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HomeMy WebLinkAboutpayroll requestU.S. Department of Housing and Urban Development Office of Labor Relations A Contraotor'S Goldo to Davis- DaeoN Wage ioqtiromONts C Certified Payroll Reports (Prevailing Wage Requirements for Federal and Federally -assisted Construction Projects) March 1997 INTRODUCTION The purpose of this Guide is to explain in simple and non -bureaucratic terms exactly what is required of contractors and subcontractors working on construction projects covered by Federal Davis -Bacon prevailing wage and reporting requirements. HUD's Office of Labor Relations is providing this Guide as a service to assist you in better understanding your labor standards and compliance responsibilities. This Guide has been developed in consultation with the Department of Labor's Wage and Hour Division. There are three chapters in this Guide. The first chapter provides a brief description of the laws and regulations associated with Federal labor standards administration and enforcement and discusses both what's in your contract that requires Davis -Bacon compliance as well as your responsibilities. The second chapter deals with labor standards and payroll reporting requirements. The third chapter discusses what can happen in the event there is a dispute about the wage rates that should be (or have been) paid and any back wages that may be due. This Guide is focused primarily on the requirements and responsibilities associated with HUD -assisted construction work subject to Davis -Bacon wage rates, but the guidance is also generally applicable to Davis -Bacon covered projects administered by other Federal agencies. Not all HUD construction projects are covered by Davis -Bacon wage rates. For the purpose of this Guide, we shall assume that a determination has already been made that Davis -Bacon wage rates are applicable. Look for these boxes throughout this Guide for time saving tips, cross references, and other helpful information. Visit the Office of Labor Relations on the World Wide Web HUD Home .Page at http:/lwww.hud.gov/ Paragraph, TABLE OF CONTENTS PREFACE Paae CHAPTER 1. LAWS, REGULATIONS, CONTRACTS AND RESPONSIBILITIES 1-1 Davis -Bacon and Other Labor Laws a. The Davis -Bacon Act (DBA) b. The Contract Work Hours and Safety Standards Act (CWHSSA) c. The Copeland Act (Anti -Kickback Act) d. The Fair Labor Standards Act (FLSA) 1-2 Davis -Bacon Regulations 1-3 Construction Contract Provisions 1-4 Responsibility of the Principal Contractor 1-5 Responsibility of the Contract Administrator CHAPTER 2. HOW TO COMPLY WITH LABOR STANDARDS AND PAYROLL REPORTING REQUIREMENTS SECTION I THE BASICS 2-1 The Wage Decision a. The work classifications and wage rates. b. Posting the wage decision. 2-2 Additional "Trade" Classifications and Wage Rates a. Additional classification rules. b. Making the request. • • c. HUD review. d. DOL decision. 2-3 Certified Payroll Reports a. Payroll formats. b. Payroll certifications. c. "No work" payrolls. d. Payroll review and submission. e. Payroll retention. f. Payroll inspection. 2-4 Davis -Bacon Definitions a. Laborer or mechanic. b. Employee. c. Apprentices and trainees. d. Prevailing wages or wage rates. e. Fringe benefits. f. Site of work. g. Overtime. h. Deductions. I. Proper designation of trade. SECTION II REPORTING REQUIREMENTS 2-5 Completing a Payroll Report a. Project and contractor/subcontractor information. b. Employee information. c. Work classification. d. Hours worked. e. Rate of pay. f. Gross wages earned. g. Deductions. h. Net pay. I. Statement of compliance. j. Signature. SECTION III PAYROLL REVIEWS AND CORRECTIONS 2-6 Compliance Reviews a. On -site interviews. b. Project payroll reviews. 2-7 Typical Payroll Errors and Required Corrections. • • a. Inadequate payroll information. b. Missing addresses and Social Security Numbers. c. Incomplete payrolls. d. Classifications. e. Wage rates. f. Apprentices and trainees. g. Overtime. h. Computations. i. Deductions. j. Fringe benefits. k. Signature. 1, On -site interview comparisons. 2-8 Restitution for Underpayment of Wages a. Notification to the prime contractor. b. Computing wage restitution. c. Correction payrolls. d. Employee signature. e. Review of correction CPR. f. Unfound workers. CHAPTER 3. LABOR STANDARDS DISPUTES, ADMINISTRATIVE REVIEWS~ WITHHOLDING AND DEPOSITS AND ESCROW ACCOUNTS 3-1 Introduction 3-2 Administrative Review on Labor Standards Disputes a. Additional classifications and wage rates. b. Findings of underpayment. 3-3 Withholding. 3-4 Deposits and Escrow Accounts 3-5 Debarment. EXHIBITS WH-347, Payroll Form WH-348, Statement of Compliance • CHAPTER 1 LAWS, REGULATIONS, CONTRACTS AND RESPONSIBILITIES The following paragraphs describe what the labor standards laws and regulations actually say and what it means to you on HUD projects: 1-1 DAVIS-BACON AND OTHER LABOR LAWS. a. The Davis -Bacon Act (DBA). The Davis -Bacon Act requires the payment of prevailing wage rates (which are determined by the U.S. Department of Labor) to all laborers and mechanics on Federal construction projects in excess of $2,000. Construction includes alteration and/or repair, including painting and decorating, of public buildings or public works. Most HUD construction work is not covered by the DBA itself since HUD seldom contracts directly for construction services. Most often, if Davis -Bacon wage rates apply to a HUD project it is because of a labor provision contained in one of HUD's "Related Acts" such as the U. S. Housing Act of 1937, the National Housing Act of 1949, the Housing and Community Development Act of 1974, and the National Affordable Housing Act of 1990, as amended. The Related Acts are often referred to as the Davis -Bacon and Related Acts or DBRA. b. The Contract Work Hours and Safety Standards Act (CWHSSA). CWHSSA requires time and one-half pay for overtime (O/T) hours (over 40 in any workweek) worked on the covered project. The CWHSSA applies to both direct Federal contracts and to indirect Federally -assisted contracts except where the assistance is solely in the nature of a loan guarantee or insurance. CWHSSA violations carry a liquidated damages penalty ($10/day per violation). Intentional violations of CWHSSA standards are considered a Federal criminal misdemeanor. . The CWHSSA does not apply to contracts of $100,000 or less. Also, not all HUD projects are covered by CWHSSA because some HUD programs only provide loan guarantee or insurance. However, even though CWHSSA overtime pay is not required, Fair Labor Standards Act (FLSA) overtime pay is probably still applicable. (See also Labor Relations Letter SL-95-01, CWHSSA Coverage threshold for overtime and health and safety provisions) c. The Copeland Act (Anti -Kickback Act). The Copeland Act makes it a crime for anyone to require any laborer or mechanic (employed on a Federal or Federally -assisted project) to kickback any part of their wages. The Copeland Act also requires every employer (contractors and subcontractors) to submit weekly certified payroll reports (CPRs). d. The Fair Labor Standards Act (FLSA). The FLSA contains Federal minimum wage rates and overtime (O/T) requirements. These requirements generally apply to any labor performed and may be pre-empted by other Federal standards such as the DBRA prevailing wage requirements and CWHSSA O/T provisions. Only the DOL has the authority to administer and enforce FLSA. HUD will refer to the DOL any possible FLSA violations that are found on HUD projects. 1-2 DAVIS-BACON REGULATIONS. The Department of Labor has published rules and instructions concerning Davis -Bacon and other labor laws in the Code of Federal Regulations (CFR). These regulations can be found in Title 29 CFR Parts 1, 3, 5, 6 and 7. Part 1 explains how the DOL establishes and publishes DBA wage determinations and provides instructions on how to use the determinations. Part 3 describes Copeland Act requirements for payroll deductions and the submission of weekly certified payroll reports. Part 5 covers the labor standards provisions that are in your contract relating to Davis -Bacon Act wage rates and the responsibilities of contractors and contracting agencies to administer and enforce the provisions. Part 6 provides for administrative proceedings enforcing Federal labor standards on construction and service contracts. Last, Part 7 sets parameters for practice before the Wage Appeals Board (renamed Administrative Review Board). These regulations are used as the basis for administering and enforcing the laws. DOL Regulations are available on-line on the World Wide Web: http://www.doLgav/dollesa/public/regs/cfrlwhdcfr.htm. 1-3 CONSTRUCTION CONTRACT PROVISIONS. Each contract subject to Federal (Davis -Bacon) labor standards requirements must contain contract provisions containing labor standards clauses and a Davis -Bacon wage decision. These documents are normally bound into the contract specifications. a. The labor standards clauses. The labor standards clauses describe the responsibilities of the contractor concerning Davis -Bacon wages and obligate the contractor to comply with the labor requirements. The labor standards clauses also provide for remedies in the event of violations, including withholding from payments due to the contractor to ensure the payment of wages or liquidated damages which may be