CDBG Crosscutting Issues: Federal Labor Standards Date Trainer Prepared by Abt Associates for the U.S. Department of Housing and Urban Development
Introductions Participants? Entitlement State Grantee Others Share (30 seconds): Name Shop Role Labor Standards Experience 2
Workshop Purpose To Ensure That Every Participant: Is familiar with the CDBG requirements; Understands enforcement; Understands administration; and Identifies streamlining opportunities; 3
Training Norms Cell phones off or to vibrate Share your strengths Questions on topic please 4
Why Labor Standards? 1. Prevailing Wages 2. Prevents Worker Overtime Abuse 3. Eliminates Kickback Schemes 4. It s The Law 5
Team Lingo Take 5 minutes to: Review Acronyms Select Spokesperson Stand Ready to Report 6
Alphabet Soup CDBG CFR CPR CWHSSA DBA DBRA DOL FLSA HUD LCA LDP O/T S/T SAC 7
Pre-test How many residential units kick in Davis Bacon? T/F. Disputed funds must be held for 3 years. T/F. You can verify the prime contractor s eligibility right after award. T/F. Davis-Bacon requires weekly payment. T/F. Preconstruction conferences are optional, not required. 8
Agenda Agency Responsibilities Tools Administration Compliance & Reporting Discussion Questions & For More Information 9
10 Agency Responsibilities 1. Designate a Contract Administrator. 2. Establish a contract management system. 3. Ensure that all bid documents, contracts and subcontracts include standard/wage decision. 4. Ensure contractor awarded is eligible. 5. Conduct on-site inspections and interviews. 10
10 Agency Responsibilities 5. Conduct on-site inspections and interviews. 6. Review payroll reports and documentation. 7. Maintain full documentation. 8. Refer criminal investigations to HUD. 9. Comply with all HUD requirements. 10. Prepare enforcement reports. [Practical Guide, pp 2-3] 11
Your Labor Standards Tool Kit PowerPoint Case Study (Coda City) Example Documents CD - A Reference Goldmine A Practical Guide A Contractor s Guide 12
DOL Regulations 29 CFR Part 1: Procedures for Predetermination of Wage Rates 29 CFR Part 3: Contractors and Subcontractors on Public Building or Public Work Financed In Whole or In Part by Loans or Grants from the United States 29 CFR Part 5: Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (Also Labor Standards Provisions Applicable to Non-construction Contracts Subject to the Contract Work Hours and Safety Standards Act) 13
DOL Regulations 29 CFR Part 6: Rules of Practice for Administrative Proceedings Enforcing Labor Standards In Federal and Federally Assisted Construction Contracts and Federal Service Contracts 29 CFR Part 7: Practice Before the Administrative Review Board With Regard to Federal and Federally Assisted Construction Contracts 14
Federal Labor Standards Provisions Davis- Bacon and Related Acts (DBRA) Laws and Requirements Davis-Bacon and Related Acts (DBRA) Contract Work Hours and Safety Standards Act (CWHSSA) Copeland (Anti-Kickback) Act Section 110 of the Housing and Community Development Act of 1974, as amended (CDBG) 15
Other References Labor Relations Letters (HUD) Desk Guides Making Davis Bacon Work: A Practical Guide for States, Indian Tribes and Local Agencies Making Davis-Bacon Work: A Contractor s Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects On the Mark! Series CD Review 16
4 Administration Steps 1. Determine Davis-Bacon applicability 2. Prepare bid documents/construction contract 3. Verify contractor eligibility 4. Provide contractor training as needed 17
Determine Applicability Construction Work Financed $2,000+ In whole or part Workers employed by contractors or subcontractors CDBG rehab if 8+ units 18
Prepare Bid Documents & Contract Davis Bacon Wage Decision Standards clause (HUD 4010) Lock in rules 10 days prior to bid opening 19
Apparent Low Bidder Prime Contractor Only Online (www.epls.gov) Prior to Award Verify Eligibility 20
Contractor Training Prime contractor responsible Contractor s Guide Subs often need training 21
