Chapter 6 Labor Standards Recipient Checklist

Transcription

1 Chapter 6 Labor Standards Recipient Checklist NOTE: Any form contained as an Exhibit to this Chapter, that states submit the form to HUD, MUST be interpreted as submitting the form to OBDD, not HUD. Ensure that the State has issued the Environmental Clearance - Release of Funds notice for this project prior to awarding any construction contracts. 1. OBDD has reviewed and approved bid documents; this must be done 10 days before the bid advertisement. 2. Include Labor Standards Provisions (HUD 4010) and applicable wage rates (higher of either Davis-Bacon rates or the PWR) in all bid and contract documents. 3. Verify wage rates with OBDD 10 days prior to bid opening; notify plan holders of any modifications. 4. Verify with OBDD the general contractor eligibility (registration with the CCB and not on the Excluded Parties List) prior to awarding the construction contract. 5. Assure that general contractor has filed $30,000 public works bond with CCB. 6. Submit a Responsible Bidder Determination form to the Construction Contractors Board. 7. Contact OBDD Regional Coordinator at least 10 days before scheduled date of preconstruction conference/meeting with general contractor to discuss labor standards compliance. 8. Request materials for preconstruction conference/meeting from OBDD at least 10 days in before scheduled conference. 9. Hold preconstruction conference/meeting attended by general (prime) contractor and subcontractors. 10. Obtain signature of general contractor on preconstruction conference notes; contractor and OBDD receive copies; recipient keeps original in local project file. 11. Submit Notice of Construction Contract Award and Start of Construction and preconstruction conference notes/minutes, certified payroll reports and all necessary first draw requirements have been sent to OBDD prior to requesting grant funds for construction. 12. Wage and hour poster, complete wage determination, and project sign (if required) posted at the job site. 13. Contractor/Subcontractor Agreement and Fringe Benefit Summary forms received by the recipient prior to release of grant funds to prime contractor for work performed by the subcontractors. 14. Information collected about unfunded fringe benefit plans prior to contractors showing fringe benefit payments on payroll reports. 15. Weekly certified payroll reports (on approved forms) submitted as required and reviewed for correct wages (including overtime pay).

2 16. Apprenticeship documentation submitted with first payroll on which apprentice is shown. 17. Employee interviews conducted at least once per month and with no less than one employee for every trade at the site. Information compared on interview forms must agree with payroll report information. 18. Payroll violations and employee complaints investigated and resolved. 19. Submit annual Section 3 HUD reports to OBDD. 20. Submit the Minority Business Enterprise Report (Exhibit 5B) and the final Section 3 (Exhibit 5C) report to the Oregon Business Development Department prior to final draw down of the grant funds.

3 Labor Standards Chapter 6 Labor Standards Basic Federal Requirement All laborers and mechanics employed by the contractors and subcontractors in the performance of construction work financed in whole or in part with Community Development Block Grant assistance shall be paid wages at rates no less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended. This section shall apply to the rehabilitation of residential property only if such property contains not less than 8 (eight) units. The Secretary of Labor shall have, with respect to such labor standards, the authority and functions set forth in federal law. The requirement sources are Section 110 of the federal Housing and Community Development Act and 29 CFR Part 5 - Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction This requirement shall not apply to: 1. Any individual that performs services for which the individual volunteered; 2. (A) Does not receive compensation for such services; or (B) Is only paid expenses, reasonable benefits, or a nominal fee for such services; and 3. Is not otherwise employed at any time in the construction work. Davis Bacon Act: Communities implementing projects, which involve construction contracts in excess of $2,000 (except rehabilitation of residential property designed for use by less than eight families), must comply with federal labor laws. The $2,000 threshold does not mean that a contract must involve $2,000 or more of CDBG funds to be subject to federal labor laws. The contract could be funded with any source of funds but be part of a project assisted in whole or in part with CDBG funds. A good web site for basic information and forms is: The following requirements apply: All laborers and mechanics employed by contractors or subcontractors on the project shall be paid wages at rates no less than those prevailing on similar construction in the locality as determined by the US Secretary of Labor; regardless of contractual relationship. The principle requirement of the Act are: Recipients must include a copy of the prevailing wage rate determination and the federal labor standards provisions (HUD 4010) in the Invitation to Bid. Wage Determinations may be downloaded at Recipients may only award construction contracts to eligible contractors/subcontractors. These contractors must agree to comply with the labor standards provisions. Contractors must pay laborers the wage rate determined by the Secretary of Labor. Contractors must pay wages at least once a week. Recipients are required to report all suspected, reported or confirmed violations to OBDD, which may investigate these alleged violations. Grant Management Handbook (2013) 6-1

4 Chapter 6 Labor Standards Section 110(a) of the Housing and Community Development Act of 1974, as amended (Title I): All laborers and mechanics employed by contractors or subcontractors in the performance of construction work financed in whole or in part with grants received under this title shall be paid at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in Accordance with the Davis-Bacon Act, as amended. This section applies to the rehabilitation of residential property only if such property is designed for residential use for eight or more families. Contract Work Hours and Safety Standards Act (CWHSSA): For all construction projects in excess of $100,000 the wages for every mechanic and laborer employed on the job shall be computed on the basis of a standard workweek of forty (40) hours. Employees shall be compensated at a rate of not less than one and onehalf times the basic hourly rate of pay for all hours worked in excess of forty hours in the work week (the required Davis Bacon base rate (no exceptions) x fringe benefits + zone pay = overtime rate). Liquidated damages for failure to pay overtime will be computed in the sum of $10 for each calendar day on which an employee was required or permitted to work in excess of the standard work week of forty hours without payment of overtime wages, without reference to work in excess of eight hours per day. No person employed on the job site shall be required to work in surroundings or any other working conditions that are unsanitary, hazardous or dangerous to the health and safety of an employee as determined by the Construction Safety and Health standards promulgated by the Secretary of the United States Department of Labor. More information about the Contract Work Hours and Safety Standards Act may be found at Copeland Act (Anti-Kickback Law): The Copeland Act or Anti-Kickback Law states; Whoever by force, intimidation, or threat of procuring dismissal from employment or by any other manner whatsoever, induces any person employed in the construction, prosecution, completion or repair of any public building, public work or building or work financed in whole or in part by loans or grants from the United States, to give up any part of the compensation to which he/she is entitled under their contract of employment, shall be fined or imprisoned or both. This act provides that all laborers and mechanics shall be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account except voluntary and written authorization from employee for permissible salary deductions, the full amounts due at time of payments computed at wages not less than those contained in the Wage Determination issued by the Secretary of Labor. Appropriate weekly compliance statements and payrolls are required to be submitted. Recipients are required to conduct interviews with employees to assure compliance with the terms of this law, and the contractor is required to maintain payroll records and to submit certified weekly payrolls to the recipient. More details of the Copeland Act may be found at (2013) Community Development Block Grant

5 Chapter 6 Labor Standards Definitions Demolition Stand-alone demolition projects (slum and blight clearance) without a related construction project are not necessarily subject to the federal labor standards requirements. However, if subsequent construction at the site is planned as part of the same contract or if subsequent construction is contemplated as part of a future construction project, then the demolition work is considered to be part of the overall construction project. In such cases, if the subsequent construction work is subject to Davis-Bacon requirements, then the demotion would likewise be covered by Davis-Bacon requirements. Refer to Labor Relations Letter LR dated August 12, 2009 for further information: Drilling Exploratory drilling is not covered by the federal labor standards requirements. However, drilling of wells for water or oil is covered by the federal labor standards requirements. Equipment Installation In very rare instances, for very small prime construction contracts for just the purchase of installation of a single piece of equipment, if the cost of the installation of the equipment does not exceed 13% of the purchase price of the equipment, generally Davis-Bacon does not apply. Be careful though, as the purchase of most equipment will trigger Davis-Bacon, such as the purchase of an elevator and then installing. Force Account Work conducted by the grant recipient s employees is generally exempt from the federal prevailing wage requirements. Please contact the Department s Regional Coordinator for assistance if force account work is anticipated for pre-approval from OBDD and HUD if necessary. Investigation Non-routine examinations resulting from credible allegations of serious violations. Overtime Pay There are no exceptions to this rule. Overtime pay equals the federally required base rate of pay x fringe benefits + zone pay. Piece Rate Work Lump sum construction contracts. These contracts are usually found in sub-contractors, especially owner/operator contracts. To determine compliance divide the total hours worked by the contract price to determine the hourly rate of pay. Site of Work The physical place or places where the construction remains after work has been completed. This includes adjacent or nearby property used by the contractor that is reasonable to include in the site. This also includes property dedicated to and located in close proximity to the actual construction location: including fabrication plants; mobile factories; batch plants; borrow pits; headquarters; tool yards, etc. Properties not included are permanent offices, plants, pits, yards, etc of a commercial supplier or material supplier. Truck Drivers Truck drivers of a contractor or subcontractor are covered by Davis Bacon when: performing work on the site of work or transporting materials and/or Grant Management Handbook (2013) 6-3

6 Chapter 6 Labor Standards supplies between the construction site and a facility deemed to be part of the site of work. Truck drivers are not covered when the driver of a contractor or subcontractor is hauling materials to or from a Davis Bacon job from a commercial supply facility when they are off the site of work. Work Week The federal workweek is a seven-day period. Overtime pay must be paid for hours worked in excess of 40 hours per week. The State workweek is a five-day period unless there is a bargaining unit agreement allowing 4-10 hour days. For a five-day workweek overtime must be paid for all hours worked in excess of 8 hours per day. For a four-day workweek, overtime must be paid for all hours worked in excess of 10 hours per day. Enforcement Personnel The recipient must designate an appropriate staff person to act as enforcement personnel to ensure compliance with all requirements and to be the primary contact with the state. The grant recipient is responsible for compliance with all federal labor standards provisions. Recipient Responsibilities Construction projects funded in whole or in part with CDBG funds, with construction projects of $2,000 or more are responsible for compliance with all federal labor standards provisions included in HUD 4010, attached as Exhibit 6A. It is also available online at Minimum requirements that must be met include: Designating an individual who is responsible for compliance; Applying Davis-Bacon requirements properly; Ensuring that the required labor standards provisions and federal Davis-Bacon Wage rates (and PWR) are included in all construction contracts; Verifying the applicable Wage Determination ten days before bid opening; Verifying eligibility of the general contractor before awarding the construction contract; Ensuring the Davis Bacon Wage Modification - Wage Determination and wage and hour poster are properly posted on the job-site; Informing, advising and supporting contractor compliance; Monitoring for violations; Investigating probable violations and complaints of underpayment; Requiring certified payroll reports to be submitted by contractors and reviewing them for compliance; and Enforcing the labor standards provisions in cases of non-compliance. This area of project management is very important because failure to comply and/or inattention to details can result in failure to comply with the federal requirements. Failing to comply can and does result in recipients having to pay for mistakes with their own funds. 6-4 (2013) Community Development Block Grant

7 Chapter 6 Labor Standards Note: House Bill 2021 enacted during the 2007 Assembly of the Oregon Legislature makes a public agency liable for any wages, fringe benefits, and liquidated damages unpaid to workers as a result of the public agency failing to include information about prevailing wage rates in the specifications for public works contracts. This law was effective January 1, General Contractor Responsibilities The general contractor (also referred to as the prime or principal contractor) is ultimately responsible as well as liable for the full compliance of all employers with the labor standard provisions applicable to the project. HUD s Labor Relations Desk Guide (PR01.DG) entitled DAVIS-BACON LABOR STANDARDS A Contractors Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects can be located at books/4812lr Selecting the Proper Wage Determination This includes the contractor, subcontractors and any lower-tier subcontractors. Because of the contractual relationship between a prime contractor and the subcontractors, communication between the grant administrator and any subcontractors should generally be done through the general contractor. The prime contractor must collect from all sub-contractors the completed contractor/subcontractor agreement form, Exhibits 6G Parts A-E. The prime and all sub-contractors must pay their workers weekly and submit the weekly-certified payroll reports, with the completed statement of compliance, to the recipient within 7-10 days of the weekly wage payment. The prime contractor must post the required labor poster (i.e. Notice to Employees), with the contact box filled in with the name of a contact person, preferably a representative of the grant recipient, or HUD s website, an English and Spanish version is included as Exhibit 6R. The prime contractor must post the entire wage determination applicable to the project. The prime contract must ensure that any necessary Requests for Additional Wage Classifications are completed and sent to the recipient and the State. The prime contractor is required to review the sub-contractors payrolls for compliance with the federal requirements. Allow representatives of the grant recipient to conduct employee interviews. The prime contractor must distribute, collect and submit any other documentation as needed/required to the recipient. To assist in determining which wage rate applies to the project, the grant recipient can refer to The projects typically funded by the program fit into either the building or heavy wage determinations. However, a project can be subject to multiple determinations. For example, if a large water system project involves a new treatment plant building and the construction of that Grant Management Handbook (2013) 6-5

