HomeMy WebLinkAboutN-569 - Labor Compliance ProcedureCITY OF PASCO
ADMINISTRATIVE ORDERS
Administrative Order No. 569
Community & Economic Development
Subject: Labor Compliance (Section 9)
Initial Effective Date:
February 17, 2016
Revised
Approved
I. PURPOSE:
This Administrative Order is issued to provide step -by step procedures for grantee or
subrecipient implementing projects, which involve construction contracts in excess of
$2,000 (except rehabilitation of residential property designed for use by less than eight
families), these projects must comply with the following federal and state labor laws:
• Davis -Bacon Act
Copeland Anti -Kickback Act
Contract Work Hours and Safety Standards Acts
State Prevailing Wage Law
All construction contracts (including construction contracts paid with special assessments
using Block Grant funds) are required to comply with Federal Labor Standard Provisions
(HUD -4010). See Administrative Order No. 567 "Procurement for Construction
Contracts" (Section 7), and Administrative Order No. 568 "Managing Construction
Projects" (Section 8) which contain labor standards requirements and should be referred
to in conjunction with this section.
II. DEPARTMENTS AFFECTED:
All Departments and grantee or subrecipient receiving HUD assistance for construction
projects.
III. REFERENCES:
1. State Prevailing Wage Law F700-032-000
2. Prevailing Wage WAC 296-127
3. Making Davis -Bacon Work, A Practical Guide for States, Indian Tribes and Local
Agencies
4. Davis -Bacon Labor Standards, A Contractor's Guide to Prevailing Wage
Requirements for Federally -Assisted Construction Projects
IV. ATTACHMENTS:
1. Attachment 9-A: Report of Additional Classification and Rate
2. Attachment 9-13: Federal Labor Standards Provisions
3. Attachment 9-C: Preconstruction Checklist for Contractors
4. Attachment 9-1): Davis Bacon Contractors Guide 4812 -LR 2012
5. Attachment 9-E: Statement of Compliance
6. Attachment 9-F: Certificate From Contractor Appointing Officer or Employee to
Supervise Payment of Employees
7. Attachment 9-G: Labor Standards Checklist
8. Attachment 9-H: Notice to All Employees of Their Rights
9. Attachment 9-I: Wage Restitution
10. Attachment 9-J: Final Labor Standards Compliance Report
V. DEFINITIONS:
The term "Prevailing Wage" as used in this Policy, refers to Davis -Bacon and Related
Acts and the Washington State Prevailing Wage law.
The grantee or subrecipient must delegate a "Labor Compliance Office" who will be
responsible for collecting, reviewing, maintaining and reporting the labor compliance
requirements herein.
VI. POLICY:
Davis -Bacon Act
Davis -Bacon related acts provide that all laborers and mechanics employed by
contractors or subcontractors in the performance of construction work financed in whole
or in part with grants received under this title (in this case the CDBG Block Grant
program) shall be paid wages at rates not less than those prevailing on similar
construction in the locality as determined by the Secretary of Labor. The Davis -Bacon
related acts also apply to housing rehabilitation projects of over seven units.
Construction contracts in excess of $2,000 awarded by recipients under the Block Grant
program shall include a provision for compliance with Davis -Bacon related acts and
associated Department of Labor (DOL) regulations. The principal requirements are:
• Grantee or subrecipient must include a copy of the current prevailing wage rate
determination in each Invitation for Bid (IFB).
• Grantee or subrecipient may only award contracts to eligible contractors and
subcontractors who have accepted the wage rate determination and have agreed to
pay wages on that basis, and who will comply with other labor standards.
• Contractors must pay laborers the wage rate determined by the Secretary of Labor to
be the prevailing rate in that labor market.
• Contractors must pay wages at least once a week.
• Grantee or subrecipient are required to report all suspected, reported or confirmed
violations to the City, which may investigate these alleged violations.
Administrative Order No. 569 — Labor Compliance
Page 2
Three special classes of employees may be employed on projects subject to Davis -Bacon
wage rates and be compensated at less than the Davis -Bacon prevailing wages. These
classes are:
1. Apprentices — provided they are individually registered in a bona fide apprenticeship
program in which the contractor participates and which is approved by the DOL.
Apprentices must also satisfy other conditions as specified in the Labor Standards
Contract Provisions.
2. Trainees — provided they are in a DOL -approved training program and they satisfy
other conditions as specified in the Labor Standards Contract Provisions.
3. Helpers — the use of the "Helpers" classification to describe employees who use tools
in assisting mechanics and who are paid below the minimum rates for mechanics is
generally not acceptable, since the apprentice and trainee is recognized as the
individual who is to perform the less skilled craft work during his/her training period.
If "Helpers" are to be employed on the project they must be identified in the request
for a wage determination and paid the rate deemed appropriate by the Department of
Labor.
When any of these employee classes appear on the contractor's weekly payrolls, it is the
contractor's responsibility to provide the documentation necessary to permit the
community development administrator to determine that there is compliance with the
Davis -Bacon wage rate determination.
Copeland Anti -Kickback Act
Copeland Anti -Kickback Act provides that all laborers and mechanics shall be paid
unconditionally and not less often than once a week, and without subsequent deduction or
rebate on any account except voluntary with written authorization from employee or
"permissible" salary deductions, the full amounts due at the time of payments computed
at wage rates not less than those contained in the wage determination issued by the
Secretary of Labor. Appropriate weekly compliance statements and payrolls are required
to be submitted pursuant to the Copeland Act.
All contracts for construction, reconstruction or repair (regardless of value) must include
the following prohibition:
"No contractor or subcontractor shall induce, by any means, any persons employed in
such publicly -funded construction, reconstruction or repair to give up any part of the
compensation to which he is otherwise entitled except for authorized payroll deductions."
Grantee or subrecipient is required to conduct confidential interviews with employees to
assure compliance with the terms of this law, and the contractor is required to maintain
payroll records and to submit weekly -certified payrolls documenting compliance.
Contract Work Hours and Safety Standards Acts
Contract Work Hours and Safety Standards Act provides that no contract work, which
may require or permit any laborer or mechanic in any workweek in which he is employed
Administrative Order No. 569 —Labor Compliance
Page 3
on such work, to work in excess of 40 hours in such workweek, unless such laborer or
mechanic receives compensation at a rate not less than one and one-half rimes his basic
rate of pay for all hours worked in such workweek, whichever is greater. In the event of
violations, the contractor or subcontractor shall be liable to any affected employee for his
unpaid wages as well as to the United States for liquidated damages.
All construction contracts in excess of $100,000 involving the employment of mechanics
or laborers must comply with the following provisions of this law:
• Contractors shall compute the wages of each laborer and mechanic on the basis of a
standard workweek of 40 hours.
• Work in excess of this standard is permitted, provided that compensation for the
amount in excess of the standard is calculated at a rate not less than one and one-half
times the basic rate of pay.
• Contractors may not require any laborer or mechanic to work in surroundings or
under working conditions that are unsanitary, hazardous or dangerous to his/her
health or safety as determined under construction safety or health standards
promulgated by the Department of Labor.
Grantee Administration of Labor Standards Requirements
The laws and their implementing regulations spell out a number of federal requirements
and procedures for Block Grant contracting agencies. The basic steps to subrecipient
compliance are as follows:
Enforcement Personnel
The subrecipient must designate an appropriate staff person to act as enforcement
personnel to ensure compliance to all requirements and to be the primary contact person
for the state.
Wage Determination
Department of Labor Davis -Bacon Wage Determinations for formal bid advertisement
should be ordered in writing from the Community & Economic Development Department
(the City) at least 45 days prior to the date set. The wage determination form, shown in
Attachment 7-A, should be used when requesting a wage determination. Each request
should clearly identify the project and all types of work to be performed.
Wage Determination Modifications
Project wage determinations may be modified to keep them current. A modification will
be in the form of a new wage determination, which replaces the entire previous wage
determination. All actions modifying a project wage determination received by the
subrecipient before contract award shall be effective except under the following
circumstance:
• For contract entered into pursuant to competitive bidding procedures, modifications
received by the contracting officer (usually the mayor) less than ten days before the
bid opening shall be effective unless the contracting officer finds that there is not
reasonable time available before bid opening to notify all bidders. If it is determined
Administrative Order No. 569 — Labor Compliance
Page 4
that sufficient time is not available in which to notify bidders, documentation to this
effect must be contained in the Block Grant labor files.
• When advertising for bids on a Block Grant funded project, the advertisement must
contain a statement informing potential contractors that all work done on the project
is subject to the higher of the prevailing Davis -Bacon wage rates and Washington
State wage rates.
• The actual wage determination must be included in all bid specifications and contract
documents. Ten 101 days prior to the date of bid opening, the subrecipient must
contact the City to certify that the wage rates included in the bid package are still
valid. If prevailing wage rates have been adjusted, the subrecipient must notify each
prospective bidder of these changes. Wage rates certified at this time are valid until
superseded. The current wage determination, any additional classifications and the
"Notice To All Employees" labor poster must be posted in a visible location at the
work site(s).
Additional Classifications
If, after the receipt of a wage determination, it is found that any class of laborer or
mechanic, which is not listed in the wage determination, is to be employed, a request that
such laborer or mechanic be classified in conformance to the wage determination must be
made. The prime contractor for the project will initially submit a written, signed request
for additional classifications to the Grantee or subrecipient naming the work
classifications and the wage rates, including any fringe benefits that are proposed.
The Grantee or subrecipient will then complete blocks 1-10 of the HUD Form 4230A,
Report of Additional Classification and Rate and submit the form along with a copy of
the applicable Davis -Bacon wage decision and a copy of the written request from the
contractor to the appropriate Block Grant Administrator. See Attachment 9-A for copy of
the Form 4230A and the instructions for completing blocks 1-10.
The Block Grant Administrator will then review the complete package and submit it with
a cover letter and recommendation to the U.S. Department of Labor. See HUD Form
4230A Completion Instructions for details.
Contractor Qualification
Prior to award of all prime contracts, the subrecipient must verify the eligibility status of
all prime contractors on AO 567 Form 7-0, Mandatory Bidder Responsibility Checklist.
Federal Labor Standards Provisions
The subrecipient, or its representative, must include the Federal Labor Standards
Provisions Form HUD -4010 in any contracts, subcontracts, any lower -tier subcontracts,
and in all bid documents. Inclusion by reference is unacceptable. The contract form
which contains the appropriate labor standards provisions is Attachment 9-B and is also
included in Administrative Order No. 567 Attachment 7-I.
Administrative Order No. 569 — Labor Compliance
Page 5
Preconstruction Conference
The subrecipient must hold a preconstruction conference with the prime contractor and
all available subcontractors to explain all labor standards obligations. The checklist
provided as Attachment 9-C can be used by the subrecipient as a guide during the
preconstruction conference. The checklist covers all of the compliance actions that
should be taken by the contractor to comply with the federal labor standards. Written
documentation that the preconstruction conference was conducted must be maintained in
the subrecipient files.
Apprentice and Trainees Required
Only apprentices and trainees, under bona fide programs approved by the U.S.
Department of Labor, Manpower Administration, Bureau of Apprenticeship and
Training, or the Washington or Oregon Bureau of Apprenticeship and Training, can be
used on the job. The correct status of all proposed apprentices or trainees should be
verified prior to the start of construction.
The allowable ratio of apprentices to journeymen in any craft classification shall not be
greater than the ratio permitted to the contractor as to his/her entire work force under the
registered program.
Payroll Review and Compliance
Each contractor and subcontractor must submit weekly payrolls to the subrecipient. It is
recommended that the contractor use the Department of Labor Form W11-347, AO 568,
Attachment 8-C. If this form is not used, the contractor must report all items of
information requested on that form and must attach a copy of Department of Labor Form
WH -348, Statement of Compliance (Attachment 9-E). It is the subrecipient's
responsibility to review weekly payrolls to determine compliance with labor standards
requirements.
Payrolls are to be signed by the contractor or by an authorized designee. If an authorized
designee will be signing the payrolls, a Certificate from Contractor Appointing Officer or
Employee to Supervise Payment of Employee (Attachment 9-F) must be attached to the
first payroll submitted to the subrecipient. Payroll forms are compared to the wage
determination to assure that wages are being paid as prescribed by law. The Statement of
Compliance (Attachment 9-E) contains certifications that:
• The information covers the proper period and is complete and accurate.
• Each worker has been paid the proper wages and benefits and that no "rebates" have
been taken.
• Deductions are only those permitted by law and approved by the worker.
Fringe Benefit Certification
When a contractor or subcontractor provides fringe benefits to its employees by paying
into a plan, the block at 4a on the back side of the certified payroll form must be
annotated. When the hourly wage rate paid on a payroll is the same as or greater than the
hourly wage rate required by the applicable wage decision and the "Fringe Benefit Paid
Into Plan" box on the back of the payroll form is marked, the fringe benefit requirement
Administrative Order No. 569 — Labor Compliance
Page 6
is complete. However, any time a contractor indicates fringe benefits being provided are
used to compensate for not paying hourly wage rates in cash equal to the amount required
in the applicable wage decision, the contractor should be required to provide
documentation explaining the nature and hourly dollar value of all fringe benefits being
provided. Also, if a subrecipient has any reason to question whether a contractor is
actually paying benefits as claimed, documentation should be requested from the
contractor and verified.
Field Inspections
The subrecipient should understand that the enforcement of labor standards is as
important as other requirements of the contract specifications and that failure to comply
with the provisions of the labor standards must be corrected by the contractors and
subcontractors. Failure to comply may result in the imposition of serious sanctions and
penalties.
Periodic field inspections by the subrecipient at the job site are required to ensure
compliance with labor requirements. Inspections should be made regularly for the
following purposes:
• To ensure that the wage determination is posted in a prominent place.
• To ensure that a poster is conspicuously displayed which informs employees of their
rights (Attachments 9-H).
• To conduct employee interviews in order to determine that the wages they are
receiving are the same as reported on the weekly payroll report. The Record of
Employee Interview form (form HUD -11) is found as Attachment 8-G.
Violations
Serious violations (i.e., those representing underpayments greater than $1,000) are to be
reported immediately to the City. Technical assistance will be provided to assure proper
resolution of the issue. Violations less than $1,000 should also be reported to the Block
Grant Administrator and resolved as described herein.
Labor Standards Enforcement File
Prior to start of construction, a Labor Standards Enforcement File must be established for
each construction project. These files must contain:
• Notice of Contractor Award and Start of Construction
• Labor Standards Checklist (Attachment 9-G) documenting:
o HUD 4010 Labor Standard Provisions
o Intent to Pay Prevailing Wages
o Wage Determinations, including effective modifications and additions
o Wage Rate Request Form and Wage Decision
o Verification of contractor eligibility
o Preconstruction Conference Documentation
• Site visit reports
• Weekly employee interviews
• Weekly payrolls and Statement of Compliance signed by an officer of the company
• Evidence that payrolls were checked against the applicable wage rate decision
Administrative Order No. 569 — Labor Compliance
Page 7
• Evidence of restitution/resolution of identified discrepancies
• Complaints from workers, if any, and actions taken
• Liquidated damages assessed, appeals, if any, and outcome
• Construction Checklist (optional)
• Affidavit of Wages Paid
• Final Wage Compliance Report
• Enforcement Report/Correspondence
Approved:
Dave Zabell, ger Date
Administrative Order No. 569 — Labor Compliance
Page 8
ATTACHMENT 9-A (1)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HUD FORM 4230A
REPORT OF ADDITIONAL CLASSIFICATION AND RATE
OMB Approval Number 2501-0011
(Exp. 09/30/2006)
1. FROM (name and address of requesting agency)
2. PROJECT NAME AND NUMBER
3. LOCATION OF PROJECT (City, County and State)
4. BRIEF DESCRIPTION OF PROJECT
5. CHARACTER OF CONSTRUCTION
❑ Building ❑ Residential
❑ Heavy ❑ Other (specify)
❑ Highway
6. WAGE DECISION NO. (include modification number, if any)
7. WAGE DE CISION EFFECTIVE DATE
F-1 COPYATTACHED
8. WORK CLASSIFICATION(S)
HOURLY WAGE RATES
BASIC WAGE FRINGE BENEFIT(S) (if any)
9. PRIME CONTRACTOR (name, address)
10. SUBCONTRACTOR/EMPLOYER, IF APPLICABLE (name, address)
Check All That Apply_
❑ The work to be performed by the additional classification(s) is not performed by a classification in the applicable wage decision.
