCONTRACT WORK HOURS AND
SAFETY STANDARDS ACT
Enacted in 1962
Overtime pay for all work > 40 hours/week
Applies to construction contracts > $100K
Liquidated damages assessed for violations
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CONTRACT PROVISIONSREQUIRED DOCUMENTS
Federal Labor Standards Provisions (HUD/OLR Form 4010 revised 06/2009)
CDBG General Conditions—Items 37-54
Contractor/subcontractor certifications (LS & PW)
Applicable Davis-Bacon Wage Decision
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DAVIS-BACON WAGE DECISIONSHOW THEY “DETERMINE” THE RATES
Data collection—voluntary contractor surveys
Sets “prevailing wage rates” by classification or trade for defined geographic areas
Modified as new information is received
Covers cash wages and fringe benefit programs
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WAGE DECISION COMPONENTS
Wage Decision #
Modification #
Modification date
State and County
Wage decision type
Trade classifications
Basic wage rate
Fringe benefit rate
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WHICH DECISION DO WE USE??TYPE OF CONSTRUCTION--BUILDING
SHELTERED ENCLOSURES FOR PERSONS, MACHINERY, EQUIPMENT (subject to “80/20” rule)
NEW CONSTRUCTION OR RENOVATION OF COMMERCIAL BUILDINGS
NEW CONSTRUCTION OR RENOVATION OF APARTMENT BUILDINGS > FOUR STORIES
DEMOLITION (followed by new Building construction)
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WHICH DECISION DO WE USE?TYPE OF CONSTRUCTION-RESIDENTIAL
NEW CONSTRUCTION OR RENOVATION OF SINGLE-FAMILY HOUSES /TOWNHOUSES
NEW CONSTRUCTION OR RENOVATION OF APARTMENT BUILDINGS < FIVE STORIES
DEMOLITION OF RESIDENTIAL UNITS (when followed by new Residential construction)
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WHICH DECISION DO WE USE?TYPE OF CONSTRUCTION-H/H
HEAVY
DREDGING
WATER SYSTEM
SEWER SYSTEM
STORMWATER
PARKS/REC AREAS
FLOOD CONTROL
HIGHWAY
STREETS/ROADS
SIDEWALKS
PARKING AREAS
OTHER PAVING (non-incidental scope of work)
DEMOLITION (followed by new H/H construction)
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WAGE DECISION “LOCK-IN”
BID OPENING DATE (including a grace period of up to 10 days to allow for bidder notification and adjustment)
CONTRACT AWARD DATE (if >90 days elapses
following bid opening)
CONSTRUCTION START DATE (if >90 days elapses following contract award)
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ADDING CLASSIFICATIONS
REVIEW DECISIONS EARLY TO IDENTIFY MISSING CLASSIFICATIONS
DISCUSS WITH CONTRACTORS AT PRE-BID MEETING (IF APPLICABLE) OR PRE-CON
SUBMIT INFORMATION TO DED FOR REQUEST THROUGH HUD/USDOL (use Form 4230A)
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SPECIAL COMPLIANCE CASESTRUCK DRIVERS
COVERED WHILE DRIVING WITHIN JOB SITE
COVERED WHILE LOADING & UNLOADING AT JOB SITE (NOT AT COMMERCIAL FACILITY)
NO COVERAGE WHEN DRIVING BETWEEN JOB SITE AND COMMERCIAL FACILITY
NO COVERAGE FOR SOLE PROPRIETORS DRIVING THEIR OWN COMPANY VEHICLES
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SPECIAL COMPLIANCE CASESAPPRENTICES & TRAINEES
MUST BE REGISTERED WITH USDOL (Certification from the Union is not accepted as documentation)
CANNOT EXCEED ALLOWABLE RATIOS FOR APPRENTICES WORKING WITH JOURNEYMEN
PRE-APPRENTICES MUST RECEIVE TOTAL PREVAILING WAGE UNTIL REGISTERED
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SPECIAL COMPLIANCE CASESOWNER/OPERATORS
WORKING WITH A CREW WORKING ALONE
MUST BE LISTED ON PAYROLL AND REPORT JOB CLASSIFICATION, DAILY AND WEEKLY HOURS WORKED
OWNER NOT REQUIRED TO REPORT HOURLY AND WEEKLY WAGES OR DEDUCTIONS
DOES NOT NEED TO BE SHOWN IF >80% OF TIME STRICTLY SUPERVISORY
MUST RECEIVE THE REQUIRED PREVAILING WAGE FROM PRIME CONTRACTOR, OR IN TERMS OF DIRECT CONTRACT WITH CITY/COUNTY
CANNOT SELF-CERTIFY PAYMENT/RECEIPT OF PREVAILING WAGE S
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FRINGE BENEFITS(CFR TITLE 29, SECTION 5.20-5.31)
IRREVOCABLE CONTRIBUTIONS TO TRUSTEES OR OTHER THIRD PARTIES IN RELATION TO A BONA FIDE PLAN, FUND, OR PROGRAM THAT IS COMMON TO THE INDUSTRY
CAN INCLUDE EMPLOYER CONTRIBUTIONS TOWARD HEALTH INSURANCE PREMIUMS, RETIREMENT PLANS, LIFE INSURANCE, ETC.