8 Chapter 6 Labor Standards building is more than 20% of the project cost, both the building and heavy rate will apply, as long as the non-building component is over 20% of the project cost, and both determinations must be included in the contract specifications. This is explained further in the US Department of Labor and Industries (DOL) memos. Please contact your Regional Coordinator for assistance in ensuring the proper wage rates are selected and used for the project. Lock-In Date Wage Determinations are modified by the U.S. Department of Labor as necessary to reflect changes in the construction industry. It is very important to be sure the most recent Wage Determination is being used and that all modifications to that decision are included in the bid documents. It is the responsibility of the recipient to request the current federal wage determination from the OBDD regional coordinator ten days before bid opening for any applicable modifications. The Regional Coordinator will then give the recipient the correct federal Wage Determination to be used. The wage rates in effect ten calendar days before bid opening are locked in. This Wage Determination will apply to all work covered by the construction contract to be awarded under that bid advertisement. Exception to Lock-In Date An exception to the lock-in date described above applies when the construction contract award is delayed 90 days or more after the bid opening. In these cases, changes in the Wage Determination published between the bid opening and construction contract award date must be included in the construction contract. If this situation occurs, keep your Regional Coordinator informed so that you are sure to have the most recently published rates available. Additional Wage Classifications If the Wage Determination does not include all the categories of workers needed for the project, a request for an additional classification must be made through the Regional Coordinator after the construction contract is awarded. Additional wage classification requests can only be submitted after the construction contract has been awarded by the grant recipient. The prime contractor, and subcontractor, if applicable, must submit the Request for Authorization of Additional Classification and Rate form. The HUD 4230a form and instructions are included as Exhibit 6B and can be downloaded for completion at In order to be considered, the proposed rate must be no less than the lowest wage for craftsman, laborer or power equipment operators for the trade group requested. Once the state receives a completed request, it is forwarded to the U.S. Department of Labor (DOL) for review. It can take up to 45 days to receive a response from the DOL. Until a response is received, recipients should ensure that any employees working the trade classifications being requested are paid no less than the amount identified on the request form. If the DOL approves the additional classification, the prime contractor must post the approval notice on the job site with the Wage Determination. 6-6 (2013) Community Development Block Grant

9 Chapter 6 Labor Standards CONTRACTOR CLEARANCE Construction Contractors Board (CCB) All persons working on CDBG-funded construction projects must be registered with the Oregon Construction Contractors Board (CCB) or be the employee of a contractor or subcontractor that is registered. Recipients must have evidence that all persons on the job as subcontractors are in fact independent contractors registered with the Construction Contractors Board. Registrations may be checked at the website Oregon s Construction Contractors Registration Act, ORS Chapter 701, requires that all persons engaged for compensation in any construction activity involving improvements to real estate must be registered with the Oregon Construction Contractors Board. This includes partnerships, corporations and self-employed individuals, whether working by the hour, week, job or cost plus and whether by written contract or oral agreement. Registration is required for any individual or business entity which advertises, offers, bids, or arranges to do, or actually does, any construction, alteration, remodeling, or repair involving residential, commercial, industrial or public works improvements. Violations can result in civil penalties, imposed by the Construction Contractors Board. Anyone can call the Construction Contractors Board to verify the registration of a contractor. More information is available by calling (503) or at Parties Excluded from Federal Procurement (SAM) Independent Contractors Federal regulations require verification of general (prime) contractor eligibility. To be eligible a contractor must not be listed on the List of Parties Excluded from Federal Procurement and Non-procurement Programs published by the General Services Administration. The list was previously referred to as the Excluded Parties List or EPLS. Effective 2012, the list has moved to the System Award Management (SAM) website. Recipients must call their Regional Coordinator at the department to clear the general contractor before awarding the construction contract. The Regional Coordinator will check the SAM web site and document it in the project file. Recipients can search the List themselves by using the following Internet address: Independent contractors registered as exempt (those with no employees of their own) are not considered subcontractors on a job covered by the federal Davis-Bacon Act and the U.S. Department of Housing and Urban Development regulations. Those individuals, who may be referred to as owner operators, cannot certify their own wages and must be shown on: The payroll reports for their general contractor; or The payroll reports for another subcontractor that is not exempt; or The owner operator can complete their own payroll report and the general or nonexempt subcontractor can co-sign the report. More information is contained in the Labor Relations Letter attached as Exhibit 6C and online at Grant Management Handbook (2013) 6-7

10 Chapter 6 Labor Standards Responsible Bidder Forms Beginning January 1, 2006, Oregon state law requires that all public entities awarding public improvement contracts to the lowest responsible bidder complete and submit a Responsible Bidder Determination form to the CCB within 30 days of the award. The CCB has developed a web-based entry system that includes this form and other information. The Public Contracts Responsible Bidder Determination (PCRBD) web site is at Public Works Bond Effective January 1, 2006, all independent contractors working on public works projects in Oregon must obtain and file with the CCB, a Public Works Bond in the amount of $30,000. This bond is for the exclusive purpose of paying wage claims and must be filed before starting work on a contract or subcontract for a public works project. It must be obtained from a corporate surety authorized to do business in Oregon. A form is attached as Exhibit 6D and is on the web at The provision requiring the Public Works Bond must be contained in the construction contract and in every subcontract. The general contractor is required to verify that the subcontractors have filed a Public Works Bond before permitting a subcontractor to start work on a project. Recipients should verify that the contractor and subcontractors have filed the Public Works Bond. Disadvantaged, minority, women or emerging small business may elect to be exempt during the first year of certification from the Office of Minority, Women and Emerging Small Business (OMWESB). To find out more about the OMWESB program, go to If a business elects to utilize the OMWESB exemption for the Public Works Bond, the firm must submit the application form to the CCB. The request may be downloaded from df. Twenty-Five percent (25%) retainage Pre-Construction Conference Requirements Effective January 1, 2006, under Oregon Law, the recipient must retain twenty-five percent (25%) of any amount owed to a contractor if the contractor has not submitted the required Certified Payroll Reports (CPR). The recipient will pay the contractor within 14 days after the proper CPR is submitted. Likewise, the prime contractor must retain 25% of any amount owed to a first-tier subcontractor until the subcontractor has submitted the required CPR. There is no longer a federal requirement for a pre-construction conference, however the State of Oregon includes this as a special condition in its grant contracts. This ensures that the applicable federal and/or state labor standards and requirements are discussed with the general (prime) contractor before the first draw of grant funds for construction expenses. The discussion can take place at a pre-construction conference or in a separate meeting between the grant recipient and the general contractor. 6-8 (2013) Community Development Block Grant

11 Chapter 6 Labor Standards Notify the department s Regional Coordinator at least 10 days before scheduling the preconstruction conference or meeting. The Coordinator will send you the latest version of a Pre-construction Conference Packet that includes such items as outlines to follow, notices, forms, a poster and a copy of a Contractor s Guide to Davis Bacon. Pre-Construction Conference Minutes Notice of Construction Contract Award and Start of Construction Contractor/ Subcontractor Agreements and Fringe Benefit Summaries Labor Standards Checklist Certified Payroll forms (CPR s) It is very important that the contractor and subcontractors fully understand their obligations under federal labor standards. Making Davis-Bacon Work: A Contractor s Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects, found online at /4812-LR.pdf clearly explains wage and reporting requirements, discusses common errors and how to correct them. The minutes from the preconstruction conference or meeting must be submitted to OBDD prior to, or with, the first drawdown for construction funds. The minutes should contain the information described in Exhibit 6E and must be signed by the general contractor and recipient. There is no longer a federal requirement for A Notice of Construction Contract Award and Start of Construction, however the State of Oregon includes this as a special condition in its grant contracts. The notice, Exhibit 6F, must be submitted to the Regional Coordinator at OBDD prior to requesting any funds for construction. It contains information about the general contractor, the applicable Wage Decision, and the Preconstruction Conference. This form may be submitted at the same time as the Preconstruction Conference minutes. All construction contractors and subcontractors must submit a Contractor/Subcontractor Agreement and Fringe Benefit Summary Form to the recipient (Exhibit 6G). The form must be signed by the contractors and subcontractors and be submitted to the recipient before that contractor or subcontractor receives any payments for work on the project. This agreement certifies the contractor s and subcontractor s intent to comply with labor standards provisions, HUD 4010, documents that the subcontractor is an independent contractor registered with the CCB, and provides payroll signature authorization. It also contains a required Certification Regarding Lobbying. All agreements and fringe benefit summary forms must be kept in the recipient s files. These do not take place of signed subcontracts. To assure that each contractor and subcontractor has completed all necessary steps to legally perform work on the project, a Labor Standards Checklist has been attached as Exhibit 6H. Use of the Checklist is for the convenience of the recipient and is not required. Each contractor or subcontractor engaged in work covered by the labor standards must submit to the recipient a weekly Certified Payroll Report (CPR) (Exhibit 6I) for all weeks in which workers are on the job. Revised Davis-Bacon posters (WH-1321) and payroll form (WH-347) are available through the Office of Labor Relations web site at Grant Management Handbook (2013) 6-9

12 Chapter 6 Labor Standards under Resources, Labor Relations Forms. Davis Bacon Posters are available in Exhibit 6R and at: WH-1321) Davis-Bacon Poster (English): (WH-1321) Davis-Bacon Poster (En Español): Each CPR must be filled in correctly and completely. If there are errors the form must be resubmitted. The Department of Labor (DOL) revised regulations concerning the information reported on payrolls for Davis-Bacon covered projects. These changes became effective January 18, Under the new rules, employee addresses and full Social Security Numbers shall not be included on the payroll report. Instead, payrolls need to include the employee(s) name and an individually identifying number, for example, the last four digits of the employee s Social Security Number. Employers (prime contractors and subcontractors) must maintain the current address and full Social Security Number for each employee and must provide this information upon request to the contracting agency or other authorized representation responsible for Federal labor standards compliance monitoring. IMPORTANT: The certified payroll report for Oregon WH-38, is not acceptable for CDBG-funded projects because it does not reference the federal regulations that apply to the project. If the contractor or subcontract chooses to use PWR forms, all information not included on the federal forms must be added and a proper statement of compliance (Exhibit 6J) is submitted with each weekly payroll report. Effective January 1, 2006, Oregon law requires that workers on projects funded in whole or in part with federal funds will be paid the higher of either the federal Davis-Bacon rates or Oregon prevailing wage rates (also called PWR or little Davis-Bacon ). In addition, the project is also subject to compliance with all BOLI requirements. Exhibit 6K, contains a combined certified payroll report to use in complying with both the federal and BOLI prevailing wage rate requirements. Alternate CPR s The contractor may use an alternate CPR form only if the computer-generated form contains all the same information that is included in Exhibit 6I. The information must be easy to locate and the weekly CPR reports must be accompanied by proper federal statements of compliance (Exhibit 6J). The only exception is Block 2, on WH347, pertaining to number of exemptions. This item is optional. Note: the BOLI WH-38 CPR contains an updated statement of compliance that meets both the federal and state requirements. However, the payroll form itself does not. Recipient may choose to use this statement of compliance with their alternate CPR s. No Work For week(s) in which no work is performed, it is recommended to document that fact (2013) Community Development Block Grant

