CHAPTER 7: LABOR STANDARDS DEHCR BUREAU OF COMMUNITY - - PowerPoint PPT Presentation

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CHAPTER 7: LABOR STANDARDS DEHCR BUREAU OF COMMUNITY - - PowerPoint PPT Presentation

Jan 05, 2023 135 likes •692 views

CHAPTER 7: LABOR STANDARDS DEHCR BUREAU OF COMMUNITY DEVELOPMENT This information is provided as a service for Community Development Block Grant (CDBG)

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SLIDE 1

CHAPTER7:LABORSTANDARDS

DEHCR– BUREAUOFCOMMUNITYDEVELOPMENT

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SLIDE 2

ThisinformationisprovidedasaserviceforCommunity

DevelopmentBlockGrant(CDBG)recipientsandapplies

  • nlytoCDBGfundedconstructionprojects

Projectswithotherfundingsourcesshouldfollow

applicablerulesandregulationsforthatprogram

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SLIDE 3

INTRODUCTION

Federallaborstandards(i.e.,DavisBacon,orDavisBaconand

RelatedActs(DBRA))applytomostfederallyfundedconstruction contracts

DoesnotapplytoCDBGPlanning(PLNG)projects

IfDavisBaconapplies:

Contractors/subcontractorsforconstructionmustpayfederal

wagerates

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SLIDE 4

IMPORTANTUPDATESFORCDBGPROJECTS

WisconsinPrevailingWageLaw

MajorchangesareineffectasofJanuary1,2017

UGLGsareresponsibleforcomplyingwithstateandlocallabor

standardsandregulations

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SLIDE 5

WORDOFWARNING

Failuretoproperlyfollowfederallabor

standardsprovisionsisasignificantbreachof contractandCDBGgrantcomplianceand couldresultinlossoftheawardedgrantand couldlimitobtainingfuturegrants

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SLIDE 6

RELEVANTLAWS

DAVISBACONACT Requiresthatworkersarepaidnotlessthanonceaweekandreceivenoless thanthefederalwagesbeingpaidforsimilarworkinthelocality

FederalwagesarecomputedbytheU.S.DepartmentofLabor(USDOL)and

areissuedintheformoffederalwagedeterminationsforeachclassification

  • fworktobeperformedinthearea

ViolationoftheDavisBaconActmakesthecontractorliableforunpaid

wagesandmayresultinsuspensionofpayments,contracttermination,and suspensionordebarmentofthecontractorfromparticipationinfederally fundedprojects

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SLIDE 7

RELEVANTLAWS(CONTINUED)

COPELAND"ANTIKICKBACK"ACT

Workersmustbepaidwithoutanydeductionsorrebates exceptpermissible

deductions

Permissibledeductionsincludetaxes,deductionstheworkerauthorizes

inwriting,andthoserequiredbycourtprocesses

ContractorsmustsubmitweeklypayrollrecordsandStatementsof

Compliance(certifiedpayroll)tothecontractingagency

ViolationoftheCopelandActisafelonyandmayresultinterminationof

thecontractorcriminalprosecutionbytheU.S.Government,punishableby afine,imprisonment,orboth

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SLIDE 8

RELEVANTLAWS(CONTINUED)

CONTRACTWORKHOURSANDSAFETYSTANDARDSACT(CWHSSA)

Workersreceiveovertimepayatarateofoneandonehalftimestheregular

hourlypayaftertheyhaveworked40hoursinoneweekontheCDBGproject

Oneandonehalftimesiscalculatedattheapplicablehourlybasicrateofpay

listedonthewagedeterminationortheworker’snormalrateofpay,whichever ishigher

Appliestocontractsover$100,000 Allsubcontractorsareincludedifprimecontractisover$100,000 Forcontracts$100,000orless,theFairLaborStandardsAct(FLSA)willapply

andovertimeprovisionsareapplicabletoallcontractscoveredbyDavisBacon

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SLIDE 9

RELEVANTLAWS(CONTINUED)

CONTRACTWORKHOURSANDSAFETYSTANDARDSACT(CWHSSA)

Violationmakesthecontractorliableforunpaidwages,liquidateddamagesper

employeeperdayofviolation,and,incasesofintentionalviolation,finesand/or imprisonment,aswellasdebarmentmaybeenforced

