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CDBG Federal Labor Standards Compliance For Grant Administrators

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1CDBG Federal Labor Standards 25http://www.dol.gov/esa/regs/compliance/pos
Compliance For Grant Administrators. 1. ers/pdf/fedprojc.pdf Posted in a
2Why are Labor Standards Crucial? conspicuous place, protected from the
Standards guarantee fair wages and elements. 25.
compensation for workers Helps provide a 26UGLG Compliance/Monitoring. On-site
level playing field for bidders Local employee interviews should be used as a
grantee must ensure and document proactive enforcement tool Grantees are
compliance Transgressions endanger future encouraged to focus interviews to projects
funding Required by CDBG program and other or groups of workers where violations are
federal laws. 2. suspected or alleged Each employer must:
3Today’s Labor Standards Topics. Maintain full documentation, including
Federal Labor Standards “101” UGLG payrolls and related records, for at least
Responsibilities Wage Determinations & 3 years following completion. 26.
Classification Issues Certified Payroll 27UGLG Compliance/Monitoring. Interviews
Requirements. Compliance Principles can be used to support a specific on-going
Contractor Responsibilities When Things Go investigation Fewer on-site interviews may
Awry…. Other Sources of Information. 3. be conducted randomly but HUD considers
4Key Federal Statutes. Davis-Bacon Act focusing a far more effective means of
Contract Work Hours and Safety Standards utilizing on-site interview resources. 27.
Act Copeland Act. 4. 28Davis-Bacon Compliance. Wage
55. Classifications and Pay Site of the Work
6CDBG and Davis-Bacon Act (40 U.S.C. Truck Drivers Apprentices and Trainees
276a.-5). Enacted 1931, amended 1935 & Helpers Fringe Benefits. 28.
1964 HCDA requires construction contracts 29Davis Bacon Compliance Laborers and
over $2,000 or residential properties with Mechanics. Laborer / Mechanic: anyone
8 or more housing units comply with performing construction work on the
Davis-Bacon Act Act is “site-based” project Supervisors are covered if they
Includes alteration, repair, painting spend ? 20% their time performing manual
& decorating. 6. work Project Superintendents if they do
7CDBG and Davis-Bacon Act. Construction work in listed trades, they must be paid
work financed Soft costs do not trigger DB the appropriate wage listed on the Wage
Property ? building; Applies to Total # of Determination. 29.
units in property Volunteers are exempt 30Davis Bacon Compliance Site of Work.
(more later) Force account workers are 29 CFR 5.2(l)(1): the physical place where
exempt. 7. the building or work called for in the
8Use of Volunteers. Volunteers may work contract will remain. 30.
without pay on a construction project to 31Davis Bacon Compliance Apprentices and
which Davis-Bacon and Related Acts apply. Trainees. Only apprentices & trainees
An individual may not however, be paid for registered in an approved program may be
some work and volunteer for other work. It paid less than the applicable wage rate
is permissible to cover reasonable costs “Approved program” means a program
of volunteers such as travel or other registered with the DOL or a DOL-
incidental benefits . 8. recognized State Apprenticeship Agency.
9Contract Work Hours and Safety 31.
Standards Act (CWHSSA) (40 U.S.C. 32Davis Bacon Compliance Helpers.
327-333). Enacted 1962 Payment for all Helpers are only allowed when: Duties are
contract work exceeding 40 hours per week distinct from all others Use of helpers is
at 1? times regular rate of pay Applies to established in the area Helper not in
contracts exceeding $100,000 Liquidated informal training program. 32.
damages for violations ($10 per/day, 33Davis Bacon Fringe Benefits. Allowed:
per/violation). 9. Employer contributions to Third Party
10Copeland Act. Enacted in 1934 (40 plans Health / life / disability / dental
U.S.C. 276c) Prohibits “kickbacks” insurance plans Retirement plans Costs of
Requires contractors to submit certified apprenticeship. 33.
payrolls with a signed “statement of 34Davis Bacon Fringe Benefits. Excludes
compliance” each week. 10. payments required by law: FICA Workers’
11Copeland Act. Regulates deductions Compensation Unemployment Certified
from wages: FICA, federal & state payrolls must reference how FBs are paid.
taxes Bona fide prepayment of wages Court 34.
ordered payments, fringe benefit plans, 35Prime Contractor. Responsible for all
etc. 11. employers on project Subcontractors
12CDBG and Davis - Bacon Factors of communicate through prime Ensures labor
Applicability. All laborers and mechanics provisions in all subcontracts. 35.
employed by contractors or subcontractors 36Prime Contractor. Submits certified
Requires payment of at least prevailing payrolls for own employees Provides subs
wages Requires weekly payment of wages with forms and guidance Ensures access to
Usually applied through “Related Acts”. employees on site Responsible for
12. restitution to underpaid employees
13Davis-Bacon Regulations. The Posters. 36.
Department of Labor (DOL) has published 37Subcontractor. Submits certified
rules and instructions concerning payrolls each week Instructs lower-tier
Davis-Bacon and other labor laws in the subs of responsibilities Reviews Wage
Code of Federal Regulations (CFR). They Decisions, requests additional
can be found in Title 29 CFR Parts 1, 3, classifications Ensures access to
5, 6 and 7. 13. employees on-site. 37.