13 Chapter 6 Labor Standards Performed Report Certified Payroll Reviews (CPR s) During the project, labor standards compliance will be monitored and written records will clearly establish that there are no missing payroll reports. This can be done by either writing on a weekly payroll report or using the form shown as Exhibit 6L. The recipient is responsible for reviewing all weekly certified payroll reports, ensuring wages are paid weekly in an amount no less than identified in the federal prevailing wage determination, applicable to the project, in addition to the following: Submitted on time. Completed properly with names, individual identifying numbers, and job classifications for each employee were included. All self-employed owner/operator subcontractors, with no employees, are reported on the Prime Contractors CPR s. o The payroll reports for their general contractor; or o o The payroll reports for another subcontractor that is not exempt; or The owner operator can complete their own payroll report and the general or non-exempt subcontractor can co-sign the report. Generally, when the owner of the construction company is working with their employees and is performing work (less than 20% of the total time on-site) covered by the Davis Bacon wage decision, the owner does not have to be listed on the CPR, other than supervisor/owner with their name. It is recommended to show the total hours worked on-site per week and the amount of hours spent performing work covered by the Davis Bacon wage decision, to document the amount of time spent working in the covered classification was less then 20%. Generally, when the owner of the construction company is working with their employees and is performing work (more than 20% of the total time on-site) covered by the Davis Bacon wage decision, the owner must list the following information for themselves: name, individual identifying number, classification of work being performed, daily hours worked on-site, total hours worked on site per week, rate of pay, fringe benefits etc. The CPRs contain the proper wages, fringe and zone pay for each employee. The proper trade classifications are listed on the CPR for each employee. The CPR s contain only permissible deductions such as: Social Security (SSI), Federal tax, State tax, bona fide pre-payment of wages, court ordered payments, safety requirements (FSLA), reasonable costs of board and lodging not provided by the contractor (advances). The first time a certified payroll shows voluntary deductions have been taken out of the employee s wages, a copy of the employees written authorization to the contractor authorizing the deduction(s) must be provided with the CPR. Where fringe benefits (Life Insurance, Health Insurance, Pension) are paid into plans, block 4(a) on the back of the CPR must be marked. o When the hourly wage rate paid is the same as or greater than the hourly wage rate plus fringe required for the applicable decision and the Fringe Benefit Grant Management Handbook (2013) 6-11

14 Chapter 6 Labor Standards o o Paid Into Plan box on the back of the CPR is marked, the fringe benefit requirement is complete. However, any time a contractor indicates fringe benefits being provided are used to compensate for not paying hourly wages in cash equal to the amount required in the applicable wage decision, the contractor should be required to provide documentation explaining the nature of the hourly dollar value of all fringe benefits being provided. If a recipient has any reason to question whether the contractor is actually paying fringe benefits as claimed, documentation should be requested from the contractor and verified. Where apprentices and trainees are identified on the CPR, documentation must be received with the CPR showing they are officially under a State (BOLI), Federal Bureau of Apprenticeship program or Union program. The documentation must list the employee name, classification, and rate of pay. Ensure that zone pay, if required by the applicable wage decision, is paid to the employee. Each category in the wage decision is established by Union negotiation or survey. To calculate zone pay, the recipient must refer to the actual union agreement applicable to each section of the wage decision. Project Wage Rate Sheet Note: If federal withholding is missing from the CPR s, the grant recipient is required to send a copy of the CPR s to OBDD that reflect wages paid without tax deduction, along with the required labor standards enforcement report information. The Project Wage Rate Sheet (Exhibit 6M) can be used as an easy reference for all work classifications and wage rates that apply to a specific project. It is available for download at Fringe Benefits and Zone Pay The Davis Bacon (DB) prevailing wage is made up of three components: DB basic hourly wage; hourly fringe benefit; and, hourly zone pay. Note: Fringe benefits and if applicable zone pay must be paid for all hours worked including overtime hours. Fringe benefits and zone pay are not subject to the halftime premium due as overtime pay. Fringe Benefits - Along with the basic hourly rate, a fringe benefit amount will be listed for any classification in which fringe benefits were found to be prevailing. This hourly fringe benefit amount may be met by any combination of cash, bona fide third party benefit plans or unfunded plans. Funded plan fringe benefits generally include: life insurance, health insurance and pension plans. Unfunded plan benefits generally include vacation, sick leave and holiday pay. Contributions to fringe benefit plans must be made quarterly. Cash Payment of the required hourly fringe benefit amount in cash to the employee. Funded Plans Contractors fringe benefit contributions made irrevocably to a 6-12 (2013) Community Development Block Grant

15 Chapter 6 Labor Standards trustee, third party or union pursuant to a fund, plan or program, can be credited toward meeting this requirements, without prior State approval. Unfunded Plans Fringe benefit plan or program under which the cost a contractor may reasonably anticipate in providing benefits that will be paid from the general assists of the contractor (rather than funded by payments to a trustee or third party) is generally referred to as an unfunded plan. Fringe benefits to these types of plans must be made in cash, as approval of these unfunded plans can take a long time. Zone Pay When a trade requires zone pay, this typically means cash to the employee in the amount the hourly zone pay required. Each category in the wage decision is established by Union negotiation or survey. To calculate zone pay, the recipient must refer to the actual union agreement applicable to each section of the wage decision. Fringe Benefit and Zone Pay for Apprentices Every apprentice must be paid at not less than the rate specified in the registered apprenticeship program for apprentice s level of progress, which is expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentice shall be paid fringe benefits in accordance with the written 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 applicable wage determination for the applicable classification. Federal Overtime Requirements The Contract Work Hours and Safety Standards Act requires that persons performing the work of laborers or mechanics under contracts that exceed $100,000 must be paid no less that one and one-half times the basic rate of pay for weeks in which they work more than 40 hours (required Davis Bacon base rate (no exceptions) x fringe benefits + zone pay = overtime rate). The federal Fair Labor Standards Act requires weekly overtime pay for contracts under the $100,000 threshold. State Overtime Requirements State of Oregon law for overtime pay is not the same as federal law. The state s statutes (ORS 279C.520, 279C.540 and 279C.800 et seq) do not exempt federally funded projects from the state overtime law. State overtime law requires payment of overtime to workers that are employed in excess of 8 hours per day, unless there is a prior working agreement allowing four 10 hours days per work week, or 10 hours per day or 40 hours in any one work week. Compliance with Overtime Laws The Oregon Business Development Department is not responsible for monitoring and enforcing the state overtime laws. However, recipients that do not understand or ignore the law are liable for substantial additional costs and/or lawsuits from contractors or workers. Federal rules prohibit the use of grant funds to pay any costs resulting from violations of, or failure to comply with federal, state and local laws. Investigating Overtime When a recipient determines that a contractor has violated CWHSSA requirements by failing to compensate a worker appropriately for overtime, the following steps must be taken. Grant Management Handbook (2013) 6-13

16 Chapter 6 Labor Standards Violations Determine the number of occurrences per employee and calculate the amount due to each employee. Inform the prime contractor (who is responsible for the correction of all violations) in writing of the violation(s) specifying that the violations must be corrected within 30-days and what documentation will be accepted as proof of payment to the underpaid employees. The contractor will be required to report the restitution paid on a corrected/amended CPR, with a signed statement of compliance. The amended CPR must include for each employee to whom restitution was due: name, work classification, total number of hours involved, the adjustment rate (difference between the rate that was paid and the required rate), the gross amount of restitution, deductions, and the net amount paid. Each employee who has received restitution must sign and date the corrected/amended payroll as receipt of payment. Calculate the amount of liquidated damages due (i.e., $10 per violation, per employee, per day, and inform the prime contactor in writing of the amount of the computations. The contractor shall have 60 days to file a written request for waiver or reduction of liquidated damages; any such request shall be accompanied by a written statement of the reasons why the waiver or reduction is justified. Note: The only grounds for requesting a waiver or reduction are that the computation of the liquidated damages is incorrect or that the violation occurred inadvertently notwithstanding the exercise of due care; and that absent a timely waiver or reduction request, the determination is final. HUD handbook , Rev 1, Change 1, Section 3-4(f). If the amount of the violation is under $10, the violation does not need to be reported to OBDD. Amounts in excess of $10 per worker require copies of corrected/amended CPR s, with the employee s signature and date. If over $10, the violation must be reported in writing to OBDD. Anytime the violation is $10 to $ the recipient should use Exhibit 6N to make the report to OBDD. If $1, or more, the recipient must prepare and submit a labor standards enforcement report, described later in this chapter. Any waiver of fines must be reported to OBDD. Apprentices, Trainees and Helpers Three special classes of employees may be employed on federally funded projects and can be compensated at less than the Davis Bacon prevailing wages. These are: Apprentices are permitted to work at less than the predetermined rate for the work they perform only when they are individually registered in a bona fide apprenticeship program with the federal Bureau of Apprenticeship and Training or BOLI s Apprenticeship and Training Division. The following conditions must be met when apprentices are working on the job: The allowable ratio of apprentices to journeymen in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire workforce under 6-14 (2013) Community Development Block Grant

17 Chapter 6 Labor Standards the registered program; Any worker listed on a payroll at an apprentice wage rate, who is not a trainee as defined below, or is not registered, or otherwise employed as stated above, must be paid the full wage rate for the classification of work actually being performed on the job; The contractor or subcontractor, with the first payroll on which that apprentice appears, is required to furnish written evidence of apprenticeship registration, for any apprentice working on the job; and The wage rate paid to apprentices shall be not less than the specified rate in the registered program for the apprentices level of progress expressed as a percentage of the journeymen s rate contained in the applicable Wage Determination. Please use the Apprenticeship Wage Rate Calculation Guide attached as Exhibit 6O. Trainees will be permitted to work at less than the predetermined rate for the work performed only if they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the federal Bureau of Apprenticeship and Training or the Apprenticeship and Training Division of BOLI. Helpers who use tools in assisting mechanics and who are also paid below the minimum rates for mechanics are generally not acceptable, since apprentices and trainees are recognized as the individuals who perform less skilled craft work during their training period. If Helpers are to be employed on the project, they must be identified in a Request for Authorization of Additional Classification and Rate for Wage Determination and paid the rate deemed appropriate by the Department of Labor. Employee Interviews Interviews with employees provide a check against payroll data. Contractors must allow access to workers. All information received from employees is confidential and can be released to the employer only with the employee s written permission. The interviews must be conducted on-site unless an exception is received and approved by OBDD to allow the interviews to be conducted by mail, telephone, , etc. To deviate from the on-site requirement, there must truly be a reason/situation that is beyond the control of the recipient to warrant the alternate interview methods. Employee interviews must be conducted by the recipient or grant administrator, not the project engineer. Interview forms must be completed for a representative sample of all worker classifications on the job and must be sufficient to establish the degree of compliance and to indicate the nature and extent of violations, if any. For each month the project is under construction the minimum monthly requirement is: 1. At least one worker interview from every contractor represented on the job; and 2. Worker interviews must be collected from different worker classifications. Each interview should be documented using the Record of Employee Interview located in Exhibit 6P and online at HUD also has a Spanish form, HUD 11sp on-line. Grant Management Handbook (2013) 6-15

18 Chapter 6 Labor Standards When conducting worker interviews: Identify yourself. Confirm with identification. Explain that the project is being funded with federal funds. Explain the purpose of the interview and that it is confidential. Advise the employee that the prevailing wages applicable are posted and where they are posted. Worker Complaint Form Employees of federally funded projects subject to the requirements of the federal labor standards provisions may file a complaint using the form located at and included as Exhibit 6T Federal Labor Standards Complaint Form HUD form Worker complaints must be kept confidential and be given priority as required by 29 CFR Part 5.6(3). Compliance Reviews Over Payments Recipients are required to conduct compliance reviews and investigations to ensure compliance with labor standards. The reviews must include: Checking that the project Wage Determination and the Davis-Bacon Poster provided by OBDD are displayed at the job site in an area easily accessible to all employees. The Department of Labor revised the Davis-Bacon Poster (WH-1321). The new poster is available in English and Spanish. The revised poster is available through the Office of Labor Relations web site ( under Resources, Labor Relations Forms. Checking all the contractors and subcontractors Certified Payroll Reports to verify that the correct wages are being paid, and they are signed by the authorized person. The Project Wage Rate Sheet (Exhibit 6M) can be a handy reference for verification. Being alert for some common falsification indicators such as the ratio of laborers to mechanics, too few or irregular hours, discrepancies in wage computations and extraordinary deductions. Verifying wages through worker interviews using Record of Employee Interview attached as Exhibit 6P and available at See below for more information. Reviewing the use of apprentices, trainees; and helpers. Reviewing overtime payments; and Maintaining documentation of compliance reviews and inspections in the project files. If an employee has been overpaid, the contractor which made the overpayment cannot request the overpaid wages be returned by the employee, as this would constitute a violation of the Copeland Act (2013) Community Development Block Grant