Liquidateddamagepenaltieswillbeadjustedforinflation($26isthe1/2/2018

penaltyrate)

Penaltiespaidtothefederalgovernment maybewaived Violationsmayalsoresultinterminationofthecontract. Underpayment/wagerestitutionshouldbepaidtoemployees,acopyofeachcheck

stub/recordofpayment,andthecorrectionpayrollplacedintheproject’sLabor Standardsfile

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SLIDE 10

APPLICABILITY

AllCDBGcontractsforconstruction,alteration,or

repairofapublicbuildingorpublicwork

Allbuildingorconstructioncontractsfinancedin

wholeorinpartfromfederalfundsorinaccordance withguaranteesofafederalagency

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APPLICABILITY:EXCEPTIONS

PublicworksconstructionbydirectemployeesoftheUnitofGeneralLocalGovernment

(UGLG)iscommonlycalled"forceaccount"work.Ifforceaccountlaborwillbeutilizedin anypartofaproject,theUGLGshallsubmitthe( Chapter7,ImplementationHandbook)toyourProjectRepresentative

  • PLEASENOTE: Thereisnosuchthingasprivate"forceaccount"work

WhenrequestingCDBGreimbursement,thepayrollmustinclude:

Eachemployee’sname Hourlyrate(wagesplusbenefits) Numberofhoursworkedontheproject Payperiod

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APPLICABILITY:EXCEPTIONS(CONTINUED)

Residentialrehabilitationinstructureswithfewerthaneightunits Contract(s)thatarepartofaprojectoflessthan$2,000value

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APPLICABILITY:EXCEPTIONS(CONTINUED)

Constructionactivitiesassistedsolelybymeansofloans

guaranteedwithinterestbearingcollateralaccounts,where

a) theinterestrateisstandardandcustomaryrateondemand

accounts;

b) theaccountissubjecttostandardandcustomarytermsand

conditionsforcollateralaccounts;and

c) thereisno"substantiallikelihood"thattheguaranteewillbe

used

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SLIDE 14

APPLICABILITY:EXCEPTIONS

EconomicDevelopmentprojectswherefederalfundsareused

  • nlyfornonconstructionactivitiessuchasacquisition;

machineryandequipmentpurchase(notincludinginstallation); stock(equity)purchase;andoperatingcapitalloanswheresuch fundscannotbeusedforconstruction

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SLIDE 15

LABORSTANDARDSOFFICERDESIGNATION

UGLGmustactasLaborStandardsOfficerunlessadifferent

personisappointed

DesignateaLaborStandardsOfficerpriorto,oratthetimeof,

requestingawagedecision(Attachment7C)

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LABORSTANDARDSOFFICERRESPONSIBILITIES

FederalWageDetermination WageDecisionModifications

priortobidopening

AdditionalLaborClassifications BidNotifications ContractorEligibilityClearance ConstructionContract

Notifications

PreConstructionConference ComplianceMonitoring ComplianceEnforcement

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FEDERALWAGEDETERMINATION

MustsecurethefederalDavisBaconwagedecision(s)forusein

theproject(s)priortoadvertisingforconstructionbidsandprior tobidopening

Mustcompleteandsubmita

()toDEHCR

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FEDERALWAGEDETERMINATION(CONTINUED)

Residential Singlefamilyhomesandapartmentbuildingsnomorethan4stories Building Shelteredenclosuresforthepurposeofhousingpeople,machinery,equipmentorsupplies Highway Roads,streets,highways,sidewalks,parkingareas Heavy “Catchall”category 2possiblesubcategories Includessewerandwaterlineandtunnelprojects(WI8)

Maybeappropriatetousemorethanonedeterminationifadditionaldeterminationcomprisesmorethan20%

  • fprojectcostand/orcosts$1million

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FEDERALWAGEDETERMINATION(CONTINUED)

StepstoObtainingFederalWageDeterminationfromU.S.Dept.ofLabor(DOL):

1.

Gotowww.wdol.gov

2.

Select“SelectingDBAWDs”under“DavisBaconAct”

3.

Select“Wisconsin”under“State”

4.

SelecttheCountytheprojectislocatedin

5.

