Disposition Of Withheld Funds

  1. WHD Regional Offices (RO's) are responsible for directing the processing of back wage disbursements. After completion of administrative processes (and timely litigation, if any) in a DBA, DBRA and/or CWHSSA case, the WHD RO will request the contracting agency to transfer withheld funds due for underpayment of prevailing wages and overtime pay on DBA and DBRA projects to WHD for disbursement. The DOL/WHD request for release of monies to be disbursed to the workers will include information identifying the contractor(s) and contract(s) on which funds in question were withheld, describe the final determination preceding a request, and identify the amount of withheld funds to be transferred to WHD for disbursement to workers for work performed on the covered contract(s). Such requests for the release of withheld funds to WHD shall be made:
    1. When a contractor agrees to distribution of contract funds to the covered workers (whether or not they have been subject to a formal withholding process); or
    2. When a contractor (the prime contractor or subcontractor) does not request a hearing pursuant to 29 C.F.R. § 5.11(b); or
    3. Following the issuance of administrative law judge decisions (including decisions approving settlement agreements); or
    4. Following Administrative Review Board decisions; or
    5. Subsequent to final resolution of further litigation.
  2. Direct Davis-Bacon contracts
    1. On November 21, 2013, President Obama signed into law Public Law No. 113-50, the "Streamlining Claims for Federal Contractor Employees Act."
      1. This new law transfers the authority to pay wages found due laborers and mechanics and withheld under direct DBA contracts from the Comptroller General to the Secretary of Labor. (It replaces two references to the Comptroller General with references to the Secretary of Labor at 40 U.S.C. § 3144(a)(1) and 40 U.S.C. § 3703(b)(3).)
      2. The disbursement of back wages due laborers and mechanics on contracts subject to the Davis-Bacon Act itself, previously a process handled by the Comptroller General's Claims Office, is now a responsibility of DOL. The WHD regional offices are responsible for managing the disbursement process for funds withheld by the federal contracting agencies under both DBA and CWHSSA requirements in such contracts.
  3. Sending Funds to DOL for Disbursement in DBA. DBRA. and/or CWHSSA
    1. AAM No. 215, dated March 10, 2014, provides contracting agencies with directions to follow in submitting refusal-to-pay and debarment cases to the WHD regional offices. It further discusses how contracting agencies are to send WHD withheld funds due covered laborers and mechanics for underpayment of prevailing wages and overtime pay for disbursement. These procedures apply to both direct DBA-covered contracts and DBRA-covered contracts. (The same procedures also apply to forwarding funds withheld for underpayment of wages due service employees on contracts subject to the SCA and/or CWHSSA.)
    2. When appropriate, WHD will send a written request to the contracting agency to transfer withheld funds to WHD for disbursement. The procedures here also apply to the processing of funds in cases in which a contractor authorizes the contracting agency to apply contract funds to back wages due covered workers.
    3. In cases other than the refusal-to-pay cases, when the agency has not sent the case file to WHD and, as a result of the agency's enforcement of DBA, DBRA, and/or CWHSSA requirements, a contractor authorizes the agency to use contract funds to cover back wages due or the agency forwards other funds collected to cover the back wages due, the agency should provide the appropriate WHD RO with the names, current addresses, social security numbers (if available), and back wage amount due each worker when it forwards such funds to WHD.
    4. WHD disbursement of the withheld monies is by two methods:
      1. Incoming wire deposits will be processed by the Federal Reserve Bank of New York City (TREAS NYC) and must include the following information:

        Bank Name:
        ABA Routing Number: Agency Location Code: BETC (collections): TAS:
        Case ID Number:

        Case Name:
        If there is no WHD Case ID: Submitting Agency Agency contact & phone

        TREAS NYC 021030004 16010002 COLL 16X6507
        WHD WHISARD case ID number (if available)
        Employer/Company name

        ____________________________ ____________________________

      2. Paper check deposits should include the name of the contractor and the contract number(s) for the contract(s) on which the work was performed on the check or a separate letter transmitting the check, made payable to WHD, and should be mailed to:

        WHD Central Processing
        P.O. Box 77752
        Washington, D.C. 20013

Consulting Services We Provide

  • Review public works preconstruction contracts
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  • Audit labor classification for each worker employed
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  • Monitor DIR wage determinations
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