19 Chapter 6 Labor Standards Violations Many compliance reviews will disclose minor discrepancies that do not involve or suggest falsification or willful violations. Rather than prepare a written notice to the contractor for such routine corrections, the Recipient may communicate these results informally, by telephone, for example. A record of the communication must be maintained so that any outstanding requests for corrective actions may be tracked to closure. Violations for labor standards may be found as result of either investigation of a worker complaint or a routine monitoring for compliance, review of payroll documents and investigations. All violations must be dealt with promptly. Documentation is critical, and all enforcement activities and findings must be documented in writing. The contractor has the right to appeal any findings. An appeal can be won by the contractor if there is poor documentation of violation or sanctions. Investigating Underpayment Violations When conducting investigations HUD has a Labor Standards Questionnaire form (HUD 4730) that can mailed in self addressed stamped envelopes to employees. The form can be located in Exhibit 6S or at The following steps are required to resolve mathematical errors, miscalculations, or other errors that result in the underpayment of wage, fringe, or zone pay. Calculate the difference between what should have been paid and what was paid. Inform the prime contractor (who is responsible for the correction of all violations) in writing of the violation(s) specifying that the violations and what must be corrected within 30-days and what documentation will be accepted as proof of payment to the underpaid employees. The contractor will be required to report the restitution paid on a corrected/amended CPR, with a signed statement of compliance. The amended CPR must include for each employee to whom restitution was due: name, work classification, total number of hours involved, the adjustment rate (difference between the rate that was paid and the required rate), the gross amount of restitution, deductions, and the net amount paid. Each employee who has received restitution must sign and date the corrected/amended payroll as receipt of payment. If the amount of the violation is under $10 per worker, contractor confirmation of wage restitution is not required. Amounts in excess of $10 per worker require copies of corrected/amended CPR s, with the employee s signature and date. If over $10, the violation must be reported in writing to OBDD. Anytime the violation is $10 to $ the recipient should use Exhibit 6N to make the report to OBDD. If $1, or more, per contractor, the recipient should prepare and submit a labor standards enforcement report, described later in this chapter. Grant Management Handbook (2013) 6-17

20 Chapter 6 Labor Standards Underpayment Remedies The grant recipient must notify the prime contractor of any underpayments found during payroll review in writing. This notification must describe the underpayments and the computations and instructions for making wage restitution along with providing information about appeal rights. The contractor is allowed 30 days to correct underpayments, provide amended certified weekly payroll reports and documentation that restitution was made or appeal the decision. Please contact the department s Regional Coordinator for appeal language, as it may vary depending upon the violations being encountered. Remedies: Withholding of contract payments for alleged wage underpayments may occur 30 days after notification to the prime contractor. Only the amount necessary to meet the contractor s (and/or subcontractors ) liability shall be withheld. What about CPRs not submitted in required timeframe? Essentially underpayments until submitted. Davis-Bacon guidelines are silent or vague on remedies possible when CPRs are not submitted, however the recipient has the ability to recommend potential debarments, cross withholding and sanctions at the completion of the investigation. BOLI can enforce rules in OAR (5): If the contractor fails to submit its payroll and certified statement forms to the public contracting agency as required by subsection (3) above, the public contracting agency must retain 25 percent of any amount earned by the contractor until the contractor has submitted the required payroll and certified statements to the public contracting agency. Underpayments less than $1,000 per Contractor Make sure unpaid wages are paid. If the violation involved federal overtime provisions, make sure the liquidated damages have been computed and withheld. The grant recipient must file a report with OBDD detailing the restitution amounts, contractors involved, corrective actions taken and any unresolved issues, if any. This report should be submitted 2 weeks after completion of the investigation. Copies of correspondence sent to recipient/prime contractor/subcontractor with all aboverequired information will work as the report. A copy of payroll check for the restitution, amended CPR or other form of receipt signed by the affected employee as evidence they have received the additional payment should be included for those resolved. Underpayments in excess of $1,000 per Contractor Underpayments exceeding $1,000 per contractor, triggers the reporting and enforcement requirements of The grant recipient must submit the following to the State, immediately following completion of the investigation (usually allow two weeks for the recipient) because the State has to review this information and submit the 5.7(a) report to USDOL and HUD. The State must submit this report within (2013) Community Development Block Grant

21 Chapter 6 Labor Standards days after completion of the investigation: Project Name, location and contract number (CDBG Project Number and any other contract numbers between the recipient and prime). Date of bid opening and contract award date. Copy and provide DB wage modification and amendment number applicable to the project. Identify prime contractor and names of affected employees: o Name, address, SS#, total underpayment, total restitution due or made. Identify subcontractors and names of their affected employees: o Name, address, SS#, total underpayment, total restitution due or made. Copies of pertinent contract documents, contractor/subcontractor agreement, certified payroll reports (CPRs), amended CPR s, employee interview forms, and any other related material that substantiates the violations, restitution (documentation verifying employees were paid back-due wages, cancelled checks, signed statements from the employee etc. or other actions). Detailed narrative as to the violations leading to restitution. This should include the information necessary for the state to complete the 5.7(b) investigative report requirements. The state must submit the following: o Brief statement of circumstances that brought about the investigation. o A statement concerning the conduct and extent of the investigation, that is, who the investigator talked with, which records were examined, and any other action taken. o A statement of facts concerning what the investigation disclosed. Were allegations proven, if so how? If dispelled, how? o Conclusion of the investigator as to willfulness, negligence, or other factors involved in the matter. o Where appropriate a recommendation of the investigator and justification as to sanctions, if any, recommended against the contractor(s) involved. Should there be such a recommendation, further documentation may be required. This should include the reasons for the recommendation and facts supporting them, or if the matter was unresolved, how was/will resolution accomplished. If underpayments related to improper overtime pay (1.5 times the hours worked per week in excess of 40 hours), the grant recipient must provide sufficient information concerning the nature of the overtime violations and restitution, plus an assessment of liquidated damages computed under the Contract Works Hours and Safety Standards Act. This information is necessary to allow for any appropriate adjustment requested by the contractor and for final action or recommendation by HUD to the US Department of Labor. Note: The contractor/subcontractor is responsible and liable for unpaid wages and for liquidated damages to the United States in the sum of $10.00 per person, per each calendar day for each violation. Grant Management Handbook (2013) 6-19

22 Chapter 6 Labor Standards Underpayments, in any amount, believed to be aggravated or willful The grant recipient should prepare the information required above as required by and contact the department immediately for assistance. Unfound Workers Sometimes wage restitution cannot be paid to affected employees, because the employee has moved and cannot be located. The contractors must provide, for any workers that cannot be located, their names, SS# s, last known address, and the gross amounts due. At the end of the project, the prime contractor must notify the grant recipient and the grant recipient will be required to submit the wage restitution owed along with documentation that the recipient exercised due diligence in trying to locate the worker(s). In the past if a CDBG funded construction project, had unfound workers, the city/county grant recipient was required to establish an escrow account for the unfound workers restitution and to continue attempting to locate the workers for 3 years. If after 3 years the, workers were still not found, the funds within the escrow account were to be transferred to HUD. In the last year, HUD has changed its policy regarding escrow accounts. HUD now maintains all unfound worker escrow accounts on behalf of the city/county grant recipient and conducts searches to locate the worker(s) on a regular basis. The updated procedures are identified below, however the forms are not provided, as they change frequently and will be requested by OBDD from HUD for each project as needed. 1. Once the grant recipient completes the forms, the draft forms must be returned to OBDD-IFA and forwarded to the CDBG PPC s, so that they can forward the draft forms to HUD to obtain the necessary HUD banking information for the US Treasury and HUD approval to wire transfer the funds. 2. Once OBDD receives HUD approval to wire transfer the funds, the grant recipient will need to take HUD form 4733 to their bank to transfer the funds. 3. After the wire transfer occurs: a. The recipient is required to provide OBDD-IFA the forms a 2 nd time, for final submission to HUD. b. In addition, the bank will provide the recipient a form back showing that the wire transfer took place along with a set of numbers so that the transfer can be tracked. This form must be ed to OBDD-IFA, along with a signed copy of HUD form The originals must also be mailed hard copy to OBDD-IFA for submission to HUD. The grant recipient cannot send the wire transfer in without HUD approval. The grant recipient must not take this to the bank for wire transfer until OBDD receives HUD s approval (2013) Community Development Block Grant

23 Chapter 6 Labor Standards Quick Reference Guide Underpayments in General Underpayments of less than $1,000 Underpayments exceeding $1, (a) Report Labor Standards Enforcement Report for underpayments in excess of $1,000 per contractor. 5.7(b) Semi Annual Labor Standards Enforcement Report Labor Standards Quick Reference Guide As soon as possible after discovery, grant recipient notifies prime contractor and calls OBDD RC. At completion of 30 days notify OBDD RC of the outcome and provide report. Grant recipient must notify OBDD and receive direction of completing requirements of OBDD prepares report based upon information submitted by the grant recipient. HUD s Office of Labor Relations reviews reports and submits to US DOL. All CDBG funded construction project underpayments must be reported on this report by the RC s. Contractor is allowed 30 days to correct the situation, amended CPR s, evidence of restitution etc. Due 2 weeks after receipt of contractors submission. Due 2 weeks after completion of the underpayment investigation. State has 45 days to submit the 5.7(a) report to HUD s Office of Labor Relations HUD has 15 days to review and provide report to USDOL. Report is due in April and October each year. Willful Violators Determinations involving willful violations, falsification and/or large findings of underpayment must be communicated to the prime contractor in writing, particularly if withholding from contract payments is contemplated. While any violation disclosed on a federally funded project must be rectified, the focus of HUD enforcement activities will be on willful violators that know what is required of them, but purposely underpay their employees. These cases involve the most egregious violations and the most wage restitution. Such employers may face debarment from further participation in HUD programs. Sanctions The following sanctions will apply to recipients for non-compliance with federal labor standards: Where the recipient s performance with respect to labor standards administration and enforcement is found not in conformance with the requirements of the federal Housing and Community Development Act of 1974, and applicable implementing regulations, the provisions of section of the regulations are effective. Payments from the grant may be terminated, reduced or otherwise limited. More information is at Violations of the Copeland, Anti Kickback Act by contractors could be the basis for termination of contract and could result in criminal prosecution by the Federal Government pursuant to 18USC874 for up to 5 years in prison or a $5,000 fine or both. Fraudulent execution of the requisite statement of compliance could result in prosecution under False Information Act 18USC1001, 18USC1020 or 31USC231. More information may be found at Violations of the Contract Work Hours and Safety Standards Act make the contractor and any subcontractor responsible and liable for unpaid wages and for liquidated damages Grant Management Handbook (2013) 6-21

24 Chapter 6 Labor Standards to the United States in the sum of $10.00 per person, per calendar day for each violation. International violations are a federal misdemeanor, punishable for each and every offense by a fine of not more than six months, or both. Violations may also be grounds for termination of contract. Information is available at The liquidated damages must be sent directly to HUD by the grant recipient via the violating construction contractor. The HUD Labor Relations Office no longer accepts checks for payment and requires all payments to be made electronically. Exhibit 6Q contains the most recent version of the forms required for this transaction. However, please contact OBDD to ensure these forms are the most recent being used by HUD before they are completed. In order to complete the form, OBDD-IFA will need to contact our HUD-LR Office to obtain the Deposit Control ID, and the Ticket #. Davis-Bacon AND Oregon Prevailing Wage Rates (BOLI) Violations of the Davis-Bacon Act may result in suspension of the project payment, advance or guarantee of funds until such time as the violations are discontinued or until sufficient funds are withheld to compensate employees for the wages to which they are entitled. Violations may also result in contract termination, suspension, or debarment of the contractor or subcontractor. Use of Oregon Prevailing Wage Rates (PWR) PLEASE NOTE: Effective January 1, 2006, Oregon law requires that workers on projects funded in whole or in part with federal funds will be paid the higher of either the federal Davis-Bacon rates or Oregon prevailing wage rates (also called PWR or little Davis-Bacon ). See ORS 279c.800 at To ensure accuracy of the BOLI rule citations please refer to: The state prevailing wage rates apply to all construction projects of $50,000 or more including those that are federally funded. The Oregon prevailing wage rates apply to public works projects subject to Oregon Revised Statutes (ORS) 279C.800 and the Davis Bacon Act (40 U.S.C. 276a). For each specific job classification: 1. If the state PWR is higher than the federal prevailing rate of wage (i.e., Davis-Bacon wages), the contractor and every subcontractor on the project shall pay at least the state PWR as required by ORS 279C.800 to 279C.870; and 2. If the federal Davis-Bacon wage rate is higher than the state PWR the contractor and every subcontractor on the project shall pay at least the federal prevailing rate of wage as required by the Davis Bacon Act. Wage Rate Determination Both the Davis-Bacon and the PWR rates must be included in construction contracts funded, in whole or in part, with CDBG funds. The state rates are generally the same as the federal rates, however, there are some important differences including: Different definitions of trades, areas, zones, groups and situations where less than (2013) Community Development Block Grant