Clickon“Search”(thiswillgiveyouall thewagedeterminationsforthat county)

6.

Selectdeterminations(s)applicablefortheworkbeingcompleted(most recentposted)

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FEDERALWAGEDETERMINATION(CONTINUED)

FailingtoObtainCorrectFederalWageDeterminationforBiddingProcess:

UGLGmust correcttheerrorbyobtainingthecorrectwagedecision(s)and

informingcontractorstheymustpaythosewageratesretroactivelytothe beginningoftheproject

UGLGisresponsibleforensuringallwagerestitution/underpaymentsare

madeandmaybeforcedtoreimbursethecontractor

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WAGEDETERMINATIONMODIFICATIONS

ModifiedbyDOLeveryFridayat10:00a.m. Checkpriortothebidopening Mustusethecurrentwagerate(s)fortheprojectbiddingandmustnotifypotential

biddersthatthewagedecisionhasbeenmodified

IfthewagedecisionchangesontheFridayofyourbidopening,youmustusethatwage

decision.Itisrecommendedthatbidopeningsnot beheldonFridays

Reminder:FailuretousemostcurrentwageratesinbiddingmayresultinUGLG

beingresponsibleforallbackwagestoemployees WDOL.govischanging checkthewebsiteforupdates.

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SLIDE 22

FEDERALWAGE DETERMINATION

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ADDITIONALLABORCLASSIFICATIONS

Neededwhenthereisacategoryofworkeronthejobthatdoesn’tfitanyof

theclassificationslistedinthewagedecision.

Complete form(

),Boxes2through10andsubmittoDEHCR

TheUnitedStatesDepartmentofLabor(USDOL)willnotrevieworrespondto

anyadditionalclassificationrequestspriortothecontract(s)beingawarded.

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BIDPACKETREQUIREMENTS

NoticesRequiredinBidPacketsapplicabletoconstruction:

ConflictofInterestDisclosureandClause(seeand for

recommendedforms)

ifapplicable () FederalDavisBaconwagedecision(s)– InclusionbyreferenceonlyisNOT acceptable

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SLIDE 25

BIDPACKETREQUIREMENTS

AdditionalNoticesRequiredforBidPackets: Fororallconstructioncontractsestimatedtoexceed$10,000

  • SeeChapter6:EqualOpportunity,FairHousing&Section3

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BIDREQUIREMENTS(CONTINUED)

90DayRule:

IftheUGLGopensabidandwaitsmorethan90daysto awardtheconstructioncontract,theUGLGmustcheckthe wagedecisiontoseeifithasbeenmodifiedorsuperseded. Ifithas,theUGLGmustusethemodifiedwagedecision(s) fortheCDBGproject

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SLIDE 27

CONTRACTORELIGIBILITYCLEARANCE

UGLGisresponsibleforensuringallprimecontractorsareeligible Primecontractorisresponsibleforensuringallsubcontractorsareeligible UGLGshouldalsocheckallsubcontractors’eligibility Recordofdebarmentchecksforallcontractors(primeandsubs)mustbe

inCDBGprojectfile

ContactyourDEHCRprogramrepresentativeimmediately ifanyone

workingontheCDBGprojectisorhasbecomedebarred

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SLIDE 28

CONTRACTORELIGIBILITYCLEARANCE

Everyentityinvolvedintheprojectmustconfirmitisnotdebarred,includingtheUGLG,contractors,

architectural/engineeringandgrantadministrationservices.

StepsforDebarmentCheckonSAM.gov:

  • 1. Checkeligibilityathttp://SAM.gov priortoexecutingcontract
  • 2. Select“SearchRecords”
  • 3. Inthe“QuickSearch”field,enterbusinessname,owner’sname,DUNSnumber,orCAGEcodeandclick

“Search”(recommendatleast2searches:businessname;owner’sname)

  • 4. Whensearchresultsappear,select(i.e.checkmark)boththe“Active”and“Inactive”registrantstatus
  • ptionsinthe“FilterResults”boxandclick“ApplyFilters”
  • 5. Firmswithagreen“Entity”markerarenotonrecordasbeingdebarred.

