1. Labor Standards Training
US Department of HUD
Office of Labor Relations

2. Contact Information
United States Department of Housing and Urban Development
Midwest Regional Office of Labor Relations
77 West Jackson Blvd, Room 2307
Chicago, IL 60604
Deborah Diez
Labor Relations Michigan Specialist (Chicago Regional Office)
(312)
Roxanne Volkmann
Labor Relations Illinois Specialist (Chicago Regional Office)
(312)

3. U.S. Housing Act of 1937, as amended, Section 12(a)
U.S. Housing Act of 1937, Sec. 12a,
(42 U.S.C. 1437j)
….not less than the wages prevailing in the locality, as determined or adopted…by the Secretary, shall be paid to…all maintenance laborers and mechanics employed in the operation of the low-income housing project involved...

4. Davis-Bacon Act Enacted 1931, amended 1935 & 1964
Federal construction contracts >$2,000
Sets minimum hourly wage rates for workers
The Act is “site-based”
Includes alteration, repair, painting & decorating

5. Davis-Bacon Act
Applies to all laborers & mechanics (workers whose duties are manual or physical in nature including those workers who use tools or who are performing work of a trade, as distinguished from mental or managerial duties).
Requires payment of  prevailing wages
Requires weekly payment of wages

6. DB Related Acts Community Development Block Grants HOME Public Housing
Tribally-Designated Housing Authorities
FHA Multi-Family Housing

7. Contract Work Hours and Safety Standards Act (CWHSSA)
Enacted 1962
Requires overtime at 1½ times the basic hourly rate of pay for all work 40 hrs/week
Applies to contracts $100,000
Liquidated damages apply to violations ($10 per day, per violation)

8. Copeland Act Enacted 1934, regulates deductions from wages
Prohibits “kick-backs” of pay
Requires submission of certified weekly payrolls and accompanying signed Statement of Compliance

9. PHA Factors of Applicability
For properties subject to a conventional Annual Contributions Contract, construction, rehabilitation, and maintenance work are covered by some type of prevailing wage to all maintenance laborers and mechanics engaged in the operation of low-income housing projects (Section 12(a) of the US Housing Act of 1937).

10. PHA Factors of Applicability
Routine Maintenance
Non-Routine Maintenance
Development (Davis-Bacon)

11. Routine Maintenance
Work that involves the regular upkeep and preservation of buildings, grounds, and facilities
Routine maintenance wage rates are determined or adopted by HUD
Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporaries, residents

12. Routine Maintenance Determining the Wage Rates
Agencies collect local wage data and submit HUD 4750 to Labor Relations Specialist on an annual basis
Labor Relations reviews and works with HA to determine the Maintenance Wage Rate Determination
A HUD is issued for all work classifications (force account and anticipated contracts)

13. Maintenance Wage Rate Determination HUD 52158

14. Maintenance Wage Rate Determination HUD 52158 (Cont’d)

15. Posting Requirements-Routine and Non-Routine Maintenance
In employee common area (lunch room, office, etc)
Incorporate into routine maintenance contracts

16. Non-Routine Maintenance
Work items that ordinarily would be performed on a regular basis in the course of upkeep of a property…but have become substantial in scope because they have been put off

17. Non-Routine Maintenance
Involves expenditures that would otherwise materially distort the level trend of maintenance expenses
Includes the replacement of equipment and materials rendered unsatisfactory because of normal wear and tear by items of substantially the same kind

18. CONTRACT ADMINISTRATION Routine & Non-Routine Maintenance Work
Each Maintenance contract MUST incorporate:
Current, appropriate wage decision and Federal Labor Standards provision applicable to work being done.
Federal LS HUD 5370-C (General conditions for Non- construction contracts-HUD determined)
Non-construction contracts (without maintenance) greater than $100,000 – Use Section I
Maintenance contracts (including non-routine maintenance) over $2,000 but not more than $100,000–Use Section II
Maintenance contracts (including non-routine maintenance) greater than $100,000 – Use Section I and II

19. CONTRACT ADMINISTRATION Exclusions from HUD-Determined requirements
Certain professional services are excluded from HUD-determined wage requirements
Periodic inspections or testing of equipment
Testing for lead-based paint
Pest control
Installation, service or maintenance of leased equipment, fixtures or appliances