25 Chapter 6 Labor Standards percent of wages can be paid; The PWR is published not more than twice per year while the Davis-Bacon rates are subject to modification throughout the year. The Wage Rate Determination is a list of required wages and benefits to be paid to workers on CDBG-funded projects. Those wages are to be used throughout the construction of the project. With Oregon law now requiring workers on federally-funded projects to be paid the higher of either Davis-Bacon rates or the PWR, BOLI has prepared a comparison book, PREVAILING WAGE RATES for Public Works Contracts in Oregon subject to BOTH the state PWR and federal Davis-Bacon Act. This book, and its amendments, is available at PWR booklets are published twice a year. Davis-Bacon rates are subject to modification at any time. Recipients must verify that the federal rates have not been amended before relying on the rates contained in this publication. The Regional Coordinator will notify the recipient of the correct Wage Determination to be used. (See Lock-In Date below.) Generally speaking, three (3) copies of the applicable Wage Determination will be used on each project. The first copy goes in the bid or contract specifications to let the contractor know the wage rates that must be observed on the job and to obligate the contractor to comply. The second copy is posted on the job site so the laborers and mechanics know what wage rate is assigned to their classification. A third copy is used by the grant administrator to monitor contractor compliance. Wage Determinations are many pages long and can be difficult to read, so a one-page summary of the wage rates applicable to a particular project may be used as an easy reference sheet. This Project Wage Rate Sheet is attached as Exhibit 6M and may be downloaded at NOTE: BOLI requires additional classification and rate determinations for occupations and trades not listed within the state prevailing wage rates. Contact BOLI about this process. Questions about State Laws Questions about Oregon State Laws should be directed to: Oregon Bureau of Labor and Industries (971) Wage and Hour Division NE Oregon Street Suite 1045 BOLI.MAIL@state.or.us Portland, Oregon Volunteers Federal Law Volunteers on Community Development Block Grant projects are exempt from the prevailing wage law (Davis-Bacon) requirements if they are providing their services to a local government and they are not otherwise employed, at any time, on the project. Volunteers cannot be paid for materials or supplies unless the recipient has obtained the items in compliance with state procurement law. Grant Management Handbook (2013) 6-23

26 Chapter 6 Labor Standards For other specific rules as to who qualifies as a volunteer, when Davis-Bacon or PWR wages can be waived, etc., please see 24 CFR Part 70. The code is also available online at Volunteers State Law The Oregon Business Development Department does not monitor or enforce state laws concerning the use of volunteers. The following information is provided only as general information, which may be of use to recipients and their legal advisors. Under the Oregon Minimum Wage and Overtime law, volunteers must meet four criteria in order to operate outside the employment relationship (These can be found in the Wage and Hour Handbook, Oregon Bureau of Labor and Industries): The work must be for a public service of humanitarian act; and At the volunteer s own initiative; and Without any expectation of pay; and If the volunteer is employed for other purposes, the volunteer duties may not be the same as their regular work duties. A person performing services on a volunteer basis for a nonprofit, religious, charitable or relief organization, whether or not such person receives meals or lodging or nominal reimbursements or vouchers for meals lodging or expenses is not subject to the Worker s Compensation Law as allowed by ORS (19). Use of Volunteers THE USE OF VOLUNTEERS MUST BE PRE-APPROVED BY HUD AND OBDD PRIOR TO PROJECT COMMENCMENT AS REQUIRED BY 24 CFR PART 70.5(b). The recipient must provide enough information sufficient to make a determination for review. Volunteers can help reduce construction and other program costs. However, the presence of volunteers on a construction project/site may also result in coordination problems with contractors, quality of work issues and potential government liability for personal injury and property damage. Recipients planning to use volunteers in their construction projects should review with their legal counsel the conditions for using volunteers and take appropriate measures to protect the jurisdiction from liability. In addition the recipient needs to inform the department s Regional Coordinator so the proper reporting system can be established that will meet the requirements of the U.S. Department of Housing and Urban Development. If volunteers are going to be used on the project, the recipient must comply with the following requirements: 1. If the project will involve volunteers that will receive any kind of benefits (e.g., workers compensation coverage in case of injury), then the recipient must get preapproval from Housing and Urban Development through the Oregon Business Development Department. In addition, the recipient must keep and submit the following documents to the Department for review and to be submitted to Housing and Urban Development: o 1a. For projects that include paid construction workers, the recipient must record 6-24 (2013) Community Development Block Grant

27 o volunteers names and hours volunteered; and Chapter 6 Labor Standards 1b. For projects that will only use volunteers, recipients must record the number of volunteers and the number of hours they worked, collectively. 2. If none of the project volunteers will receive benefits, then preapproval is not required but the same information as described above in 1a. and 1b. is required. The federal regulations do not require any specific reporting format. Recipients may use the certified payroll report form to keep the required records because it will capture all the necessary information and reduce the chance of misunderstandings. Volunteer Labor Value For purposes of documenting local match, volunteer labor is to be valued as follows: The time of the persons that are donating their professional skills (e.g., an electrician who donates time to install wiring) shall be credited at their standard hourly rate. The time of persons providing labor for which they are not normally paid (e.g., a teacher that volunteers to do carpentry work) shall be credited at the state s current minimum wage (as of January 1, 2009 it is $8.40 per hour). Prisoners There is no prohibition against the use of prison inmate labor on federally funded projects, but they do not qualify as volunteers. The Davis-Bacon wage requirements would apply. Labor Standards Enforcement File Federal regulations require that recipients maintain full documentation of labor standards administration and enforcement activities. Recipients, or their grant administrator, may develop their own filing systems provided that specific files can be made available upon request by authorized representatives of OBDD, HUD and/or the DOL. It is also important that the contract administrator is able to retrieve from the files the documentation evidencing that all actions required for labor standards administration and enforcement were taken. At a minimum, the file should contain: Documentation of contractor selection process Wage Determination, including effective modifications and additions Verification of contractor/subcontractors CCB registration Verification of contractor eligibility Responsible Bidder Determination Form Evidence of contractor Public Works Bond Pre-construction Conference documentation, including signed minutes Contractor/Subcontractor Agreement and Fringe Benefit Summary Form for each prime contractor and every subcontractor Notice of Construction Contract Award and Start of Construction Weekly CPR forms and signed Statements of Compliance Evidence that payrolls were checked against applicable wage rates Documentation of registered apprentices or trainees Record of Employee Interviews Record of contacts with contractor regarding labor standard matters Evidence of restitution/resolution of discrepancies, if any Grant Management Handbook (2013) 6-25

28 Chapter 6 Labor Standards The file containing certified payrolls and related documents must be preserved for a period of not less than three years after completion of the contract or project. Available Resources Making Davis-Bacon Work: A Contractor s Guide to Prevailing Wage Requirements for Federally-Assisted construction Projects uidebooks/4812lr Coordinating with Other Agencies Recipients with projects funded through federal programs administered by other state and federal agencies will find that those agencies interpret and enforce federal labor standards requirements differently than the U.S. Department of Housing and Urban Development. Recipients with multiple sources of funds in the project must administer their grant projects in compliance with the rules that apply to the use of the Community Development Block Grant funds. OBDD Regional Coordinators can help resolve issues raised by conflicting federal and/or state agency requirements (2013) Community Development Block Grant

29 Federal Labor Standards Provisions U.S. Department of Housing and Urban Development Office of Labor Relations 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, 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 fide fringe benefits under Section l(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 less often than quarterly) under plans, funds, or programs, which cover 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 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 5.5(a)(1)(ii) and the Davis-Bacon poster (WH- 1321) shall be posted at all times by the contractor 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 therefor 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 benefits, bears a reasonable relationship to the wage rates contained 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 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 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 ) (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 for fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the views 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 ) (d) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(ii)(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. (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 Previous editions are obsolete Page 1 of 5 form HUD-4010 (06/2009) ref. Handbook

30 of the wages of any laborer or mechanic the amount of any costs reasonably anticipated 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 ) 2. Withholding. 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 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, 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 designee 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. (i) 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. 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 l(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 l(b)(2)(b) of the Davis- Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been Previous editions are obsolete Page 2 of 5 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 approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee 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 and ) (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 5.5(a)(3)(i) except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee s social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request 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 contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this subparagraph for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to HUD or its designee. (Approved by the Office of Management and Budget under OMB Control Number ) (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 information required to be provided under 29 CFR 5.5 (a)(3)(ii), the appropriate information is being maintained under 29 CFR 5.5(a)(3)(i), and that such information is correct and complete; form HUD-4010 (06/2009) ref. Handbook

31 (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 paid 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 certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the Statement of Compliance required by subparagraph A.3.(ii)(b). (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. (iii) The contractor or subcontractor shall make the records required under subparagraph A.3.(i) 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 fails 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 Apprentices and Trainees. (i) 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, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, 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 Office of Apprenticeship Training, Employer and Labor Services 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 greater 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 Previous editions are obsolete Page 3 of 5 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 apprentice s level of progress, expressed as a percentage of the journeymen 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 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 Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, 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 less 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 less 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 which 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 form HUD-4010 (06/2009) ref. Handbook

32 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 trainee 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. 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. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under 29 CFR Part 5 shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 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 subparagraphs 1 through 11 in this paragraph A and such other clauses as HUD or its designee may by appropriate instructions require, and a copy of the applicable prevailing wage decision, 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 this paragraph. 7. Contract 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 Compliance with Davis-Bacon and Related Act Requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract 9. 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, 6, 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. (ii) 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 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C Additionally, U.S. Criminal Code, Section , 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 against by the Contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. B. Contract Work Hours and Safety Standards Act. The provisions of this paragraph B are applicable where the amount of the prime contract exceeds $100,000. 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 permit any such laborer or mechanic in any workweek in which the individual is employed on such work to work in excess of 40 hours in such workweek 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 40 hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor responsible therefor 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 the standard workweek of 40 hours without payment of the overtime wages required by the clause set forth in sub paragraph (1) of this paragraph. Previous editions are obsolete Page 4 of 5 form HUD-4010 (06/2009) ref. Handbook

33 (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 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 sums as may be determined to be necessary to satisfy any liabilities 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 (1) 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. The provisions of this paragraph C are applicable where the amount of the prime contract exceeds $100,000. (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 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). 40 USC 3701 et seq. (3) The contractor shall include the provisions of this paragraph in every subcontract so that such provisions will be binding on each subcontractor. The contractor shall take such action with respect to any subcontractor as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. Previous editions are obsolete Page 5 of 5 form HUD-4010 (06/2009) ref. Handbook

34

35

36

37 Exhibit 6C (2013) Labor Relations Letters Office of the Assistant to the Secretary for Labor Relations LABOR RELATIONS LETTERS Date: March 11, 1996 Letter No. LR Subject: Labor standards compliance requirements for self-employed laborers and mechanics (aka Working Subcontractors) I. HUD policy on prevailing wage applicability. II. Compliance and certification parameters. III. Owners of businesses working with their crews. IV. Owner-Operators of power equipment. V. Truck drivers. The Federal prevailing wage requirements and compliance standards for self-employed laborers and mechanics (also referred to as working subcontractors ) have long been a confusing and contentious area for the Department of Labor (DOL), HUD, the Internal Revenue Service and contractors and subcontractors. The following policy represents an effort to provide practical guidance for field application. The guidance more specifically concerns the wage certification requirements for self-employed mechanics and laborers on projects subject to Federal labor standards provisions including Davis- Bacon and HUD-determined maintenance and non-routine maintenance prevailing wage rate determinations. This policy does not attempt to establish whether working subcontractors are subject to Federal labor standards nor whether such working subcontractors are bona fide. The clear meaning of statutory provisions and regulatory definitions does not require further examination of applicability. Additionally, statutory and regulatory language are clear that the question of whether certain self-employed laborers and mechanics are bona fide subcontractors is not germane to the issue of prevailing wage standard applicability. 1 1 The DOL has issued an administrative policy which excludes bona fide owner-operators of trucks who are independent contractors from DBRA/CWHSSA provisions. See paragraph V of this Letter. SL: Distribution: W-3-1; R-1; R-6; R-7; R-9; SL; 138-2, Grant Management Handbook (2013) Exhibit 6C