❑ The proposed classification is utilized in the area by the construction industry.
❑ The proposed wage rate(s), including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in
the wage decision.
❑ The interested parties, including the employees or their authorized representatives, agree on the classification(s) and wage rate(s).
❑ Supporting documentation attached, including applicable wage decision.
Check One:J
❑ Approved, meets all criteria. DOL confirmation requested.
❑ One or more classifications fail to meet all criteria as explained in agency referral. DOL decision requested.
FOR HUD USE ONLY
LR2000:
Agency Representative Date
(Typed name and signature)
Log in:
Log out:
Phone Number
HUD-4230A(8-03)PREVIOUS EDITION IS OBSOLETE
ATTACHMENT 9-A 2
Report of Additional U.S. Department of Housing and Urban Development OMB Approval No. 2501-0011
Classification and Wage Rate Office of Labor Relations (Exp. 09/30/2006)
INSTRUCTIONS HAVE BEEN SLIGHTLY MODIFIED FOR STATE USE
Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining data needed, and completing and reviewing the collection of information. The information is considered
non -sensitive and does not require special protection. This information is required to obtain benefits. This agency may not collect this information, and you
are not required to complete this form, unless it displays a currently valid OMB control number.
Employers engaged on HUD -assisted construction projects subject to Davis -Bacon wage requirements must pay no less than the wages determined to be
prevailing by the Secretary of Labor to all laborers and mechanics engaged on the construction work. On occasion, the applicable Davis -Bacon wage
decision does not contain all of the work classifications and wage rates needed to complete the construction work. This information collection facilitates the
addition of needed work classifications and wage rates for the construction work involved. This form is used by HUD and local agencies administering HUD
programs to report employer request(s) for additional classification and wage rates so that an appropriate wage rate can be approved by the Department of
Labor for the construction work. This information collection is required by Department of Labor regulations at 29 CFR 5.5. While no assurances of
confidentiality are pledged to respondents, HUD generally discloses these data only in response to a Freedom of Information request.
Instructions
General:
Contractors/Employers: Do not need to complete this form. Submit a written, signed request to the CDBG Grantee Jurisdiction naming
the work classifications and the wage rates, including any fringe benefits, that are proposed.
CDBG Grantee Jurisdiction: Complete items 2 through 10. Submit one copy of this form to the applicable CDBG project manager with a
copy of the applicable Davis -Bacon wage decision and the written request from the contractor naming the work classifications and wage
rates that are proposed. (The contractor's request must be made in writing and must be signed.)
1. For HUD or State CDBG Office use. Enter the name and address of HUD Office (or State CDBG office) submitting the report and to
which the DOL reply should be sent.
2. Enter the name and number of the project or contract involved.
3. Enter the location of the project involved: city, county and state.
4. Describe the construction involved, e.g., new construction or rehabilitation, number and type of buildings, number of stories, number
of units (as applicable). For example, New construction: 3 — 4 -story buildings; 120 units.
5. Enter the character of construction as defined by DOL for Davis -Bacon prevailing wage rate purposes.
6. Enter the number of the Davis -Bacon wage decision applicable to the construction work. Include the number of wage decision
modifications (if any) applicable to the work.
7. Enter the effective date of the wage decision for the project. (See DOL regulations at 29 CFR 1.6.)
8. Enter the work classifications and corresponding hourly basic wage rates and fringe benefit rates (if any) requested.
9. Self-explanatory.
10. If the requesting contractor is not the prime contractor, enter the name and address of the subcontractor/employer making the
request.
Remainder of Form: HUD Labor Relations/State CDBG use.
HUD Labor Relations/State CDBG Staff: Evaluate the employer's request against the criteria for approval (see DOL Regulations, 29 CFR
Part 5, and related contract labor standards provisions). The criteria are reflected in "checklist" form to ensure that each factor is
considered and to ensure that supporting documentation, including a copy of the applicable wage decision, is attached. Check the box
next to each criterion that is met; do not check the box next to any criterion that is not met.
If the request meets all criteria, check the appropriate box, enter the name and telephone number of the HUD/State CDBG agency
representative, and sign and date the form. Submit one copy of the completed form to the DOL with a copy of the applicable Davis -Bacon
wage decision and the written request from the employer involved.
If the request fails to pass all criteria, check the appropriate box, enter agency contact information, and sign and date the form. Submit
one copy of the completed form to the DOL with a copy of the applicable Davis -Bacon wage decision, the written request from the
employer involved, and a cover letter explaining how the employer's request failed to meet one or more of the criteria.
Submission of Report
Completed forms shall be sent to: Branch of Construction Wage Determinations, U.S. Department of Labor, 200 Constitution Avenue,
NW, Room S-3014, Washington, DC 20210.
varagrapn iz AI IAUHMtNI y -ti
Federal Labor Standards Provisions U.S. Department of Housing
and Urban Development
Office of Labor Relations
Applicability
The Project or Program to which the construction work covered
by this contract pertains is being assisted by the United States of
America and the following Federal Labor Standards Provisions
are included in this Contract pursuant to the provisions applicable
to such Federal assistance.
A. 1. (1) Minimum Wages. All laborers and mechanics em-
ployed or working upon the site of the work will be paid uncondi-
tionally and not less often than once a week, and without subse-
quent deduction or rebate on any account (except such payroll
deductions as are permitted by regulations issued by the Secre-
tary of Labor under the Copeland Act (29 CFR Part 3), the full
amount of wages and bona fide fringe benefits (or cash equiva-
lents thereof) due at time of payment computed at rates not less
than those contained in the wage determination of the Secretary
of Labor which is attached hereto and made a part hereof, re-
gardless of any contractual relationship which may be alleged to
exist between the contractor and such laborers and mechanics.
Contributions made or costs reasonably anticipated for bona fide
fringe benefits under Section I(b)(2) of the Davis -Bacon Act on
behalf of laborers or mechanics are considered wages paid to
such laborers or mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs incurred
for more than a weekly period (but not less often than quarterly)
under plans, funds, or programs, which cover the particular weekly
period, are deemed to be constructively made or incurred during
such weekly period.
Such laborers and mechanics shall be paid the appropriate wage
rate and fringe benefits on the wage determination for the classi-
fication of work actually performed, without regard to skill, except
as provided in 29 CFR 5.5(a)(4). Laborers or mechanics per-
forming work in more than one classification may be compensated
at the rate specified for each classification for the time actually
worked therein: Provided, That the employer's payroll records
accurately set forth the time spent in each classification in which
work is performed. The wage determination (including any addi-
tional classification and wage rates conformed under 29 CFR
5.5(a)(1)(ii) and the Davis -Bacon poster (WH -1321) shall be posted
at all times by the contractor and its subcontractors at the site of
the work in a prominent and accessible, place where it can be
easily seen by the workers.
(ii) (a) Any class of laborers or mechanics which is not listed in
the wage determination and which is to be employed under the
contract shall be classified in conformance with the wage deter-
mination. HUD shall approve an additional classification and wage
rate and fringe benefits therefor only when the following criteria
have been met:
(1) The work to be performed by the classification requested is
not performed by a classification in the wage determination; and
(2) The classification is utilized in the area by the construction
industry; and
(3) The proposed wage rate, including any bona fide fringe ben-
efits, bears a reasonable relationship to the wage rates contained
in the wage determination.
(b) If the contractor and the laborers and mechanics to be em-
ployed in the classification (if known), or their representatives,
and HUD or its designee agree on the classification and wage
rate (including the amount designated for fringe benefits where
appropriate), a report of the action taken shall be sent by HUD or
its designee to the Administrator of the Wage and Hour Division,
Employment Standards Administration, U.S. Department of La-
bor, Washington, D.C. 20210. The Administrator, or an authorized
representative, will approve, modify, or disapprove every additional
classification action within 30 days of receipt and so advise HUD
or its designee or will notify HUD or its designee within the 30 -day
period that additional time is necessary. (Approved by the Office
of Management and Budget under OMB control number 1215-
0140.)
(c) In the event the contractor, the laborers or mechanics to be
employed in the classification or their representatives, and HUD
or its designee do not agree on the proposed classification and
wage rate (including the amount designated for fringe benefits,
where appropriate), HUD or its designee shall refer the questions,
including the views of all interested parties and the recommenda-
tion of HUD or its designee, to the Administrator for determina-
tion. The Administrator, or an authorized representative, will is-
sue a determination within 30 days of receipt and so advise HUD
or its designee or will notify HUD or its designee within the 30 -day
period that additional time is necessary. (Approved by the Office
of Management and Budget under OMB Control Number 1215-
0140.)
(d) The wage rate (including fringe benefits where appropriate)
determined pursuant to subparagraphs (1)(ii)(b) or (c) of this para-
graph, shall be paid to all workers performing work in the classifi-
cation under this contract from the first day on which work is per-
formed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract
for a class of laborers or mechanics includes a fringe benefit which
is not expressed as an hourly rate, the contractor shall either pay
the benefit as stated in the wage determination or shall pay an-
other bona fide fringe benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee or
other third person, the contractor may consider as part of the
wages of any laborer or mechanic the amount of any costs rea-
sonably anticipated in providing bona fide fringe benefits under a
plan or program, Provided, That the Secretary of Labor has found,
upon the written request of the contractor, that the applicable stan-
dards of the Davis -Bacon Act have been met. The Secretary of
Labor may require the contractor to set aside in a separate ac-
count assets for the meeting of obligations under the plan or pro-
gram. (Approved by the Office of Management and Budget under
OMB Control Number 1215-0140.)
2. Withholding. HUD or its designee shall upon its own action or
upon written request of an authorized representative of the De-
partment of Labor withhold or cause to be withheld from the con-
tractor under this contract or any other Federal contract with the
same prime contractor, or any other Federally -assisted contract
subject to Davis -Bacon prevailing wage requirements, which is
held by the same prime contractor so much of the accrued pay-
ments or advances as may be considered necessary to pay la-
borers and mechanics, including apprentices, trainees and help-
ers, employed by the contractor or any subcontractor the full
amount of wages required by the contract. In the event of failure
to pay any laborer or mechanic, including any apprentice, trainee
or helper, employed or working on the site of the work, all or part
form HUD -4010 (07/2003)
Previous edition is obsolete Page 1 of 4 ref. Handbook 1344.1
varagrapn iz
of the wages required by the contract, HUD or its designee may,
after written notice to the contractor, sponsor, applicant, or owner,
take such action as may be necessary to cause the suspension
of any further payment, advance, or guarantee of funds until such
violations have ceased. HUD or its designee may, after written
notice to the contractor, disburse such amounts withheld for and
on account of the contractor or subcontractor to the respective
employees to whom they are due. The Comptroller General shall
make such disbursements in the case of direct Davis -Bacon Act
contracts.
3. (i) Payrolls and basic records. Payrolls and basic records
relating thereto shall be maintained by the contractor during the
course of the work preserved for a period of three years thereaf-
ter for all laborers and mechanics working at the site of the work.
Such records shall contain the name, address, and social secu-
rity number of each such worker, his or her correct classification,
hourly rates of wages paid (including rates of contributions or costs
anticipated for bona fide fringe benefits or cash equivalents thereof
of the types described in Section I(b)(2)(B) of the Davis -bacon
Act), daily and weekly number of hours worked, deductions made
and actual wages paid. Whenever the Secretary of Labor has
found under 29 CFR 5.5 (a)(1)(iv) that the wages of any laborer or
mechanic include the amount of any costs reasonably anticipated
in providing benefits under a plan or program described in Sec-
tion I(b)(2)(B) of the Davis -Bacon Act, the contractor shall main-
tain records which show that the commitment to provide such
benefits is enforceable, that the plan or program is financially re-
sponsible, and that the plan or program has been communicated
in writing to the laborers or mechanics affected, and records which
show the costs anticipated or the actual cost incurred in providing
such benefits. Contractors employing apprentices or trainees
under approved programs shall maintain written evidence of the
registration of apprenticeship programs and certification of trainee
programs, the registration of the apprentices and trainees, and
the ratios and wage rates prescribed in the applicable programs.
(Approved by the Office of Management and Budget under OMB
Control Numbers 1215-0140 and 1215-0017.)
(ii) (a) The contractor shall submit weekly for each week in which
any contract work is performed a copy of all payrolls to HUD or its
designee if the agency is a party to the contract, but if the agency
is not such a party, the contractor will submit the payrolls to the
applicant sponsor, or owner, as the case may be, for transmission
to HUD or its designee. The payrolls submitted shall set out ac-
curately and completely all of the information required to be main-
tained under 29 CFR 5.5(a)(3)(i). This information may be submit-
ted in any form desired. Optional Form WH -347 is available for
this purpose and may be purchased from the Superintendent of
Documents (Federal Stock Number 029-005-00014-1), U.S. Gov-
ernment Printing Office, Washington, DC 20402. The prime con-
tractor is responsible for the submission of copies of payrolls by
all subcontractors. (Approved by the Office of Management and
Budget under OMB Control Number 1215-0149.)
(b) Each payroll submitted shall be accompanied by a "State-
ment of Compliance," signed by the contractor or subcontractor or
his or her agent who pays or supervises the payment of the per-
sons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information
required to be maintained under 29 CFR 5.5 (a)(3)(i) and that
such information is correct and complete;
(2) That each laborer or mechanic (including each helper, ap-
prentice, and trainee) employed on the contract during the payroll
AI IAUHMtNI U -ti
period has been paid the full weekly wages earned, without re-
bate, either directly or indirectly, and that no deductions have been
made either directly or indirectly from the full wages earned, other
than permissible deductions as set forth in 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less than
the applicable wage rates and fringe benefits or cash equivalents
for the classification of work performed, as specified in the appli-
cable wage determination incorporated into the contract.
(c) The weekly submission of a properly executed certification
set forth on the reverse side of Optional Form WH -347 shall sat-
isfy the requirement for submission of the "Statement of Compli-
ance" required by subparagraph A.3.(ii)(b).
(d) The falsification of any of the above certifications may subject
the contractor or subcontractor to civil or criminal prosecution
under Section 1001 of Title 18 and Section 231 of Title 31 of the
United States Code.
(iii) The contractor or subcontractor shall make the records re-
quired under subparagraph A.3.(i) available for inspection, copy-
ing, or transcription by authorized representatives of HUD or its
designee or the Department of Labor, and shall permit such rep-
resentatives to interview employees during working hours on the
job. If the contractor or subcontractor fails to submit the required
records or to make them available, HUD or its designee may, after
written notice to the contractor, sponsor, applicant or owner, take
such action as may be necessary to cause the suspension of any
further payment, advance, or guarantee of funds. Furthermore,
failure to submit the required records upon request or to make
such records available may be grounds for debarment action pur-
suant to 29 CFR 5.12.