Firmswithapurple“Exclusion”markerrequirefurtherreview– see“ViewDetails”todetermineifthe

firmis excluded/debarred

  • 5. Click“SavePDF”tosave&printtheresultspage(s)
  • 6. Keepevidenceofcompleteddebarmentcheck(s)intheLaborStandardsfile

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CONSTRUCTIONCONTRACT

RequiredNotices/AttachmentsforPrimeContract(s)andSubcontract(s): InclusionbyreferenceonlyisNOT acceptable

  • ConflictofInterestDisclosureandClause(seeand forrecommendedforms)
  • ifapplicable
  • ()
  • Recommended PreConstructionMeetingItemsandChecklist(seeand
  • FederalDavisBaconwagedecision(s)– InclusionbyreferenceonlyisNOT acceptable

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CONSTRUCTIONCONTRACT(CONTINUED)

RequiredNotices/AttachmentsforPrimeContract(s)andSubcontract(s):

  • Forcontractsover$10,000:
  • 248
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OtherSubcontractRequirements:

Subcontractmustbeinwriting– andinclude: Nameofcontractor/subcontractor Dollaramountofcontract Goods/servicestobeprovided Terms/conditions Subcontractdocumentmustcontainallitemslistedinthepreviousslides,as

applicabletotheproject(InclusionbyreferenceonlyisNOT acceptable)

Copyofexecutedsubcontracts(withanyandallattachmentsand

addendums)mustbemaintainedintheCDBGprojectfile

CONSTRUCTIONCONTRACT(CONTINUED)

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PRECONSTRUCTIONCONFERENCE

  • Preconstructionconferencestronglyencouraged
  • Shouldcoveritemslistedin
  • Providecontractorswithcopyof;

covertopicsincludingbutnotlimitedto:

  • DavisBaconandRelatedActsandFederalLaborStandardsProvisions(HUD4010)
  • EqualOpportunityprovisions
  • UseofcertifiedMBEs,WBEs,andDBEs(Minority/Women/DisadvantagedBusiness

Enterprises)andSection3businessesasasubcontractororasupplier

  • UseofResourcesinMBE/WBE/DBEWebResources()
  • Submitcopyofnotes/minutes/recordofconferencetoDEHCRandmaintainacopyinthe

projectfile(see)

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SLIDE 33

COMPLIANCEMONITORING

TheUGLG’sLaborStandardsOfficermustmonitor

theperformanceofthecontractorsincomplying withthewageratesandotherrequirements

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COMPLIANCEMONITORING(CONTINUED)

VerifywithWeeklyPayrollReview:

CompleteWeeklyPayrollSubmissions Eachprimecontractorandsubcontractor

workingontheCDBGprojectmustsubmitpayrollrecordsandstatementsofcompliance eachweek(seeandfortheformsandinstructions)

SignedPayrolls– Signedbyprincipaloffirmorbyanauthorizedagent NumberedPayrolls– Payrollsarenumberedsequentiallyfromfirsttofinal NoWorkRecords– Ifpayrollsarenumbered,noworkpayrollsarenotrequired.

However,itisrecommendedcontractorsandsubcontractorsthatwillnotbeworkingon theprojectforaperiodoftime,informtheLaborStandardsOfficerinwritingand provideanapproximatedateofreturn.

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SLIDE 35

VerifywithWeeklyPayrollReview:

  • BaseWages– Atleastminimumbasewage+fringebenefitratesarepaid
  • Overtime(OT)– Overtimewagesareproperlypaidatrequiredminimumovertimerates
  • FringeBenefits– Benefitsqualifyaseligibleandareproperlydocumented(e.g.,health

insurance,retirement,lifeinsurance,vacation,trainingfunds,etc.Excludesemployer paymentsorcontributionsrequiredbyotherfederal,state,orlocallaws,suchasthe employer’scontributiontoSocialSecurityorsomeotherdisabilityinsurancepayments, etc.)

