Jeff Kormann Labor Standards Specialist CDBG Program

 Enacted by Congress in 1931 (amended 1935 & 1964) Intent was to protect local/area wage scales from common practice of “importing” low-cost labor Applies to Federal contracts > $2000 Sets prevailing wage rates for laborers/mechanics while working on job site 2

 Includes alteration, repair, painting, decorating  Requires weekly payment of wages  Extended to Federally-assisted projects through various “Related Acts”  Applies to construction work financed “in whole or in part” through CDBG program 3

 Enacted in 1934  Prohibits “kickbacks” of pay (hence the name)  Requires weekly certified payrolls  Regulates payroll deductions from wages 4

 Enacted in 1962  Overtime pay for all work > 40 hours/week  Applies to construction contracts > $100K  Liquidated damages assessed for violations 5

 Federal Labor Standards Provisions (HUD/OLR Form 4010 revised 06/2009)  CDBG General Conditions—Items  Contractor/subcontractor certifications (LS & PW)  Applicable Davis-Bacon Wage Decision  6

 Data collection—voluntary contractor surveys  Sets “prevailing wage rates” by classification or trade for defined geographic areas  Modified as new information is received  Covers cash wages and fringe benefit programs 7

 Wage Decision #  Modification #  Modification date  State and County  Wage decision type  Trade classifications  Basic wage rate  Fringe benefit rate 8

 SHELTERED ENCLOSURES FOR PERSONS, MACHINERY, EQUIPMENT (subject to “80/20” rule)  NEW CONSTRUCTION OR RENOVATION OF COMMERCIAL BUILDINGS  NEW CONSTRUCTION OR RENOVATION OF APARTMENT BUILDINGS > FOUR STORIES  DEMOLITION (followed by new Building construction) 9

 NEW CONSTRUCTION OR RENOVATION OF SINGLE-FAMILY HOUSES /TOWNHOUSES  NEW CONSTRUCTION OR RENOVATION OF APARTMENT BUILDINGS < FIVE STORIES  DEMOLITION OF RESIDENTIAL UNITS (when followed by new Residential construction) 10

 HEAVY  DREDGING  WATER SYSTEM  SEWER SYSTEM  STORMWATER  PARKS/REC AREAS  FLOOD CONTROL  HIGHWAY  STREETS/ROADS  SIDEWALKS  PARKING AREAS  OTHER PAVING (non- incidental scope of work)  DEMOLITION (followed by new H/H construction) 11

 BID OPENING DATE (including a grace period of up to 10 days to allow for bidder notification and adjustment)  CONTRACT AWARD DATE (if >90 days elapses following bid opening)  CONSTRUCTION START DATE (if >90 days elapses following contract award) 12

 REVIEW DECISIONS EARLY TO IDENTIFY MISSING CLASSIFICATIONS  DISCUSS WITH CONTRACTORS AT PRE-BID MEETING (IF APPLICABLE) OR PRE-CON  SUBMIT INFORMATION TO DED FOR REQUEST THROUGH HUD/USDOL (use Form 4230A) 13

 COVERED WHILE DRIVING WITHIN JOB SITE  COVERED WHILE LOADING & UNLOADING AT JOB SITE (NOT AT COMMERCIAL FACILITY)  NO COVERAGE WHEN DRIVING BETWEEN JOB SITE AND COMMERCIAL FACILITY  NO COVERAGE FOR SOLE PROPRIETORS DRIVING THEIR OWN COMPANY VEHICLES 14

 MUST BE REGISTERED WITH USDOL (Certification from the Union is not accepted as documentation)  CANNOT EXCEED ALLOWABLE RATIOS FOR APPRENTICES WORKING WITH JOURNEYMEN  PRE-APPRENTICES MUST RECEIVE TOTAL PREVAILING WAGE UNTIL REGISTERED 15

WORKING WITH A CREWWORKING ALONE  MUST BE LISTED ON PAYROLL AND REPORT JOB CLASSIFICATION, DAILY AND WEEKLY HOURS WORKED  OWNER NOT REQUIRED TO REPORT HOURLY AND WEEKLY WAGES OR DEDUCTIONS  DOES NOT NEED TO BE SHOWN IF >80% OF TIME STRICTLY SUPERVISORY  MUST RECEIVE THE REQUIRED PREVAILING WAGE FROM PRIME CONTRACTOR, OR IN TERMS OF DIRECT CONTRACT WITH CITY/COUNTY  CANNOT SELF-CERTIFY PAYMENT/RECEIPT OF PREVAILING WAGE S 16