4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less
than the predetermined rate for the work they performed when
they are employed pursuant to and individually registered in a
bona fide apprenticeship program registered with the U.S. De-
partment of Labor, Employment and Training Administration, Of-
fice of Apprenticeship Training, Employer and Labor Services, or
with a State Apprenticeship Agency recognized by the Office, or if
a person is employed in his or her first 90 days of probationary
employment as an apprentice in such an apprenticeship program,
who is not individually registered in the program, but who has
been certified by the Office of Apprenticeship Training, Employer
and Labor Services or a State Apprenticeship Agency (where
appropriate) to be eligible for probationary employment as an
apprentice. The allowable ratio of apprentices to journeymen on
the job site in any craft classification shall not be greater than the
ratio permitted to the contractor as to the entire work force under
the registered program. Any worker listed on a payroll at an ap-
prentice wage rate, who is not registered or otherwise employed
as stated above, shall be paid not less than the applicable wage
rate on the wage determination for the classification of work actu-
ally performed. In addition, any apprentice performing work on
the job site in excess of the ratio permitted under the registered
program shall be paid not less than the applicable wage rate on
the wage determination for the work actually performed. Where a
contractor is performing construction on a project in a locality other
than that in which its program is registered, the ratios and wage
rates (expressed in percentages of the journeyman's hourly rate)
specified in the contractor's or subcontractor's registered program
shall be observed. Every apprentice must be paid at not less
than the rate specified in the registered program for the
apprentice's level of progress, expressed as a percentage of the
form HUD -4010 (07/2003)
Previous edition is obsolete Page 2 of 4 ref. Handbook 1344.1
varagrapn tz
journeymen hourly rate specified in the applicable wage determi-
nation. Apprentices shall be paid fringe benefits in accordance
with the provisions of the apprenticeship program. If the appren-
ticeship program does not specify fringe benefits, apprentices must
be paid the full amount of fringe benefits listed on the wage deter-
mination for the applicable classification. if the Administrator de-
termines that a different practice prevails for the applicable ap-
prentice classification, fringes shall be paid in accordance with
that determination. In the event the Office of Apprenticeship Train-
ing, Employer and Labor Services, or a State Apprenticeship
Agency recognized by the Office, withdraws approval of an ap-
prenticeship program, the contractor will no longer be permitted
to utilize apprentices at less than the applicable predetermined
rate for the work performed until an acceptable program is ap-
proved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will
not be permitted to work at less than the predetermined rate for
the work performed unless they are employed pursuant to and
individually registered in a program which has received prior ap-
proval, evidenced by formal certification by the U.S. Department
of Labor, Employment and Training Administration. The ratio of
trainees to journeymen on the job site shall not be greater than
permitted under the plan approved by the Employment and Train-
ing Administration. Every trainee must be paid at not less than
the rate specified in the approved program for the trainee's level
of progress, expressed as a percentage of the journeyman hourly
rate specified in the applicable wage determination. Trainees shall
be paid fringe benefits in accordance with the provisions of the
trainee program. If the trainee program does not mention fringe
benefits, trainees shall be paid the full amount of fringe benefits
listed on the wage determination unless the Administrator of the
Wage and Hour Division determines that there is an apprentice-
ship program associated with the corresponding journeyman wage
rate on the wage determination which provides for less than full
fringe benefits for apprentices. Any employee listed on the pay-
roll at a trainee rate who is not registered and participating in a
training plan approved by the Employment and Training Adminis-
tration shall be paid not less than the applicable wage rate on the
wage determination for the work actually performed. In addition,
any trainee performing work on the job site in excess of the ratio
permitted under the registered program shall be paid not less than
the applicable wage rate on the wage determination for the work
actually performed. In the event the Employment and Training
Administration withdraws approval of a training program, the con-
tractor will no longer be permitted to utilize trainees at less than
the applicable predetermined rate for the work performed until an
acceptable program is approved.
(iii) Equal employment opportunity. The utilization of appren-
tices, trainees and journeymen under 29 CFR Part 5 shall be in
conformity with the equal employment opportunity requirements
of Executive Order 11246, as amended, and 29 CFR Part 30.
5. Compliance with Copeland Act requirements. The contrac-
tor shall comply with the requirements of 29 CFR Part 3 which are
incorporated by reference in this contract
AI IAL;HMtNI V-li
7. Contract termination; debarment. A breach of the contract
clauses in 29 CFR 5.5 may be grounds for termination of the con-
tract and for debarment as a contractor and a subcontractor as
provided in 29 CFR 5.12.
8. Compliance with Davis -Bacon and Related Act Requirements.
All rulings and interpretations of the Davis -Bacon and Related
Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorpo-
rated by reference in this contract
9. Disputes concerning labor standards. Disputes arising out
of the labor standards provisions of this contract shall not be sub-
ject to the general disputes clause of this contract. Such disputes
shall be resolved in accordance with the procedures of the De-
partment of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes
within the meaning of this clause include disputes between the
contractor (or any of its subcontractors) and HUD or its designee,
the U.S. Department of Labor, or the employees or their repre-
sentatives.
10. (1) Certification of Eligibility. By entering into this contract
the contractor certifies that neither it (nor he or she) nor any per-
son or firm who has an interest in the contractor's firm is a person
or firm ineligible to be awarded Government contracts by virtue of
Section 3(a) of the Davis -Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD programs pursuant
to 24 CFR Part 24.
(ii) No part of this contract shall be subcontracted to any person
or firm ineligible for award of a Government contract by virtue of
Section 3(a) of the Davis -Bacon Act or 29 CFR 5.12(a)(1) or to be
awarded HUD contracts or participate in HUD programs pursuant
to 24 CFR Part 24.
(iii) The penalty for making false statements is prescribed in the
U.S. Criminal Code, 18 U.S.C. 1001. Additionally, U.S. Criminal
Code, Section 1 01 0, Title 18, U.S.C., "Federal Housing Adminis-
tration transactions", provides in part: "Whoever, for the purpose
of ... influencing in any way the action of such Administration.....
makes, utters or publishes any statement knowing the same to be
false..... shall be fined not more than $5,000 or imprisoned not
more than two years, or both.'
11. Complaints, Proceedings, or Testimony by Employees.
No laborer or mechanic to whom the wage, salary, or other labor
standards provisions of this Contract are applicable shall be dis-
charged or in any other manner discriminated against by the Con-
tractor or any subcontractor because such employee has filed any
complaint or instituted or caused to be instituted any proceeding
or has testified or is about to testify in any proceeding under or
relating to the labor standards applicable under this Contract to
his employer.
B. Contract Work Hours and Safety Standards Act. The provi-
sions of this paragraph B are applicable only where the amount of
the prime contract exceeds $100,000. As used in this paragraph, the
terms "laborers" and "mechanics" include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor con-
tract ingfor any part of the contract work which may require or involve
6. Subcontracts. The contractor or subcontractor will insert in the employment of laborers or mechanics shall require or permit any
any subcontracts the clauses contained in subparagraphs 1 such laborer or mechanic in any workweek in which he or she is
through 11 of this paragraph A and such other clauses as HUD or employed on such work to work in excess of 40 hours in such work -
its designee may by appropriate instructions require, and a copy week unless such laborer or mechanic receives compensation at a
of the applicable prevailing wage decision, and also a clause re- rate not less than one and one-half times the basic rate of pay for all
quiring the subcontractors to include these clauses in any lower hours worked in excess of 40 hours in such workweek.
tier subcontracts. The prime contractor shall be responsible for
the compliance by any subcontractor or lower tier subcontractor (2) Violation; liability for unpaid wages; liquidated damages.
with all the contract clauses in this paragraph. In the event of any violation of the clause set forth in subpara-
form HUD -4010 (07/2003)
Previous edition is obsolete Page 3 of 4 ref. Handbook 1344.1
varagrapn iz
graph (1) of this paragraph, the contractor and any subcontractor
responsible therefor shall be liable for the unpaid wages. In addi-
tion, such contractor and subcontractor shall be liable to the United
States (in the case of work done under contract for the District of
Columbia or a territory, to such District or to such territory), for
liquidated damages. Such liquidated damages shall be computed
with respect to each individual laborer or mechanic, including
watchmen and guards, employed in violation of the clause set
forth in subparagraph (1) of this paragraph, in the sum of $10 for
each calendar day on which such individual was required or permit-
ted to work in excess of the standard workweek of 40 hours without
payment of the overtime wages required by the clause set forth in
sub paragraph (1) of this paragraph.
(3) Withholding for unpaid wages and liquidated damages.
HUD or its designee shall upon its own action or upon written
request of an authorized representative of the Department of La-
bor withhold or cause to be withheld, from any moneys payable
on account of work performed by the contractor or subcontractor
under any such contract or any other Federal contract with the
same prime contract, or any other Federally -assisted contract
subject to the Contract Work Hours and Safety Standards Act
which is held by the same prime contractor such sums as may be
determined to be necessary to satisfy any liabilities of such con-
tractor or subcontractor for unpaid wages and liquidated damages
as provided in the clause set forth in subparagraph (2) of this
paragraph.
Al IAUMMtNl V -ti
(4) Subcontracts. The contractor or subcontractor shall insert
in any subcontracts the clauses set forth in subparagraph (1)
through (4) of this paragraph and also a clause requiring the sub-
contractors to include these clauses in any lower tier subcontracts.
The prime contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses set forth
in subparagraphs (1) through (4) of this paragraph.
C. Health and Safety. The provisions of this paragraph C are ap-
plicable only where the amount of the prime contract exceeds
$100,000.
(1) No laborer or mechanic shall be required to work in surround-
ings or under working conditions which are unsanitary, hazard-
ous, or dangerous to his health and safety as determined under
construction safety and health standards promulgated by the Sec-
retary of Labor by regulation.
(2) The Contractor shall comply with all regulations issued by the
Secretary of Labor pursuant to Title 29 Part 1926 and failure to
comply may result in imposition of sanctions pursuant to the Con-
tract Work Hours and Safety Standards Act, 40 USC 3701 et seq.
(3) The Contractor shall include the provisions of this para-
graph in every subcontract so that such provisions will be
binding on each subcontractor. The Contractor shall take such
action with respect to any subcontract as the Secretary of
Housing and Urban Development or the Secretary of Labor
shall direct as a means of enforcing such provisions.
form HUD -4010 (07/2003)
Previous edition is obsolete Page 4 of 4 ref. Handbook 1344.1
ATTACHMENT 9•C (1)
PRECONSTRUCTION CHECKLIST FOR CONTRACTORS:
MEETING LABOR STANDARDS CONTRACT REQUIREMENTS
INTRODUCTION. The following checklist has been prepared to assist contractors and
subcontractors in meeting contractual labor standards responsibilities. All major administrative
and procedural activities have been covered in the sequence they will occur as the construction
project proceeds. Careful attention to and use of the checklist should result in a minimum number
of problems with respect to labor standards.
II. EXPLANATORY NOTES. The word "employer" as used below refers to the project contractor,
each subcontractor, or each lower -tier subcontractor. Payrolls and other documentary evidence of
compliance (marked with an asterisk) are required to be sent to the grantee for review -- all to be
submitted through the project contractor. The delivery procedure is as follows:
A. Each lower -tier subcontractor, after careful review, submits required documents to the
respective subcontractor.
B. Each subcontractor, after checking his own and those of each lower -tier subcontractor he may
have, submits required documents to the contractor.
C. The contractor, after reviewing all payrolls and other documentation, including his own, and
correcting violations where necessary, submits all to the grantee.
All emplovers should check each of the following statements as being true. If any statement
is not true, the contractor or his representative should contact the grant recipient community
for special guidance.
III. BEFORE CONSTRUCTION BEGINS, EACH CONTRACTOR MUST:
A. Not have been debarred or otherwise made ineligible to participate in
any federal or federally assisted project.
B. Receive appropriate contract provisions covering labor standards
contract requirements.
C. Review and understand all labor standards contract provisions.
D. Receive the wage decision as part of the contract.
E. Request through the recipient and receive the minimum wage for each
classification to be worked on the project which was not included on
the wage decision by the additional classification process and before
allowing any such trade(s) to work on the project.
* F. Request and receive certification of his apprentice program from the
state's Bureau of Apprenticeship and Training (recognized by USBAT)
and submit copy thereof to the recipient prior to employment on the
project.
ATTACHMENT 9•C (2)
IV. AT CONSTRUCTION START THE CONTRACTOR MUST:
A. Notify the grant administrator and the grantee of the start of
construction date.
B. Place each of the following on a bulletin board prominently located on
the project site that can be seen easily by the workers (and replaced if
lost or unreadable any time during construction):
Wage Decision
2. Notice to Employees (WH 1321)
Safety and Health Protection on the Job (DOL)
C. Before assigning each project worker to work, obtain the worker's
name, best mailing address and social security number (for payroll
purposes).
* D. Obtain a copy of each apprentice's certificate with the apprentice's
registration number and his year of apprenticeship from the State BAT.
E. Inform each worker of:
1. His work classification (journeyman or job title) as it will appear
on the payroll.
2. His duties of work.
3. The U.S. Department of Labor's requirement on this project that
he is either a journeyman, apprentice or laborer.
• If journeyman, he is to be paid journeyman's minimum wage
rate or more.
• If apprentice, he is to be paid not less than the apprentice's rate
for the trade based on his year of apprenticeship.
• If laborer, he is to do laborer's work only — not use any tool or
tools of the trade — and not perform any part of a journeyman's
work — and is to be paid the laborer's minimum wage rate or
more.
ATTACHMENT 9•C (3)
F. Understand the requirements that each laborer or mechanic who
performs work on the project in more than one classification within the
same workweek shall be classified and paid at the highest wage rate
applicable to any of the work which he performs unless the following
requirements are met:
Accurate daily time records shall be maintained. These records
must show the time worked in each classification and the rate of
pay for each classification, and must be signed by the workman.
2. The payroll shall show the hours worked in each classification and
the wage rate paid for each classification.
The payroll shall be signed by the workmen or a signed copy of
the daily time record shall be attached thereto.
G. Inform each worker of his hourly wages (not less than the minimum
wage rate for his work that is stated in the wage decision).
Time and a half for all work over 40 hours any workweek (see
Contract Work Hours Safety Standards Act).
2. Fringe Benefits, if any (see Wage Decision for any required
benefits).
Deductions from his pay.
H. Inform each worker that he is subject to being interviewed on the job
by the Grant Administrator, Grantee, Office of Intergovernmental
Assistance, Department of Labor, or other U.S. Government inspector,
to confirm that his employer is complying with all labor requirements.
I. Inform each journeyman and each apprentice that a journeyman must
be on the job at all times when an apprentice is working.
V. DURING CONSTRUCTION
A. Each employer must:
Not select, assign, pay different pay rates to transfer, upgrade,
demote, lay off, nor dismiss any project worker because of race,
color, religion, sex or national origin.
2. Employ all registered apprentices referred to him through normal
channels up to the applicable ratio of apprentices to journeyman in
each trade used by the employer.
3. Maintain basic employment records accessible to inspection by the
recipient or U.S. Government representatives.
