Disaster Recovery Compliance Disaster Recovery Compliance Davis- -Bacon and CDBG Bacon and CDBG Davis
Topics we’ ’ll cover ll cover - - 1 Topics we 1 � Key objectives Key objectives � � Agency responsibilities Agency responsibilities � � Introduction of statutes Introduction of statutes � � Bid specifications and contracts Bid specifications and contracts � � Davis Davis- -Bacon wage decisions Bacon wage decisions �
Topics we’ ’ll cover ll cover - - 2 Topics we 2 � Contractor responsibilities Contractor responsibilities � � Certified payroll basics Certified payroll basics � � Compliance monitoring Compliance monitoring � � Recordkeeping and reporting Recordkeeping and reporting � � Q & A Q & A �
Labor Relations Contacts Labor Relations Contacts � LA/NY/TX LA/NY/TX – – Jade Banks, (202) 402 Jade Banks, (202) 402- -5475 5475 � � AL AL – – Rhonda Lindquist, (678) 732 Rhonda Lindquist, (678) 732- -2585 2585 � � FL FL – – Steve Bales, (678) 732 Steve Bales, (678) 732- -2039 2039 � � MS MS – – Patrick Richards, (678) 732 Patrick Richards, (678) 732- -2710 2710 �
Resources Resources � HUD Office of Labor Relations Web Site HUD Office of Labor Relations Web Site � www.hud.gov/offices/olr www.hud.gov/offices/olr � DOL Wage Determinations Online DOL Wage Determinations Online � www.wdol.gov www.wdol.gov � HUD Customer Service Center HUD Customer Service Center � (800) 767- -7468 7468 (800) 767
Most Wanted List… … Most Wanted List
Key Objectives Key Objectives (Practical Guide, Page 2) (Practical Guide, Page 2) � Apply Davis Apply Davis- -Bacon properly Bacon properly � � Support contractor compliance Support contractor compliance � � Monitor contractor performance Monitor contractor performance � � Correct violations Correct violations � � Pursue sanctions when warranted Pursue sanctions when warranted �
State Responsibilities (1) State Responsibilities (1) (HUD Handbook 1344.1, Chapter 10) (HUD Handbook 1344.1, Chapter 10) � Certify compliance with requirements Certify compliance with requirements � � Designate staff for labor standards Designate staff for labor standards � responsibilities responsibilities � Maintain records demonstrating Maintain records demonstrating subrecipients subrecipients � are informed/provided technical assistance are informed/provided technical assistance regarding labor standards regarding labor standards � Ensure no contracts are awarded to ineligible Ensure no contracts are awarded to ineligible � contractors contractors
State Responsibilities (2) State Responsibilities (2) (HUD Handbook 1344.1, Chapter 10) (HUD Handbook 1344.1, Chapter 10) � Receive/transmit labor standards Receive/transmit labor standards � enforcement reports to DOL ( or or through through enforcement reports to DOL ( HUD) HUD) � Refer to HUD potential criminal/complex Refer to HUD potential criminal/complex � investigations, debarment, CWHSSA investigations, debarment, CWHSSA liquidated damages liquidated damages � Assure worker complaints are addressed Assure worker complaints are addressed � promptly promptly � Monitor Monitor subrecipient subrecipient performance performance �
State Support to Subrecipients Subrecipients State Support to � Determine Davis Determine Davis- -Bacon applicability Bacon applicability � � Ensure bid/contract specifications Ensure bid/contract specifications � contain applicable wage decision and contain applicable wage decision and HUD- -4010 4010 HUD � Verify contractor eligibility Verify contractor eligibility � � Provide technical assistance Provide technical assistance �
State Oversight of Subrecipients Subrecipients State Oversight of � Ensure Ensure subrecipients subrecipients: : � � Conduct onsite interviews Conduct onsite interviews � Monitor contractor/subcontractor � Monitor contractor/subcontractor � compliance compliance � Address/require resolution of labor Address/require resolution of labor � standards discrepancies standards discrepancies � Maintain full documentation Maintain full documentation � � Prepare/submit enforcement reports, as Prepare/submit enforcement reports, as � needed needed
