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REGION IX San Francisco U.S. Department of HUD Office of Labor Relations (9ASL) 450 Golden Gate Avenue San Francisco, CA 94102 Phone: (415) 436-6576 Fax: (415) 436-8524

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2 The Honorable Alphonso Jackson Secretary of the United States Department of Housing and Urban Development

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3 Key Labor Relations Goals & Objectives

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4 1.Provide Training and Technical Assistance 2.Monitoring of Agencies 3.Issuance of Maintenance Wage Rate Determinations to Public Housing Agencies 4.Promote Economic Opportunities 5.Reporting Requirements Key Labor Relations Goals & Objectives

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APPLICABILITY OF FEDERAL LABOR STANDARDS REQUIREMENTS

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6 COURSE AGENDA Increase LCA understanding of prevailing wage statutes How to determine applicability for each HUD / DOL/Local agency responsibilities Bid and Contract Documents requirements

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7 COURSE AGENDA Wage decisions & classification issues Basic enforcement concepts Correcting violations Reports Contractors Due Process

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8 What You Should Learn From this Course

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9 COURSE OBJECTIVES Clear understanding of the labor statutes HUD enforces Identify applicability factors Correctly determine applicability Determine the appropriate wage decision for a projects character of construction

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10 COURSE OBJECTIVES Identify the lock in (effective) date for a wage decision Reviewing documentation, determine if deficiencies exist and identify the corrective actions Afford the Contractor due process (29 CFR5.11b)

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11 Useful Web Links www.hud.gov/offices/olr www.hud.gov/offices/olr/library.cfm www.access.gpo.gov/davisbacon/ epls.arnet.gov Useful Web Links

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12 Useful Web Links www.hud.gov/offices/olr

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14 Useful Web Links www.hud.gov/offices/olr/library.cfm

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17 Useful Web Links www.access.gpo.gov/davisbacon/

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21 Useful Web Links //epls.arnet.gov

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26 DAVIS-BACON & OTHER LAWS Federal Labor Standards 101

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27 Davis-Bacon Act (DBA) Copeland Act (Anti-Kickback Act) Contract Work Hour and Safety Standards Act Davis-Bacon Related Acts (DBRA) See 29 CFR Parts 1,3,5,6,7

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28 DAVIS-BACON ACT Enacted in 1931, amended in 1935 & 1964 Federal construction contracts over $2,000 Applies to all laborers & mechanics Includes alteration, repair, painting & decorating

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29 DAVIS-BACON ACT Establishes prevailing wage rates Requires that workers be paid weekly Is site-based Usually applied through the Related acts

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30 COPELAND ACT Enacted in 1934 Prohibits Kick-backs of pay Requires certified weekly payrolls Regulates payroll deductions from wages

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31 CONTRACT WORK HOURS & SAFETY STANDARDS ACT Enacted in 1962 Overtime for all work in excess of 40 hrs/week on a covered project Applies to contracts > $100,000

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32 CONTRACT WORK HOURS & SAFETY STANDARDS ACT Requires the assessment of liquidated damages @ $10 per day per violation Intentional violations = federal criminal misdemeanor

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33 CONTRACT WORK HOURS & SAFETY STANDARDS ACT Does not apply to contracts < $100K However, through Federal Labor Standards Act, overtime will probably be applicable

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34 FAIR LABOR STANDARDS ACT (Enforced by the Dept. of Labor) Enacted in 1938 Established Federal minimum wage rates Established maximum working hours Established minimum ages for workers HUD will refer FLSA matters to the DOL

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why doesnt the Department of Labor enforce them instead of HUD? So, if Congress passed all these Labor laws,

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36 REORGANIZATION PLAN 14 Executed March 13, 1950 Provides uniform approach to enforcement DOL coordinates administration of labor stds Gives Federal Agencies primary responsibility

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37 Code of Federal Regulations (CFR) - Title 29 Pt 1 Determination of wage decisions Pt 3 Copeland Act requirements Pt 5 Labor standards provisions for contracts Pt 6 Administrative proceedings Pt 7 Practice before the Admin. Review Board

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39 WAGE DECISION Stipulates the wage requirements for construction trades Must be incorporated in prime contract Required for all subcontracts Incorporate, do not include by attachment Must be posted at the job site

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40 A Wage Decision identifies the prevailing hourly wage requirements for all laborers and mechanics performing work on a covered project.