ATTACHMENT 9-C (4)
4. Comply with all health and safety standards.
5. Pay all workers weekly.
* B. Submit weekly payrolls prepared on Form WH -347: Available from:
Superintendent of Documents
Government Printing Office
Washington, D.C. 20402
Contractors who wish to purchase the forms shall be urged to enter
their orders promptly because the Superintendent of Documents takes
six weeks to fill orders. It is permissible for contractors to reproduce
the forms if they wish.
Some employers place all project workers on Payroll Form WH -347.
The recipient does not review those project workers listed on the
payroll who perform work which is descriptive of any of the following
job titles that are exempt from labor requirements:
• Project superintendent
• Project engineer
• Supervisory foreman (less than 20% of time as a timekeepers
working foreman)
• Payroll clerks
• Messenger
• Clerical workers
• Timekeepers
• Bookkeepers
The following information must be provided on the front page of the payroll
(Form WH -347):
Heading (6 "blocks" of information)
1. Name of Employer. Name of employer is stated showing whether
contractor or subcontractor.
2. Address. Street address or PO Box, city, state, and zip code of
employer are stated.
Payroll Number. Each weekly payroll is numbered in sequential order
(starting with Payroll No. "I").
If employer's workers perform no physical work on the project during
workweek, he has submitted a "no work" letter for that workweek.
Payroll or employer's final workweek on the project (completion of his
work) is marked "Final."
ATTACHMENT 9-C (5)
4. For Week Ending. The last date of the workweek is stated in this
"block."
5. Project and Location. Name of project and city in which located is
stated.
6. Column 1— Worker's name as it appears on his paycheck is stated.
Worker's best mailing address and social security number is stated on
Payroll No. 1 or the payroll on which his name first appears.
If worker changes his residential address while working on the project,
his new address is stated on next applicable payroll.
If any two or more workers have the same name, their social security
numbers are included on the payroll to note separate identification.
Column 2 — Number of withholding exemptions is for employer's
convenience — not required to be completed.
8. Column 3 —The work classification (job title) for the worker is
included in the wage decision and denotes the work that worker
actually performed.
Note: If the applicable classification is not included in the wage
decision, the contractor should call the recipient immediately and
request the classification on the Additional Classification form.
Apprentice. If the worker is an apprentice, his State BAT registration
number and year of apprenticeship is included in this column the first
time the apprentice's name appears on the payroll.
Split Classification. If worker has performed more than one class of
work during the workweek, such as carpenter and laborer, the division
of work will be shown on separate lines of the payroll.
Accurate daily time records show the exact hours of work performed
daily in each class of work and are signed by the affected workman.
Each class of work the worker performed is stated in Column 3 in
separate "blocks," and his name repeated in corresponding "blocks" in
Column 1.
The breakdown of hours worked daily under each work classification is
stated in Column 4 and total for week in Column 5. The applicable
wage rate for each classification of work is stated in Column 6. The
payroll is signed by the workman in the related "blocks" or a signed
copy of the daily time records are attached to the payroll.
ATTACHMENT 9•C (6)
If the above is not done, the worker is paid at least the highest
minimum wage rate of all of the classes of work performed for all
hours worked.
NOTES: Average Pay to Two Classes of Work Not Accepted. The
employer shall not pay a semi journeyman or semi -skilled laborer the
average of journeyman and laborer's rates. The actual hours each
worker uses tools of the trade (journeyman) and each hour he does not
use tools of the trade (laborer) must be recorded in separate "blocks" in
Column 3 of the payroll.
Helper. The work classification of "helper" is not accepted by the OIA
unless included in the wage decision issued by the Secretary of Labor
for the project. Any employee listed as "helper" in the absence of such
a classification in the wage decision must be paid the journeyman's rate
for hours he uses tools of the trade.
9. Column 4 — Hours worked, each day and date, for workweek are stated.
• Overtime Hours ("0"), if any, are stated separately from straight
hours; ("S"), over 40 hours any workweek.
10. Column 5 — Total hours worked during the workweek are stated (the
sum of sub -columns) in Column 4 — straight and overtime hours
recorded separately.
11. Column 6 — Rate of pay, not less than the minimum wage rate for the
work classification (see wage decision) is stated.
• The overtime rate of pay is not less than 1 and one-half times the
worker's basic (straight) hourly rate of pay (Contract Work Hours
Safety Standards).
• Apprentices. If a copy of the apprentice's registration certificate
from the State BAT has not been submitted to recipient by
employer (through contractor), the apprentice must be paid
journeyman's rate.
Piece Worker. Piece work must be stated in Column 6 at an hourly
rate, the gross pay for the workweek (work on the project) divided
by the total number of hours worked on the project during the
workweek.
12. Column 7 — Gross amount earned equals straight hours shown in
Column 5, times straight rate of pay shown in Column 6, plus overtime
hours (if any) shown in Column 5, times overtime rate of pay shown in
Column 6.
ATTACHMENT 9-C (7)
13. Column 8 — Deductions. Each deduction made is required by law or is:
• Voluntarily authorized by the worker in writing before the
workweek began, or
• Provided in a bargaining agreement to be deducted from the
respective worker's pay.
14. Column 9 — Net wages stated are Column 7 minus total deductions
shown in Column 8.
The following information must be provided on the back of the payroll
(Form WH -347). Each Employer must:
• Complete all blank spaces and understand the penalties for
falsification.
Check Item 4 if fringe benefits are included in the wage decision
for any of the workers:
-- If fringe benefits are paid to approve fund(s), or
If paid directly to each affected worker included in paycheck for
the workweek — his paycheck representing at least the pay of the
applicable minimum wage rate plus the amount of required
fringe benefits.
15. Manually sign the payroll in block marked "signature," and state his
title.
The person who signed the payroll must be the employee or an official
of the employer who legally is authorized to act for the employer.
16. Weekly Payroll Review. Each employer must promptly:
• Review the weekly payroll for compliance with all labor
requirements (using this checklist) and make necessary corrections.
Each subcontractor must receive a payroll or "no work" letter from
each of his lower -tier subcontractors, review each and his own
payroll, require necessary corrections, and submit all such payrolls
to the contractor within five (5) calendar days from the last date of
the workweek.
• Contractor must receive a payroll or "no work letter from each
subcontractor and each low -tier subcontractor, monitor each
including his own payroll, require necessary corrections, and
collectively submit them to the recipient within seven (7) work days
of the last day of the respective workweek.
ATTACHMENT 9•C (8)
VI. AFTER PROJECT COMPLETION
Each employer will:
• Keep all weekly payrolls on the project for three (3) years after the contractor's project
completion date.
ATTACHMENT D- (1)
D�PPSy,ENtOpFDL� U.S. Department of Housing
* O * and Urban Development
f Labor Relations Desk Guide
98gN DF1 £�D�
LR01.DG
10I5 -BACON
LABOR STANDARDS
January 2012
Previous versions obsolete
1.1111111 11I"ILeW
This Guide has been prepared for you as a contractor performing work on construction projects
that are assisted by the Department of Housing and Urban Development and subject to Davis -
Bacon prevailing wage requirements. This Guide does not address contractor requirements
involved in direct Federal contracting where HUD or another Federal agency enters into a
procurement contract. In this latter case, the Federal Acquisition Regulations (FAR) are appli-
cable. While the guidance contained in this Guide is generally applicable to any Davis -Bacon
covered project, specific questions pertaining to direct Federal contracts should be addressed
to the Contracting Officer who signed the contract for the Federal agency.
Our objective here is to provide you with a guide which is simple and non -bureaucratic yet
comprehensive and which will help you better understand and comply with Davis -Bacon labor
standards. HUD's Office of Labor Relations worked closely with the Department of Labor's
Wage and Hour Division to make sure that the labor standards provisions in your contract and
the specifics of complying with them represent the latest information. It is the Department of
Labor which has general administrative oversight of all Federal contracting agencies, such as
HUD, which administer the day-to-day responsibilities of enforcing Davis -Bacon provisions in
construction contracts they either fund or assist in funding.
There are three chapters in this Guide. The first chapter offers a brief description of the laws
and regulations associated with Federal labor standards administration and enforcement and
discusses both what's in your contract that requires Davis -Bacon compliance and your respon-
sibilities. The second chapter deals with labor standards and payroll reporting requirements.
The third chapter discusses what can happen in the event there is a dispute about the wage
rates that should be (or have been) paid and any back wages that may be due.
Finally, not all HUD construction projects are covered by Davis -Bacon wage rates. For the pur-
pose of this Guide, we are assuming that a determination has already been made that Davis -
Bacon wage rates are applicable. Should you wish assistance in determining whether Davis -
Bacon wage rates apply to a particular project or if you need other related technical assistance,
please consult with the HUD Labor Relations Field staff for your area. If you don't know which
staff to contact, a list of Labor Relations Feld offices and their geographic areas and telephone
numbers can be found on HUD's Home Page at the address below.
Visit the Office of Labor Relations on-line:
http://www.hud.gov/offices/olr
Obtain additional copies of this Guide and other publications at our website or by telephone
from HUD's Customer Service Center at (800)767-7468.
TABLE OF CONTENTS
INTRODUCTION................................................................................................................ i
CHAPTER 1 LAWS, REGULATIONS, CONTRACTS
THE
WAGE DECISION .................................................. .........................................
AND RESPONSIBILITIES.................................................................1-1
1-1
DAVIS-BACON AND OTHER LABOR LAWS . ..............................................
......... 1-1
a. The Davis -Bacon Act (DBA)...............................................................................1-1
Posting the wage decision..................................................................................2-2
b. The Contract Work Hours and Safety Standards Act (CWHSSA)......................1-1
ADDITIONAL
"TRADE" CLASSIFICATIONS AND WAGE RATES.......................2-2
c. The Copeland Act (Anti -Kickback Act) .......................................................
......... 1-2
a.
d. The Fair Labor Standards Act (FLSA)................................................................1-2
1-2
DAVIS-BACON REGULATIONS .......................... ................... ........ ........................
1-2
1-3
CONSTRUCTION CONTRACT PROVISIONS.......................................................1-2
c.
1-4
RESPONSIBILITY OF THE PRINCIPAL CONTRACTOR......................................1-3
1-5
RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR.................................1-4
CHAPTER
2 HOW TO COMPLY WITH LABOR STANDARDS
PAYROLL REPORTS..........................................................................2-4
AND PAYROLL REPORTING REQUIREMENTS.............................2-1
a.
SECTION - I THE BASICS
2-1
THE
WAGE DECISION .................................................. .........................................
2-1
a.
The work classifications and wage rates............................................................2-1
b.
Posting the wage decision..................................................................................2-2
2-2
ADDITIONAL
"TRADE" CLASSIFICATIONS AND WAGE RATES.......................2-2
a.
Additional classification rules.............................................................................2-2
b.
Making the request.............................................................................................2-3
c.
HUD review........................................................................................................2-3
d.
DOLdecision......................................................................................................2-3
2-3
CERTIFIED
PAYROLL REPORTS..........................................................................2-4
a.
Payroll formats...................................................................................................
2-4
b.
Payroll certifications...........................................................................................2-4
c.
"No work" payrolls..............................................................................................2-4
d.
Payroll review and submission...........................................................................2-5
e.
Payroll retention.................................................................................................2-5
f.
Payroll inspection...............................................................................................2-5
2-4
DAVIS-BACON DEFINITIONS................................................................................2-5
a.
Laborer or mechanic..........................................................................................2-5
b.
Employee... ... .............. ........... .........................................................................
2-6
c.
Apprentices and trainees....................................................................................2-6
d.
Prevailing wages or wage rates.........................................................................2-7
e.
Fringe benefits....................................................................................................2-7
f.
Overtime.............................................................................................................
2-7
g.
Deductions.........................................................................................................2-8
h.
Proper designation of trade................................................................................2-8
i.
Site of work... ................ .....................................................................................
2-8
SECTION - II REPORTING REQUIREMENT
2-5 COMPLETING A PAYROLL REPORT....................................................................2-9
a.
Project and contractor/subcontractor information...............................................2-9
b.
Employee information.........................................................................................2-9
c.
Work classification..............................................................................................2-9
a.
d.
Hours worked.....................................................................................................2-10
b.
e.
Rate of pay.........................................................................................................2-10
c.
f.
Gross wages earned..........................................................................................2-10
d.
g.
Deductions.........................................................................................................2-11
e.
h.
Net pay...............................................................................................................2-11
f.
i.
Statement of compliance....................................................................................2-11
g.
j.
Signature............................................................................................................2-11
h.
SECTION III - PAYROLL REVIEWS AND CORRECTIONS
2-6 COMPLIANCE REVIEWS.......................................................................................2-12
a.
On-site interviews...............................................................................................2-12
b.
Project payroll reviews.......................................................................................2-12
2-7 TYPICAL PAYROLL ERRORS AND REQUIRED CORRECTIONS .......................2-12
a.
Inadequate payroll information...........................................................................2-12
b.
Missing identification numbers...........................................................................2-12
c.
Incomplete payrolls............................................................................................2-13
d.
Classifications....................................................................................................2-13
e.
Wage Rates........................................................................................................2-13
f.
Apprentices and trainees....................................................................................2-13
g.
Overtime.............................................................................................................
2-13
h.
Computations.....................................................................................................2-13
i.
Deductions.........................................................................................................2-13
j.
Fringe benefits....................................................................................................2-14
k.
Signature............................................................................................................2-14
I.
On-site interview comparisons...........................................................................2-14
m.
Correction certified payroll..................................................................................2-14
2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES.............................................2-14
a.
Notification..........................................................................................................2-14
b.
Computing wage restitution................................................................................2-15
c.
Correction certified payrolls................................................................................2-15
d.
Review of correction CPR..................................................................................2-15
e.
Unfound workers................................................................................................2-15
IV
CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW
ACCOUNTS, AND SANCTIONS.......................................................3-1
3-1
INTRODUCTION.....................................................................................................3-1
3-2
ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES .....................3-1
a. Additional classifications and wage rates ................................... ........................
3-1
b. Findings of underpayment..................................................................................3-2
3-3
WITHHOLDING ...... .................................................................................................
3-2
3-4
DEPOSITS AND ESCROWS..................................................................................3-3
3-5
ADMINISTRATIVE SANCTIONS ..................................... .......................................
3-4
a. DOL debarment..................................................................................................3-4
b. HUD sanctions...................................................................................................3-4
3-6
FALSIFICATION OF CERTIFIED PAYROLL REPORTS........................................3-5
APPENDICIES
ACRONYMS AND SYMBOLS...........................................................................................A-1
DAVIS-BACON - RELATED WEB SITES*........................................................................A-2
HUD -4720, Project Wage Rate Sheet..............................................................................A-3
WH -347, Payroll Form/Statement of Compliance.......................................................... A-4
v
CHAPTER 1 LAWS, REGULATIONS, CONTRACTS
AND RESPONSIBILITIES
The following paragraphs describe what the labor standards laws and regulations actually say
and what they mean to you on HUD projects:
1-1 DAVIS-BACON AND OTHER LABOR LAWS.
a. The Davis -Bacon Act (DBA). The Davis -Bacon Act requires the payment of prevailing
wage rates (which are determined by the U.S. Department of Labor) to all laborers and
mechanics on Federal government and District of Columbia construction projects in
excess of $2,000. Construction includes alteration and/or repair, including painting and
decorating, of public buildings or public works.
