labor standards training
DESCRIPTION
Labor Standards Training. US Department of HUD Office of Labor Relations. Contact Information. United States Department of Housing and Urban Development Midwest Regional Office of Labor Relations 77 West Jackson Blvd, Room 2307 Chicago, IL 60604 www.hud.gov Deborah Diez - PowerPoint PPT PresentationTRANSCRIPT
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Labor Standards Training
US Department of HUDOffice of Labor Relations
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Contact InformationUnited States Department of Housing and Urban Development Midwest Regional Office of Labor Relations77 West Jackson Blvd, Room 2307Chicago, IL 60604www.hud.gov
Deborah DiezLabor Relations Michigan Specialist (Chicago Regional Office)(312) [email protected]
Roxanne VolkmannLabor Relations Illinois Specialist (Chicago Regional Office)(312) [email protected]
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U.S. Housing Act of 1937, Sec. 12a, (42 U.S.C. 1437j)
….not less than the wages prevailing in the locality, as determined or adopted…by the Secretary, shall be paid to…all maintenance laborers and mechanics employed in the operation of the low-income housing project involved...
U.S. Housing Act of 1937,as amended, Section 12(a)
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Enacted 1931, amended 1935 & 1964
Federal construction contracts >$2,000
Sets minimum hourly wage rates for workers
The Act is “site-based”
Includes alteration, repair, painting & decorating
Davis-Bacon Act
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Applies to all laborers & mechanics (workers whose duties are manual or physical in nature including those workers who use tools or who are performing work of a trade, as distinguished from mental or managerial duties).
Requires payment of prevailing wages
Requires weekly payment of wages
Davis-Bacon Act
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Community Development Block Grants
HOME Public Housing Tribally-Designated Housing Authorities
FHA Multi-Family Housing
DB Related Acts
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Enacted 1962
Requires overtime at 1½ times the basic hourly rate of pay for all work 40 hrs/week
Applies to contracts $100,000
Liquidated damages apply to violations ($10 per day, per violation)
Contract Work Hours and Safety Standards Act (CWHSSA)
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Enacted 1934, regulates deductions from wages
Prohibits “kick-backs” of pay
Requires submission of certified weekly payrolls and accompanying signed Statement of Compliance
Copeland Act
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For properties subject to a conventional Annual Contributions Contract, construction, rehabilitation, and maintenance work are covered by some type of prevailing wage to all maintenance laborers and mechanics engaged in the operation of low-income housing projects (Section 12(a) of the US Housing Act of 1937).
PHA Factors of Applicability
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Routine Maintenance
Non-Routine Maintenance
Development (Davis-Bacon)
PHA Factors of Applicability
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Work that involves the regular upkeep and preservation of buildings, grounds, and facilities
Routine maintenance wage rates are determined or adopted by HUD
Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporaries, residents
Routine Maintenance
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Agencies collect local wage data and submit HUD 4750 to Labor Relations Specialist on an annual basis
Labor Relations reviews and works with HA to determine the Maintenance Wage Rate Determination
A HUD 52158 is issued for all work classifications (force account and anticipated contracts)
Routine MaintenanceDetermining the Wage Rates
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Maintenance Wage Rate Determination HUD 52158
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Maintenance Wage Rate Determination HUD 52158 (Cont’d)
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52158 - In employee common area (lunch room, office, etc)
52158 - Incorporate into routine maintenance contracts
Posting Requirements-Routine and Non-Routine Maintenance
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Work items that ordinarily would be performed on a regular basis in the course of upkeep of a property…but have become substantial in scope because they have been put off
Non-Routine Maintenance
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Involves expenditures that would otherwise materially distort the level trend of maintenance expenses
Includes the replacement of equipment and materials rendered unsatisfactory because of normal wear and tear by items of substantially the same kind
Non-Routine Maintenance
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Each Maintenance contract MUST incorporate: Current, appropriate wage decision and Federal
Labor Standards provision applicable to work being done.
Federal LS HUD 5370-C (General conditions for Non-construction contracts-HUD determined)
◦ Non-construction contracts (without maintenance) greater than $100,000 – Use Section I
◦ Maintenance contracts (including non-routine maintenance) over $2,000 but not more than $100,000–Use Section II
◦ Maintenance contracts (including non-routine maintenance) greater than $100,000 – Use Section I and II
CONTRACT ADMINISTRATION Routine & Non-Routine Maintenance Work
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Certain professional services are excluded from HUD-determined wage requirements
Periodic inspections or testing of equipment
Testing for lead-based paint
Pest control
Installation, service or maintenance of leased equipment, fixtures or appliances
CONTRACT ADMINISTRATION Exclusions from HUD-Determined requirements
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New construction
Reconstruction
A substantial improvement in the quality or kind or original equipment and materials
Remodeling that alters the nature or type of housing units falls within the purview of “development” (24 CFR 968.203)
Development (Davis-Bacon)
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DEVELOPMENT WAGE RATES
DB wages determined by DOL
Agency gets DB rates on-line or from HUD OLR
Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporaries, residents
CWHSSA applies to contractors after 40 hours
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CONTRACT ADMINISTRATION
Development Work (Construction) Each covered DB contract for construction,
alteration, or repair work MUST incorporate: Current, appropriate wage decision and Federal
Labor Standards provision applicable to work being done.