20. Development (Davis-Bacon)
New construction
Reconstruction
A substantial improvement in the quality or kind or original equipment and materials
Remodeling that alters the nature or type of housing units falls within the purview of “development” (24 CFR )

21. DEVELOPMENT WAGE RATES
DB wages determined by DOL
Agency gets DB rates on-line or from HUD OLR
Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporaries, residents
CWHSSA applies to contractors after 40 hours

22. CONTRACT ADMINISTRATION Development Work (Construction)
Each covered DB contract for construction, alteration, or repair work MUST incorporate:
Current, appropriate wage decision and Federal Labor Standards provision applicable to work being done.
Appropriate modification or superseded wage decision
Federal labor standards clauses
HUD-5370 PHA Programs – Contracts greater than $100,000
HUD-5370-EZ Contracts greater than $2,000 but not more than $100,000

23. PHAs ARE REQUIRED TO … (Routine and Non-Routine Maintenance)
Ensure ALL maintenance laborers and mechanics are paid a prevailing wage
Create and maintain documents demonstrating compliance
Ensure permissible deductions as allowed by law or regulation
Conduct employee interviews (HUD-11)
Comply with Labor Relations Letter LR

24. Posting Requirements-Development
Wage Decision or Project Wage Rate Sheet (HUD-4720)
Any Additional Classifications (HUD-4230A)
The Employees Rights under the Davis-Bacon Act (WH-1321)

25. DAVIS-BACON WAGE DECISIONS
A Davis-Bacon Wage Decision is simply a listing of different work classifications and the minimum wage rates that must be paid to anyone performing in those classifications

26. DAVIS-BACON WAGE DECISION BASICS
Must be incorporated in prime contracts & sub-contracts
Identifies work classifications, basic hourly wages, fringe benefits
Must be posted at the job site
May be modified periodically
Published for 4 types of construction

27. CHARACTER OF CONSTRUCTION
RESIDENTIAL
Single family houses, townhouses
Apartment buildings less than 5 stories
BUILDING
Sheltered enclosures for the purpose of housing persons, machinery, and equipment
Apartment buildings more than 4 stories
Commercial buildings

28. CHARACTER OF CONSTRUCTION
HIGHWAY
Roads
Highways
Sidewalks
Parking areas
Other paving work not incidental to other construction
HEAVY
Projects which cannot be classified as Building,
Residential, or Highway

29. OBTAINING DB-WAGE DECISIONS
Go On-line at:
NEW – DOL renumbered wage decisions effective January 6, 2012.
Contact your HUD Labor Relations Specialist

30. <- WD Number
<- Construction Type
<- Counties
<- Description
Mod Number & Publish Date

31. CLASSIFICATION
RATE
FRINGES

32. WAGE DECISION “LOCK-IN” COMPETITIVELY BID CONTRACTS
Lock-in at bid opening provided contract is awarded within 90 days
Must update wage decision if contract is awarded more than 90 days after bid opening
Modifications published days before bid opening are applicable if there is sufficient time to notify bidders (10 days no longer applicable with online access)

33. Contractor Eligibility (DB)
Verify prime contractor eligibility against GSA Debarred List
Make record of verification to contract file

34. Certified Weekly Payrolls

35. Payroll Form WH-347

36. Reviews of Certified Payrolls
Name of employee. Address and SSN are no longer required on CPR but must be on file and available upon request.
Properly classified according to the work performed
Established work week
Hours worked each week
Gross wages and net wages properly calculated
“Other” deductions
Overtime computed properly
Statement of Compliance – Authorized Original Signature

37. Reviews of Certified Payrolls Typical Errors
Classification Errors
Copy or Fax Statement of Compliance
Inadequate or Incomplete Payroll Information
Missing Addresses and SSN
One Statement of Compliance for Multiple Work Weeks
Other Deductions
Ratio of Laborers to Mechanics
Unauthorized Signature on Statement of Compliance

38. EMPLOYEE INTERVIEWS – HUD-11
Contractors must permit interviews
Interviews may be performed at random
Interviews are confidential
Interviews must be checked against payrolls

39. Fringe Benefits
Can include health and life insurance premiums, retirement/pension contributions, vacation irrevocably made to a trustee or third party pursuant to bona fide fringe benefits fund, plan, or program.
May be paid directly to worker
Do not include employer payments or contributions required by Federal, State or local laws (i.e., the employer’s contribution to Social Security, workers’ compensation insurance, etc.)