found due. These contract clauses enable the contract administrator to enforce the Federal labor standards applicable to the project. HUD has standard forms that contain contract clauses. For example, the HUD- 2554, Supplementary Conditions to the Contract for Construction, which issued primarily for FHA multifamily housing and other construction projects • • administered by HUD; and the HUD-4010, Federal Labor Standards Provisions, which is used for CDBG and HOME projects. b. Davis -Bacon Wale Decisions. The Davis -Bacon wage decision is a listing of various construction work classifications such as Carpenter, Plumber, and Electrician, for example, and the minimum wage rates (and fringe benefits, where prevailing) that people performing work in those classifications must be paid. 1-4 RESPONSIBILITY OF THE PRINCIPAL CONTRACTOR. The principal contractor (also referred to as the prime or general contractor) is responsible for the full compliance of all employers (the contractor, subcontractors and any lower -tier subcontractors) with the labor standards provisions applicable to the project. Because of the contractual relationship between a prime contractor and his/her subcontractors, questions to, or from, or about subcontractors should always be channeled through the prime contractor. To make this Guide easier to understand, the term "prime contractor" will mean the principal contractor; "subcontractor" will mean all subcontractors including lower -tier subcontractors; and the term "employer"will mean all contractors as a group, including the prime contractor and any subcontractors and lower -tier subcontractors. 1-5 RESPONSIBILITY OF THE CONTRACT ADMINISTRATOR. The contract administrator(s) is responsible for the proper administration and enforcement of the Federal labor standards provisions on contracts covered by Davis -Bacon requirements. We use this term to represent the person (or persons) who will provide labor standards preconstruction advice and support to you and other project principals (for example, the owner, sponsor, architect), including providing the proper Davis -Bacon wage decision (see paragraph 2-1, The Wage Decision) and ensuring that the wage decision and contract clauses are incorporated into the contract for construction. The contract administrator also monitors labor standards compliance (see paragraph 2-6, Compliance Reviews) by conducting interviews with construction workers at the job site and reviewing payroll reports, and oversees any enforcement actions that may be required. The contract administrator could be an employee of HUD, or of a city or county, or public or Indian housing authority. Some HUD projects are administered directly by HUD staff, usually FHA -insured multifamily projects, where the contract administrator will be the HUD Labor Relations field staff. But many HUD -assisted projects are administered by local contracting agencies such as Public and Indian Housing Authorities (PHAs and IHAs) and cities and counties under HUD's Community Development Block Grant (CDBG) and HOME programs, for example. In these cases, the contract administrator will likely be local agency staff. In either case, the guidance for you remains the same. The DOL also has a role in monitoring Davis -Bacon administration and enforcement. A DOL investigator or other DOL representative may visit Davis -Bacon construction sites to interview construction workers or review payroll information. All communications to or from the prime contractor concerning the labor standards applicable to a particular contract, or concerning compliance with those standards should go through the contract administrator. • • CHAPTER 2 HOW TO COMPLY WITH LABOR STANDARDS AND PAYROLL REPORTING REQUIREMENTS WHERE TO START? Now that you know you're on a Davis -Bacon project and you know some of the legal and practical implications, what's next? SECTION I THE BASICS 2-1 THE WAGE DECISION. Davis -Bacon labor standards stipulate the wage payment requirements for Carpenters, Electricians, Plumbers, Roofers, Laborers, and other construction work classifications that may be needed for the project. The Davis -Bacon wage decision that applies to the project contains a schedule of work classifications and wage rates that must be followed. If you don't have it already (and by now you should), you'll want to get a copy of the applicable Davis -Bacon wage decision. 0 Remember, the wage decision is contained in the contract specifications along with the labor standards clauses. See ¶11-3, Construction Contract Provisions. a. The work classifications and wage rates. 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 work in those classifications. You'll want to make sure that the work classification(s) you need are contained in the wage decision and make certain you know exactly what wage rate(s) you will need to pay. Some wage decisions cover several counties and/or types of construction work (for example, residential and commercial work) and can be lengthy and difficult to read. Contact the contract administrator (HUD Labor Relations field staff or local agency staff) if you have any trouble reading the wage decision or finding the work classification(s) you need. To make reading lengthy wage decisions easier for you, the contract administrator may prepare a Project Wage Rate Sheet. This Sheet is a one -page transcript that will show only the classifications and wage rates for a particular project. Contact the contract administrator monitoring your project for assistance with a Project Wage Rate Sheet. b. Posting the wage decision. If you are the prime contractor, you will be responsible for posting a copy of the wage decision (or the Project Wage Rate Sheet) and a copy of a DOL poster called Notice to Employees at the job site in a place that is easily accessible to all of the construction workers employed at the project and where the wage decision and poster won't be destroyed by wind or rain, etc. The Notice to Employees poster is also available with Spanish text. 2-2 ADDITIONAL &OUOT;TRADE&OUOT; CLASSIFICATIONS AND WAGE RATES. What if the work classification you need isn't on the wage decision? If the work classification(s) that you need doesn't appear on the wage decision, you will need to request an additional classification and wage rate. This process is usually very simple and you'll want to start the request right away. Basically, you identify the classification you need and recommend a wage rate for DOL to approve for the project. There are a few rules about additional classifications; you'll find these rules in the DOL regulations, Fart 5, and in the labor clauses in your contract. The rules are summarized for you here: a. Additional classification rules. Additional classifications and wage rates can be approved if: 1) The requested classification is used by construction contractors in the area of the project. (The area is usually defined as the county where the project is located). 2) The work that will be performed by the requested classification is not already performed by another classification that is already on the wage decision. (In other words, if there already is an Electrician classification and wage rate on the wage decision you can't request another Electrician classification and rate.) 3) The proposed wage rate for the requested classification "fits" with the other wage rates already on the wage decision. (For example, the wage rate proposed for a trade classification such as Electrician must be at least as much as the lowest wage rate for other trade classifications already contained in the wage decision.) And, 4) The workers that will be employed in the added classification (if it is known who the workers are/will be), or the workers' representatives, must agree with the proposed wage rate. b. Making the request. A request for additional classification and wage rate must be made in writing through the contract administrator. (If the contract administrator is a local agency, the agency will send the request to the HUD Labor Relations staff.) If you are a subcontractor, your request should also go through the prime contractor. All you need to do is identify the work classification that is missing and recommend a wage rate (usually the rate that employer is already paying to the employees performing the work) for that classification. You may also need to describe the work that the new classification will perform. c. HUD review. The HUD Labor Relations field staff will review the requested classification and wage rate to determine whether the request meets the DOL rules outlined in paragraph 2-2(a), above. If additional information or clarification is needed, the staff will contact the prime contractor (or contract administrator for local agency projects) for more information, etc. If the Labor Relations review finds that the request meets the rules, the staff will give preliminary approval on the request and refer it to the DOL for final approval. The staff will send to you a copy of the preliminary approval/referral letter to the DOL. If the HUD Labor Relations staff doesn't think the request meets the rules and if agreement can't be reached on the proper classification or wage rate for the work described, the HUD Labor Relations staff will not approve the request. In this case, the staff will send your request to the DOL with an explanation why HUD believes that the request shouldn't be approved. The DOL still has final decision authority. You will receive a copy of the disapproval/referral letter to the DOL. d. DOL decision. The DOL will respond to HUD Labor Relations in writing about the additional classification and wage rate request. HUD Labor Relations will notify you of the DOL decision in writing. If the DOL approves the request, the prime contractor must post the approval notice on the job site with the wage decision. If the DOL does not approve the request, you will be notified about' what classification and wage rate should be used for the work in question. You will also receive instructions about how to ask for DOL reconsideration if you still want to try to get your recommendation approved. It's always a good idea to talk to the contract administrator before submitting an additional classification and wage rate request. The contract administrator can offer suggestions and advice that may save you time and increase the likelihood that DOL will approve your request. Usually, the contract administrator can give you an idea about what the DOL will finally decide. 