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41 Wage Decision Basics The wage decision will identify Work classifications Basic hourly rate of pay Fringe benefits

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42 $22.50 Base Rate + 4.25 Fringe Benefit $14.75 $18.65 Base + 3.50 FB $26.90 Base +5.00 FB $12.45

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43 DETERMINATION OF DAVIS-BACON WAGE DECISIONS Established by survey of contractors Established by geographic area Establishes the prevailing wage rate May be modified from time to time

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44 CHARACTER OF CONSTRUCTION Construction projects are broadly classified: Building - housing >4 stories; commercial facilities Highway - roads, sidewalks Residential - housing 1-4 stories Heavy - catch-all category

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45 WAGE DECISION LOCK-IN Generally, once locked in a wage decision cannot be modified during the life of the contract Lock-in usually occurs at contract award, with a few exceptions

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46 WAGE DECISION LOCK-IN Competitively Bid Contracts Lock-in at bid opening provided contract is awarded or construction has started within 90 days Must update wage decision if contract is awarded more than 90 days after bid opening

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47 WAGE DECISION LOCK-IN Negotiated Contracts Date the negotiated bid is accepted Lock-in provided contract is awarded or construction has started within 90 days Must update wage decision if contract is awarded more than 90 days after bid opening

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48 WAGE DECISION COMPONENTS Wage decision number Modification date State, county information Wage decision type Trade classifications Base Wage, and Fringe Benefits

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49 FRINGE BENEFITS Employer Contributions to: Health insurance Retirement Life insurance Apprenticeship and training

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137 Wage restitution documentation Submit corrected certified payroll Obtain employees signature on payroll Submit 5.7 report to OLR if > $1000 per contractor ENFORCEMENT CORRECTING VIOLATIONS

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138 ENFORCEMENT Consequences Withhold funding Deposit contractors funds if matter is under appeal or workers cannot be found Referral to DOL for investigation Administrative sanctions - Debarment

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139 LABOR STANDARDS ENFORCEMENT REPORTS

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140 ENFORCEMENT REPORTS - I Case By Case (5.7(a)) Employer underpays by $1,000 Violations appear aggravated or willful Recommendations on debarment; CWHSSA liquidated damages

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141 ENFORCEMENT REPORTS - II Semi-Annual (5.7(b)) Submit this report twice each year Oct 1 Mar 31 Apr 1 Sep 30 Contracts awarded within reporting period Enforcement activity regardless of award

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Contract Name / # Contract Amount Wage Decision No. - include Mod# Wage Decision Effective Date Contract Activity

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4. Complaints 5. Referrals 6. Wage Restitution Enforcement Activity

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145 STANDARD OPERATING PROCEDURE (SOP) REVIEW 1.Obtain DB wage decisions online 2.Pre-construction conferences optional 3.Project Wage Decision Sheets 4.Eliminate unnecessary or duplicative processes

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146 SOP REVIEW 5.Maintain enforcement file system 6.Target on-site interviews 7.Streamline payroll reviews

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147 SOP REVIEW 8.Communicate routine reviews informally 9.Focus enforcement on willful violators. 10.Submit labor standards enforcement reports

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148 FOR MORE INFORMATION... Specific Davis-Bacon Related Act (statute) for the program involved DOL Regulations: 29 CFR; Parts 1, 3, 5, 6 & 7 Labor Relations Letters Labor Relations Desk Guides Labor Relations On the Mark! Series

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149 INFORMATION ONLINE HUD Office of Labor Relations www.hud.gov/offices/olr Davis-Bacon Wage Decisions www.access.gpo.gov/davisbacon HUDClips (Forms) www.hudclips.org

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150 INFORMATION ONLINE DOL Homepage www.dol.gov GSA On-Line Debarred List http://epls.arnet.gov

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THANK YOU!

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