CDBG Labor Standards Requirements For Local Officials

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CDBG Labor Standards RequirementsFor Local
Officials
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Why are Labor Standards Crucial?

• Standards guarantee fair wages and compensation
  for workers
• Helps provide a level playing field for bidders

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Why are Labor Standards Crucial?

• Local grantee must ensure and document compliance
• Required by CDBG and other statutes
• Transgressions endanger future funding

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ApplicabilityCDBG and Davis-Bacon Requirements

• Housing and Community Development Act of 1974
  Section 110(a)
• All laborers and mechanics employed by
  contractors and subcontractors in the performance
  of construction work financed in whole or in part
  with assistance received under this title shall
  be paid wages at rates not less than those
  prevailing on similar construction in the
  locality as determined by the Secretary of Labor
  in accordance with the Davis-Bacon Act, as
  amended (40 U.S.C. 276a276a?5)

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Davis-Bacon Act (40 U.S.C. 276a.-5)

• Enacted 1931, amended 1935 1964
• Applies to construction contracts gt 2,000
• Properties with 8 or more housing units
• Act is site-based
• Includes alteration, repair, painting
  decorating

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Davis-Bacon Act (40 U.S.C. 276a.-5)

• Applies to all laborers mechanics
• Requires payment of ? prevailing wages
• Requires weekly payment of wages

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Davis-Bacon Regulations

• Department of Labor (DOL) regulations, rules
  and instructions concerning implementation of the
  Davis-Bacon Act and other labor laws are found at
  Title 29 CFR Parts 1, 3, 5, 6 and 7
• http//www.dol.gov/dol/allcfr/ESA/Title_29/Chapte
  r_I.htm

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Contract Work Hours and Safety Standards Act
(CWHSSA) (40 U.S.C. 327-333)

• Enacted 1962
• Overtime pay required for all contract work
  greater than 40 hrs/week
• Applies to contracts for more than 100,000

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Copeland Act (40 U.S.C. 276c)

• Prohibits kickbacks
• Requires contractors to submit certified payrolls
  w/ signed statement of compliance each week

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Copeland Act (40 U.S.C. 276c)

• Regulates deductions from wages
• FICA, federal state taxes
• Bona fide prepayment of wages
• Court ordered payments, fringe benefit plans,
  etc.

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Contractor Responsibilities(Title 29 CFR Part 5)

• Prime contractors
• Responsible for all employers in project
• Subcontractors
• Also responsible for lower-tier subcontractors

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Local Grantee Responsibilities

• Designate a Labor Standards Compliance Officer
• Request a Wage Rate Decision per Davis Bacon
  Requirements
• Put Wage Decision and Labor Standards 4010
  clauses in contract bid documents
• Check contractor eligibility (http//epls.arnet.go
  v/)

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Grantee Responsibilities - continued

• Conduct a pre-construction conference (optional)
• Review weekly payrolls and compliance statements
• Conduct employee interviews
• Ensure that underpaid workers receive restitution

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Grantee Responsibilities - continued

• Maintain contract management system and
  compliance files
• See HUD Handbook 1344

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Davis-Bacon Wage Determinations

• Established by geographic area
• Published for 4 types of construction
• Building
• Residential
• Highway
• Heavy
• Rates may be modified periodically

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Davis-Bacon Wage Determinations

• Must be included in bid documents and contract
• Stipulates the wage requirements for construction
  trades
• Flows down to all subcontracts
• Records must be kept with project records

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Keys to Know

• Davis-Bacon applies to construction contracts
  greater than?
• Construction contractors are required to pay
  workers thewage?
• Local Government designates a..to administer
  Davis-Bacon labor standards?

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Keys to Know

• Overtime wages must be paid for contract work
  more than a 40 hour work week?
• Davis Bacon labor standards applies to
  residential single-family housing contractors?
• Contractors may withhold a workers pay as a fee
  for working for the contractor?

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Labor Relations References

• Making Davis Bacon Work (HUD Publication)
• A Practical Guide for States, Indian Tribes and
  Local Agencies
• http//www.hud.gov/offices/adm/hudclips/forms/fil
  es/4813-LR.pdf
• Also available from HUDs Customer Service
  Center [phone]

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HUD Labor Relations References

• HUD Office of Labor Relations
  www.hud.gov/offices/olr
• Davis-Bacon Wage Determinations
  http//www.wdol.gov
• GSAs On-Line Debarment List
• http//epls.arnet.gov