2-3 CERTIFIED PAYROLL REPORTS. You'll need to submit a weekly certified payroll report beginning with the first week that your company works on the project and for every week afterward until your firm has completed its work. It's always a good idea to number the payroll reports beginning with #1 and to clearly mark your last payroll for the project "Final," a. Payroll formats. The easiest form to use is DOL's WH-347, Payroll. A sample copy of the WH-347 is included in the back of this Guide. Also, the contract administrator can provide a few copies of the WH-347 that you can reproduce. You are not required to use Payroll Form WH-347. You are welcome to use any other type of payroll, such as computerized formats, as long as it contains all of the information that is required on the WH-347. b. Payroll certifications. The weekly payrolls are called certified because each payroll is signed and contains language certifying that the information is true and correct. The payroll certification language is on the reverse side of the WH-347. If you are using another type of payroll format you may attach the certification from the back of the WH-347, or you can use the WH-348, Statement of Compliance (same certification language as on WH-347), or any other format which contains the same certification language on the WH-347 (reverse) or WH- 348. A copy of the WH-348 is included in the back of this Guide. Copies of the WH-348 are also available from the contract administrator. c. "No work" payrolls. "No work" payrolls may be submitted whenever there is a temporary break in your work on the project. (See Tip Box, below, for "no work" payroll exemption!) For example, if your firm is not needed on the project right now but you will be returning to the job in a couple of weeks. However, if you know that your firm will not be working on the project for an extended period of time, you may wish to send a short note to the contract administrator to let them know about the break in work and to give an approximate date when your firm will return to the project. If you send a note, you do not need to send "no work" payrolls. If you number your payroll reports consecutively, you do not need to submit "no work" payrolls! d. Payroll review and submission. The prime contractor should review each subcontractor's payroll reports for compliance prior to submitting the reports to the contract administrator. Remember, the prime contractor is responsible for the full compliance of all subcontractors on the contract and will be held accountable for any wage restitution that may be found due to any laborer or mechanic that is underpaid and for any liquidated damages that may be assessed for overtime violations. All of the payroll reports for any project must be submitted to the contract administrator through the prime contractor. An alert prime contractor that reviews subcontractor payroll submissions can detect any misunderstandings early, prevent costly underpayments and protect itself from financial loss should underpayments occur. e. Payroll retention. Every contractor (including every subcontractor) must keep a complete set of their own payrolls and other basic records such as time cards, for a Davis -Bacon project for at least 3 years after the project is completed. The prime contractor must keep a complete set of all of the payrolls for every contractor (including subcontractors) for at least 3 years after completion of the project. f. Payroll inspection. In addition to submitting payrolls to the contract administrator, every contractor (including subcontractors) must make their own copy of the payrolls available for review or copying to any authorized representative from HUD or from DOL. 2-4 DAVIS-BACON DEFINITIONS. Before we discuss how to complete the weekly payroll forms, we need to review a couple of definitions. These definitions can help you understand what will be required of you: a. Laborer or mechanic. "Laborers" and "mechanics" mean anyone who is performing construction work on the project, including trade journeymen (carpenters, plumbers, sheet metal workers, etc.), apprentices, trainees and, for CWHSSA purposes, watchmen and guards. "Laborers" and "mechanics" are the two groups of workers that must be paid not less than Davis -Bacon wage rates. 1) Working foremen. Foremen or supervisors that regularly spend more than 20% of their time performing construction work are covered "laborers" and "mechanics" for labor standards purposes. 2) Exclusions. People whose duties are primarily administrative, managerial or clerical are not laborers or mechanics. For example, office staff, timekeepers, messengers, etc. (Contact the contract administrator it you have any questions about whether a particular employee is excluded.) b. Employee. Every person who performs the work of a laborer or mechanic is "employed" regardless of any contractual relationship which may be alleged to exist between a contractor or subcontractor and such person. This means that even if there is a contract between a contractor and a worker, the contractor must make sure that the worker is paid at least as much as the wage rate on the wage decision for the classification of work they perform. . For more information about working subcontractors, ask the contract administrator or your HUD Labor Relations Field Staff for a copy of Labor Relations Letter LR-96-01, Labor standards compliance requirements for self- employed laborers and mechanics. Labor Relations Letters and other helpful Labor Relations publications are available at HUD's web site (see Introduction at the beginning of this Guide. c. Apprentices and trainees. The only workers who can be paid less than the wage rate on the wage decision for their work classification are "apprentices" and "trainees" registered in approved apprenticeship or training programs, including Step -Up apprenticeship programs designed for Davis -Bacon construction work. Approved programs are those which have been registered with the DOL, Bureau of Apprenticeship and Training (BAT) or with a BAT -recognized State Apprenticeship Agency (SAC). Apprentices and trainees are paid wage rates in accordance with the wage schedule in the approved program. . Most often, the apprentice/trainee wage rate is expressed as a series of percentages tied to the amount of time spent in the program. For example, 0-6 months: 65%; 6 months - 1 year: 70%; etc. The percentage is applied to the journeyman's wage rate. On Davis -Bacon projects, the percentage must be applied to the journeyman's wage rate on the applicable wage decision for that craft. 1) Probationary apprentice. A "probationary apprentice" can be paid as an apprentice (less than the rate on the wage decision) if the BAT or SAC has certified that the person is eligible for probationary employment as an apprentice. 2) Pre -apprentice. A "pre -apprentice", that is, someone who is not registered in a program and that hasn't been BAT- or SAC -certified for probationary apprenticeship is not considered to be an "apprentice" and must be paid the full journeyman's rate on the wage decision for the classification of work they perform. 