Most HUD construction work is not covered by the DBA itself since HUD seldom contracts
directly for construction services. Most often, if Davis -Bacon wage rates apply to a HUD
project it is because of a labor provision contained in one of HUD's "Related Acts" such
as the U. S. Housing Act of 1937, the National Housing Act, the Housing and Community
Development Act of 1974, the National Affordable Housing Act of 1990, and the Native
American Housing Assistance and Self -Determination Act of 1996. The Related Acts are
often referred to as the Davis -Bacon and Related Acts or DBRA.
b. The Contract Work Hours and Safety Standards Act (CWHSSA). CWHSSA
requires time and one-half pay for overtime (O/T) hours (over 40 in any workweek)
worked on the covered project. The CWHSSA applies to both direct Federal
contracts and to indirect Federally -assisted contracts except where the assistance
is solely in the nature of a loan guarantee or insurance. CWHSSA violations
carry a liquidated damages penalty ($10/day per violation). Intentional violations
of CWHSSA standards can be considered for Federal criminal prosecution.
CWHSSA does not apply to prime contracts of $100,000 or less. In addition, some HUD
projects are not covered by CWHSSA because some HUD programs only provide loan
guarantees or insurance. CWHSSA also does not apply to construction or rehabilitation
contracts that are not subject to Federal prevailing wage rates (e.g., Davis -Bacon wage
rates, or HUD -determined rates for operation of public housing and Indian block grant -
assisted housing). However, even though CWHSSA overtime pay is not required, Fair
Labor Standards Act (FLSA) overtime pay is probably still applicable. (See also Labor
Relations Letter SL -95-01, CWHSSA Coverage threshold for overtime and health and
safety provision, available on-line at the HUD Labor Relations Library at: www.hud.gov/
l offices/olr/library.cfm)
1-1
c. The Copeland Act (Anti -Kickback Act). The Copeland Act makes it a Federal crime
for anyone to require any laborer or mechanic (employed on a Federal or Federally -
assisted project) to kickback (i.e., give up or pay back) any part of their wages. The
Copeland Act requires every employer (contractors and subcontractors) to submit
weekly certified payroll reports (CPRs) and regulates permissible payroll deductions.
d. The Fair Labor Standards Act (FLSA). The FLSA contains Federal minimum wage
rates, overtime (O/T), and child labor requirements. These requirements generally apply
to any labor performed. The DOL has the authority to administer and enforce FLSA.
HUD will refer to the DOL any possible FLSA violations that are found on HUD projects.
1-2 DAVIS-BACON REGULATIONS.
The Department of Labor (DOL) has published rules and instructions concerning
Davis -Bacon and other labor laws in the Code of Federal Regulations (CFR). These
regulations can be found in Title 29 CFR Parts 1, 3, 5, 6 and 7. Part 1 explains how
the DOL establishes and publishes DBA wage determinations (aka wage decisions) and
provides instructions on how to use the determinations. Part 3 describes Copeland Act
requirements for payroll deductions and the submission of weekly certified payroll reports.
Part 5 covers the labor standards provisions that are in your contract relating to Davis -
Bacon Act wage rates and the responsibilities of contractors and contracting agencies to
administer and enforce the provisions. Part 6 provides for administrative proceedings
enforcing Federal labor standards on construction and service contracts. Last, Part 7
sets parameters for practice before the Administrative Review Board. These regulations
are used as the basis for administering and enforcing the laws.
DOL Regulations are available on-line on the World Wide Web:
hftp://www.dol.gov/dol/allcfrTritle-29.htm
1-3 CONSTRUCTION CONTRACT PROVISIONS
Each contract subject to Davis -Bacon labor standards requirements must contain labor
standards clauses and a Davis -Bacon wage decision. These documents are normally
bound into the contract specifications.
a. The labor standards clauses. The labor standards clauses describe the responsibilities
of the contractor concerning Davis -Bacon wages and obligate the contractor to comply
with the labor requirements. The labor standards clauses also provide for remedies in
the event of violations, including withholding from payments due to the contractor to
ensure the payment of wages or liquidated damages which may be found due. These
contract clauses enable the contract administrator to enforce the Federal labor standards
applicable to the project. HUD has standard forms that contain contract clauses. For
example, the HUD -2554, Supplementary Conditions to the Contract for Construction,
which is issued primarily for FHA multifamily housing and other construction projects
1-2
administered by HUD; the HUD -4010, Federal Labor Standards Provisions, which is used
for CDBG and HOME projects, and the HUD -5370, General Conditions of the Contract for
Construction or the HUD -5370 -EZ (construction contracts :5$100,000) which are used for
Public and Indian Housing projects.
HUD program labor standards forms are available on-line at:
www.hud.gov/ofrices/adm/hudelipsAndex.cfm
b. Davis -Bacon Wage Decisions. The Davis -Bacon wage decision (or wage determination)
is a listing of various construction work classifications, such as Carpenter, Electrician,
Plumber and Laborer, and the minimum wage rates (and fringe benefits, where prevailing)
that people performing work in those classifications must be paid.
Davis -Bacon wage decisions are established by the DOL for various types of construction
(e.g., residential, heavy, highway) and apply to specific geographic areas, usually a
county or group of counties. Wage decisions are modified from time to time to keep them
current. In most cases, when the contract is awarded or when construction begins, the
wage decision is 'locked -in" and no future modifications are applicable to the contract or
project involved.
All current Davis -Bacon wage decisions can be accessed on-line at no cost at:
http://www.wdol.gov
1-4 RESPONSIBILITY OF THE PRINCIPAL CONTRACTOR
The principal contractor (also referred to as the prime or general contractor) is responsible
for the full compliance of all employers (the contractor, subcontractors and any lower -tier
subcontractors) with the labor standards provisions applicable to the project. Because
of the contractual relationship between a prime contractor and his/her subcontractors,
subcontractors generally should communicate with the contract administrator only through
the prime contractor. (See Contract Administrator, below.)
To make this Guide easier to understand, the term "prime contractor" will mean the
principal contractor; "subcontractor" will mean all subcontractors including lower -tier
subcontractors; and the term "employer" will mean all contractors as a group, including
the prime contractor and any subcontractors and lower -tier subcontractors.
1-3
1-5 RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR.
The contract administrator is responsible for the proper administration and enforcement
of the Federal labor standards provisions on contracts covered by Davis -Bacon
requirements. We use this term to represent the person (or persons) who will provide
labor standards advice and support to you and other project principals (e.g., the owner,
sponsor, architect), including providing the proper Davis -Bacon wage decision
(see 2-1, The Wage Decision) and ensuring that the wage decision and contract clauses
are incorporated into the contract for construction. The contract administrator also monitors
labor standards compliance (see 2-6, Compliance Reviews) by conducting interviews
with construction workers at the job site and reviewing payroll reports, and oversees any
enforcement actions that may be required.
The contract administrator could be an employee or agent of HUD, or of a city or county or
public housing agency. For HUD projects administered directly by HUD staff, usually FHA -
insured multifamily projects, the contract administrator will be the HUD Labor Relations
field staff. But many HUD -assisted projects are administered by local contracting agencies
such as Public Housing Agencies (PHAs), Indian tribes and tribally -designated housing
entities (TDHEs), and States, cities and counties under HUD's Community Development
Block Grant (CDBG) and HOME programs. In these cases, the contract administrator
will likely be local agency staff. In either case, the guidance for you remains essentially
the same.
The DOL also has a role in monitoring Davis -Bacon administration and enforcement. In
addition, DOL has independent authority to conduct investigations. A DOL investigator
or other DOL representative may visit Davis -Bacon construction sites to interview
construction workers or review payroll information.
1-4
CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS
AND PAYROLL REPORTING REQUIREMENTS
WHERE TO START? Now that you know you're on a Davis -Bacon project and you know
some of the legal and practical implications, what's next?
SECTION I - THE BASICS
2-1 THE WAGE DECISION.
Davis -Bacon labor standards stipulate the wage payment requirements for Carpenters,
Electricians, Plumbers, Roofers, Laborers, and other construction work classifications
that may be needed for the project. The Davis -Bacon wage decision that applies to the
project contains a schedule of work classifications and wage rates that must be followed.
If you don't have it already (and by now you should), you'll want to get a copy of the
applicable Davis -Bacon wage decision.
Remember, the wage decision is contained in the contract specifications along with the
` labor standards clauses. See 1-3, Construction Contract Provisions.
a. The work classifications and wage rates. 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 work in those classifications. You'll want to make sure that the
work classification(s) you need are contained in the wage decision and make certain
you know exactly what wage rate(s) you will need to pay. Some wage decisions
cover several counties and/or types of construction work (for example, residential
and commercial work) and can be lengthy and difficult to read. Contact the contract
administrator (HUD Labor Relations field staff or local agency staff) if you have
any trouble reading the wage decision or finding the work classification(s) you need.
To make reading lengthy wage decisions easier for you, the contract administrator may
prepare a Project Wage Rate Sheet (HUD -4720). This Sheet is a one-page transcript that
will show only the classifications and wage rates for a particular project. A blank copy of
a Project Wage Rate Sheet is provided for you in the appendix. Also, a fillable version of
this form is available on-line at HUDClips (see web address in the Appendix). Contact the
contract administrator monitoring your project for assistance with a Project Wage Rate
Sheet.
2-1
b. Posting the wage decision. If you are the prime contractor, you will be responsible for
posting a copy of the wage decision (or the Project Wage Rate Sheet) and a copy of the
DOL Davis -Bacon poster titled Employee Rights under the Davis -Bacon Act (Form WH -
1321) at the job site in a place that is easily accessible to all of the construction workers
employed at the project and where the wage decision and poster won't be destroyed by
wind or rain, etc. The Employee Rights under the Davis -Bacon Act poster is available in
English and Spanish on-line at HUDCIips (see address in the Appendix).
The Employee Rights under the Davis -Bacon Act poster (WH -1321) replaces the Notice
to all Employees. The new poster is available in English and Spanish on-line at HUDCIips
(see address in the Appendix).
2-2 ADDITIONAL "TRADE" CLASSIFICATIONS AND WAGE RATES.
What if the work classification you need isn't on the wage decision? If the work
classification (s) that you need doesn't appear on the wage decision, you will need to
request an additional classification and wage rate. This process is usually very simple
and you'll want to start the request right away. Basically, you identify the classification
you need and recommend a wage rate for DOL to approve for the project. There are a
few rules about additional classifications; you'll find these rules in the DOL regulations,
Part 5, and in the labor clauses in your contract. The rules are summarized for you here:
a. Additional classification rules. Additional classifications and wage rates can be
approved if:
1. The requested classification is used by construction contractors in the area of the
project. (The area is usually defined as the county where the project is located).
2. The work that will be performed by the requested classification is not already
performed by another classification that is already on the wage decision. (In other
words, if there already is an Electrician classification and wage rate on the wage
decision you can't request another Electrician classification and rate.)
3. The proposed wage rate for the requested classification "fits" with the other wage
rates already on the wage decision. (For example, the wage rate proposed for
a trade classification such as Electrician must be at least as much as the lowest
wage rate for other trade classifications already contained in the wage decision.)
And,
4. The workers that will be employed in the added classification (if it is known who the
workers are/will be), or the workers' representatives, must agree with the proposed
wage rate.
2-2
b. Making the request. A request for additional classification and wage rate must be made
in writing through the contract administrator. (If the contract administrator is a local
agency, the agency will send the request to the HUD Labor Relations staff.) If you are a
subcontractor, your request should also go through the prime contractor. All you need to
do is identify the work classification that is missing and recommend a wage rate (usually
the rate that employer is already paying to the employees performing the work) for that
classification. You may also need to describe the work that the new classification will
perform.
c. HUD review. The HUD Labor Relations field staff will review the requested classification
and wage rate to determine whether the request meets the DOL rules outlined in paragraph
2-2(a), above. If additional information or clarification is needed, the staff will contact the
prime contractor (or contract administrator for local agency projects) for more information,
etc. If the Labor Relations review finds that the request meets the rules, the staff will give
preliminary approval on the request and refer it to the DOL for final approval. The staff
will send to you a copy of the preliminary approval/referral letter to the DOL.
If the HUD Labor Relations staff doesn't think the request meets the rules and if agreement
can't be reached on the proper classification or wage rate for the work described, the
HUD Labor Relations staff will not approve the request. In this case, the staff will send
your request to the DOL with an explanation why HUD believes that the request shouldn't
be approved. The DOL still has final decision authority. You will receive a copy of the
disapproval/referral letter to the DOL.
d. DOL decision. The DOL will respond to HUD Labor Relations in writing about the
additional classification and wage rate request. HUD Labor Relations will notify you of
the DOL decision in writing. If the DOL approves the request, the prime contractor must
post the approval notice on the job site with the wage decision.
If the DOL does not approve the request, you will be notified about what classification and
wage rate should be used for the work in question. You will also receive instructions about
how to ask for DOL reconsideration if you still want to try to get your recommendation
approved.
It's always a good idea to talk to the contract administrator before submitting an additional
classification and wage rate request. The contract administrator can offer suggestions
and advice that may save you time and increase the likelihood that DOL will approve your
request. Usually, the contract administrator can give you an idea about what the DOL will
finally decide.
2-3
2-3 CERTIFIED PAYROLL REPORTS.
You'll need to submit a weekly certified payroll report (CPR) beginning with the first week
that your company works on the project and for every week afterward until your firm has
completed its work. It's always a good idea to number the payroll reports beginning with
#1 and to clearly mark your last payroll for the project "Final."
a. Payroll formats. The easiest form to use is DOL's WH -347, Payroll. A sample copy of
the WH -347 is included in the back of this Guide. You may access a fillable version of
the WH -347 on-line at HUDClips (see web address in the Appendix). Also, the contract
administrator can provide a few copies of the WH -347 that you can reproduce.
You -are required to use Payroll form WH -347. You are welcome to use any other type \!
of payroll, such as computerized formats, as long as it contains all of the information that
is required on the WH -347.
b. Payroll certifications. The weekly payrolls are called certified because each payroll
is signed and contains language certifying that the information is true and correct. The
payroll certification language is on the reverse side of the WH -347. If you are using
another type of payroll format you may attach the certification from the back of the WH -
347, or any other format which contains the same certification language on the WH -347
(reverse).
DOL's website has Payroll Instructions and the Payroll form WH -347 in a "fillable" PDF
format at this address:
www.dol.gov/whd/forms/wh347.pdf
c. "No work" payrolls. "No work" payrolls may be submitted whenever there is a
temporary break in your work on the project, for example, if your firm is not needed on
the project right now but you will be returning to the job in a couple of weeks. (See tip
box, for "no work" payroll exemption!) However, if you know that your firm will not be
working on the project for an extended period of time, you may wish to send a short
note to the contract administrator to let them know about the break in work and to give
an approximate date when your firm will return to the project. If you number payrolls
consecutively or if you send a note, you do not need to send "no work" payrolls.
If you number your payroll reports consecutively, you do not need to submit "no work"
payrolls!
ME
Payroll review and submission. The prime contractor should review each subcontractor's
payroll reports for compliance prior to submitting the reports to the contract administrator.
Remember, the prime contractor is responsible for the full compliance of all subcontractors
on the contract and will be held accountable for any wage restitution that may be found
due to any laborer or mechanic that is underpaid and for any liquidated damages that
may be assessed for overtime violations. All of the payroll reports for any project must be
submitted to the contract administrator through the prime contractor.