14Responsibilities of UGLG (Title 29 CFR 38Certified Payroll Requirements (Title
Part 5). Designate a Labor Standards 29 CFR Part 3). Optional Form WH-347
Compliance Officer Request a Wage Decision Compliance statement w/ original signature
Put Wage Decision and Labor Standards of corporate official, or letter of
clauses (Form 4010) in contract bid delegation Payrolls are due weekly
documents Check contractor eligibility Identify first and final payroll. 38.
(http://epls.arnet.gov/) Conduct a 39Certified Payroll Basics. “No Work”
pre-construction conference (optional). payrolls optional – but all weeks must be
14. accounted for in records Payrolls must be
15Responsibilities of UGLG (Title 29 CFR complete & legible Prime contractor
Part 5). Review weekly payrolls and reviews payrolls and submits to UGLG
compliance statements Conduct employee Payroll record retention = three years.
interviews See that underpaid workers 39.
receive restitution Maintain contract 40Certified Payroll Basics Employee
management system and compliance files. Information. Employee name, address, SSN
15. Employee work classification Rate of pay
16Davis-Bacon Wage Determinations. Must Straight / OT hours worked per day, per
be included in bid documents and contract week on this project. 40.
Established by geographic area May be 41Certified Payroll Basics Wages and
modified periodically Published for four Deductions. Gross wages earned Deductions
types of construction www.wdol.gov. 16. from wages Net pay Statement of
17Davis-Bacon Wage Determinations Types compliance: one for each weekly payroll
of Construction. Building - sheltered signed by corporate official (or
enclosures that house persons, machinery, designee). 41.
equipment, etc. Also apartment buildings 42Correcting Violations. Labor Standards
over 4 stories Residential - single family Officer notifies company and/or prime
houses, townhouses, and apartment contractor of violations Wage restitution
buildings up to four stories Highway - must be documented Submit corrected
roads, highways, sidewalks, parking areas, certified payroll. 42.
and other paving work not incidental to 43Correcting Violations. Funds may be
other construction Heavy - projects that withheld by UGLG if violations are not
can’t be classified as Building, corrected promptly Deposit of funds in
Residential or Highway. 17. Escrow if matter is under appeal, or
18Davis-Bacon Wage Determinations workers cannot be found Administrative
“Lock-In” Rules. Competitive bidding: sanctions: Limited Denial of Participation
Modifications published less than 10 days Debarment. 43.
before bid opening are not applicable if 44Recordkeeping Requirements. Copies of
there is not sufficient time to notify Wage Decisions Modifications
bidders Lock-in at bid opening provided Preconstruction Minutes if applicable Bid
contract is awarded within 90 days Must Documents and Copy of Contract
update wage determination if contract Notification of Contract Award
award is more than 90 days UGLG must Documentation of all enforcement actions.
verify that wage rates are current. 18. 44.
19State Labor Law Requirements. Insert 45Recordkeeping Requirements
any specific state requirements if (continued). Weekly payrolls with
applicable. 19. statement of compliance Employee
20Employer Requirements. Classification interviews Contractor clearance Securing
Pay Overtime Posters. 20. confidentiality of records. 45.
21Employer Requirements. All laborers 46Reporting. Violations of underpayment
and mechanics must: Be classified in must be reported to DOL if >$1,000 or
accordance with the Wage Decision Be paid willful. Semi-annual report of contracts
at rates ? those on Wage Decision. 21. awarded. 46.
22Employer Requirements Additional 47HUD Labor Relations References. Making
Classifications. Employer submits request Davis Bacon Work (HUD Publication) A
in writing UGLG must follow up (contact Practical Guide for States, Indian Tribes
State) DOL has 3 criteria for approval: and Local Agencies
Work is not already on the WD Proposed http://www.hud.gov/offices/adm/hudclips/fo
classification is used by the industry in ms/files/4813-LR.pdf Making Davis Bacon
the project area Proposed wage rate & Work A Contractor’s Guide to Davis-Bacon
fringe benefits bear a reasonable http://www.hudclips.org/sub_nonhud/cgi/pdf
relationship to rates on the WD. 22. orms/4812-LR.pdf. 47.
23Employer Requirements Dual 48HUD Labor Relations References. Labor
Classification. When an employee performs Relations Forms
tasks under two or more distinct www.hud.gov/offices/olr/olrform.cfm HUD
classifications, the employee must be paid Office of Labor Relations:
the prevailing wage rate for each www.hud.gov/offices/olr HUD Regulations:
classification Must be listed separately www.access.gpo.gov/nara/cfr/cfr-table-sear
on the payroll. 23. h.html. 48.
24Employer Requirements. All laborers 49Other Sources. Davis-Bacon Wage
and mechanics must: Be paid not less often Determinations: http://www.wdol.gov GSA’s
than once a week Receive at least 1? times On-Line Debarment List:
regular rate of pay for all hours worked http://epls.arnet.gov. 49.
over 40 per week Each employer must: 50Other Sources. DOL DBRA Homepage:
Submit weekly certified payrolls www.dol.gov/esa/programs/dbra/index.htm
reflecting all hours worked. 24. DOL Regulations:
25Employer Requirements. Two Posters: www.dol.gov/esa/regs/cfr/whdcfr.htm DOL
Wage Determination DOL “Notice to Forms: www.dol.gov/libraryforms/. 50.
Employees”
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