Appropriate modification or superseded wage decision
Federal labor standards clauses◦ HUD-5370 PHA Programs – Contracts greater than $100,000
◦ HUD-5370-EZ Contracts greater than $2,000 but not more than $100,000
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PHAs ARE REQUIRED TO …(Routine and Non-Routine Maintenance) Ensure ALL maintenance laborers and
mechanics are paid a prevailing wage Create and maintain documents
demonstrating compliance Ensure permissible deductions as allowed
by law or regulation Conduct employee interviews (HUD-11) Comply with Labor Relations Letter LR
2004-01
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Wage Decision or Project Wage Rate Sheet (HUD-4720)
Any Additional Classifications (HUD-4230A)
The Employees Rights under the Davis-Bacon Act (WH-1321)
Posting Requirements-Development
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DAVIS-BACON WAGE DECISIONS
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 in those classifications
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DAVIS-BACON WAGE DECISION BASICS
Must be incorporated in prime contracts & sub-contracts
Identifies work classifications, basic hourly wages, fringe benefits
Must be posted at the job site May be modified periodically Published for 4 types of construction
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CHARACTER OF CONSTRUCTION
RESIDENTIAL Single family houses, townhouses Apartment buildings less than 5 stories
BUILDING Sheltered enclosures for the purpose of
housing persons, machinery, and equipment Apartment buildings more than 4 stories Commercial buildings
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CHARACTER OF CONSTRUCTION
HIGHWAY Roads Highways Sidewalks Parking areas Other paving work not incidental to other
construction
HEAVY Projects which cannot be classified as Building, Residential, or Highway
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OBTAINING DB-WAGE DECISIONS
Go On-line at: www.wdol.gov
NEW – DOL renumbered wage decisions effective January 6, 2012.
Contact your HUD Labor Relations Specialist
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<- WD Number
<- Construction Type
<- Counties
Mod Number & Publish Date
<- Description
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CLASSIFICATION RATE FRINGE
S
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WAGE DECISION “LOCK-IN”COMPETITIVELY BID CONTRACTS
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 days before bid opening are applicable if there is sufficient time to notify bidders (10 days no longer applicable with online access)
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Contractor Eligibility (DB) Verify prime
contractor eligibility against GSA Debarred Listwww.sam.gov
Make record of verification to contract file
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Certified Weekly Payrolls
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Payroll Form WH-347
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Reviews of Certified Payrolls Name of employee. Address and SSN are no
longer required on CPR but must be on file and available upon request.
Properly classified according to the work performed
Established work week Hours worked each week Gross wages and net wages properly
calculated “Other” deductions Overtime computed properly Statement of Compliance – Authorized Original
Signature
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Reviews of Certified PayrollsTypical Errors
Classification Errors Copy or Fax Statement of Compliance Inadequate or Incomplete Payroll
Information Missing Addresses and SSN One Statement of Compliance for
Multiple Work Weeks Other Deductions Ratio of Laborers to Mechanics Unauthorized Signature on Statement of
Compliance
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EMPLOYEE INTERVIEWS – HUD-11 Contractors must permit interviews
Interviews may be performed at random
Interviews are confidential
Interviews must be checked against payrolls
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Fringe Benefits
Can include health and life insurance premiums, retirement/pension contributions, vacation irrevocably made to a trustee or third party pursuant to bona fide fringe benefits fund, plan, or program.
May be paid directly to worker
Do not include employer payments or contributions required by Federal, State or local laws (i.e., the employer’s contribution to Social Security, workers’ compensation insurance, etc.)
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Fringe Benefits Prevailing wage requirements may be met
by any combination of cash wages and creditable “bona fide” fringe benefits provided by the employer.◦ May be paid entirely as cash wages◦ Payments made or costs incurred by the
contractor for “bona fide” fringe benefits may be creditable
◦ Combination of cash wages paid and “bona fide” fringe benefits may be used together
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Fringe Benefits and Overtime
Under Davis-Bacon, fringe benefits must be paid for ALL hours worked, including overtime hours. However, the fringe benefit amounts may be excluded from the half-time premium due as overtime compensation.
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Restitution
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Restitution Where underpayments are found, the employer
will be required to pay wage restitution to the affected employees.
Must be paid promptly and in the full amounts due, less permissible and authorized deductions.