An alert prime contractor that reviews subcontractor payroll submissions can detect any
misunderstandings early, prevent costly underpayments and protect itself from financial
loss should underpayments occur.
e. Payroll retention. Every contractor (including every subcontractor) must keep a complete
set of their own payrolls and other basic records such as employee addresses and full
SSNs, time cards, tax records, evidence of fringe benefit payments, for a Davis -Bacon
project for at least 3 years after the project is completed. The prime contractor must keep
a complete set of all of the payrolls for every contractor (including subcontractors) for at
least 3 years after completion of the project.
f. Payroll inspection. In addition to submitting payrolls to the contract administrator, every
contractor (including subcontractors) must make their own copy of the payrolls and
other basic records available for review or copying to any authorized representative from
HUD or from DOL.
2-4 DAVIS-BACON DEFINITIONS.
Before we discuss how to complete the weekly payroll forms, we need to review a couple
of definitions. These definitions can help you understand what will be required of you:
a. Laborer or mechanic. "Laborers" and "mechanics" mean anyone who is performing
construction work on the project, including tradejourneymen (carpenters, plumbers, sheet
metal workers, etc.), apprentices, and trainees and, for CWHSSA purposes, watchmen
and guards. "Laborers" and "mechanics" are the two groups of workers that must be paid
not less than Davis -Bacon wage rates.
1. Working foremen. Foremen or supervisors that regularly spend more than
20% of their time performing construction work and do not meet the exclusions
in paragraph 2 below are covered "laborers" and "mechanics" for labor standards
purposes for the time spent performing construction work.
2. Exclusions. People whose duties are primarily administrative, executive or
clerical are not laborers or mechanics. Examples include superintendents, office
staff, timekeepers, messengers, etc. (Contact the contract administrator if you
have any questions about whether a particular employee is excluded.)
2-5
b. Employee. Every person who performs the work of a laborer or mechanic is "employed"
regardless of any contractual relationship which may be alleged to exist between a
contractor or subcontractor and such person. This means that even if there is a contract
between a contractor and a worker, the contractor must make sure that the worker is
paid at least as much as the wage rate on the wage decision for the classification of work
they perform. Note that there are no exceptions to the prevailing wage requirements for
relatives or for self-employed laborers and mechanics.
For more information about working subcontractors, ask the contract administrator or
your HUD Labor Relations Field Staff for a copy of Labor Relations Letter LR -96-01,
Labor standards compliance requirements for self-employed laborers and mechanics.
Labor Relations Letters and other helpful Labor Relations publications are available at
HUD's Labor Relations web site (see the list of web site addresses in the Appendix).
c. Apprentices and trainees. The only workers who can be paid less than the wage rate on
the wage decision for their work classification are "apprentices" and "trainees" registered in
approved apprenticeship or training programs. Approved programs are those which have
been registered with the DOL or a DOL -recognized State Apprenticeship Council (SAC).
Apprentices and trainees are paid wage rates in accordance with the wage schedule in
the approved program.
Most often, the apprentice/trainee wage rate is expressed as a series of percentages tied
to the amount of time spent in the program. For example, 0-6 months: 65%; 6 months
- 1 year: 70%; etc. The percentage is applied to the journeyman's wage rate. On Davis -
Bacon projects, the percentage must be applied to the journeyman's wage rate on the
applicable wage decision for that craft.
1. Probationary apprentice. A"probationary apprentice" can be paid as an apprentice
(less than the rate on the wage decision) if the DOL or SAC has certified that the
person is eligible for probationary employment as an apprentice.
2. Pre -apprentice. A "pre -apprentice", that is, someone who is not registered in a
program and who hasn't been DOL- or SAC -certified for probationary apprenticeship
is not considered to be an "apprentice" and must be paid the full journeyman's rate
on the wage decision for the classification of work they perform.
3. Ratio of apprentices and trainees to journeymen. The maximum number of
apprentices or trainees that you can use on the job site cannot exceed the ratio of
apprentices or trainees to journeymen allowed in the approved program.
2-6
d. Prevailing wages or wage rates. Prevailing wage rates are the wage rates listed on the
wage decision for the project. The wage decision will list a minimum basic hourly rate
of pay for each work classification. Some wage decisions include fringe benefits which
are usually listed as an hourly fringe rate. If the wage decision includes a fringe benefit
rate for a classification, you will need to add the fringe benefit rate to the basic hourly rate
unless you provide bona fide fringe benefits for your employees.
1. Piece -work. Some employees are hired on a piece -work basis, that is, the
employee's earnings are determined by a factor of work produced. For example,
a Drywall Hanger's earnings may be calculated based upon the square feet of
sheetrock actually hung, a Painter's earnings may be based upon the number
of units painted. Employers may calculate weekly earnings based upon
piece rates provided the weekly earnings are sufficient to satisfy the wage
rate requirement based upon actual hours, including any overtime, worked.
Accurate time records must be maintained for any piece -work employees.
If the weekly piece rate earnings are not sufficient, the employer must
recompute weekly earnings based upon the actual hours worked and
the rate on the wage decision for the work classification(s) involved.
e. Fringe benefits Fringe benefits can include health insurance premiums, retirement
contributions, life insurance, vacation and other paid leave as well as some contributions
to training funds. Fringe benefits do not include employer payments or contributions
required by other Federal, State or local laws, such as the employer's contribution to
Social Security or some disability insurance payments.
Note that the total hourly wage rate paid to any laborer or mechanic (basic wage or basic
wage plus fringe benefits) may be no less than the total wage rate (basic wage or basic
wage plus fringe benefits) on the wage decision for their craft. If the value of the fringe
benefit(s) you provide is less than the fringe benefit rate on the wage decision, you will
need to add the balance of the wage decision fringe benefit rate to the basic rate paid to
the employee. For example, if the wage decision requires $10/hour basic rate plus $5/
hour fringe benefits, you must pay no less than that total ($15/hour) in the basic rate or
basic rate plus whatever fringe benefit you may provide. You can meet this obligation
in several ways: you could pay the base wage and fringe benefits as stated in the wage
decision, or you could pay $15 in base wage with no fringe benefits, or you could pay $12
basic plus $3 fringe benefits. You can also off -set the amount of the base wage if you pay
more in fringe benefits such as by paying or $9 basic plus $6 fringe benefits; as long as
you meet the total amount. The amount of the base wage that you may off -set with fringe
benefits is limited by certain IRS and FLSA requirements.
f. Overtime. Overtime hours are defined as all hours worked on the contract in excess of
40 hours in any work week. Overtime hours must be paid at no less than one and one-
half times the regular rate of basic pay plus the straight -time rate of any required fringe
benefits.
2-7
g. Deductions. You may make payroll deductions as permitted by DOL Regulations 29 CFR
Part 3. These regulations prohibit the employer from requiring employees to "kick -back"
(i.e., give up) any of their earnings. Allowable deductions which do not require prior DOL
permission include employee obligations for income taxes, Social Security payments,
insurance premiums, retirement, savings accounts, and any other legally -permissible
deduction authorized by the employee. Deductions may also be made for payments on
judgments and other financial obligations legally imposed against the employee.
Referring, again, to our example above where the wage decision requiring a $15 total
wage obligation ($10 basic wage plus $5 fringe benefits) was met by paying $9 base
wage plus $6 fringe benefits: Note that overtime rates must be based on one and one-half
times the basic rate as stated on the wage decision. In the above example, the employer
must pay for overtime: $15/hr ($9 basic + $6 fringe) plus $5 (one-half of $10, the wage
decision basic rate) for a total of $20 per hour.
h. Proper desianation of trade. You must select a work classification on the wage decision
for each worker based on the actual type of work he/she performed and you must pay each
worker no less than the wage rate on the wage decision for that classification regardless
of their level of skill. In other words, if someone is performing carpentry work on the
project, they must be paid no less than the wage rate on the wage decision for Carpenters
even if they aren't considered by you to be fully trained as a Carpenter. Remember, the
only people who can be paid less than the rate for their craft are apprentices and trainees
registered in approved programs.
1. SDI it -classification. If you have employees that perform work in more than
one trade during a work week, you can pay the wage rates specified for each
classification in which work was performed only if you maintain accurate time
records showing the amount of time spent in each classification of work. If you do
not maintain accurate time records, you must pay these employees the highest
wage rate of all of the classifications of work performed.
i. Site of work. The "site of work" is where the Davis -Bacon wage rates apply. Usually,
this means the boundaries of the project. "Site of work" can also include other adjacent
or virtually adjacent property used by a contractor or subcontractor in the construction of
the project, like a fabrication site that is dedicated exclusively, or nearly so, to the project.
W.
SECTION II - REPORTING REQUIREMENTS
2-5 COMPLETING A PAYROLL REPORT.
What information has to be reported on the payroll form? The weekly payroll form doesn't
ask for any information that you don't already need to keep for wage payment and tax
purposes. For example, you need to know each employee's name; his or her work
classification (who is working for you and what do they do?), the hours worked during the
week, his or her rate of pay, the gross amount earned (how much did they earn?), the
amounts of any deductions for taxes, etc., and the net amount paid (how much should
the paycheck be made out for?). No more information than you need to know in order to
manage your work crew and make certain they are paid properly. And, certainly, no more
information than you need to keep for IRS, Social Security and other tax and employment
purposes.
Fm---
nycontractors, the Weekly Certified Payroll is the only Davis -Bacon paperwork
ed to submit!
You are required to submit certified payrolls to illustrate and document that you have
complied with the prevailing wage requirements. The purpose of the contract administrator's
review of your payrolls is to verify your compliance. Clearer and complete payroll reports
will permit the contract administrator to complete reviews of your payroll reports quickly.
a. Project and contractor/subcontractor information. Each payroll must identify the
contractor or subcontractor's name and address, the project name and number, and the
week ending date. Indicate the week dates in the spaces provided. Numbering payrolls
is optional but strongly recommended.
b. Employee information. Effective January 18, 2009, payrolls shall not report employee
addresses or full Social Security Numbers (SSNs). Instead, the first payroll on which
each employee appears shall include the employee's name and an individually identifying
number, usually the last 4 digits of the employee's SSN. Afterward, the identifying number
does not need to be reported unless it is necessary to distinguish between employees,
e.g., if two employees have the same name.
Employers (prime contractors and subcontractors) must maintain the current address
and full SSN for each employee and must provide this information upon request to the
contracting agency or other authorized representative responsible for federal labor
standards compliance monitoring. Prime contractors may require a subcontractor(s) to
provide this information for the prime contractor's records. DOL has modified form WH -
347, Payroll, to accommodate these reporting requirements.
c. Work classification. Each employee must be classified in accordance with the wage
decision based on the type of work they actually perform.
quo
1. Apprentices or trainees. The first payroll on which any apprentice or trainee
appears must be accompanied by a copy of that apprentice's or trainee's registration
in a registered or approved program. A copy of the portions of the registered or
approved program pertaining to the wage rates and ratios shall also accompany
the first payroll on which the first apprentice or trainee appears.
2. Split classifications. For an employee that worked in a split classification, make
a separate entry for each classification of work performed distributing the hours of
work to each classification, accordingly, and reflecting the rate of pay and gross
earnings for each classification. Deductions and net pay may be based upon the
total gross amount earned for all classifications.
d. Hours worked. The payroll should show ONLY the regular and overtime hours worked
on this project. Show both the daily and total weekly hours for each employee. If an
employee performs work atjob sites other than the project for which the payroll is prepared,
those "other job" hours should not be reported on the payroll. In these cases, you should
list the employee's name, classification, hours for this project only, the rate of pay and
gross earnings for this project, and the gross earned for all projects. Deductions and net
pay may be based upon the employee's total earnings (for all projects) for the week.
e. Rate of pay. Show the basic hourly rate of pay for each employee for this project. If
the wage decision includes a fringe benefit and you do not participate in approved fringe
benefit programs, add the fringe benefit rate to the basic hourly rate of pay. Also list the
overtime rate if overtime hours were worked.
1. Piece -work. For any piece -work employees, the employer must
compute an effective hourly rate for each employee each week based
upon the employee's piece -work earnings for that week. To compute
the effective hourly rate, divide the piece -work earnings by the total
number of hours worked, including consideration for any overtime hours.
The effective hourly rate must be reflected on the certified payroll and this hourly
rate may be no less than the wage rate (including fringe benefits, if any) on the
wage decision for the classification of work performed. It does not matter that the
effective hourly rate changes from week -to -week, only that the rate is no less than
the rate on the wage decision for the classification of work performed.
Remember, the overtime rate is computed at one and one-half times the basic rate of pay
plus any fringe benefits. For example, if the wage decision requires $10/hour basic plus
$5/hour fringe benefits. the overtime rate would be: ($10 x 1 '/2) + $5 = $20/hour.
f. Gross waaes earned. Show the gross amount of wages earned for work performed on
this project. Note: For employees with work hours and earnings on other projects, you
may show gross wages for this project over gross earnings all projects (for example,
$425.40/$764.85) and base deductions and net pay on the "all projects" earnings.
2-10
g. Deductions. Show the amounts of any deductions from the gross earnings. "Other"
deductions should be identified (for example, Savings Account or Loan Repayment). Any
voluntary deduction (that is, not required by law or by an order of a proper authority)
must be authorized in writing by the employee or provided for in a collective bargaining
(union) agreement. A short note signed by the employee is all that is needed and should
accompany the first payroll on which the other deduction appears.
Only one employee authorization is needed for recurring (e.g., weekly) other deductions.
Written employee authorization is not required for income tax and Social Security
deductions.
h. Net nay. Show the net amount of wages paid.
i. Statement of compliance. The Statement of Compliance is the certification. It is
located on the reverse side of a standard payroll form (WH -347). Be sure to complete
the identifying information at the top, particularly if you are attaching the Statement of
Compliance to an alternate payroll form such as a computer payroll. Also, you must
check either 4(a) or 4(b) if the wage decision contains a fringe benefit. Checking 4(a)
indicates that you are paying required fringe benefits to approved plans or programs;
and 4(b) indicates that you are paying any required fringe benefit amounts directly to
the employee by adding the fringe benefit rate to the basic hourly rate of pay. If you are
paying a portion of the required fringe benefit to programs and the balance directly to the
employee, explain those differences in box 4(c).
Only one Statement of Compliance is required for each employer's weekly payroll no
matter how many pages are needed to report the employee data.
j. Signature. Make sure the payroll is signed with an original signature in ink. The payroll
must be signed by a principal of the firm (owner or officer such as the president, treasurer
or payroll administrator) or by an authorized agent (a person authorized by a principal
in writing to sign the payroll reports). Signature authorization (for persons other than a
principal) should be submitted with the first payroll signed by such an agent. Signatures
in pencil; signature stamps; xerox, pdf and other facsimiles are not acceptable.
2-11
SECTION 111 - PAYROLL REVIEWS AND CORRECTIONS
2-6 COMPLIANCE REVIEWS.
The contract administrator or other inspector may visit the project site and interview
some of the workers concerning their employment on the project. The DOL may also
independently conduct its own reviews (see 1-5). In addition, the contract administrator will
periodically review payrolls and related submissions, comparing the interview information
to the payrolls, to ensure that the labor standards requirements have been met. You will
be notified by the contract administrator if these reviews find any discrepancies or errors.
You will be given instructions about what steps must be taken to correct any problems.
a. On-site interviews. Every employer (contractor, subcontractor, etc.) must make their
employees available for interview at the job site with the contract administrator or other
agency representative, or HUD or DOL representative. The interviews are confidential
and the employee will be asked about the kind of work they perform and their rate of
pay. Every effort will be made to ensure that these interviews cause as little disruption
as possible to the on-going work. The interviewer will record the interview information,
usually on a form HUD -11, Record of Employee Interview, and forward the interviews to
the contract administrator.
b. Project 12avroll reviews. The contract administrator will compare the information on
the interview forms to the corresponding payrolls to ensure that the workers are properly
listed on the payrolls for the days and hours worked on the job site, work classification
and rate of pay. The contract administrator will also review the payroll submissions to
make certain that the payrolls are complete and signed; that employees are paid no less
than the wage rate for the work classification shown; apprentice and trainee certifications
are submitted (where needed); employee or other authorizations for other deductions are
submitted (where needed); etc.