3) Ratio of apprentices and trainees to iournevmen. The maximum number of apprentices or trainees that you can use on the job site can not be more than the ratio of apprentices or trainees to journeymen allowed in the approved program. d. Prevailing wages or wage rates. Prevailing wage rates are the wage rates listed on the wage decision for the project. The wage decision will list a minimum basic hourly rate of pay for each work classification. Some wage decisions include fringe benefits which are usually listed as an hourly fringe rate. If the wage decision includes a fringe benefit rate for a classification, you will need to add the fringe benefit rate to the basic hourly rate unless you provide bona fide fringe benefits for your employees. . Note that the total hourly wage rate paid to any laborer or mechanic (basic wage or basic wage plus fringe benefits) may be no less than the total wage rate (basic wage or basic wage plus fringe benefits) on the wage decision for their craft. If the value of the fringe benefit(s) you provide is less than the fringe benefit rate on the wage decision, you will need to add the balance of the wage decision fringe benefit rate to the basic rate paid to the employee. For example, if the wage decision requires $10/hour basic rate plus $5/hour fringe benefits, you must pay no less than that total ($15/hour) in the basic rate or basic rate plus whatever fringe benefit you may provide. e. Fringe benefits include health insurance, retirement, life insurance, vacation and some contributions to training funds. Fringe benefits do not include employer payments or contributions required by other Federal, State or local laws, such as the employer's contribution to Social Security or some disability insurance payments. f. Site of work. The "site of work" is where the Davis -Bacon wage rates apply. Usually, this means the boundaries of the project. "Site of work" can also include other adjacent or nearby property used by a contractor or subcontractor in the construction of the project, like a fabrication site. g. Overtime. Overtime hours are defined as all hours worked on the site of the work in excess of 40 hours in any work week. Overtime hours must be paid at no less than one and one-half times the regular rate of basic pay plus the straight -time rate of any required fringe benefits. h. Deductions. You may make payroll deductions as permitted by DOL Regulations 29 CFR Part 3. These regulations prohibit the employer from requiring employees to "kick -back" any of their earnings. Allowable deductions include employee obligations for income taxes, Social Security payments, insurance premiums, retirement, savings accounts, and any other legally - permissible deduction authorized by the employee. Deductions may also be made for payments on judgements and other financial obligations legally imposed against the employee. i. Proper designation of trade. You must select a work classification on the wage decision for each worker based on the actual type of work he/she performed and you must pay each worker no less than the wage rate on the wage decision for that classification regardless of their level of skill. In other words, if someone is performing carpentry work on the project, they must be paid no less than the wage rate on the wage decision for Carpenters even if they aren't considered by you to be fully trained as a Carpenter. Remember, the only people who can be paid less than the rate for their craft is apprentices and trainees registered in approved programs. 1) Split -classification. If you have employees that perform work in more than one classification, you can pay the wage rates specified for each classification only if you maintain accurate time records showing the amount of time spent in each classification of work. If you do not maintain accurate time records, you must pay these employees the highest wage rate of all of the classifications of work performed. SECTION II REPORTING REQUIREMENTS 2-5 COMPLETING A PAYROLL REPORT. What information has to be reported on the payroll form? The weekly payroll form doesn't ask for any information that you don't already need to keep for wage payment and tax purposes. For example, you need to know each employee's name, address and social security number; his or her work classification (who is working for you and what do they do?), the hours worked during the week, his or her rate of pay, the gross amount earned (how much did they earn?), the amounts of any deductions for taxes, etc., and the net amount paid (how much should the paycheck be made out for?). No more information than you need to know in order to manage your work crew and make certain they are paid properly. And, certainly, no more information than you need to keep for IRS, Social Security and other tax and employment purposes. FOR MOST CONTRACTORSLTHE WEEKLY CERTIFIED PAYROLL IS ALL THE PAPERWORK THAT IS REQUIRED FOR A DAVIS-BACON PROJECT! a. Proiect and contractor/subcontractor information. Each payroll should show the contractor or subcontractor's name and address, the project name and number, and the week ending date. Indicate the dates in the spaces provided. Numbering payrolls is optional but strongly recommended. b. Employee information. The first payroll on which each employee appears must contain the employee's name, address and Social Security Number. Afterward, the address and Social Security Number only need to be reported if there is a change in this information. c. Work Classification. Each employee must be classified in accordance with the wage decision based on the type of work they actually perform. 1) Apprentices or Trainees. The first payroll on which any apprentice or trainee appears must be accompanied by a copy of that apprentice's or trainee's registration in an approved program. A copy of the portions of the approved program pertaining to the wage rates and ratios shall also accompany the first CPR on which the first apprentice or trainee appears. 2) Split classifications. For employees in split classifications, list the employees once for each classification, distributing the hours of work accordingly, and reflecting the rate of pay and gross earnings for each • • • classification. Deductions and net pay may be based upon the total gross amount earned for all classifications. d. Hours Worked. The payroll should show ONLY the regular and overtime hours worked on this project. Show both the daily and total weekly hours for each employee. If an employee performs work at job sites other than the project for which the payroll is prepared, those "other job" hours should not be reported on the payroll. In these cases, you should list the employee's name, classification, hours for this project only, the rate of pay and gross earnings for this project, and the gross earned for all projects. Deductions and net pay may be based upon the employee's total earnings (for all projects) for the week. e. Rate of Pay. Show the basic hourly rate of pay for each employee for this project. If the wage decision includes a fringe benefit and you do not participate in approved fringe benefit programs, add the fringe benefit rate to the basic hourly rate of pay. Also list the overtime rate if overtime hours were worked. . Remember, the overtime rate is computed at one and one-half times the basic rate of pay plus any fringe benefits. For example, if the wage decision requires $10/hour basic plus $5/hour fringe benefits, the overtime rate would be: ($10 x 1 P/2) + $5 = $20/hour. f. Gross Wases Earned. Show the gross amount of wages earned for work performed on this project. Note: For employees with work hours and earnings on other projects, you may show gross wages for this project over gross earnings all projects (for example, $425.40/$764.85) and base deductions and net pay on the "all projects" earnings. g. Deductions. Show the amounts of any deductions from the gross earnings. "Other" deductions should be identified (for example, Savings Account or Loan Repayment). Any voluntary deduction (that is, not required by law or by an order of a proper authority) must be authorized in writing by the employee. A short note signed by the employee is all that is needed and should accompany the first payroll on which the other deduction appears. QOnly one employee authorization is needed for recurring (e.g., weekly) other deductions. ® Written employee authorization is not required for income tax and Social Security deductions. h. Net Pay. Show the net amount of wages paid. i. Statement of Compliance. The Statement of Compliance is the certification. It is located on the reverse side of a standard payroll form (WH-347) or on form WH-348. Be sure to complete the identifying information at the top, particularly if you are attaching the Statement of Compliance to an alternate payroll form such as a computer payroll. Also, you must check either 4(a) or 4(b) if the wage decision contains a fringe benefit. Checking 4(a) indicates that you are paying required fringe benefits to approved plans or programs; and 4(b) indicates that you are paying any required fringe benefit amounts directly to the employee by adding the fringe benefit rate to the basic hourly rate of pay. If you are paying a portion of the required fringe benefit to programs and the balance directly to the employee, explain those differences in box 4(c). j. Signature. Make sure the payroll is signed with an original signature. The. payroll must be signed by a principal of the firm (owner or officer such as the President, Treasurer or Payroll Administrator) or by an authorized agent (a person authorized by a principal in writing to sign the payroll reports). Signature authorization (for persons other than a principal) should be submitted with the first payroll signed by such an agent. Only one Statement of Compliance is required for each employer's weekly payroll no matter how many pages are needed to report the employee data. SECTION III PAYROLL REVIEWS AND CORRECTIONS 2-6 COMPLIANCE REVIEWS. The contract administrator or other inspector may visit the project site and interview some of the workers concerning their employment on the project. In addition, the contract administrator will periodically review payrolls and related submissions, comparing the interview information to the payrolls, to ensure that the labor standards requirements have been met. You will be notified by the contract administrator if these