40. Fringe Benefits
Prevailing wage requirements may be met by any combination of cash wages and creditable “bona fide” fringe benefits provided by the employer.
May be paid entirely as cash wages
Payments made or costs incurred by the contractor for “bona fide” fringe benefits may be creditable
Combination of cash wages paid and “bona fide” fringe benefits may be used together

41. Fringe Benefits and Overtime
Under Davis-Bacon, fringe benefits must be paid for ALL hours worked, including overtime hours. However, the fringe benefit amounts may be excluded from the half-time premium due as overtime compensation.

43. Restitution

44. Restitution
Where underpayments are found, the employer will be required to pay wage restitution to the affected employees.
Must be paid promptly and in the full amounts due, less permissible and authorized deductions.
Funds may be withheld if violations are not corrected promptly
Deposit of funds may be necessary if matter is under appeal, or workers cannot be found

45. Restitution Computing Wage Restitution Corrected Payrolls
Contract Administrator Review
Document restitution on certified corrected payroll report
Submit 5.7 report where restitution totals $1,000 per contractor (See LR for instructions)

46. INVESTIGATIONS
Funds may be withheld if violations are not corrected promptly
Deposit of funds may be necessary if matter is under appeal, or workers cannot be found
Administrative sanctions may be necessary
Limited Denial of Participation
Debarment

47. Work Classifications
You’ll want to make sure that the work classification(s) you need are contained in the wage decision.

48. ADDITIONAL CLASSIFICATIONS
Review and discuss the wage decision with contractor early to identify missing classifications
Submit Requests immediately after contract award (HUD-4230A)
HUD will respond in writing
Post new classification & rate
Make restitution payment if necessary

49. Davis-Bacon Additional Classifications Process
Form HUD-4230A
Request of Additional Classification and Rate
AND
Employer needs to send a letter on company letterhead requesting the job classification and detailing the duties the employee will be performing

50. HUD 4230A 4/2/02 Electrician 22.50 4.50 Do all parties agree?
Community Center CD
Miami, Dade County, FL
BLDG constr: rehab comm center
4/2/02
FL020001/Mod 1
HUD 4230A
Electrician
22.50
4.50
Contractor, Labor Organization
Do all parties agree?

51. Apprentices and Trainees
Apprentices and trainees are persons registered and receiving on-the-job training in a construction occupation under a program which has been approved in advance by DOL
Apprentices and trainees must be registered in a Department of Labor- approved program

52. Apprentices and Trainees
Contractor must submit a copy of registration/apprentice agreement and ratio language
Apprentices/trainees that are not registered or that are utilized out of ratio must be paid the full rate (base + fringes) listed on the wage decision for the classification of work they perform.

53. Self-employed Subcontractors (Labor Relations Letter LR-96-01)
All laborers and mechanics are covered regardless of any contractual relationship alleged to exist
Must be paid weekly
May not certify to payment of own wages (may not sign own payrolls) - Exception: Owners of business working with their crew

54. Semi-Annual Labor Standards Enforcement Report
Instructions
and
Fillable Form (HUD-4710)
can be found at:

55. Report Deadlines
Semi-Annual Labor Standards Enforcement Report - HUD 4710
Period 1 Oct 1 – Mar 31 Due April 4
Period 2 Apr 1 – Sep 30 Due October 4
Maintenance Wage Rate Determination Annual Renewal of HUD sends a reminder prior to the end of the Fiscal Year. The housing commission then sends in the HUD-4750, personnel policy or CBA, and job descriptions.

56. What’s New? 1344.1 Rev 2 – February, 2012
Contractor’s Guide – Jan. 2012

57. Internet Sites Wage Determinations – http://www.wdol.gov
Wage and Hour Division –
Office of the Administrative Law Judges Law Library –
Administrative Review Board –
Debarred Bidders List –
HUD –

58. Questions