2-7 TYPICAL PAYROLL ERRORS AND REQUIRED CORRECTIONS.
The following paragraphs describe common payroll errors and the corrective steps you
must take.
a. Inadequate payroll information. If an alternate payroll format used by an employer (such
as some computer payrolls) is inadequate, e.g., does not contain all of the necessary
information that would be on the optional form WH -347, the employer will be asked to
resubmit the payrolls on an acceptable form.
b. Missing identification numbers. If the first payroll on which an employee appears does
not contain the employee's individually identifying number, the employer will be asked
to supply the missing information. This information can be reported on the next payroll
submitted by the employer if the employer is still working on the project. Otherwise, the
employer will be asked to submit a correction certified payroll.
2-12
c. Incomplete payrolls. If the information on the payroll is not complete, for example, if
work classifications or rates of pay are missing, the employer will be asked to send a
correction certified payroll.
d. Classifications. If the payrolls show work classifications that do not appear on the wage
decision, the employer will be asked to reclassify the employees in accordance with the
wage decision or the employer may request an additional classification and wage rate
(see 2-2). If reclassification results in underpayment (i.e., the wage rate reported on the
payroll is less than the rate required for the new classification), the employer will be asked
to pay wage restitution to all affected reclassified employees. (see 2-8 for instructions
about wage restitution.)
e. Wage rates. If the wage rates on the payroll are less than the wage rates on the wage
decision for the work classifications reported, the employer will be asked to pay wage
restitution to all affected employees.
f. Apprentices and trainees. If a copy of the employee's registration or the approved
program ratio and wage schedule are not submitted with the first payroll on which an
apprentice or trainee appears, the employer will be asked to submit a copy of each
apprentice's or trainee's registration and/or the approved program ratio and wage
schedule. If the ratio of apprentices or trainees to journeymen on the payroll is greater
than the ratio in the approved program, the employer will be asked to pay wage restitution
to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered
in an approved program must receive the journeyman's wage rate for the classification of
work they performed.
g. Overtime. If the employees did not receive at least time and one-half for any overtime
hours worked on the project, the following will occur:
1. If the project is subject to CWHSSA overtime requirements, the employer will be
asked to pay wage restitution for all overtime hours worked on the project. The
employer may also be liable to the United States for liquidated damages computed
at $10 per day per violation. Or,
2. If the project is not subject to CWHSSA, the employer will be notified of the possible
FLSA overtime violations. Also, the contract administrator may refer the matter to
the DOL for further review.
h. Computations. If the payroll computations (hours worked times rate of pay) or extensions
(deductions, net pay) show frequent errors, the employer will be asked to take greater
care. Wage restitution may be required if underpayments resulted from the errors.
i. Deductions. If there are any "Other" deductions that are not identified, or if employee
authorization isn't provided, or if there is any unusual (very high, or large number)
deduction activity, the employer will be asked to identify the deductions, provide employee
authorization or explain unusual deductions, as necessary.
2-13
HUD does not enforce or attempt to provide advice on employer obligations to make
deductions from employee earnings for taxes or Social Security. However, HUD may
refer to the IRS or other responsible agency copies of certified payroll reports that show
wages paid in gross amounts (i.e., without tax deduction) for its review and appropriate
action.
j. Fringe benefits. If the wage decision contains fringe benefits but the payroll does not
indicate how fringe benefits were paid [neither 4(a) nor 4(b) is marked on the Statement
of Compliance], the employer may be asked to submit correction certified payrolls and
will be required to pay wage restitution if underpayments occurred. However, if the basic
hourly rates for the employees are at least as much as the total wage rate on the wage
decision (basic hourly rate plus the fringe benefit rate), no correction is necessary.
k. Sianature. If the payroll Statement of Compliance is not signed or is missing, the employer
will be asked to submit a signed Statement of Compliance for each payroll affected. If the
Statement of Compliance is signed by a person who is not a principle of the firm and that
person has not been authorized by principle to sign, the employer will be asked to provide
an authorization or to resubmit the Statement(s) of Compliance bearing the signature of
a principle or other authorized signatory.
On-site interview comparisons. If the comparison of on-site interviews to the payrolls
indicates any discrepancies (for example, the employee does not appear on the payroll
for the date of the interview), the employer will be asked to submit a correction certified
payroll report.
m. Correction certified payroll. Any and all changes to data on a submitted payroll report
must be reported on a certified correction payroll. In no case will a payroll report be
returned to the prime contractor or employer for revision.
2-8
faCl
RESTITUTION FOR UNDERPAYMENT OF WAGES.
Where underpayments of wages have occurred, the employer will be required to pay
wage restitution to the affected employees. Wage restitution must be paid promptly in the
full amounts due, less permissible and authorized deductions. All wages paid to laborers
and mechanics for work performed on the project, including wage restitution, must be
reported on a certified payroll report.
Notification to the Employer/Prime contractor. The contract administrator will notify the
employer and/or prime contractor in writing of any underpayments that are found during
payroll or other reviews. The contract administrator will describe the underpayments and
provide instructions for computing and documenting the restitution to be paid. Theemployer/
prime contractor is allowed 30 days to correct the underpayments. Note that the prime
contractor is responsible to the contract administrator for ensuring that restitution is paid. If
the employer is a subcontractor, the subcontractor will usually make the computations and
restitution payments and furnish the required documentation through the prime contractor.
The contract administrator may communicate directly with a subcontractor when the
underpayments are plainly evident and the subcontractor is cooperative. It is best
to work through the prime contractor when the issues are complex, when there are
significant underpayments and/or the subcontractor is not cooperative. In all cases,
the subcontractor must ensure that the prime contractor receives a copy of the required
corrective documentation.
b. Computina wage restitution. Wage restitution is simply the difference between the wage
rate paid to each affected employee and the wage rate required on the wage decision
for all hours worked where underpayments occurred. The difference in the wage rates
is called the adjustment rate. The adjustment rate times the number of hours involved
equals the gross amount of restitution due. You may also compute wage restitution by
calculating the total amount of Davis -Bacon wages earned and subtracting the total
amount of wages paid. The difference is the amount of back wages due.
c. Correction certified payrolls. The employer will be required to report the restitution
paid on a correction certified payroll. The correction payroll will reflect the period of time
for which restitution is due (for example, Payrolls #1 through #6; or a beginning date and
ending date). The correction payroll will list each employee to whom restitution is due and
their work classification; the total number of work hours involved (daily hours are usually
not applicable for wage restitution); the adjustment wage rate (the difference between
the required wage rate and the wage rate paid); the gross amount of restitution due;
deductions and the net amount actually paid. A properly signed Statement of Compliance
must accompany the correction payroll.
HUD no longer requires the signature of the employee on the correction payroll to evidence
employee receipt of restitution payment. In addition, except in the most extraordinary
cases, HUD no longer requires employers to submit copies of restitution checks (certified,
cashiers, canceled or other), or employee -signed receipts or waivers.
d. Review of correction CPR. The contract administrator will review the correction certified
payroll to ensure that full restitution was paid. The prime contractor shall be notified in
writing of any discrepancies and will be required to make additional payments, if needed,
documented on a correction certified payroll within 30 days.
e. Unfound workers. Sometimes, wage restitution cannot be paid to an affected employee
because, for example, the employee has moved and can't be located. After wage
restitution has been paid to all of the workers who could be located, the employer must
submit a list of any workers who could not be found and paid (i.e., unfound workers)
providing their names, Social Security Numbers, last known addresses and the gross
amount due. In such cases, at the end of the project the prime contractor will be required
2-15
to place in a deposit or escrow account an amount equal to the total gross amount of
restitution that could not be paid because the employee(s) could not be located. The
contract administrator will continue attempts to locate the unfound workers for 3 years
after the completion of the project. After 3 years, any amount remaining in the account for
unfound workers will be credited and/or forwarded by the contract administrator to HUD.
2-16
CHAPTER 3 LABOR STANDARDS DISPUTES, ADMINISTRATIVE
REVIEWS, WITHHOLDING, DEPOSITS AND ESCROW
ACCOUNTS, AND SANCTIONS
WHAT HAPPENS WHEN THINGS GO WRONG?
3-1 INTRODUCTION.
Even in the best of circumstances, things can go wrong. In a Davis -Bacon context,
"things going wrong" usually means there's a difference of opinion or a dispute about
whether and to what extent underpayments have occurred. These disputes are usually
between the contract administrator and one or more employers (the prime contractor and/
or a subcontractor). The dispute may involve something simple such as an additional
classification request that is pending before the DOL; or something as significant as
investigative findings following a complaint of underpayment. This chapter discusses
some of what you may expect and what you can do to make your views known and to
lessen any delays in resolving the problem or issue.
3-2 ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES.
As mentioned in the Introduction above, a dispute about labor standards and compliance
can arise for a number of reasons. The labor standards clauses in your contract and DOL
regulations provide for administrative review of issues where there is a difference of views
between the contract administrator and any employer. The most common circumstances
include:
a. Additional classifications and wane rates. Additional classification and wage rate
requests are sometimes denied by the DOL. An employerthat is dissatisfied with the denial
can request reconsideration by the DOL Wage and Hour Administrator. The employer
may continue to pay the wage rate, as requested, until a final decision is rendered on
the matter. When the final decision is known, the employer will be required to pay any
additional wages that may be necessary to satisfy the wage rate that is established.
1. Reconsideration. The DOL normally identifies the reasons for denial in its
response to the request. Any interested person (for example, the contract
administrator, employer, representatives of the employees) may request
reconsideration of the decision on the additional classification request. The
request for reconsideration must be made in writing and must thoroughly
address the denial reasons identified by the DOL. Employer requests for
reconsideration should be made through the contract administrator but may
be made directly to the DOL. (See 2-2(d), and also DOL Regulations 29 CFR
1.8.) All requests initiated by or made through the contract administrator or HUD
must be submitted through the HUD Headquarters Office of Labor Relations.
3-1
2. Administrative Review Board. Any interested party may request a review of the
Administrator's decision on reconsideration by the DOUs Administrative Review
Board. DOL regulations 29 CFR Part 7 explain the procedures for such reviews.
(See also 29 CFR 1.9.)
b. Findings of underpayment. Compliance reviews and other follow-up enforcement
actions may result in findings of underpayment. The primary goal in every case and at
every step in this process is to reach agreements about who may have been underpaid
and how much wage restitution may be due and, of course, to promptly deliver restitution
to any underpaid workers. The contract administrator will usually work informally with you
to reach such agreements. You will have an opportunity to provide additional information
to the contract administrator that may explain apparent inconsistencies and/or resolve the
discrepancies.
If informal exchanges do not result in agreement, the final determination and schedule
of back wages due will be presented to you in writing and you will be permitted 30 days
in which to correct the underpayment(s) or to request a hearing on the matter before the
DOL. The request for hearing must be made in writing through the contract administrator
and must explain what findings are in dispute and the reasons. In such cases, HUD is
required to submit a report to DOL for review and further consideration. All requests for
DOL hearing must be submitted through the HUD Headquarters Office of Labor Relations.
1. DOL review. The DOL will review the contract administrator's report and the
arguments against the findings presented in the hearing request. The DOL may
affirm or modify the findings based upon the materials presented. You will be notified
in writing by the DOL of the results of its review. If DOL concludes that violations
have occurred, you will be given an opportunity to correct any underpayments or
to request a hearing before a DOL Administrative Law Judge (ALJ). (See DOL
Regulations 29 CFR 5.11 (b) and 29 CFR Part6, Rules of Practice forAdministrative
Proceedings.)
2. Administrative Review Board. Contractors and/or subcontractors may request a
review by the Administrative Review Board of the decision(s) rendered by the DOL
ALJ in the administrative hearing process. See DOL regulations 29 CFR Part 7 for
more information about this proceeding.
3-3 WITHHOLDING.
The contract administrator shall cause withholding from payments due to the prime
contractor to ensure the payment of wages which are believed to be due and unpaid,
for example, if wage underpayments or other violations are not corrected within 30 days
after written notification to the prime contractor. DOL may also direct the withholding
of contract payments for alleged wage underpayments. Withholding is considered to
be serious and is not taken unless warranted. If withholding is deemed necessary, you
will be notified in writing. Only the amounts needed to meet the contractor's (and/or
subcontractors') liability shall be withheld.
3-2
3-4 DEPOSITS AND ESCROWS.
In every case, we attempt to complete compliance actions and resolve any disputes
before the project is completed and final payments are made. Sometimes, corrective
actions or disputes continue after completion and provisions must be made to ensure
that funds are available to pay any wage restitution that is ultimately found due. In these
cases, we allow projects to proceed to final closing and final payments provided the prime
contractor deposits an amount equal to the potential liability for wage restitution and
liquidated damages, if necessary, in a special account. The deposit or escrow account is
controlled by the contract administrator. When a final decision is rendered, the contract
administrator makes disbursements from the account in accordance with the decision.
Deposit/escrow accounts are established for one or more of the following reasons:
Remember, the prime contractor is responsible and will beheld liable for any wage restitution
that is due to any worker employed in the construction of the project, including workers
employed by subcontractors and any lower -tier subcontractors. See 1-4, Responsibility
of the Principal Contractor, and 2-8, Restitution for Underpayment of Wages.
a. Where the parties have agreed to amounts of wage restitution that are due but the
employer hasn't furnished evidence yet that all of the underpaid workers have received
their back wages, e.g., some of the workers have moved and could not be located. The
amount of the deposit is equal to the total gross amount of restitution due to workers lacking
payment evidence. As these workers are paid and proper documentation is provided
to the contract administrator, amounts corresponding to the documented payments are
returned to the depositor. Amounts for any workers who cannot be located are held in the
deposit/escrow account for three years and disposed as described in 2-8(f) of this Guide.
b. Where underpayments are suspected or alleged and an investigation has not yet
been completed. The deposit is equal to the amount of wage restitution and any liquidated
damages, if applicable, that are estimated to be due. If the final determination of wages
due is less than the amount estimated and placed in the escrow account, the escrow will
be reduced to the final amount and the difference will be returned to the depositor.
If the parties agree to the investigative findings, the amounts due to the workers will be
paid by the employer. As these workers are paid and proper documentation is provided to
the contract administrator, the gross amounts corresponding to the documented payments
are returned to the depositor.
1. If the employer is unable to make the payments to the workers, e.g., lacks the
funds necessary, the contract administrator may make disbursements directly to
the workers in the net amounts calculated by the employer. The amounts withheld
from the workers for tax deduction will be returned to the employer as payments to
workers are made. The employer shall be responsible for reporting and transmitting
withholdings to the appropriate agencies.
3-3
2. If the employer is not cooperating in the resolution, the contract administrator shall
make disbursements to the workers in accordance with the schedule of wages
due. Amounts for unfound workers will be retained as described above (See 2-8(f)
and 34(a)).
If the parties do not agree and an administrative hearing is requested, the escrow will be
maintained as explained in 3-4(c), below.