Musthaverecordofitemizedfringeswithhourlydollarvalues,providedonpayroll

recordorothersourcedocumentation(e.g.,laborunioncontract)

COMPLIANCEMONITORING(CONTINUED)

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SLIDE 36

VerifywithWeeklyPayrollReview:

Deductions – Areallowableandproperlydocumented;authorizedbythe

employeeandpermittedbyDOLRegulations29CFRPart3,suchas:

Employeeobligationsforincometaxes,SocialSecuritypayments,

insurancepremiums,retirement,savingsaccount,andanyother legallypermissibledeductionauthorizedbytheemployeeinwriting

Paymentsonjudgmentsandotherfinancialobligationslegallyimposed

againsttheemployee

COMPLIANCEMONITORING(CONTINUED)

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SLIDE 37

VerifywithWeeklyPayrollReview:

  • Employeeclassifications – Conformtothewagedecisionandrates;additionalclassificationrequest/decision

documentation

  • Multipleclassifications employeesmayperformworkinmorethanonetradeduringaweek
  • Paywagerateforeachclassificationifmaintainingaccuratetimerecordsreportingtheamountof

timespentworkingineachclassification

  • Onthepayroll,listemployeeandeachclassification/hoursassociatedwiththatworkseparately(an

employeemayappearmorethanonceifperformingworkinmultipleclassifications)

  • Ifaccuratetimerecordsreportingthetimespentworkingineachclassificationarenotkept,the

employeemustbepaidthehighestwagerateofalltheclassificationsperformed

  • Apprenticesandtrainees– Paidcorrectrateandindenturedpapers/trainingcertificationsareonfile
  • Maybepaidlessthanthefullrateonlyifregisteredinbonafideprogramapprovedbyandregisteredwith

theEmploymentandTrainingAdministrationoftheUSDOL

  • RatioofjourneymentoapprenticesundertheregisteredprogramisapplicabletoCDBGprojectsite

COMPLIANCEMONITORING(CONTINUED)

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COMPLIANCEEXAMPLE

*FederallaborstandardsincludingCWHSSAapplytocontract

Plumberworked8+8+8+10+10=44hours

  • Straighttimerateof$36.72+fringeof$18.40($55.12/hrtotal)
  • Onlyneedtomeethourlyrateandfringesintotal
  • Straighttimewagesok
  • Overtimeof4hours
  • Needtomeet1.5timeshourlyrateonwagedeterminationorworker’snormalrateofpay,whicheverishigher,plusregularfringerate
  • Payrollreportedovertimerateof$55.08/hr($36.72x1.5)plusregularfringe
  • Overtimewagesnotsufficient
  • PlumberemployeeisOWED underpaymentof$8.88
  • $26liquidateddamagestofederalgovernmentfor1dayviolationofCWHSSA
  • Liquidateddamagespenaltymaybewaived

$38.20+$16.72=$54.92 Actual/paid[insufficient]wages:$55.08+$18.40=$73.48x4hours=$293.92 Correctwages: OvertimeBaseRate… $38.20x1.5(“timeandahalf”)=$57.30 ThenAddInFringes… $57.30+$18.40=$75.70(newhourlyrate) Thencalculatehours… $75.70x4hours=$302.80(correctedtotalOT)

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COMPLIANCEEXAMPLE

WhatgroupisthisoperatorinOR whatequipmentdidheoperate? Whatarethesedeductionsandisthere documentationtosupportthedeductions? PossibleviolationofCopeland“AntiKickback”Act

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COMPLIANCEEXAMPLE(CONTINUED)

TheStatement

  • fCompliance

mustbesigned

Listdeductionshereorindicate “Deductionsinformationattached”and attachseparatedocument

Iffringebenefitsarepaid intoplan,listhourlyfringe

  • npayrollforeachemployee
  • rattachseparatedocument

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COMPLIANCEMONITORING

MonitoringatWorkSite:

  • InterviewWorkersontheJob use
  • Verifythatthewagespaid,jobclassification(s),andhoursofworkreportedbytheemployeeinthe

interviewmatchthepayrollrecordssubmittedbythecontractor(refertopaycheckorpaystubduring interview,ifavailable)

  • Recommended:Conductatleastoneinterviewforeachclassificationofworkeronthejobforeach

contractorandsubcontractor ChecktheWorkSiteSignage

  • Verifythattherequiredwageratesandotherlaborstandardsrequiredposters/noticesarepostedina

clearlyvisiblelocation Keepthesiteinvestigationreport,payrollrecords,certifications,andemployeeinterviewsintheLabor Standardsfile

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SLIDE 42

COMPLIANCEENFORCEMENT

UGLGsshalltakethenecessarystepstoenforcethe

requirementswhenacontractororsubcontractor hasnotpaidtheminimumDavisBaconwageand benefitsorhasviolatedotherrequirements.