reviews find any discrepancies or errors. You will be given instructions about what steps must be taken to correct any problems. a. On -site Interviews. Every employer (contractor, subcontractor, etc.) must make their employees available for interview at the job site with the contract administrator or other agency representative, or HUD or DOL representative. The interviews are confidential and the employee will be asked about the kind of work they perform and their rate of pay. Every effort will be made to ensure that these interviews cause as little disruption as possible to the on -going work. The interviewer will record the interview information, usually on a form HUD-11, Record of Employee Interview, and forward the interviews to the contract administrator. b. Project payroll reviews. The contract administrator will compare the information on the interview forms to the corresponding payrolls to ensure that • • the workers are properly listed on the payrolls for the days, work classification and rate of pay. The contract administrator will also review the payroll submissions to make certain that the payrolls are complete and signed; that employees are paid no less than the wage rate for the work classification shown; apprentice and trainee certifications are submitted (where needed); employee authorizations for other deductions are submitted (where needed); etc. 2-7 TYPICAL PAYROLL ERRORS AND REQUIRED CORRECTIONS. The following paragraphs describe common payroll errors and the corrective steps you must take. a. Inadequate payroll information. If the alternate payroll (such as a computer payroll) does not contain all of the information that would be on the optional form WH-347, the employer will be asked to resubmit the payrolls on an acceptable form. b. Missing addresses and Social Security Numbers. If the first payroll on which an employee appears does not contain the employee's address and Social Security Number, the employer will be asked to supply the missing information. A short note providing the information is all that is needed. c. Incomplete payrolls. If the information on the payroll is not complete, for example, if work classifications or rates of pay are missing, the employer will be asked to send a corrected payroll. d. Classifications. If the payrolls show work classifications that do not appear on the wage decision, the employer will be asked to reclassify the employees in accordance with the wage decision or the employer may request an additional classification and wage rate (See paragraph 2-2). If reclassification results in underpayment (the wage rate paid on the payroll is less than the rate required for the new classification, the employer will be asked to pay wage restitution to all affected reclassified employees. (See paragraph 2-8 for instructions about wage restitution.) e. Wage Rates. If the wage rates on the payroll are less than the wage rates on the wage decision for the work classification reported, the employer will be asked to pay wage restitution to all affected employees. f. Apprentices and trainees. If a copy of the employee(s) registration or approved program ratio and wage schedule is not submitted with the first payroll on which an apprentice or trainee appears, the employer will be asked to submit a copy of each apprentice's or trainee's registration and/or the approved program ratio and wage schedule. If the ratio of apprentices or trainees to journeymen on the payroll is greater than the ratio in the approved program, the employer will be asked to pay wage restitution to any excess apprentices or trainees. Also, any apprentice or trainee that is not registered in an approved program must receive the journeyman's wage rate for the classification of work they performed. g. Overtime. Ifthe employees did not receive at least time and one-half for any overtime hours worked on the project, the following will occur: 1) If the project is subject to CWHSSA overtime requirements, the employer will be asked to pay wage restitution for all overtime hours worked on the project (overtime hours worked at other projects are not subject to CWHSSA). The employer may also be liable to the United States for liquidated damages computed at $10 per day per violation. Or, 2) If the project is not subject to CWHSSA, the employer will be notified of the possible FLSA overtime violations. Also, the Labor Relations staff may refer the violations to the DOL for further review. h. Computations. If the payroll computations (hours worked times rate of pay) or extensions (deductions, net pay) show frequent errors, the employer will be asked to take greater care. Wage restitution may be required if underpayments resulted from the errors. i. Deductions. If there are any "Other" deductions that are not identified, or if employee authorization isn't provided, or if there is any unusual (very high, or large number) deduction activity, the employer will be asked to identify the deductions, provide employee authorization or explain unusual deductions, as necessary. j. Fringe benefits. If the wage decision contains fringe benefits but the payroll does not indicate how fringe benefits were paid [neither 4(a) nor 4(b) is marked on the payroll form], the employer may be asked to submit corrected payrolls and will be required to pay wage restitution if underpayments occurred. However, if the basic hourly rates for the employees are at least as much as the total wage rate on the wage decision (basic hourly rate plus the fringe benefit rate), no correction is necessary. k. Signature. If the payroll Statement of Compliance is not signed or is missing, the employer will be asked to submit a signed Statement of Compliance for each payroll affected. 1. On -site interview comparisons. If the comparison of on -site interviews to the payrolls indicates any discrepancies (for example, the employee does not appear on the payroll for the date of the interview), the employer will be asked to submit a corrected payroll report. 2-8 RESTITUTION FOR UNDERPAYMENT OF WAGES. Where underpayments of wages have occurred, the employer will be required to pay wage restitution to the affected employees. Wage restitution must be paid promptly in the full amounts due, less permissible and authorized deductions. a. Notification to the prime contractor. The contract administrator will notify the prime contractor in writing of any underpayments that are found during payroll or other reviews. The notice will describe the underpayments and provide instructions for computing and documenting the restitution to be paid. The prime contractor is allowed 30 days to correct the underpayments. Note that the prime contractor is responsible to the contract administrator for ensuring that restitution is paid. If the employer is a subcontractor, the subcontractor will usually make the computations and restitution payments and furnish the required documentation through the prime contractor. b. Computing wage restitution. Wage restitution is simply the difference between the wage rate paid to each affected employee and the wage rate required on the wage decision for all hours worked where underpayments occurred. The difference in the wage rates is called the adjustment rate. The adjustment rate times the number of hours involved equals the gross amount of restitution due. c. Correction payrolls. The employer will be required to report the restitution paid on a correction certified payroll. The correction payroll will reflect the period of time for which restitution is due (for example, Payrolls #1 through #6; or a beginning date and ending date). The correction payroll will list each employee to whom restitution is due and their work classification; the total number of work hours involved (daily hours are usually not applicable for restitution); the adjustment wage rate (the difference between the required wage rate and the wage rate paid); the gross amount of restitution due; deductions and the net amount to be paid. A signed Statement of Compliance must be attached to the correction CPR. Employers are no longer required to submit checks (certified or otherwise) to correct underpayments. Restitution payments are reported and certified by the employer on a correction payroll. d. Employee signature. Each employee who has received restitution signs the correction payroll as evidence of their receipt of the payment. e. Review of correction CPR. The contractor administrator will review the correction payroll to ensure that full restitution was paid. The prime contractor shall be notified in writing of any discrepancies and will be required to make additional payments, if needed, documented on a supplemental correction payroll within 30 days. f. Unfound workers. Sometimes, wage restitution can not be paid to an affected employee because, for example, the employee has moved and can't be located. In these cases, at the end of the project the prime contractor will be required to place in a deposit or escrow account an amount equal to the total amount of restitution that could not be paid because the employee(s) could not be located. The contract administrator will continue to attempt to locate the unfound workers for 3 years after the completion of the project. After 3 years, any amount remaining in the account for unfound workers will be credited and/or forwarded by the contract administrator to HUD. o • CHAPTER 3 LABOR STANDARDS OSITS AND ESCROWUTES, ADMINISTRATIVE ACCOiJNTSVIEWS, WITHHOLDING AND WHAT HAPPENS WHEN THINGS GO WRONG? 