Remember, ifyou have anyquestions or need assistance concerning laborstandards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
1
c. Where the parties are waiting for the outcome of an administrative hearing that has
been or will be requested contesting a final determination of wages due. The deposit
shall be equal to the amount of wage restitution and liquidated damages, if applicable,
that have been determined due. Once a final decision is rendered, disbursements from
the escrow account are made in accordance with the decision.
3-5 ADMINISTRATIVE SANCTIONS.
Contractors and/or subcontractors that violate the labor standards provisions may face
administrative sanctions imposed by HUD and/or DOL.
a. DOL debarment. Contractors and/or subcontractors that are found by the Secretary
of Labor to be in aggravated or willful violation of the labor standards provisions of the
Davis -Bacon and Related Acts (DBRA) will be ineligible (debarred) to participate in any
DBRA or Davis -Bacon Act contracts for up to 3 years. Debarment includes the contractor
or subcontractor and any firm, corporation, partnership or association in which the
contractor or subcontractor has a substantial interest. Debarment proceedings can be
recommended by the contract administrator or can be initiated by the DOL. Debarment
proceedings are described in DOL regulations 29 CFR 5.12.
b. HUD sanctions. HUD sanctions may include Limited Denials of Participation (LDPs),
debarments and suspensions.
1. Limited Denial of Participation. HUD may issue to the employer a limited denial
of participation (LDP) which prohibits the employer from further participation in
HUD programs for a period up to one year. The LDP is usually effective for the
HUD program in which the violation occurred and for the geographic jurisdiction of
the issuing HUD Office. HUD regulations concerning LDP's are found at 24 CFR
24.700-24.714.
3-4
2. Debarment and suspensions. In certain circumstances, HUD may initiate its own
debarment or suspension proceedings against a contractor and/or subcontractor
in connection with improper actions regarding Davis -Bacon obligations. For
example, HUD may initiate debarment where a contractor has been convicted for
making false statements (such as false statements on certified payrolls or other
prevailing wage certifications) or may initiate suspension where a contractor has
been indicted for making false statements. HUD regulations concerning debarment
and suspension are found at 24 CFR Part 24.
3-6 FALSIFICATION OF CERTIFIED PAYROLL REPORTS.
Contractors and/or subcontractors that are found to have willfully falsified payroll reports
(Statements of Compliance), including correction certified payroll reports, may be subject
to civil or criminal prosecution. Penalties may be imposed of $1,000 and/or one year in
prison for each false statement (see Section 1001 of Title 18 and Section 231 of Title 31
of the United States Code).
Remember, ifyou have any questions or need assistance concerning laborstandards
requirements help is always available. Contact the contract administrator for the
project you're working on or the HUD Field Labor Relations staff in your area.
i
3-5
ACRONYMS AND SYMBOLS
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
FHA-
Federal Housing Administration
FLSA -
Fair Labor Standards Act
HUD -
Housing and Urban Development (Department of)
IHA-
Indian Housing Authority
LCA -
Local Contracting Agency
LDP -
Limited Denial of Participation
O/T -
Overtime
PHA-
Public Housing Agency
S/T -
Straight -time
SAC -
State Apprenticeship Council/Agency
TDHE -
Tribally -Designated Housing Entity
§ -
Section
¶ -
Paragraph
A-1
DAVIS-BACON - RELATED WEB SITES*
HUD Office of Labor Relations:
www.hud.gov/offices/olr
HUD Regulations:
hftp://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR
HUDClips (HUD Forms and Publications):
www.hud.gov/offices/adm/hudclips/index.cfm
DOL Davis -Bacon and Related Acts Homepage:
hftp://www.dol.gov/whd/contracts/dbra.htm
DOL Regulations:
http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR
Davis -Bacon Wage Decisions:
www.wdol.gov
DOL Forms:
www.dol.gov/whd/programs/dbra/forms.htm
*Web addresses active as of January 2012
A-2
Project Wage Rate Sheet
U.S. Department of Housing
and Urban Development
Office of Labor Relations
Project Name:
Wage Decision Number/Modification Number:
Project Number:
Project County:
Work
Classification
Basic
Hourly
Rate (BHR)
Fringe
Benefits
Befits
Total
Hourly
Wage Rate
Laborers
Fringe
Benefits
$
Bricklayers
$
Group #
BHR
Total Wage
Carpenters
$
$
Cement Masons
$
$
Drywall Hangers
$
$
Electricians
$
$
Iron Workers
$
$
Painters
$
Operators Fringe Benefits:
$
Plumbers
$
Group #
BHR
Total Wage
Roofers
$
$
Sheet Metal Workers
$
$
Soft Floor Workers
$
$
Tapers
$
$
Tile Setters
$
Truck Drivers Fringe Benefits:
$
Other Classifications
Group #
BHR
Total Wage
$
$
$
Additional Classifications (HUD Form 4230-A)
Work
Classification
Basic
Hourly
Rate (BHR)
Fringe
Benefits
Total
Hourly
Wage Rate
Date of
HUD Submission
to DOL
Date of
DOL
Approval
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U.S. Department of Housing and Urban Development
Office of Departmental Operations and Coordination
Washington, DC 20410
Email: www.OfficeofLaborRelations@hud.gov
Labor Relations Desk Guide
LR01. DG
apP,ME NTOF5,0
211
�A 0 EOUA HOUSING
9N OENE�' OPPORTUNITY
ATTACHMENT E- (1)
U.S. Department of Labor
Wage and Hour Division Budget Bureau No. 44-R 1093
STATEMENT OF COMPLIANCE
Date
I, do hereby state:
(Name of signatory parry) (Tide)
(1) That I pay or supervise the payment of the persons employed by on the
(Contractor or Subcontractor)
that during the payroll period commencing on the _ day of 19 and ending the _ day of , 19_, all persons employed on
said project have been paid the full weekly wages earned that no rebates have been or will be made either directly or indirectly to or on behalf on said
from the full weekly wages earned by any person and that no deductions have been made either
(Contractor or Subcontractor)
directly or indirectly from the full wages earned by any person, other than permissible deductions as defined in Regulations, Part 3 (29 CFR Subtitle
A), issued by the Secretary of Labor under the Copeland Act, as Amended (48 Stat. 948, 63 Stat. 108, 72 Stat. 967; 76 Stat. 357; 40 U.S.C. 276c),
and described below:
(2) That any payrolls otherwise under this contract required to be submitted for the above period are correct and complete; that the wage
rates for laborers or mechanics contained therein are not less than the applicable wage rates contained in any wage det5erminaidon incorporated into
the contract; that the classifications set forth therin for each laborer or mechanic conform iwht the work he performed.
(3) That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State
apprenticeship agency recognized by the Bureau of Apprenticeship and Training, United States Department of Labor, or if no such recognized agency
exists in a State, are registered with the Bureau of Apprenticeship and Training, United State Department of Labor.
(4) That:
(a) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS, OR PROGRAMS
OIn addition to the basic hourly wage rates paid to each laborer or mechanic listed in the above referenced payroll
payments of fringe benefits as listed in the contract have been or will be made to appropriated programs for the
benefit of such employees, except as noted in Section 4(c) below.
(b) WHERE FRINGE BENEFITS ARE PAID IN CASH
Each Laborer or mechanic listed in the above referenced payroll has been paid as indicated on the payroll, an
amount not less than the sum of the applicable basic hourly wage rate plus the amount of the required fringe benefits
as listed in the contract, except as noted in section 4(c) below.
(c) EXCEPTIONS
EXCEPTIONS (CRAPM
Remarks
Name and line Si nsrure
The wilful falsification of any of the above Moreau our subject rue mmrxmr or subcontractor to civil or criminal prwecuuon. See section loel of title la mal section 731 of title
31 of ncc United States code.
Form WH -349 (1168) Purchase this form directly from the Supt of Documeou
Certificate from Contractor Appointing
Officer or Employee to Supervise
Payment of Employee
Project Name
Location
ATTACHMENT F- (1)
U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
(I) (We) hereby certify that (I am) (we are) (the prime contractor) (a subcontractor) for
Date (mm/ddlyyyy)
Project
(specify "General Construction," "Plumbing; . "Roofing," etc.) in connection with construction of the above-mentioned Low -Rent Housing Project,
and that (I) (we) have appointed
appears below, to supervise the payment of (my) (our) employees beginning (Date: mm/dd/yyyy)
whose signature
That he/she is in a position to have full knowledge of the facts set forth in the payroll documents and in the statement of compliance
required by the so-called Kick -Back Statue which he/she is to execute with (my) (our) full authority and approval until such time as (I)
(we) submit to the (Name of Local Authority)
a new certificate appointing some other person for the purposes hereinabove stated.
(Identifying Signature of Appointee)
Attest (If required)
(Signature)
(Title)
(Date: mm/dd/yyyy)
(Name of Firm or Corporation)
By
(Signature)
(Title)
(Date: mm/dd/yyyy)
Note: This certificate must be execute by an authorized officer of a corporation or by a member of a partnership, and shall be executed
prior to and be submitted with the first payroll. Should the appointee be changed, a new certificate must accompany the first payroll for
which the new appointee executes a statement of compliance required by the Kick -Back Statue.
Replaces form PHA -282, which is obsolete form HUD -5282 (8/67)
ATTACHMENT 9-G (1)
LABOR STANDARDS CHECKLIST
Provisions Required at Bid Solicitation:
(and subsequent contract execution)
Requested Received Decision Number Modifications
Wage
Determinations:
State:
Federal:
Combined (DOT):
HUD Form 4010 Acknowledgement Federal Labor Standards Provisions (includes Contract Work
Hours and Safety Standards Act (CWHSSA), Davis -Bacon Act, and Copeland Act clauses)
(Attachment 9-13)
Statement of Intent to Pay Prevailing Wages (RCW 39.12)
Affidavit of Wages Paid (RCW 39.12)
Bid Award/Contract Execution:
Yes
No
Actions Taken
Resolved
date
(date)
(date)
(date)
Has Contractor been checked
for suspension/debarment
from state/federal contracts?
Has contractor license been
verified through Labor and
Industries?
Has contractor Bidder
Mandatory Responsibility
Checklist been completed?
Has contractor and all subs
completed Statement of Intent
to Pay Prevailing Wages
forms?
ATTACHMENT 9-G (2)
Preconstruction Phase:
Preconstruction Conference:
Note specific contractor/subcontractor responsibilities:
Appropriate fringe benefit rate for each classification of worker must be paid: in cash, or
into an approved plan that is part of a bargaining agreement or contractor's own plan.
Time and one-half must be paid for all hours worked over 40 hours in one week.
Weekly certified payrolls must be submitted by the contractor and all subs not later than
seven (7) days following the pay period.
Davis -Bacon poster, with appropriate wage determination stapled onto it, must be
displayed prominently at the job site. In addition, a copy of the approved Statement of
Intent to Pay Prevailing Wages form must be similarly displayed.
If not already submitted, an approved copy of the Statement of Intent to Pay Prevailing
Wages form must be received prior to payment of first construction payment.
Violations of any of the above requirements can result in the withholding of funds or
escrow of funds to cover discrepancies in wages or fringe benefits due.
Discuss local labor standards review process.
Identify local labor standards reviewer.
Weekly payrolls will be reviewed.
Worker interviews will be conducted on the job site (for each contractor, every trade
covered once a month).
Access to records: Discrepancies will be investigated and the contractor/subcontractor
notified in writing of actions needed. This may involve review of contractor/subcontractor
payroll and related records.
Preconstruction Conference Record Submitted Date:
(Attachment 8-13).
Submit required Notification of Contract Award and Start of Construction form
Date: (Attachment 7-M).
ATTACHMENT 9.G (3)
For each prime and subcontractor performing work on-site during the first week of construction,
the grantee must provide a copy of the following documentation to CED within 21 days after the
respective contractors begin work.
• Statement of Intent to Pay Prevailing Wages
• Certified Payroll for the first week pay period
• Employee Interview Forms for first week
Each of the above documents must show evidence that the required information has been checked
by the grantee.
ATTACHMENT 9-H (1)
EMPLOYEE RIGHTS
UNDER THE DAVIS-BACON ACT
FOR LABORERS AND MECHANICS
EMPLOYED ON FEDERAL OR FEDERALLY
ASSISTED CONSTRUCTION PROJECTS
THE UNITED STATES DEPARTMENT OF LABOR WAGE AND HOUR DIVISION
PREVAILING You must be paid not less than the wage rate listed in the Davis -Bacon
WAGES Wage Decision posted with this Notice for the work you perform.
OVERTIME You must be paid not less than one and one-half times your basic
rate of pay for all hours worked over 40 in a work week. There are few
exceptions.
ENFORCEMENT Contract payments can be withheld to ensure workers receive wages
and overtime pay due, and liquidated damages may apply if overtime
pay requirements are not met. Davis -Bacon contract clauses allow
contract termination and debarment of contractors from future federal
contracts for up to three years. A contractor who falsifies certified
payroll records or induces wage kickbacks may be subject to civil or
criminal prosecution, fines and/or imprisonment.
APPRENTICES Apprentice rates apply only to apprentices properly registered under
approved Federal or State apprenticeship programs.
PROPER PAY If you do not receive proper pay, or require further information on the
applicable wages, contact the Contracting Officer listed below:
or contact the U.S. Department of Labor's Wage and Hour Division.
p rpr<a For additional information:
1-866-4-USWAGE MIND
(1-866-487-9243) TTY: 1-877-889-5627 V S. W,¢ and Hour brisk,.
M"MAGEHOUR.DOL.GOV
U.S. Department of Labor I Employment Standards Administration I Wage and Hour Division
WH 1321 (Revised ApM 2009)
ATTACHMENT 9-1 (1)
Report of Wage Block Grant Programs
Restitution Accomplished CDBG/HOME/NSP
Wage Restitution in the total amount of $ has been paid to employee(s) by
subcontractor(s).
Contracting Agency:
Development Name:
Development Address:
General Contractor:
DAVIS BACON UNDERPAYMENTS ACCOMPLISHED
Name of Name of Underpayment If signed certs and
SubcontractorEmployee(s) Amount corrected payrolls
received.
Signature of General Contractor I Date
A detailed narrative must be attached as to violations leading to restitution.
THIS FORM MUST BE PROVIDED TO CITY OF PASCO SUBSEQUENT TO WAGE
RESTITUTION ACCOMPLISHED.
DB -8 (12/2013)
ATTACHMENT 9-J (1)
Final Labor Standards Block Grant Programs
Compliance Report CDBG/HOME/NSP
Development Address:
General Contractor:
Substantial Completion Date:
I certify to the best of my knowledge that all laborers and mechanics
employed on this construction contract were paid in accordance with the
labor provisions, except as noted. There are no outstanding or
unresolved labor standards, underpayments, complaints or disputes.
Signature
Date
This form must be completed upon substantial completion of each construction contract.
Yes
No
N/A
HUD 4010 (Labor Standards Provisions) included in
Specifications/contracts?
Wage determination included in the specifications/contracts?
Wage Decision Number and modifications applied
Contractor/subcontractor certifications received?
Payrolls reviewed/approved?
Number of employee interviews conducted
Employee interviews compared to payroll submissions?
Labor Standards non-compliance resolved?
Restitution recovered for affected employee(s)?
Have all known restitutions been reported?
I certify to the best of my knowledge that all laborers and mechanics
employed on this construction contract were paid in accordance with the
labor provisions, except as noted. There are no outstanding or
unresolved labor standards, underpayments, complaints or disputes.
Signature
Date
This form must be completed upon substantial completion of each construction contract.