38 Exhibit 6C (2013) Labor Relations Letters Page 2 I. HUD policy on prevailing wage applicability. Letter No. LR The Davis-Bacon Act (DBA), HUD program Related Acts (DBRA) concerning the payment of prevailing wages as determined by the Secretary of Labor, and the U.S. Housing Act of 1937 concerning the payment of prevailing wage rates established by HUD provide that the wage protections afforded in these statutes apply to laborers and mechanics employed on the covered work. The DBA and DBRA implementing regulations (29 CFR Part 5) specifically stipulate that these protections are provided regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Additionally, all laborers and mechanics must be paid unconditionally and not less often than once per week. HUD has followed DBA/DBRA prevailing wage parameters in its implementation, administration and enforcement of HUD-determined maintenance and non-routine maintenance prevailing wage standards. (NOTE: The requirement to pay weekly wages is not applicable to the payment of prevailing routine maintenance wage rates related to laborers and mechanics engaged in the operation of PHA and IHA housing developments.) Therefore, it is HUD policy that in all cases where laborers and mechanics are employed on Federal prevailing wage-covered construction, maintenance and non-routine maintenance work, laborers and mechanics shall be entitled to compensation (in the case of Davis-Bacon wages, weekly compensation) at wage rates not less than the prevailing rate for the type of work they perform regardless of any contractual relationship alleged to exist between a contractor or subcontractor and such laborers or mechanics. The above policy statement is not a departure from previous HUD directives. The guidance presented below establishes uniform Unassisted program contract administration and enforcement parameters for labor standards compliance and prevailing wage certification. II. Compliance and certification parameters. HUD policy clearly affords prevailing wage protection for all laborers and mechanics, regardless of contractual relationship. There is no exception to this protection for self-employed laborers or mechanics, including owners of businesses, sole-proprietors, partners, corporate officers, or others. This policy in no way precludes or limits any business or individual from participating in HUD-assisted construction, maintenance, or non-routine maintenance work. The issue is not one of eligibility, whether such persons are permitted to work on HUD-assisted projects, but of compliance standards - what HUD will accept from contractors and subcontractors to demonstrate that proper compliance has been achieved. In this context, this Letter establishes a HUD administrative policy that laborers and mechanics may not certify to the payment of their own prevailing wages EXCEPT where the laborer or mechanic is the owner of a business working on the site of the work with his/her own crew. (This exception is described in detail in Paragraph III. Owner- operators of power equipment are discussed in Paragraph IV; Truck drivers are discussed in Paragraph V.) The most frequent occurrence of self-employed workers on HUD-assisted projects involves mechanic/trade classifications (i.e., not laborer classifications). (For ease of reference, laborers and mechanics in this context are referred to as mechanics and include any case involving laborers.) These Exhibit 6C (2013) Community Development Block Grant

39 Exhibit 6C (2013) Labor Relations Letters Page 2 Letter No. LR mechanics may be represented as sole-proprietors, self-employed mechanics, partners, or corporate officers - all with no direct employees engaged in the covered work. Accordingly, HUD, and program participants responsible for labor standards administration and enforcement (e.g., PHAs, IHAS, CDBG recipients), may not accept certified payrolls reporting single or multiple owners (e.g., partners) certifying that they have paid to themselves the prevailing wage for their craft. For example, a sole- proprietor may not submit a payroll reporting himself or herself as simply Owner signing the certification as to his/her own wage payment from draws or other payment methods. Neither may several mechanics submit a payroll reporting themselves as partners with one or more certifying as to the payment of their wages or salaries. Such mechanics must instead be carried on the certified payroll of the contractor or subcontractor (the responsible employer ) for whom they are working and with whom they have executed a contract for services. In these cases, maintenance of an accurate accounting of weekly work hours including any overtime hours for such mechanics is essential. Whatever method of compensation computation is utilized (piecework, weekly contract draw for performance), the amount of weekly compensation divided by the actual hours of work performed for that week must result in an effective hourly wage rate for that week that is not less than the prevailing hourly rate for the type of work involved. This computation must take into account overtime pay rates (i.e., one and one half) for all hours worked in excess of 40 hours per week, pursuant to the Contract Work Hours and Safety Standards Act (CWHSSA), where applicable, and pursuant to the Fair Labor Standards Act where CWHSSA is not applicable. The name, work classification, actual hours of work, effective hourly. Wage rate, and wage payment for each such mechanic must be reported and certified on the responsible employer s weekly payroll. Note that the effective hourly wage rate for such mechanics may fluctuate from week to week. However, the effective hourly wage rate may not be less than the minimum prevailing rate for the respective craft. In any case where the effective rate falls below the corresponding craft prevailing wage rate, the responsible employer must compensate the mechanic at no less than the prevailing rate on the wage determination for that craft. III. Owners of businesses working with their crew. Owners of businesses working with their crew on the same Unassisted job site may certify to the payment of their own prevailing wages in conjunction with the prevailing wages paid to their employees. This exception to reporting standards does not suggest that such owners are not likewise entitled to prevailing wages for their labor. Rather, it accepts the wage payment certification on weekly payroll reports by the owner for his/her own wages as that certification accompanies the certification offered for the payment of prevailing wages to his/her employees. Such owners need only list their name, work classification including owner, and the daily and total hours worked. (Such owners do not need to list a rate of pay or amounts earned.) IV. Owner-operators of power equipment. Frequently, owner-operators of power equipment (e.g., backhoes, front-end loaders) will contract for services at a rate for both man and machine. In these cases, the owner-operator includes liability, Grant Management Handbook (2013) Exhibit 6C

40 Exhibit 6C (2013) Labor Relations Letters Page 2 Letter No. LR equipment maintenance, and salary in an hourly or contract rate for services. Because of the prevalence of such practice and the inherent difficulty in ascribing costs for liability and maintenance costs versus hourly labor salary, HUD and its program clients may accept a combined ( man and machine ) hourly rate on the responsible contractor s certified payroll provided that such hourly rate may not be less than the rate on the wage determination for the respective power equipment operator. Note: Owner-operators of power equipment, like self-employed mechanics, may not submit their own payrolls certifying to the payment of their own wages BUT must be carried on the responsible contractor s certified payroll report. V. Truck drivers. As outlined earlier in this Letter, a DOL administrative policy excludes bona fide owner-operators of trucks who are independent contractors from DBRA/CWHSSA provisions concerning their own hours of work and rate(s) of pay. These truck owner-operators must be reported on weekly payrolls but the payrolls do not need to show the hours worked or rates - only the notation Owner-operator. Note that any laborers or mechanics, including truck drivers, employed by the owner-operator/independent contractor are subject to DBRA/CWHSSA provisions in the usual manner. This policy does not pertain to owner-operators of other equipment such as backhoes, bulldozers, cranes and scrapers (i.e., power equipment as noted in paragraph IV, above). These compliance standards shall take effect immediately. Any exceptions to these standards must be approved in advance in writing by HUD Headquarters Office of Labor Relations. Any questions concerning this Letter may be directed to the Office of Labor Relations at (202) or, in the case of HUD program participants, to the HUD Field Labor Relations Staff with jurisdiction for your area. Assistant to the Secretary for Labor Relations Richard_S._Allan@HUD.gov Visit the Office of Labor Relations on the World Wide Web HUD Home Page at Exhibit 6C (2013) Community Development Block Grant

41

42

43 Oregon Business Development Department 775 Summer Street NE, Suite 200 Salem, OR Community Development Block Grant Project Preconstruction Conference Notes Project Name: Name of CDBG City or County Recipient: Name of Prime Contractor: Date and Place of Preconstruction Conference: Conference Attendees: Attach a list Exhibit 6E (2013) Preconstruction Conference Notes Oregon CDBG Grant #: Staff of the Oregon Business Development Department or the local government recipient of the CDBG funds explained each of the topics listed below. Questions and answers about the provisions are noted. Topic Questions and Answers What prevailing wages are and who gets them Federal Davis Bacon Prevailing Wages all laborers and mechanics employed on the site. Difference between federal Davis-Bacon and state prevailing wages Both Federal Davis Bacon and BOLI now apply to projects. The CDBG program requires Federal prevailing wages. For information about State prevailing wages and requirements contact BOLI. Subcontractors Must complete the Contractor/Subcontractor Agreement form, Exhibit 6G Parts E, be provided the HUD 4010 form, and Labor Relations Letter LR-96-01, Exhibit 6C, properly completed CPR s and apprenticeship documentation prior to receiving payment. Pay requirements Wages must be paid weekly and in full. CPR s due to recipient 7-10 days after weekly payment to workers. How to request wage rates for trades not listed in the wage decision Complete the Report of Additional Classification and Rate and submit to OBDD. Exhibit 6B. Grant Management Handbook (2013) Exhibit 6E

44 Exhibit 6E (2013) Preconstruction Conference Notes Topic Questions and Answers Who contractors can hire Employees - Contractors cannot hire: illegal residents of the USA, and anyone under the age of 16. Contractors cannot discriminate based upon familial status, race, color, religion, sex, or national origin. Subcontractors Any contractor that is listed with the CCB and has not been debarred, suspended on the federal EPLS list. What workers have to be told 1) Project is subject to federal prevailing wages. 2) Where the wages and poster will be posted and available for their access. 3) The will be interviewed. 4) They will be paid weekly. 5) Who to contact if there are questions about wages, benefits, hours of work and overtime. This contact should not be the contractors, and preferably a representative of the recipient. Apprentices and Trainees 1) Apprentices must be registered in a state or federal program. This documentation must be submitted to the recipient, and show the workers name, ratio, and rate of pay of the Journeymans rate. 2) Contractor must be a registered training agent. 3) Must perform work in the trade enrolled in. 4) Ratios must be met. 5) Apprentices working without a Journeyman must be paid Journeymans wages. Overtime requirements Federal - 1 and 1/2 times the hourly rate of pay for any hours worked in excess of 40 hours per week. Oregon 1 and 1/2 times the of pay for any hours worked in excess of 8 hours per day, unless there is bargaining unit agreement allowing 4-ten hour days. 10. Fringe benefits Must be paid in cash or to a funded third party, such as a union plan. Refer to Chapter 6 for more information. Exhibit 6E (2013) Community Development Block Grant

45 Exhibit 6E (2013) Preconstruction Conference Notes Topic Questions and Answers 11. Fringe benefits plans vs. paying benefits in cash If fringe benefits are paid to plans, the contractor must provide the hourly amount computed for each employee for that contribution to the recipient Worker disputes about wages Workers may use the HUD complaint form located in Chapter 6. Disputes should be handled by the grant recipient and investigated. Grant recipient should contact OBDD for guidance. Contractors cannot discriminate against any worker with a dispute about wages. Information contractor is required to submit to CDBG recipient: Completed: Contractor/subcontractor agreement forms Parts A-E Certified Payroll Reports (WH-347) Statements of Compliance Signature Authorizations Apprenticeship documentation Corrected payrolls, if needed. Anything requested by the grant recipient, State or HUD. Civil rights and equal employment opportunity requirements Contractors cannot discriminate. How compliance is checked Weekly CPR review Worker Interviews On-Site monitoring Worker complaints Underpayment of workers All wage restitution due to workers must be paid. There are no exceptions. If underpayments are not paid, the recipient can recommend sanctions, debarment, cross withholding, or pay the underpayments from the retainage due to the contractor. Grant Management Handbook (2013) Exhibit 6E

46 Exhibit 6E (2013) Preconstruction Conference Notes Signatures: Prime Contractor Date CDBG Recipient Representative Date Oregon Business Development Department staff (if present) Date Attachments: Roster of Attendees Other Minutes of Preconstruction Conference Exhibit 6E (2013) Community Development Block Grant

47 Oregon Business Development Department 775 Summer Street NE, Suite 200 Salem, OR Exhibit 6F (2013) Notice of Construction Contract Award and Start of Construction RE: Notice of Construction Contract Award and Start of Construction Recipient: Grant #: Project Name: Contract Amount: Project Location: General Contractor: Yes No Is this firm a sole proprietorship? If yes, name the sole proprietor Yes No Is the firm a partnership? If yes, list the names of the partners Yes No Is the firm a corporation? If yes, list the names of the officers of the corporation Construction Contractors Board Registration #: Bid Opening Date: Award Date: Applicable Wage Decision No.: Modification: Date: Date: Date of Preconstruction Conference or Meeting with Prime Contractor to Review Labor Standards Requirements: Start of Construction Date: Submitted By: Name / Title Attachment: Preconstruction Conference Notes / Minutes cc: Labor Standards File Grant Management Handbook (2013) Exhibit 6F