Compliance - Posting Posting Requirements Applicable Wage Decision Employee Rights under the Davis-Bacon Act (WH-1321) Optional Posting Project Wage Rate Sheet (HUD-4720) Additional Classifications and Wage Rates Additional classification rules Contractor s Guide Making the request HUD review DOL decision 22
Compliance - Interviews Conduct on-site interviews Targeting interviews Getting The Story www.hud.gov/hudclips 23
Employers Must 1. Classify per Wage Decision 2. Pay per Wage Decision 3. Pay all hours, weekly 4. Apprentices registered by DOL or SAC 24
Certified Payroll Reports 1 2 3 4 5. Weekly for each employer. Name, Identifying Number*. Signed. Any form (WH-347), but Exact Certified Language. Saved for 3 years. * Effective January 18, 2009, address and full SSN are no longer included. 25
Compliance Review Reports Review certified payroll reports. Discrepancies and/or underpayments Indications of falsification on payrolls Ratio of laborers to mechanics Too few or irregular hours Discrepancies in wage computations Extraordinary deductions [Practical Guide, Exhibit 3] 26
Coda City Case Study Take 5 minutes to read first page State Grantee Davis-Bacon Wage Standards DHCD Review 27
Coda City Pass 1 Why could a laborer to mechanic ratio indicate a problem? When would irregular hours indicate a issue? Why could short weeks indicate problems? Discuss with team. Select spokesperson. 28
Payroll Errors and Corrections Inadequate payroll information Missing addresses and Social Security #s Incomplete payrolls Classifications Wage rates Apprentices and trainees Overtime Computations Deductions Fringe benefits Signature On-site interview comparisons 29
Payroll Exercise Take 5 minutes Review Sample Payroll Report Discuss with team Can you identify 5 potential issues? Select spokesperson 30
Coda City Interviews? Table Discussion When? Why? Whom to Interview? 31
Wage Restitutions/Correction Payrolls Restitution for Underpayment of Wages Notification to the Employer/Prime Contractor Computing Wage Restitution Correction Payrolls Review of Correction Certified Payroll Report Unfound Workers 32
Enforcement Withholding /Escrow Accounts /Sanctions No tolerance policy and sanctions Administrative review process Restitution and withholding of payments 33
CODA City Falsification? No Falsification then. Falsification indicated then. Investigate Interview 34
Coda City Findings Contractor disagrees. Now what? Final determination and back wages 30 days to correct underpayment or request hearing DOL review and decision Appeal process - DOL Administrative Review Board 35
Enforcement Reports Reports Employer-based enforcement reports HUD------- DOL Due April 15; October 1 thru March 31 Due October 15; April 1 thru Sept 30 Form HUD 4710 Semi-annual enforcement reports 36
Proactive System Subgrantee - Feasibility Analysis Architect - RFQ G612 Owner s Instructions to Architect Contractor - RFP AIA Supplemental Condition (A201-SC) Computerized Payroll Bid Review Trade by trade Pre Construction Conference & Training First Payroll Review 37
Streamlining Davis Bacon Wages online Preconstruction optional! One-page wage rate sheet (HUD-4720) No start/stop notices LCA filing system Targeted interviews Serious violations targeted Telephone, email, fax Willful violations targeted Reporting streamlined 38
HOME Revisions 12 units, not 7 Home assisted units versus construction financed Sweat equity exempt 39
Discussion Questions Open Book - May Use: Notes PowerPoint Practical Guide Small Group Work 40
Labor Standards Acronyms CDBG Community Development Block Grant CFR Code of Federal Regulations CPR Certified Payroll Report CWHSSA Contract Work Hours and Safety Standards Act DBA Davis-Bacon Act DBRA Davis-Bacon and Related Acts DOL Department of Labor FLSA Fair Labor Standards Act HUD Housing and Urban Development LCA Local Contracting Agency LDP Limited Denial of Participation O/T Overtime S/T Straight-time SAC State Apprenticeship Council/Agency 41