 IRREVOCABLE CONTRIBUTIONS TO TRUSTEES OR OTHER THIRD PARTIES IN RELATION TO A BONA FIDE PLAN, FUND, OR PROGRAM THAT IS COMMON TO THE INDUSTRY  CAN INCLUDE EMPLOYER CONTRIBUTIONS TOWARD HEALTH INSURANCE PREMIUMS, RETIREMENT PLANS, LIFE INSURANCE, ETC.  PAYMENTS MUST BE DOCUMENTED TO REFLECT HOURLY EQUIVALENT AMOUNT PER EMPLOYEE OR JOB CLASSIFICATION 17

 DOES NOT INCLUDE EMPLOYER PAYMENTS REQUIRED BY FEDERAL/STATE/LOCAL LAW  MAY BE PAID ALL CASH, OR COMBINED WITH CONTRIBUTION TO PLAN  METHOD OF PAYMENT MUST BE INDICATED ON PAYROLL CERTIFICATION PAGE 18

 REQUIRED FOR ALL HOURS WORKED >40 IN A SEVEN-DAY WORKWEEK  PAID AT 1 ½ TIMES REGULAR PAY RATE + FRINGE BENEFITS AT STRAIGHT TIME  PAID AT APPLICABLE RATE FOR THE CLASSIFICATION TRIGGERING OVERTIME 19

 SUBMIT WEEKLY  FIRST PAYROLL MUST INCLUDE FEDERAL TAX I.D. NUMBER  MUST ACCOUNT FOR EACH WEEK ON JOB, EVEN IF NO WORK PERFORMED  SUBS SUBMIT TO PRIME FOR REVIEW  PAYROLLS SHOULD BE PROVIDED WITH ALL PAY REQUESTS  FIRST PAYROLLS TO DED TO VERIFY LOCAL APPROVAL 20

 COMPANY NAME  BUSINESS ADDRESS  PROJECT I.D. INFO.  WEEK END DATE  EACH DAY/DATE IN WORKWEEK  EMPLOYEE NAME AND IDENTIFIER  EMPLOYEE WORK CLASSIFICATION  HOURLY PAY RATE  WEEKLY HOURS WORKED (STRAIGHT TIME/OVERTIME) ON COVERED PROJECT 21

 GROSS WAGES EARNED FOR WEEK  TOTAL DEDUCTIONS FROM WAGES  NET PAY REPORTED FOR WORKWEEK  STATEMENT OF COMPLIANCE  MUST SUBMIT WITH EACH WEEKLY PAYROLL  SIGNED BY CORPORATE OFFICER/DESIGNEE 22

 ENSURE SUBMISSION OF CERTIFIED PAYROLLS FROM ALL CONTRACTORS  REVIEW EACH PAYROLL TO CONFIRM PAYMENT OF CORRECT PREVAILING WAGES/COMPLIANCE WITH APPLICABLE REGULATIONS, ETC.  CONDUCT EMPLOYEE INTERVIEWS 23

 USEFUL IN VALIDATING PAYROLL DATA  CAN BE TARGETED TO INVESTIGATE SUSPECTED VIOLATIONS  SHOULD NOT BE ORCHESTRATED OR FINDINGS SHARED WITH CONTRACTORS  INTERVIEW FORM ALSO IN SPANISH 24

 CLOSELY REVIEW INITIAL PAYROLLS FROM ALL PRIME CONTRACTORS/SUBS BEFORE SUBMITTING TO DED FOR VERIFICATION  REVIEW FOR USE OF ANTICIPATED TRADES  COMPARE PAYROLLS AGAINST EMPLOYEE INTERVIEWS AND FOLLOW UP IF NEEDED  DO ADDITIONAL INTERVIEWS IF NECESSARY 25

 IT MAY LOOK LIKE EVERYONE’S PAID THE CORRECT WAGES. BUT ALSO CHECK FOR…  IMPROPER RATIO OF LABORERS TO MECHANICS?  TOO FEW OR IRREGULAR HOURS AT THE JOB SITE?  DISCREPENCIES/ROUNDING IN WAGE COMPUTATIONS?  EXTRAORDINARY DEDUCTIONS?  NONE OF THE WORKERS KNOW WHAT THEY MAKE? 26

 CORRESPOND PROMPTLY WITH PRIME CONTRACTOR WHEN PROBLEMS ARISE  DOCUMENT ALL CORRECTIVE ACTIONS TAKEN AND FORWARD TO OUR OFFICE  KEEP INITIAL WITHHOLDINGS IN LINE WITH AMOUNT OF UNDERPAYMENT; TOUGHER ENFORCEMENT WHEN NEEDED 27

 EFFECTIVE COMMUNICATION AND TIMELY RESPONSE ARE KEYS TO A SUCCESSFUL LABOR STANDARDS COMPLIANCE EFFORT.  BE SURE TO CONTACT ME OR YOUR “FIELD REP” WHENEVER WE CAN HELP…THAT’S WHAT WE’RE HERE FOR!  GOOD LUCK!! 28