Labor Standards Administration and Enforcement 2018 CDBG-DR Problem - - PowerPoint PPT Presentation

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Labor Standards Administration and Enforcement 2018 CDBG-DR Problem - - PowerPoint PPT Presentation

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Labor Standards Administration and Enforcement 2018 CDBG-DR Problem Solving Clinic Atlanta, GA | D e c e m b e r 1 2 - 1 4 , 2 0 1 8 1 2018 CDBG-DR PROGRAM Welcome & Speakers Session Objectives Explain the importance of Davis

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2018 CDBG-DR PROGRAM

Labor Standards Administration and Enforcement

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2018 CDBG-DR Problem Solving Clinic Atlanta, GA | D e c e m b e r 1 2 - 1 4 , 2 0 1 8

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2018 CDBG-DR PROGRAM 2018 CDBG-DR PROGRAM

Welcome & Speakers

  • Session Objectives
  • Explain the importance of Davis Bacon Labor Standards and their applicability
  • How to determine contractor eligibility
  • Provide guidance on how to follow and document compliance with Davis

Bacon Labor Standards

  • Speaker
  • Leslie Gibson, HUD

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Agenda

  • Labor standards overview
  • The Related Acts: WHY we do what we do
  • Wage Decisions & Classification Issues
  • Compliance Principles
  • Certified Weekly Payroll Reports

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2018 CDBG-DR PROGRAM

Davis Bacon Labor Standards Overview and Responsibilities

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2018 CDBG-DR PROGRAM 2018 CDBG-DR PROGRAM

Davis Bacon Labor Standards (DBLS) Responsibilities

  • Directly administers & enforces federal labor standards for

multifamily HUD-insured projects across the U.S.

  • Oversight of the administration & enforcement of federal labor

standards conducted by local contracting agencies (LCAs)

  • Apply prevailing wage requirements properly
  • Support contractor compliance
  • Monitor contractor performance
  • Investigate probable violations
  • Pursue appropriate sanctions when warranted

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2018 CDBG-DR PROGRAM 2018 CDBG-DR PROGRAM

Agency Responsibilities

Administrative

  • Designate appropriate

enforcement staff

  • Establish construction

contract management system

  • Ensure that bid docs,

contracts, & subcontracts contain:

  • Federal labor standards

clauses

  • Applicable wage decision
  • Verify contractor eligibility

Enforcement

  • Conduct on-site employee

interviews with laborers & mechanics; comply with posting requirements

  • Review certified weekly

payrolls

  • Ensure compliance with

requirements

  • Maintain full documentation
  • f actions

Admin & Enforce

  • Refer investigations to HUD
  • Submit required reports

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2018 CDBG-DR PROGRAM

The Related Acts: WHY We Do What We Do

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2018 CDBG-DR PROGRAM 2018 CDBG-DR PROGRAM

The Related Acts

  • PUBLIC HOUSING
  • U.S. Housing Act of 1937, Sec. 12(a)
  • CDBG (EDI/BEDI/Section 108)
  • Housing and Community Development Act of 1974, Sec. 110(a)
  • HOME
  • National Affordable Housing Act of 1990, Sec. 286(a)

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2018 CDBG-DR PROGRAM 2018 CDBG-DR PROGRAM

First Determine Applicability

  • PHA
  • CDBG/CDBG-DR
  • HOME
  • NSP 1 & II
  • TCAP

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CDBG Applicability

  • “All laborers and mechanics employed . . on construction work

financed in whole or in part . . . shall be paid [prevailing wage rates].” Section 110a of the HCDA of 1974

  • Construction work over $2,000
  • Unit thresholds may also apply (8+ units)
  • Soft costs generally do not trigger DB
  • Force account work is exempt (except for PHA staff)
  • Volunteers and YouthBuild are exempt 

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2018 CDBG-DR PROGRAM 2018 CDBG-DR PROGRAM

HOME Applicability

  • “Any contract for the construction of affordable housing with 12 or

more units assisted with [HOME] funds . . .”

  • National Affordable Housing Act of 1990, Sec. 286(a)
  • Standard for coverage is construction assisted, not construction

financed

  • Soft costs will trigger DB
  • Land acquisition, A&E fees, down payment assistance
  • Once triggered, DB requirements apply to the entire project
  • Sweat equity participation is exempt

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Contract for Construction Documents

Ensure incorporation into contract document

  • 1. The current appropriate wage decision applicable to the work being

done, and;

  • 2. The applicable Federal labor standards clauses

a. Public Housing, TDHE/IHA

a. HUD-5370 – Contracts over $100K b. HUD-5370 EZ – Contracts $2K - $100K c. HUD-5370 C Part II – Maintenance Contracts $2K - $100K d. HUD-5370 C Part I & II – Maintenance Contracts >$100K

b. CDBG, CDBG-DR/HOME/NSP I & II, TCAP

a. HUD-4010

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Verify Contractor Eligibility

  • www.sam.gov
  • Print results page or make note to file

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Key Davis-Bacon & Related Statutes

  • Davis-Bacon Act (DBA)
  • Copeland Act (Anti-Kickback Act)
  • Contract Work Hour and Safety Standards Act
  • “Related” Acts

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2018 CDBG-DR PROGRAM

Davis-Bacon Wage Decisions & Classification Issues

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Davis-Bacon Wage Decisions Character of Construction

Building

  • Sheltered enclosures for the purpose of

housing persons, machinery, equipment, etc.