3-1 INTRODUCTION. Even in the best of circumstances, things can go wrong. In a Davis -Bacon context, "things going wrong" usually means there's a difference of opinion - a dispute - about whether and to what extent underpayments have occurred. These disputes are usually between the contract administrator and one or more employers (the prime contractor and/or a subcontractor). The dispute may involve something simple such as an additional classification request that is pending before the DOL; or something as significant as investigative findings following a complaint of underpayment. This chapter discusses some of what you may expect and what you can do to make your views known and to lessen any delays. 3-2 ADMINISTRATIVE REVIEW ON LABOR STANDARDS DISPUTES. As mentioned in the Introduction, above, a dispute about labor standards and compliance can arise for a number of reasons. The labor standards clauses in your contract and DOL regulations provide for administrative review of issues where there is a difference of views between the contract administrator and any employer. The most common circumstances include: a. Additional classifications and wage rates. Additional classification and wage rate requests are sometimes denied by the DOL. An employer that is dissatisfied with the denial can request reconsideration by the DOL Wage and Hour Administrator. The employer may continue to pay the wage rate, as requested, until a final decision is rendered on the matter. When the final decision is known, the employer will be required to pay any additional wages that may be necessary to satisfy the wage rate that is established. 1) Reconsideration.. The DOL normally identifies the reasons for denial in its response to the request. Any interested person (for example, the contract administrator, employer, representatives of the employees) may request reconsideration on the decision on the additional classification request. The request for reconsideration should be made in writing and should thoroughly address the denial reasons identified by the DOL. Requests for reconsideration should be made through the contract administrator. (See ¶2-2(d), and also DOL Regulations 29 CFR 1.8.) 2) Administrative Review Board. Any interested party may request a review of the Administrator's decision on reconsideration by the Administrative Review Board (formerly, Wage Appeals Board). DOL regulations 29 CFR Part 7 explain the procedures for such reviews. (See also 29 CFR 1.9.) b. Findin s of under a meat. Compliance reviews and ianvestigations every result in findings of underpayment. The primary goal every c step in this process is to reach agreements about who may have been underpaid and how much wage restitution may be due and, of course, to deliver restitution to any underpaid workers. The contract administrator will usually work informally with you to reach such agreements. You will have an opportunity to provide additional information to the contract administrator that may explain apparent inconsistencies and/or resolve the discrepancies. If informal exchanges do not result in agreement, the final determination and schedule of wages due will be presented to you in writing and you will be permitted 30 days in which to correct the underpayment(s) or to request a hearing on the matter before the DOL. The request for hearing should be made in writing and should explain what findings are in dispute and the reasons. The request should be made through the contract administrator. The contract administrator will submit a report of the findings and the hearing request to the DOL for review and further consideration. 1) DOL review. The DOL will review the contract administrator's report and the arguments against the findings presented in the hearing request. The DOL may affirm or modify the findings based upon the materials presented. You will be notified in writing by the DOL of the results of its review; you will be given an opportunity to correct any underpayments or to continue with the hearing request. (See DOL Regulations 29 CFR 5.11 (b) and 29 CFR Part 6, Rules of Practice for Administrative Proceedings,...) 2) Administrative Review Board. Contractors and/or subcontractors may request a review by the Administrative Review Board of the decision(s) rendered by the DOL in the administrative hearing process. See DOL regulations 29 CFR Part 7 for more information about this proceeding. 3-3 WITHHOLDING. The contract administrator may cause withholding from payments due to the prime contractor to ensure the payment of wages which are believed to be due and unpaid, for example, if wage underpayments or other violations are not corrected within 30 days after notification to the prime contractor. Withholding is considered to be serious and is not taken unless warranted. Very often, the amount kept in retention is sufficient to cover any back wage liability so withholding from payments is not considered necessary. However, if withholding is deemed necessary, you will be notified in writing. Only the amounts necessary to meet the contractor's (and/or subcontractor's) liability shall be withheld. . Remember, the prime contractor is responsible and will be held liable for any wage restitution that is due to any worker employed in the construction of the project, including workers employed by subcontractors and any lower -tier subcontractors. See ¶1-4, Responsibility of the Principal Contractor, and ¶2- 8(a), Restitution for underpayment of wages. 3-4 DEPOSITS AND ESCROWS. In every case, we attempt to complete compliance actions and resolve any disputes before the project is completed and final payments are made. Sometimes, corrective actions or disputes continue after completion and provisions must be made to ensure that funds are available to pay any wage restitution that is ultimately found due. In these cases, we allow the project to proceed to final closings and payments provided the prime contractor deposits an amount equal to the potential liability for wage restitution and liquidated damages, if necessary, in a special account. The deposit or escrow account is controlled by the contract administrator. When a final decision in rendered, the contract administrator makes disbursements from the account in accordance with the decision. Deposit/escrow accounts are established for one or more of the following reasons: a. Where the parties have agreed to amounts of wage restitution that are due but the employer hasn't furnished evidence yet that all of the underpaid workers have received their back wages. The deposit is equal to the amount of restitution due to workers lacking payment evidence. As proper documentation is received, amounts corresponding to the documentation is returned to the depositor. Amounts for any workers who can not be located are held in the escrow account for three years and disbursed as described in 72-8(f) of this Guide. b. Where underpayments are suspected or alleged and an investigation has not yet been completed. The deposit is equal to the amount of wage restitution and any liquidated damages, if applicable, that is estimated to be due. If the final determination of wages due is less than the amount estimated and placed in the escrow account, the escrow will be reduced to the final amount and the difference will be returned to the depositor. If the parties agree to the investigative findings, the amounts due to the workers will be disbursed from the escrow account in accordance with the schedule of wages due. Amounts for unfound workers will be retained as described above (See ¶2-80 and 3-4(a)). If the parties do not agree and an administrative hearing is requested, the escrow will be maintained as explained in ¶3-4(c), below. c. Where the parties are waiting for the outcome of an administrative hearing that has been or will be filed contesting a final determination of wages due. The deposit shall be equal to the amount of wage restitution and liquidated damages, if applicable, that have been determined due. Once a final decision is rendered, disbursements from the escrow account are made in accordance with the decision. 3-5 DEBARMENT. Contractors and/or subcontractors that are found by the Secretary of Labor to be in aggravated or willful violation of the labor standards provisions of the Davis -Bacon and Related Acts (DBRA) will be ineligible (debarred) to participate in any DBRA or Davis -Bacon Act contracts for up to 3 years. Debarment includes the contractor or subcontractor and any firm, corporation, partnership or association in which the contractor or subcontractor has a substantial interest. Debarment proceedings can be recommended by the contractor administrator or can be initiated by the DOL on its motion. Debarment proceedings are described in DOL regulations 29 CFR 5.12. Remember, if you have any questions or need assistance concerning labor standards requirements help is always available. Contact the contract administrator for the project you're working on or the HUD Field Labor Relations star in your area. • Federal Labor Standards Provisions U.S. Department of Housing and Urban Development Applicability The Project or Program to which the construction work covered by this contract pertains is being assisted by the United States of America and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance. A.1.