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COMPLIANCEENFORCEMENT(CONTINUED)

Underpaymentislessthan$1,000:

Ensurecontractormakesrestitutionpayment(s) Assesspenalty($26peremployeeperday)ifunderpayment

involvedCWHSSAovertime

Penaltymaybewaived

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SLIDE 44

COMPLIANCEENFORCEMENT(CONTINUED)

Underpaymentis$1,000ormore:

InvestigateandsubmitSection5.7EnforcementReport Assesspenalty($26peremployeeperday)ifunderpayment

involvedCWHSSAovertime

Penaltymaybewaived

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SLIDE 45

COMPLIANCEENFORCEMENT(CONTINUED)

Allenforcementactionsshallbecarriedoutinwritingandhavethefollowing informationinthefile:

Descriptionoftheviolation Sourcesofinformationabouttheviolation Complaintsandotherstatementsfromemployeesshouldbeinwriting

andsigned

Computationofthebackwagesduetoeachemployee Computationoftheliquidateddamages,ifany Actionstakenbythecontractortocorrecttheviolation,ifany Copiesofsupplementalpayrollsand/orcheckstubs,ifany

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SLIDE 46

COMPLIANCEENFORCEMENT(CONTINUED)

RequiredReports: TodocumentHUDcompliance,DEHCRmustreceiveallapplicable

laborstandardsreportsbeforethefinalRequestforPaymentwillbe processed

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SLIDE 47

LABORSTANDARDSDOCUMENTSUBMISSIONS TODEHCR

  • ifneeded
  • rthebidadvertisement

BidTabulationSummary

  • ifapplicable
  • rsimilarrecordofPreConstruction

Conference,ifneeded

  • ifneeded
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SLIDE 48

LABORSTANDARDSFILECONTENTS

WageDecisionModification(s) ifneeded ConstructionBidAdvertisementAffidavitofPublication(see

forsampleadvertisement)

BidDocumentswithallLaborStandardsandOtherNotifications

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SLIDE 49

LABORSTANDARDSFILECONTENTS(CONTINUED)

Contractoreligibilityclearancerecords(SAM.govdebarmentchecks) Documentationofdisclosureandreviewofpotentialconflictsofinterest(see

forrecommendedforms)

Completed ) ifneeded Copyoftheexecutedcontract(s) Copiesofallexecutedsubcontract(s) BidTabulationSummary ifneeded and

)orsimilarrecordofPreConstructionConference,ifneeded 267

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SLIDE 50

LABORSTANDARDSFILECONTENTS(CONTINUED)

Weeklypayrollrecords(and) Documentationoffringebenefits Documentationoflegallypermissibledeductions Apprenticeshipindenturedpapersandtrainingcertifications

ifneeded

Employeeinterviewrecords(i.e.,completedHUD11forms)

()

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SLIDE 51

LABORSTANDARDSFILECONTENTS(CONTINUED)

Documentationofunderpaymentrestitution ifneeded

  • if

needed

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SLIDE 52

HELPFULWEBSITES

HUDLaborStandardsEnforcementGuidance:

  • U.S.DepartmentofLaborWageandHourDivision:
  • WIDepartmentofWorkforceDevelopmentPrevailingWageOverview:
  • U.S.DepartmentofLaborWageDeterminationsOnline:
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SLIDE 53

LABORSTANDARDSSUMMARYQUESTIONS

  • 1. Whoisresponsibleforobtainingafederalwagedecision?
  • 2. Whenshouldwagedecisionsbechecked?
  • 3. Howoftenmustcontractorpayrollsbesubmitted?
  • 4. Whatdocumentsmustbecheckedtoensurecompliancewiththe

CopelandAntiKickbackAct?

  • 5. Whatformneedstobesubmittedifunderpaymentsforacontractorare

$1,000ormore?

  • 6. HowmaytimesperyearistheSemiAnnualLaborStandards

EnforcementReportdue?

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SLIDE 54

QUESTIONS? Email:DOACDBG@Wisconsin.gov

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