48

49 Exhibit 6G (2013) Contractor/Subcontractor Agreement and Fringe Benefit Summary form CONTRACTOR/SUBCONTRACTOR CONTRACT AGREEMENT Addendum to Contract between Contractor and Subcontractor Date: Project Number: Project Name: Contract Contractor: Address: Part A 1. The parties, having executed a contract for: in an amount not to exceed $ in the construction of the above-identified project acknowledge and agree that: a. The Labor Standards provision (HUD 4010), Section 3 Clause, and Lobbying Certification are included in the aforesaid contract; b. The applicable Davis-Bacon wage rates are included in aforesaid contract; c. The addendum to the Contract between Contractor and Subcontractor is part of the Contract; d. The attached Fringe Benefit Summary form describes how the required fringe benefit amounts, if any, will be paid by the subcontractor; and, e. Correction of any infractions of the aforesaid conditions, including infractions by the subcontractor and any lower tier subcontractors, is a mutual responsibility. 2. The parties certify that: a. As required by 24 Code of Federal Regulations part 24, neither they nor their principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this covered transaction; and, b. No part of the aforementioned contract has been or will be subcontracted to any subcontractor if such subcontractor or any of its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this or a lower tier covered transaction. 3. The subcontractor agrees to obtain and forward to the contractor within ten days after the execution of any subcontract, including those executed by the subcontractors and any lower tier subcontractors copy of said contract containing fully executed items 1.(a), (b), (c) and (d) listed above. 4. The Subcontractor certifies that: a. The legal name and the business address is: Employer I.D. b. The subcontractor is an independent contractor in compliance with Oregon Revised Statutes Chapter 701. c. The subcontractor is currently registered with the Oregon Construction Contractors Board in a class appropriate for the work to be performed under this subcontract. d. Construction Contractors Board No: Contractor Signature: Subcontractor Signature: (Title/Date) (Title/Date) Grant Management Handbook (2013) Exhibit 6G

50 Exhibit 6G (2013) Contractor/Subcontractor Agreement and Fringe Benefit Summary form Certificate from Contractor Appointing Officer or Employee to Supervise Payment of Employee Replaces form PHA-282, which is obsolete form HUD-5282 (8/67) Part B U.S. Department of Housing and Urban Development Office of Public and Indian Housing Project Name Location Date (mm/dd/yyyy) Project No. (I) (We) hereby certify that (I am) (we are) (the prime contractor) (a subcontractor) for (specify General Construction, Plumbing, Roofing, etc.) in connection with construction of the above-mentioned Project, and that (I) (we) have appointed, whose signature appears below, to supervise the payment of (my) (our) employees beginning (Date: mm/dd/yyyy) ; That he/she is in a position to have full knowledge of the facts set forth in the payroll documents and in the statement of compliance required by the so-called Kick-Back Statue which he/she is to execute with (my) (our) full authority and approval until such time as (I)(we) submit to the (Name of Local Authority) a new certificate appointing some other person for the purposes hereinabove stated. (Identifying Signature of Appointee) Attest (Not Required) (Name of Firm or Corporation) By (Signature) (Signature) (Title) (Date: mm/dd/yyyy) (Title) (Date: mm/dd/yyyy) Note: This certificate must be execute by an authorized officer of a corporation or by a member of a partnership, and shall be executed prior to and be submitted with the first payroll. Should the appointee be changed, a new certificate must accompany the first payroll for which the new appointee executes a statement of compliance required by the Kick-Back Statue. Exhibit 6G (2013) Community Development Block Grant

51 Exhibit 6G (2013) Contractor/Subcontractor Agreement and Fringe Benefit Summary form Fringe Benefit Summary Form Part C Project Name: Project Number: Name of Recipient: Name of Contractor: The contractor named above will pay employees on this project fringe benefits required by the applicable David-Bacon wage determination as follows: [ ] 1. Required fringe benefit amounts will be paid in cash. [ ] 2. FUNDED PLAN(S) (Fringe benefits will be paid into a fund, plan, or program administered by a third party e.g., union plan, Blue Cross ) Name of plan(s) I certify that the employer paid benefit contributions made for the above plan(s) are: a. Voluntarily consented to by the employee in writing and in advance of the period in which the work is to be done and consent is not a condition either for the obtaining of or the continuation of employment, or They are provided for in a bona fide collective bargaining agreement between the contractor and representatives of the employees: b. No profit or other benefit is otherwise obtained, directly or indirectly, by the contractor or any affiliated person in the form of commission, dividend, or otherwise; c. The employer paid benefit contributions shall serve the convenience and interest of the employee; d. Contributions to the plans are made at least quarterly; e. When the cash paid and per hour contribution for benefits do not equal the total rate set forth in the wage determination, the difference will be paid in cash; and f. Employees who are excluded from the plans for any reason will be paid in cash. [ ] 3. UNFUNDED PLAN(S) (Employer paid benefit contributions for fringe benefits will be administered by the contractor e.g. vacation plan ) Name of plan(s) I understand that no Davis-Bacon credit will be given for unfunded plans until approval is obtained from the U.S. Department of Labor. I understand that to obtain approval, I must provide the representative of the CDBG recipient with the following for submission to the U.S. Department of Labor: a. Description of the coverage that will be provided to employees including conditions for receiving the benefits; and b. Signed authorization from those employees to accept those specific employer-paid contribution amounts. Until approval is obtained, I will pay the employees the fringe benefit amounts in cash. Contractor/Subcontractor Signature Date Grant Management Handbook (2013) Exhibit 6G

52 Exhibit 6G (2013) Contractor/Subcontractor Agreement and Fringe Benefit Summary form Section 3 Clause Part D A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD s regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers representative of the contractor s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations in 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor s obligations under 24 CFR part 135. F. Noncompliance with HUD s regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD-assisted contracts. Exhibit 6G (2013) Community Development Block Grant

53 Exhibit 6G (2013) Contractor/Subcontractor Agreement and Fringe Benefit Summary form Certification Regarding Lobbying Part E The undersigned certifies, to the best of his or her knowledge and belief, that: A. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, Disclosure Form to Report Lobbying, in accordance with its instructions. C. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signed (Contractor) Title / Firm Date Grant Management Handbook (2013) Exhibit 6G

54

55 Exhibit 6H (2013) Labor Standards Checklist LABOR STANDARDS CHECKLIST (Complete a form for the prime and each sub-contractor) Project Name: CDBG #: Prime Contractor: Bid Opening Date: Davis-Bacon/PWR Wage Determination Number: Sub-Contractor: Name: Address: Phone: CCB#: Employer ID #: Emerging Small Business Minority Owned Business Woman Owned Business Section 3 Business Yes No Yes No Yes No Yes No Public Works Bond: Yes No Contractor/Sub-Contractor Agreement: Yes No (with HUD 4010) Payroll Signature Authorization: Yes No Fringe Benefit Summary Form: Yes No Certification Regarding Lobbying Yes No Evidence of Apprenticeship Registration: Yes No N/A Payroll Signature Authorization Yes No Certified Payroll Reports Yes No Work Classifications and Wage Rates: Yes No (Describe below) Employee Interviews: Yes No Name and Date: Name and Date: Name and Date: Grant Management Handbook (2013) Exhibit 6H

56

57 Exhibit 6I (2013) -Instruction for WH 347 Form Wage and Hour Division (WHD) Instructions For Completing Payroll Form, WH-347 WH-347 (PDF) Persons are not required to respond to the collection of information unless it displays a currently valid OMB control number. General: Form WH-347has been made available for the convenience of contractors and subcontractors required by their Federal or Federally-aided construction-type contracts and subcontracts to submit weekly payrolls. Properly filled out, this form will satisfy the requirements of Regulations, Parts 3 and 5 (29 C.F.R., Subtitle A), as to payrolls submitted in connection with contracts subject to the Davis-Bacon and related Acts. While completion of Form WH-347 is optional, it is mandatory for covered contractors and subcontractors performing work on Federally financed or assisted construction contracts to respond to the information collection contained in 29 C.F.R. 3.3, 5.5(a). The Copeland Act (40 U.S.C. 3145) requires contractors and subcontractors performing work on Federally financed or assisted construction contracts to "furnish weekly a statement with respect to the wages paid each employee during the preceding week." U.S. Department of Labor (DOL) Regulations at 29 C.F.R. 5.5(a)(3)(ii) require contractors to submit weekly a copy of all payrolls to the Federal agency contracting for or financing the construction project, accompanied by a signed "Statement of Compliance" indicating that the payrolls are correct and complete and that each laborer or mechanic has been paid not less than the proper Davis-Bacon prevailing wage rate for the work performed. DOL and federal contracting agencies receiving this information review the information to determine that employees have received legally required wages and fringe benefits. Under the Davis-Bacon and related Acts, the contractor is required to pay not less than prevailing wage, including fringe benefits, as predetermined by the Department of Labor. The contractor's obligation to pay fringe benefits may be met either by payment of the fringe benefits to bona fide benefit plans, funds or programs or by making payments to the covered workers (laborers and mechanics) as cash in lieu of fringe benefits. This payroll provides for the contractor to show on the face of the payroll all monies to each worker, whether as basic rates or as cash in lieu of fringe benefits, and provides for the contractor's representation in the statement of compliance on the payroll (as shown on page 2) that he/she is paying for fringe benefits required by the contract and not paid as cash in lieu of fringe benefits. Detailed instructions concerning the preparation of the payroll follow: Contractor or Subcontractor: Fill in your firm's name and check appropriate box. Address: Fill in your firm's address. Payroll No.: Beginning with the number "1", list the payroll number for the submission.

58 Exhibit 6I (2013) -Instruction for WH 347 Form For Week Ending: List the workweek ending date. Project and Location: Self-explanatory. Project or Contract No.: Self-explanatory. Column 1 - Name and Individual Identifying Number of Worker: Enter each worker's full name and an individual identifying number (e.g., last four digits of worker's social security number) on each weekly payroll submitted. Column 2 - No. of Withholding Exemptions: This column is merely inserted for the employer's convenience and is not a requirement of Regulations, Part 3 and 5. Column 3 - Work Classifications: List classification descriptive of work actually performed by each laborer or mechanic. Consult classification and minimum wage schedule set forth in contract specifications. If additional classifications are deemed necessary, see Contracting Officer or Agency representative. An individual may be shown as having worked in more than one classification provided an accurate breakdown or hours worked in each classification is maintained and shown on the submitted payroll by use of separate entries. Column 4 - Hours worked: List the day and date and straight time and overtime hours worked in the applicable boxes. On all contracts subject to the Contract Work Hours Standard Act, enter hours worked in excess of 40 hours a week as "overtime". Column 5 - Total: Self-explanatory Column 6 - Rate of Pay (Including Fringe Benefits): In the "straight time" box for each worker, list the actual hourly rate paid for straight time worked, plus cash paid in lieu of fringe benefits paid. When recording the straight time hourly rate, any cash paid in lieu of fringe benefits may be shown separately from the basic rate. For example, "$12.25/.40" would reflect a $12.25 base hourly rate plus $0.40 for fringe benefits. This is of assistance in correctly computing overtime. See "Fringe Benefits" below. When overtime is worked, show the overtime hourly rate paid plus any cash in lieu of fringe benefits paid in the "overtime" box for each worker; otherwise, you may skip this box. See "Fringe Benefits" below. Payment of not less than time and one-half the basic or regular rate paid is required for overtime under the Contract Work Hours Standard Act of 1962 if the prime contract exceeds $100,000. In addition to paying no less than the predetermined rate for the classification which an individual works, the contractor must pay amounts predetermined as fringe benefits in the wage decision made part of the contract to approved fringe benefit plans, funds or programs or shall pay as cash in lieu of fringe benefits. See "FRINGE BENEFITS" below. Column 7 - Gross Amount Earned: Enter gross amount earned on this project. If part of a worker's weekly wage was earned on projects other than the project described on this payroll, enter in column 7 first the amount earned on the Federal or Federally assisted project and then the gross amount earned during the week on all projects, thus "$163.00/$420.00" would reflect