(I) Minimum Wages. All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations Issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona bide fringe benefits under Section 1(b)(2) of the Davis - Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(iv); also, regular contributions made or costs incurred for more than a weekly period (but not es often than quarterly) under plans, funds, or programs, which ver the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under 29 CFR Part 5.5(a)(1)(11) and the Davis - Bacon poster (WH-1321) shall be posted at all times by the contractors and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. (ii)(a) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. HUD shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by the classification requested Is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe Snef1ts1 bears a reasonable relationship to the wage rates ntained in the wage determination. (b) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and HUD or its designee agree on the classification and wage Previous Edition Is Obsolete HUD-4010 (2-84) rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by HUD or its designee to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional lime Is necessary. (Approved by the Office of Management and Budget under OMB control number 1215-0140). (c) In the event the contractor, the laborers or mechanics to be employed In the classification or their representatives, and HUD or its designee do not agree on the proposed Iciaseification and wage rate (including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the review of all interested pestle' and the recommendation of HUD or Its designee to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional, time is necessary. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140). (d) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(b) or (c) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (lii) Whenever the minimum wage rate prescribed In the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated In the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a 'trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably antidpated in providing bona fide fringe benefits under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis -Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.) 2. Withholding. HUD or its designee shall upon Ile own action or upon written request of an authorized represeritative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other Federally -assisted contract subject to Davis -Bacon prevailing wage requirements, which is held by the same prime contractor so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or sunder the Housing Act of 1949 in the construction or development of the (HEI 1344.1) DBRA or Davis -Bacon Act contracts for up to 3 years. Debarment includes the contractor or subcontractor and any firm, corporation, partnership or association in which the contractor or subcontractor has a substantial interest. Debarment proceedings can be recommended by the contractor administrator or can be initiated by the DOL on its motion. Debarment proceedings are described in DOL regulations 29 CFR 5.12. Remember, if you have any questions or need assistance concerning labor standards requirements help is always available. Contact the contract administrator for the project you're working on or the HUD Field Labor Relations staff in your area. • Federal Labor Standards Provisions 411 Applicability The Project or Program to which the construction work covered by this contract pertains Is being assisted by the United States of America and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance. A.1.(I) Minimum Wages. All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not Tess often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not Tess than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona bide fringe benefits under Section 1(b)(2) of the Davis - Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(Iv); also, regular contributions made or costs incurred for more than a weekly period (but not iplev s often than quarterly) under plans, funds, or programs, which er the particular weekly period, are deemed to be nstructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the lime spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under 29 CFR Part 5.5(a)(1)(11) and the Davis - Bacon poster (WH-1321) shall be posted at all times by the contractors and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers, (ii)(a) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. HUD shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by the classification requested Is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction Industry; and (3) The proposed wage rate, including any bona fide fringe refits, bears a reasonable relationship to the wage rates talned In the wage determination. (b) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and HUD or its designee agree on the classification and wage Previous Edition Is Obsolete HUD-4010 (2.84) U.S. Department of Housing and Urban Development 11 rate (including the amount designated for fringe benefitsi where appropriate), a report of the action taken shall be sent by HUD or its designee to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB control number 1215-0140). (c) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and HUD or its designee do not agree on the proposed classification and wage rate (including the amount designated tar fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the review of all interested parties and the recommendation of HUD or Its designee to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140). (d) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(b) or (c) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the dassification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably antidpated in providing bona fide fringe benefits under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis -Bacon Act have bean met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.) 2. Withholding. HUD or its designee shall upon ita own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other Fedenally-assisted contract subject to Davis -Bacon prevailing wage requirements, which Is held by the same prime contractor so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, induding apprentices, trainees and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the +(HB1344.1) project), all or part of the wages required by the contract, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance or guarantee of funds until such violations have ceased. HUD or its esignee may, after written notice to the contractor, disburse � such amounts withheld for and on account of the contractor or subcontractor to the respective employees to whom they are due. The Comptroller General shall make such disbursements in the case of direct Davis -Bacon Act contracts. 3.(1) Payrolls and basic records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in Section 1(b)(2)(B) of the Davis -Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic Include the amount of any costs reasonably anticipated in providing benefits under a plan or program described In Section 1(b)(2)(B) of the Davis -Bacon Act, the contractor shall maintain such records which show that the commitment to provide such benefit is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under proved programs shall maintain written evidence of the gistration of apprenticeship programs and certification of ralnee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (Approved by the Office of Management and Budget under OMB Control Numbers 1215-0140 and 1215- 0017.) (ii)(a) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to HUD or its designee if the agency is a party to the contract, but if the agency Is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to HUD or its designee. The payrolls submitted shall set out accurately and completely all of the Information required to be maintained under 29 CFR Part 5.5(a)(3)(1). The information may be submitted in any form desired. Optional Form WH-347 is available for this purpose and may be purchased from the Superintendent of Documents (Federal Stock Number 029-005-00014-1), U.S. Government Printing Office, Washington, D.C. 20402. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. (Approved by the Office of Management and Budget under OMB Control Number 1215-0149.) (b) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the formation required to be maintained under 29 CFR Part (a)(3)(1) and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth In 29 CFR Part 3; (3) That each laborer or mechanic has been paicl not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (c) The weekly submission of a properly executed classification set forth on the reverse side of Optional Form VI/H-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph A.3.(i1)(b) of this section. (d) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code. (ill) The contractor or subcontractor shall make the records required under paragraph A.3.