Subrecipient Responsibilities Subrecipient Responsibilities � Designate staff Designate staff � � Ensure submission of certified payrolls Ensure submission of certified payrolls � � Conduct onsite interviews with laborers and Conduct onsite interviews with laborers and � mechanics mechanics � Spot Spot- -check payrolls/related records check payrolls/related records � � Ensure correction of underpayments Ensure correction of underpayments � � Submit enforcement reports as needed Submit enforcement reports as needed � � Maintain full documentation Maintain full documentation � � Maintain records 3 years after completion Maintain records 3 years after completion �
Introduction to Statutes Introduction to Statutes
Federal Labor Standards Federal Labor Standards � Three key Federal statutes Three key Federal statutes � � Davis Davis- -Bacon (and Related Acts) Bacon (and Related Acts) � � Contract Work Hours and Safety Contract Work Hours and Safety � Standards Act Standards Act � Copeland Act Copeland Act �
HUD Davis- -Bacon Related Acts Bacon Related Acts HUD Davis (Practical Guide, Page 14) (Practical Guide, Page 14) CDBG � CDBG � Housing and Community Housing and Community Development Act of 1974, as Development Act of 1974, as amended (HCDA); Section 110 amended (HCDA); Section 110
CDBG: Factors of Applicability CDBG: Factors of Applicability (Practical Guide, Page 17) (Practical Guide, Page 17) � All laborers and mechanics employed by All laborers and mechanics employed by � contractors or subcontractors… … contractors or subcontractors � … …on construction work financed on construction work financed… … � � … …in whole or in part in whole or in part… … � � …… ……shall apply to the rehabilitation of shall apply to the rehabilitation of � residential property only if such residential property only if such property contains not less than 8 units. property contains not less than 8 units.
CDBG: Factors of Applicability CDBG: Factors of Applicability (Practical Guide, Page 17) (Practical Guide, Page 17) � Force account workers are exempt Force account workers are exempt � � Construction work financed; soft costs do not Construction work financed; soft costs do not � trigger DB trigger DB � Anticipates other funding sources; total Anticipates other funding sources; total � > $2,000 $2,000 > � Property Property ≠ ≠ building; total # of units in building; total # of units in � property property � Volunteers are exempt Volunteers are exempt �
Volunteers Volunteers (HCDA Section 110(b); HUD Regs Regs 24 CFR Part 70) (HCDA Section 110(b); HUD 24 CFR Part 70) � Performs services voluntarily Performs services voluntarily � � Do not receive compensation Do not receive compensation � � May be paid expenses or nominal fee May be paid expenses or nominal fee � � Not otherwise employed on the project Not otherwise employed on the project �
Bid/Contract Specifications Bid/Contract Specifications (Practical Guide, Page 5) (Practical Guide, Page 5) Bid/contract specifications ( including including RFPs RFPs) for ) for Bid/contract specifications ( each covered contract must contain: : each covered contract must contain � Applicable Davis Applicable Davis- -Bacon wage decision Bacon wage decision � � Federal labor standards clauses Federal labor standards clauses � � HUD HUD- -4010, Federal Labor Standards 4010, Federal Labor Standards � Provisions Provisions
Davis- -Bacon Wage Decisions Bacon Wage Decisions Davis � List of construction work classifications List of construction work classifications � and minimum wage rates and minimum wage rates � Four defined categories of construction: Four defined categories of construction: � residential, building, heavy, highway residential, building, heavy, highway � May be modified to stay current May be modified to stay current � � Available at Available at www.wdol.gov www.wdol.gov �
Federal Labor Standards Federal Labor Standards Provisions (HUD- -4010) 4010) Provisions (HUD � Describes labor standards applicable Describes labor standards applicable � � Describes what employers must do Describes what employers must do � � Obligates contractors/subcontractors to Obligates contractors/subcontractors to � comply comply � Provides remedies for noncompliance Provides remedies for noncompliance �
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