59 Exhibit 6I (2013) -Instruction for WH 347 Form the earnings of a worker who earned $ on a Federally assisted construction project during a week in which $ was earned on all work. Column 8 - Deductions: Five columns are provided for showing deductions made. If more than five deduction are involved, use the first four columns and show the balance deductions under "Other" column; show actual total under "Total Deductions" column; and in the attachment to the payroll describe the deduction(s) contained in the "Other" column. All deductions must be in accordance with the provisions of the Copeland Act Regulations, 29 C.F.R., Part 3. If an individual worked on other jobs in addition to this project, show actual deductions from his/her weekly gross wage, and indicate that deductions are based on his gross wages. Column 9 - Net Wages Paid for Week: Self-explanatory. Totals - Space has been left at the bottom of the columns so that totals may be shown if the contractor so desires. Statement Required by Regulations, Parts 3 and 5: While the "statement of compliance" need not be notarized, the statement (on page 2 of the payroll form) is subject to the penalties provided by 18 U.S.C. 1001, namely, a fine, possible imprisonment of not more than 5 years, or both. Accordingly, the party signing this statement should have knowledge of the facts represented as true. Items 1and 2: Space has been provided between items (1) and (2) of the statement for describing any deductions made. If all deductions made are adequately described in the "Deductions" column above, state "See Deductions column in this payroll." See "FRINGE BENEFITS" below for instructions concerning filling out paragraph 4 of the statement. Item 4 FRINGE BENEFITS - Contractors who pay all required fringe benefits: If paying all fringe benefits to approved plans, funds, or programs in amounts not less than were determined in the applicable wage decision of the Secretary of Labor, show the basic cash hourly rate and overtime rate paid to each worker on the face of the payroll and check paragraph 4(a) of the statement on page 2 of the WH-347 payroll form to indicate the payment. Note any exceptions in section 4(c). Contractors who pay no fringe benefits: If not paying all fringe benefits to approved plans, funds, or programs in amounts of at least those that were determined in the applicable wage decision of the Secretary of Labor, pay any remaining fringe benefit amount to each laborer and mechanic and insert in the "straight time" of the "Rate of Pay" column of the payroll an amount not less than the predetermined rate for each classification plus the amount of fringe benefits determined for each classification in the application wage decision. Inasmuch as it is not necessary to pay time and a half on cash paid in lieu of fringe benefits, the overtime rate shall be not less than the sum of the basic predetermined rate, plus the half time premium on basic or regular rate, plus the required cash in lieu of fringe benefits at the straight time rate. In addition, check paragraph 4(b) of the statement on page 2 the payroll form to indicate the payment of fringe benefits in cash directly to the workers. Note any exceptions in section 4(c).

60 Exhibit 6I (2013) -Instruction for WH 347 Form Use of Section 4(c), Exceptions - Any contractor who is making payment to approved plans, funds, or programs in amounts less than the wage determination requires is obliged to pay the deficiency directly to the covered worker as cash in lieu of fringe benefits. Enter any exceptions to section 4(a) or 4(b) in section 4(c). Enter in the Exception column the craft, and enter in the Explanation column the hourly amount paid each worker as cash in lieu of fringe benefits and the hourly amount paid to plans, funds, or programs as fringe benefits. The contractor must pay an amount not less than the predetermined rate plus cash in lieu of fringe benefits as shown in section 4(c) to each such individual for all hours worked (unless otherwise provided by applicable wage determination) on the Federal or Federally assisted project. Enter the rate paid and amount of cash paid in lieu of fringe benefits per hour in column 6 on the payroll. See paragraph on "Contractors who pay no fringe benefits" for computation of overtime rate.

61 U.S. Department of Labor PAYROLL (For Contractor's Optional Use; See Instructions at Persons are not required to respond to the collection of information unless it displays a currently valid OMB control number. Public Burden Statement

62

63

64

65 Exhibit 6J (2013) Statement of Compliance Date: I, (Name of Signatory Party) (Title) do hereby state: (1) That I pay or supervise the payment of the persons employed by (Contractor or Subcontractor) on the (Building or Work) ; that during the payroll period commencing on the day of and ending the day of all persons employed on said project have been paid the full weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said (Contractor or Subcontractor) from the full weekly wages earned by any person and that no deductions have been made either directly or indirectly from the full wages earned by any person, other than permissible deductions as defined in Regulations, Part 3 (29 CFR Subtitle A), issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat. 948, 63 Start. 108, 72 Stat. 967; 76 Stat. 357; 40 U.S.C. 276c), and described below: (2) That any payrolls otherwise under this contract required to be submitted for the above period are correct and complete; that the wage rates for laborers or mechanics contained therein are not less than the applicable wage rates contained in any wage determination Incorporated into the contract; that the classifications set forth therein for each laborer or mechanic conform with the work he performed. (3) That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the Bureau of Apprenticeship and Training, United States Department of Labor, of if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship and Training, United States Department of Labor. (4) That: (a) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS, OR PROGRAMS in addition to the basic hourly wage rates paid to each laborer or mechanic listed in the above referenced payroll, payments of fringe benefits as listed in the contract have been or will be made to appropriate programs for the benefit of such employees, except as noted in Section 4(c) below. (b) WHERE FRINGE BENEFITS ARE PAID IN CASH Each laborer or mechanic listed in the above referenced payroll has been paid, as indicated on the payroll, an amount not less than the sum of the applicable basic hourly wage rate plus the amount of the required fringe benefits as listed in the contract, except as noted in Section 4(c) below. (c) EXCEPTIONS EXCEPTION (CRAFT) EXPLANATION REMARKS: Name Title Signature The willful falsification of any of the above statements may subject the contractor or subcontractor to civil or criminal prosecution. See section 1001 of Title 18 and section 231 of Title 31 of the United States Code. Grant Management Handbook (2013) Exhibit 6J-1

66 Exhibit 6J (2013) Statement of Compliance Instructions For Preparation of Statement of Compliance This statement of compliance meets needs resulting from the amendment of the Davis-Bacon Act to include fringe benefits provisions. Under this amended law, the contractor is required to pay fringe benefits as predetermined by the Department of Labor, in addition to payment of the minimum rates. The contractor s obligation to pay fringe benefits may be met by payment of the fringes to the various plans, funds, or programs or by making these payments to the employees as cash in lieu of fringes. The contractor should show on the face of his payroll all monies paid to the employees whether as basic rates or as cash in lieu of fringes. The contractor shall represent in the statement of compliance that he is paying to others fringes required by the contract and not paid as cash in lieu of fringes. Detailed instructions follow: Contractors who pay all required fringe benefits: A contractor who pays fringe benefits to approved plans, funds, or programs in amounts not less than were determined in the applicable wage decision of the Secretary of Labor shall continue to show on the face of his payroll the basic cash hourly rate and overtime rate paid to his employees, just as he has always done. Such a contractor shall check paragraph 4(2) of the statement to indicate that he is also paying to approved plans, funds, or programs not less than the amount predetermined as fringe benefits for each craft. Any exception shall be noted in Section 4(c). Contractors who pay no fringe benefits: A contractor who pays no fringe benefits shall pay to the employee and insert in the straight time hourly rate column of his payroll an amount not less than the predetermined rate for each classification plus the amount of fringe benefits determined for each classification the applicable wage decision. Inasmuch as it is not necessary to pay time and a half on cash paid in lieu of fringes, the overtime rate shall be not less than the sum of the basic predetermined rate, plus the half time premium on the basic or regular rate plus the required cash in lieu of fringes at the straight time rate. To simplify computations of overtime, it is suggested that the straight time basic rate and cash in lieu of fringes be separately stated in the hourly rate column, thus $3.25/.40. In addition, the contractor shall check paragraph 4(b) of the statement to indicate that he is paying fringe benefits in cash directly to his employees. Any exceptions shall be noted in Section 4(c). Use of Section 4(c), Exceptions Any contractor who is making payment to approved plans, funds, or programs in amounts less than the wage determination requires is obliged to pay to pay the deficiency directly to the employees as cash in lieu of fringes. Any exceptions to Section 4(a) or 4(b), whichever the contractor may check, shall be entered in Section 4(c). Enter in the Exceptions column the craft, and enter in the Explanation column the hourly amount paid the employees as cash in lieu of fringes, and the hourly amount paid to plans, funds, or programs as fringes. GPO : For Sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C Exhibit 6J (2013) Community Development Block Grant

67 Certificate from Contractor Appointing Officer or Employee to Supervise Payment of Employee U.S. Department of Housing and Urban Development Office of Public and Indian Housing Project Name Location Date (mm/dd/yyyy) Project No. (I) (We) hereby certify that (I am) (we are) (the prime contractor) (a subcontractor) for (specify General Construction, Plumbing, Roofing, etc.) in connection with construction of the above-mentioned Low-Rent Housing Project, and that (I) (we) have appointed, whose signature appears below, to supervise the payment of (my) (our) employees beginning (Date: mm/dd/yyyy) ; That he/she is in a position to have full knowledge of the facts set forth in the payroll documents and in the statement of compliance required by the so-called Kick-Back Statue which he/she is to execute with (my) (our) full authority and approval until such time as (I) (we) submit to the (Name of Local Authority) a new certificate appointing some other person for the purposes hereinabove stated. (Identifying Signature of Appointee) Attest (If required) (Name of Firm or Corporation) (Signature) By (Signature) (Title) (Title) (Date: mm/dd/yyyy) (Date: mm/dd/yyyy) Note: This certificate must be execute by an authorized officer of a corporation or by a member of a partnership, and shall be executed prior to and be submitted with the first payroll. Should the appointee be changed, a new certificate must accompany the first payroll for which the new appointee executes a statement of compliance required by the Kick-Back Statue. Replaces form PHA-282, which is obsolete form HUD-5282 (8/67)

68

69 Exhibit 6K (2013)- Example Amended BOLI Payroll EXAMPLE AMENDED PAYROLL FORM (based upon BOLI WH-38 with Payroll Number, Column 2a, & Columns 8a-8d added to address federal Davis-Bacon Act requirements) PAYROLL/CERTIFIED STATEMENT FORM PAYROLL NUMBER: FOR USE IN COMPLYING WITH ORS 279C.845* AND FEDERAL LABOR STANDARDS PROVISIONS PRIME CONTRACTOR SUBCONTRACTOR Business Name (DBA): Phone: ( ) CCB Registration Number: Project Name: Project Number: Type of Work: Street Address: Project Location: Mailing Address: Project County Date Pay Period Began: Date Pay Period Ended: THIS SECTION FOR PRIME CONTRACTORS ONLY THIS SECTION FOR SUBCONTRACTORS ONLY EFFECTIVE 1/1/06, THE HIGHER OF EITHER THE STATE PREVAILING WAGE RATES OR FEDERAL DAVIS- BACON RATES MUST BE PAID TO WORKERS ON PROJECTS IN OREGON SUBJECT TO BOTH THE STATE Prevailing Wage law and the federal DAVIS-BACON ACT. Public Contracting Agency Name: Subcontract Amount: Phone: ( ) Prime Contractor Business Name (DBA): Date Contract Specifications First Advertised for Bid: Prime Contractor Phone: ( ) Contract Amount: Prime Contractor s CCB Registration Number: Date You Began Work on the Project: (1) (2) (2a) (3) DAY AND DATE (4) (5) (6) (7) (8) (8a) (8b) (8c) (8d) (9) (10) (11) HOURLY TRADE, HOURLY FRINGE NAME, AND INDIVIDUAL CLASSIFICATION FRINGE ITEMIZED # OF GROSS NET WAGES BENEFITS PAID IDENTIFYING NUMBER (e.g. last (INCLUDE GROUP # TOTAL BASE HOURLY BENEFIT DEDUCTIONS NAME OF BENEFIT PARTY, EXEMPT AMOUNT PAID FOR THE TO BENEFIT four digits of social security & APPRENTICESHIP HOURS RATE OF PAY AMOUNTS PAID FICA, FED, PLAN, FUND, OR PROGRAM IONS EARNED WEEK PARTY, number) OF WORKER STEP IF AS WAGES TO STATE, ETC APPLICABLE) HOURS WORKED EACH DAY EMPLOYEE PLAN, FUND, OR PROGRAM FICA WITH HOLDING OTHER TAX OT S OT S OT S OT S OT S * Although this form has not been officially approved by the US. Department of Labor, it is designed to meet the requirements of both the state PWR law and the federal Davis-Bacon Act. ** Social Security Number is required for all employees. Grant management Handbook (2011) Exhibit 6K Page 1 of 2

70

71

72

73 Exhibit 6L(2013) HUD Form - No Work Performed U.S. Department of Housing and Urban Development Washington State Office Seattle Federal Office Building Office of Labor Relations, 0ASL 909 First Avenue, Suite 200 Seattle, WA NO WORK PERFORMED I hereby certify that no work was performed by the undersigned contractor and/or employees on the construction of: Project Number: Project Name: During the period dated from, 2, through, 2. By: Title: Date: Contractor: Grant Management Handbook (2013) Exhibit 6L