(I) of this section available for inspection, copying, or transcription by authorized representatives of HUD or its designee or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor falls to submit the required records or to make them available, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR Part 5.12. 4.(I) Apprentices and Trainees. Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of Apprenticeship and 'Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person Is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site In any craft classification shall not be greeter than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprenticre's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the HUD.4010 (2-84) applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Bureau of Apprenticeship and Training, or a State Apprenticeship Agency recognized by the ureau, withdraws approval of an apprenticeship program, the � contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (II) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at Tess than the predetermined rate for the work performed unless they are employed pursuant to and Individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not Tess than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the Journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination whidm provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any illie einee performing work on the job site in excess of the ratio rmitted under the registered program shall be paid not less han the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (lli)Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of the Executive Order 11246, as amended, and 29 CFR Part 30. 5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3 which are incorporated by reference in this contract. 6. Subcontracts. The contractor or subcontractor will Insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1)through (10) and such other clauses as HUD or its designee may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR Part 5.5. 7. Contracts termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. 8. Compliance with Davls-Bacon and Related Act Requirements. All rulings and interpretations of the Davis -Bacon ilio d Related Acts contained in 29 CFR Parts 1,3,and 5 are herein rporated by reference in this contract. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, (3 and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and HUD or its designee, the U.S. Department of Labor, or the employees or their representatives. 10.(I) Certification of Eligibility. By entering Into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis -Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (11) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of Section 3(a) of the Davis -Bacon Act or 29 CFR 5.112(o)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (lil) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally, U.S. Criminal Code, Section 1010, Title 18, U.S.C., "Federal Housing Administration transactions:, provides in part "Whoever, for the purpose of. . . influencing in any way the action of such Administration. . . makes, utters or publishes any statement, knowing the same to be false... shall be fined not more than $5,000 or imprisoned not more than two years, or both.' 11. Complaints, Proceedings or testimony by Employees. No laborer or mechanic to whom the wage, salary, or other labor standards provisions of this Contract are applicable shall be discharged or in any other manner discriminated alpinist by the Contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceedings or has testified or is about to testily In any proceeding under or relating to the labor standards ,applicable under this Contract to his employer. B. Contractor Work Hour* and Safety Standards Act. As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or penult any such laborer or mechanic in any work week in which he or she is employed on such work to work in excess of forty hours in such work week unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such work week. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause sett forth in subparagraph (1) of this paragraph, the contractor end any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in subparagraph (1) of this paragraph, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of eight hours or in excess of the standard work week of forty hours without payment of the overtime wages required by the clause set forth in subparagraph (1) of this paragraph. (3) Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or HUD-4010 (2-84) subcontractor under any such contract or any other Federal contract with the same prime contract, or any other Federally - assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor such ilksums as may be determined to be necessary to satisfy any wilabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided In the clause set forth in subparagraph (2) of this paragraph. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth In subparagraph (10 through (4) of this paragraph and also a clause requiring the subcontractors to include these clauses In any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in subparagraphs (1) through (4) of this paragraph. C. Health and Safety (1) No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation, (2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 (formerly part 518) and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). (3) The Contractor shall include the provisions of this Article in every subcontract so that such provisions will be binding on each subcontractor, The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. • HUD-4001O (2-84) WAIS Document Retrieval Page of 3 • • GENERAL DECISION: FL20030044 FL44 Date: June 13, 2003 General Decision Number: FL20030044 Superseded General Decision No. FL020044 State: Florida Construction Type: HIGHWAY County(ies): DADE HIGHWAY CONSTRUCTION PROJECTS(excluding tunnels, building structions in rest areas projects, and railroad construction; bascule, suspension & spandrel arch bridges designed for commercial navigation; bridges involving marine construction; other major bridges). Modification Number Publication Date 0 06/13/2003 COUNTY (i e s) : DADE SUFL3009A 08/01/1993 Rates BRICKLAYER/MASON 11.00 CARPENTERS 11.72 CONCRETE FINISHER 12.22 ELECTRICIAN 14.42 FENCE ERECTOR 12.00 FORM SETTER 10.52 GUARDRAIL ERECTOR 7.55 LABORERS: Asphalt Raker 8.23 Pipelayers 9.14 Unskilled 7.5.5 IRONWORKERS: Reinforcing 13.52 Structural 14.65 PAINTERS 11.62 POWER EQUIPMENT OPERATORS: Asphalt Distributor 8.67 Asphalt Paving Machine Operator 10.48 Asphalt Screed 9.22 Backhoe 11.27 Boom -Auger Operator 10.14 Bulldozer 10.40 Concrete Joint Saw 11.86 Concrete Curb Machine 10.93 Crane, Derrick, or Dragline 13.59 Earthmover 9.57 Forklift Op. 8.00 Front End Loader: 1 cu. yard and under 9.29 Over 1 cu. yard 9.68 Fringes WAIS Document Retrieval Page 2 of 3 Grademan 7.64 Gradall 10.50 Guardrail Post Driver Operator 10.75 Mechanic 12.00 Milling Machine 8.71 Milling Machine Grade Checker 7.78 Motor Grader 11.52 Mulching Machine 7.75 Oiler, Grease Man 12.21 Pavement Striping Machine 9.34 Pavement Striping Machine Nozzleman 7.91 Piledrivers: Leadsman 14.77 Operator 13.71 Power Subgade Mixer 8.50 Rollers: Finish 9.18 Rough 7.66 Self Prop. Rubber Tire 9.20 Scraper 7.55' Sign Erector 11.65 Small Tool Operator 8.05 Tractor, Light 7.83 Trenching Machine 8.19 Widening Spreader Machine 8.50 TRAFFIC CONTROL SPECIALIST 7.95 TRAFFIC SIGNALIZATION: Installer 8.61. Mechanic 11.47 TRUCK DRIVERS: Low -Boy 8.63 Single & Multi -Rear Axle 8.05 WELDERS- Receive rate prescribed for craft performing oepration to which welding is incidental. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29 CFR 5 .5 (a) (1) (ii)) . In the listing above, the "SU" designation means that rates listed under that identifier do not reflect collectively bargained wage and fringe benefit rates. Other designations indicate unions whose rates have been determined to be prevailing. WAGE DETERMINATION APPEALS PROCESS 1.) Has there been an initial decision in the matter? This can be: * an existing published wage determination * a survey underlying a wage determination * a Wage and Hour Division letter setting forth a position on a wage determination matter arraco am anv/poi-hin/waiSaate.cgi?WATSdocID=44254420654+0+0+0... 12/7/2004 WAIS Document Retrieval Page 3 of 3 • * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis -Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed. With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to: Branch of Construction Wage Determinations Wage and Hour Division U. S. Department of Labor 200 Constitution Avenue, N. W. Washington, D. C. 20210 2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to: Wage and Hour Administrator U.S. Department of Labor 200 Constitution Avenue, N. W. Washington, D. C. 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue. 3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to: Administrative Review Board U. S. Department of Labor 200 Constitution Avenue, N. W. Washington, D. C. 20210 4.) All decisions by the Administrative Review Board are final. END OF GENERAL DECISION httn.//frweh gate3.access. goo. gov/cgi-bin/waisgate.c.gi? WAISdocID-44254420654+0+0+0... 12/7l2 6u 4 FORMS TO BE SUBMITTED AFTER AWARD OF CONTRACT City of Miami 151 Bid No. 04-0+5-011