Funds may be withheld if violations are not corrected promptly
Deposit of funds may be necessary if matter is under appeal, or workers cannot be found
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Restitution Computing Wage Restitution
Corrected Payrolls
Contract Administrator Review
Document restitution on certified corrected payroll report
Submit 5.7 report where restitution totals $1,000 per contractor (See LR-92-02 for instructions)
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INVESTIGATIONS
Funds may be withheld if violations are not corrected promptly
Deposit of funds may be necessary if matter is under appeal, or workers cannot be found
Administrative sanctions may be necessary◦ Limited Denial of Participation◦ Debarment
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Work Classifications
You’ll want to make sure that the work classification(s) you need are contained in the wage decision.
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ADDITIONAL CLASSIFICATIONS
Review and discuss the wage decision with contractor early to identify missing classifications
Submit Requests immediately after contract award (HUD-4230A)
HUD will respond in writing Post new classification & rate Make restitution payment if necessary
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Davis-Bacon Additional Classifications Process
Form HUD-4230A Request of Additional Classification and Rate
AND
Employer needs to send a letter on company letterhead requesting the job classification and detailing the
duties the employee will be performing
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U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REPORT OF ADDITIONAL CLASSIFICATION AND RATE
DATE OF REPORT
TO: (Appropriate Regional Office, U.S. Department of Labor) U.S. DEPARTMENT OF LABOR EMPLOYMENT STANDARDS ADMINISTRATION WAGE-HOUR / DIVISION OF CONSTRUCTION WAGE RATE DETERMINATION - ROOM S-3012 WASHINGTON, DC 20210
FROM: (Name and Location of HUD Office)
NAME OF PROJECT
PROJECT NUMBER
LOCATION OF PROJECT (City, County and State)
DESCRIPTION OF WORK WAGE DECISION NO. & MODIFICATION NO. (Also attach copy of applicable wage decision)
WAGE DECISION EFFECTIVE DATE
In order to complete the project, it is necessary to establish wage rates for the following classifications not included in the above-referenced U.S. Department of Labor Wage Decision: CLASSIFICATIONS
BASIC HOURLY RATE(S)
FRINGE BENEFIT PAYMENTS
NAME, ADDRESS & ZIP CODE OF LABOR ORGANIZATION
NAME, ADDRESS & ZIP CODE OF PRIME CONTRACTOR
TITLE OF LABOR ORGANIZATION REPRESENTATIVE
TITLE OF CONTRACTOR’S REPRESENTATIVE
Supporting documents attached. The interested parties, including the employees or their authorized representatives, agree on the classification and wage rate. The interested parties, including the employees or their authorized representatives, cannot agree on the proper classification and wage rate. A determination of the question by the Secretary of Labor is therefore requested. Available information and recommendations are attached. APPROVED (Signature of HUD Area Insuring Office Representative)
_______________________________ Date
(Signature of HUD Regional Labor Relations Officer)
_______________________________ Date
HUD-4230A (4-73) PREVIOUS EDITION IS OBSOLETE
HU
D 4230A
FL020001/Mod 1
Community Center
CD2002-24
Miami, Dade County, FLBLDG constr: rehab comm center
4/2/02
Electrician
22.50 4.50
Contractor, Labor Organization
Do all parties agree?
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Apprentices and Trainees Apprentices and trainees are persons
registered and receiving on-the-job training in a construction occupation under a program which has been approved in advance by DOL
Apprentices and trainees must be registered in a Department of Labor-approved program
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Apprentices and Trainees
Contractor must submit a copy of registration/apprentice agreement and ratio language
Apprentices/trainees that are not registered or that are utilized out of ratio must be paid the full rate (base + fringes) listed on the wage decision for the classification of work they perform.
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Self-employed Subcontractors(Labor Relations Letter LR-96-01)
All laborers and mechanics are covered regardless of any contractual relationship alleged to exist
Must be paid weekly
May not certify to payment of own wages (may not sign own payrolls) - Exception: Owners of business working with their crew
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Semi-Annual Labor Standards Enforcement Report
Instructions and
Fillable Form (HUD-4710)
can be found at:
www.hud.gov/offices/olr/olrform.cfm
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Semi-Annual Labor Standards Enforcement Report - HUD 4710
Period 1 Oct 1 – Mar 31 Due April 4 Period 2 Apr 1 – Sep 30 Due October 4
Maintenance Wage Rate Determination Annual Renewal of 52158 HUD sends a reminder prior to the end of the Fiscal Year. The housing commission then sends in the HUD-4750, personnel policy or CBA, and job descriptions.
Report Deadlines
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1344.1 Rev 2 – February, 2012
Contractor’s Guide – Jan. 2012
What’s New?
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Wage Determinations – http://www.wdol.gov
Wage and Hour Division – http://www.dol.gov/whd/index.htm
Office of the Administrative Law Judges Law Library – http://www.oalj.dol.gov
Administrative Review Board – http://www.dol.gov/arb
Debarred Bidders List – http://www.sam.gov
HUD – http://www.HUD.gov/offices/olr
Internet Sites
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Questions