PAYMENTS MUST BE DOCUMENTED TO REFLECT HOURLY EQUIVALENT AMOUNT PER EMPLOYEE OR JOB CLASSIFICATION
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FRINGE BENEFITS(CFR TITLE 29, SECTION 5.20-5.31)
DOES NOT INCLUDE EMPLOYER PAYMENTS REQUIRED BY FEDERAL/STATE/LOCAL LAW
MAY BE PAID ALL CASH, OR COMBINED WITH CONTRIBUTION TO PLAN
METHOD OF PAYMENT MUST BE INDICATED ON PAYROLL CERTIFICATION PAGE
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OVERTIME
REQUIRED FOR ALL HOURS WORKED >40 IN A SEVEN-DAY WORKWEEK
PAID AT 1 ½ TIMES REGULAR PAY RATE + FRINGE BENEFITS AT STRAIGHT TIME
PAID AT APPLICABLE RATE FOR THE CLASSIFICATION TRIGGERING OVERTIME
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“PAYROLL 101”BASIC INFORMATION
SUBMIT WEEKLY
FIRST PAYROLL MUST INCLUDE FEDERAL TAX I.D. NUMBER
MUST ACCOUNT FOR EACH WEEK ON JOB, EVEN IF NO WORK PERFORMED
SUBS SUBMIT TO PRIME FOR REVIEW
PAYROLLS SHOULD BE PROVIDED WITH ALL PAY REQUESTS
FIRST PAYROLLS TO DED TO VERIFY LOCAL APPROVAL
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“PAYROLL 101”CONTRACTOR & EMPLOYEE INFORMATION
COMPANY NAME
BUSINESS ADDRESS
PROJECT I.D. INFO.
WEEK END DATE
EACH DAY/DATE IN WORKWEEK
EMPLOYEE NAME AND IDENTIFIER
EMPLOYEE WORK CLASSIFICATION
HOURLY PAY RATE
WEEKLY HOURS WORKED (STRAIGHT TIME/OVERTIME) ON COVERED PROJECT
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“PAYROLL 101”WAGES AND DEDUCTIONS
GROSS WAGES EARNED FOR WEEK
TOTAL DEDUCTIONS FROM WAGES
NET PAY REPORTED FOR WORKWEEK
STATEMENT OF COMPLIANCE MUST SUBMIT WITH EACH WEEKLY PAYROLL SIGNED BY CORPORATE OFFICER/DESIGNEE
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ENFORCEMENT RESPONSIBILITIES THE ROLE OF THE GRANT ADMINISTRATOR
ENSURE SUBMISSION OF CERTIFIED PAYROLLS FROM ALL CONTRACTORS
REVIEW EACH PAYROLL TO CONFIRM PAYMENT OF CORRECT PREVAILING WAGES/COMPLIANCE WITH APPLICABLE REGULATIONS, ETC.
CONDUCT EMPLOYEE INTERVIEWS
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EMPLOYEE INTERVIEW METHODS“WHERE’S THE MIC AND CAMERA?”
USEFUL IN VALIDATING PAYROLL DATA
CAN BE TARGETED TO INVESTIGATE SUSPECTED VIOLATIONS
SHOULD NOT BE ORCHESTRATED OR FINDINGS SHARED WITH CONTRACTORS
INTERVIEW FORM ALSO IN SPANISH
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PAYROLL REVIEW PROCEDURES“LEARN TO TROUBLESHOOT LIKE A PRO”
CLOSELY REVIEW INITIAL PAYROLLS FROM ALL PRIME CONTRACTORS/SUBS BEFORE SUBMITTING TO DED FOR VERIFICATION
REVIEW FOR USE OF ANTICIPATED TRADES
COMPARE PAYROLLS AGAINST EMPLOYEE INTERVIEWS AND FOLLOW UP IF NEEDED
DO ADDITIONAL INTERVIEWS IF NECESSARY
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PAYROLL REVIEW PROCEDURES“LEARN TO TROUBLESHOOT LIKE A PRO”
IT MAY LOOK LIKE EVERYONE’S PAID THE CORRECT WAGES. BUT ALSO CHECK FOR…
IMPROPER RATIO OF LABORERS TO MECHANICS?
TOO FEW OR IRREGULAR HOURS AT THE JOB SITE?
DISCREPENCIES/ROUNDING IN WAGE COMPUTATIONS?
EXTRAORDINARY DEDUCTIONS?
NONE OF THE WORKERS KNOW WHAT THEY MAKE?
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PAYROLL REVIEW PROCEDURES“LEARN TO TROUBLESHOOT LIKE A PRO”
CORRESPOND PROMPTLY WITH PRIME CONTRACTOR WHEN PROBLEMS ARISE
DOCUMENT ALL CORRECTIVE ACTIONS TAKEN AND FORWARD TO OUR OFFICE
KEEP INITIAL WITHHOLDINGS IN LINE WITH AMOUNT OF UNDERPAYMENT; TOUGHER ENFORCEMENT WHEN NEEDED
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LET’S WORK TOGETHER!
EFFECTIVE COMMUNICATION AND TIMELY RESPONSE ARE KEYS TO A SUCCESSFUL LABOR STANDARDS COMPLIANCE EFFORT.
BE SURE TO CONTACT ME OR YOUR “FIELD REP” WHENEVER WE CAN HELP…THAT’S WHAT WE’RE HERE FOR!
GOOD LUCK!!
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