  • Apartment buildings greater than 4

stories

  • Commercial buildings

Residential

  • Single family houses, townhouses
  • Apartment buildings 4 stories or less

Highway

  • Roads
  • Highways
  • Sidewalks
  • Parking areas
  • Other paving work not incidental to
  • ther construction

Heavy

  • Projects which cannot be classified as

Building, Residential, or Highway

  • Dredging
  • Water & sewer lines
  • Parks and playgrounds
  • Flood control

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Obtaining Wage Decisions

  • Online at www.wdol.gov

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Davis-Bacon Wage Decisions

  • In an area accessible to all workers, remember to post…..
  • Wage Decision
  • DOL “Notice To All Employees”

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“LOCK-IN”

What if we add federal funding to an

  • ngoing

project? If wage rates go up, do I have to put the new decision in my contract? How long will a wage decision “keep”? How do I know which modification to use?

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2018 CDBG-DR PROGRAM

Wage Decision “Lock-In”

Competitively Bid

  • Lock-in at bid opening provided

contract is awarded within 90 days

  • Must update wage decision if

contract is awarded more than 90 days after bid opening

  • Modifications published <10

days before bid opening are not applicable if there is insufficient time to notify bidders Negotiated

  • Lock-in at contract award date
  • r the construction start date,

whichever occurs first

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Adding Classifications

Prior to Contract Award

  • Review decisions for

missing classifications

  • Discuss with

contractors early

  • Submit request after

contract award

  • *Contract

Administrator submits directly to DOL

  • SF-1444

After Contract Award

  • Work not represented
  • n wage decision
  • Area practice
  • “Reasonable

relationship” standard

  • Consent of all parties
  • WHD-

CBACONFORMANCE_

  • INCOMING@dol.gov'

After DOL Decision

  • Do not “borrow”

classifications/wage rates from other wage decisions

  • Contractor’s rights re:

additional classifications

  • Post new classification

& rate

  • Restitution payments

& documentation requirements

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2018 CDBG-DR PROGRAM

Davis-Bacon Compliance Principles

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DBA/DBRA Compliance Principles

  • Laborers and mechanics
  • Site of the work
  • Truck drivers
  • Apprentices Trainees & Helpers
  • Fringe Benefits
  • Computing overtime pay

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Enforcement

  • Payroll & Document Review
  • Employee Interviews

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2018 CDBG-DR PROGRAM

Davis-Bacon Certified Weekly Payroll Reports

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Employee Interviews

  • Use to validate / test payroll data
  • Use to develop complaints – by expanding the number of employees

interviewed, following up on claims

  • Target interviews to substantiate suspected violations
  • Interviews are confidential – the information is not to be shared with

contractors

  • Fill-able HUD-11 form available - HUDCLIPS
  • Spanish version available

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Agency Basics - Review

  • Ensure submission of certified weekly payrolls
  • Conduct on-site interviews
  • Check payrolls/related records
  • Ensure correction of underpayments
  • Prepare / submit required reports
  • Maintain records for three years

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Correcting Violations

  • Require appropriate documentation – require certified correction

payroll report

  • Obtain written assurance of future compliance for substantial

violations

  • Submit report to HUD OLR where restitution > $1,000
  • Track all restitution for Semi-Annual Report

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2018 CDBG-DR PROGRAM

Resources

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DOL Websites

  • Department of Labor DBRA

Homepage www.dol.gov/esa/programs/dbr a/index.htm

  • Department of Labor

Regulations www.dol.gov/esa/regs/cfr/whdc fr.htm

  • Department of Labor Forms

www.dol.gov/libraryforms/

  • GSA’s On-Line Debarment List

www.sam.gov

  • Wage Decisions

www.wdol.gov

  • DOL/Wage and Hour Division

www.dol.gov/whd/contracts/in dex.htm

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HUD DBLS References

  • HUD/Office of Davis-Bacon and Labor Standards -

https://www.hud.gov/program_offices/davis_bacon_and_labor_stan dards

  • Handbook
  • Guidebooks
  • Labor Relations Letters
  • Forms

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Disclaimer

This presentation is intended as general information only and does not carry the force of legal opinion. The Department of Housing and Urban Development (HUD) is providing this information as a public service. This information and related materials are presented to give the public access to information on HUD programs. You should be aware that, while we try to keep the information timely and accurate, there will

  • ften be delay between official publications of the materials and the modification
  • f these pages. Therefore, we make no express or implied guarantees. The

Federal Register and the Code of Federal Regulations remain the official source for regulatory information published by the Department of Housing and Urban

  • Development. We will make every effort to keep this information current and to

correct errors brought to our attention.

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Questions

William (Bill) Pickett, Regional Officer Leslie Gibson, Contractor Industrial Relations Spec. 678-732-2042 Jennifer Dupont, Contractor Industrial Relations Spec. 678-732- 2034