Reorganization Plan No. 14 Of 1950
- To promote responsibility for uniform and effective DBA/DBRA enforcement among federal procuring agencies under DOL coordination.
DOL Functions/Responsibilities Purpose
- Secretary of Labor - and, by delegation, the WHD - is responsible for:
- Determining prevailing wages.
- Issuing regulations and standards to be observed by contracting agencies.
- DOL performs an oversight function and has authority to conduct independent investigations.
Contracting Agency Functions/Responsibilities
- Federal agencies that award contracts and provide federal assistance have day-to-day enforcement responsibilities. The federal agency responsibilities include activities such as:
- Ensuring the incorporation of Davis-Bacon contract stipulations and appropriate wage determinations in DBA/DBRA covered bid solicitations and contracts (and appropriate guidance concerning the application of multiple wage schedules) in accordance with 29 C.F.R. § 1.6(b) and 29 C.F.R. §§ 5.5-5.6.
- Ensuring that the Davis-Bacon poster (WH 1321) and the applicable wage determination(s) and approved conformances are posted at the site of the work. 29 C.F.R. § 5.5 (a)(1)(i). This poster can be downloaded from the WHD website (https://www.dol.gov/agencies/whd/posters).
- Reviewing certified payrolls in a timely manner. 29 C.F.R. § 5.6(a)(3).
- Conducting employee interviews. 29 C.F.R. § 5.6(a)(3).
- Conducting investigations, as appropriate, and forwarding refusal to pay and/or debarment consideration cases to WHD for appropriate action. 29 C.F.R. § 5.6 and All Agency Memorandum No. 182.
- Submitting enforcement reports and semi-annual enforcement reports to the DOL. 29 C.F.R. § 5.7 and All Agency Memorandum No. 189.
- Contracting agencies cannot contract out responsibility for the enforcement of the DBA/DBRA requirements.
- Federal contacting agencies are responsible for ensuring that grant recipients who have contracting responsibilities properly apply and enforce DBA/DBRA.
DAVIS-BACON LABOR STANDARDS CONTRACT STIPULATIONS(29 C.F.R. § 5.5(a), reiterated at 48 C.F.R. § 52.222-6 through 52.222-15) &
CWHSSA STIPULATIONS (29 C.F.R. § 5.5(b), reiterated at 48 C.F.R. § 52.222-4)
Definition 29 C.F.R. § 5.2(f).
- The term "labor standards" within the meaning of the DBA means the requirements of:
- The Davis-Bacon Act
- The Contract Work Hours and Safety Standards Act (other than those relating to safety and health)
- The Copeland Act
- The prevailing wage provisions of the Davis-Bacon related Acts
- Regulations, 29 C.F.R. Parts 1, 3 and 5, which govern the administration and enforcement of the DBA, DBRA, and CWHSSA
Davis-Bacon contract clauses
- 29 C.F.R. Part 5 requires contracting agencies to include in any DBA/DBRA covered construction contract the specified labor standards requirements (contract clauses). Normally these requirements are found in the contract under the heading "Davis-Bacon Act" or "labor standards" or "prevailing wage requirements" or "federal requirements" and include:
- Minimum wages - All laborers and mechanics employed or working upon the site of work must be paid at least the applicable prevailing wage rate for the classification of work performed as listed in the applicable wage determination or a rate approved in accordance with the "conformance process" set forth at 29 C.F.R. § 5.5(a)(1)(ii). The laborers and mechanics working on the site of work must be paid weekly.
- Withholding - The federal agency or the loan or grant recipient shall upon its own action or upon written request of an authorized representative of the DOL 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 the full amount of wages required by the contract. (The processing of monies so withheld is discussed further in the " & Disbursement" chapter of this resource book.)
- Maintaining basic payroll records - The contractor must maintain basic payroll records during the course of the work and preserve them for three years. Such records shall contain:
- Name of each worker
- Social security number
- His or her correct classification(s)
- Hourly rates of wages paid
- Daily and weekly number of hours worked
- Deductions made and actual wages paid
- Contractors employing apprentices or trainees under approved programs must have written evidence of the registration of the apprenticeship program and certification of the trainee program, copies of the individual registration forms of the apprentices and trainees, and written evidence of the applicable ratios and wage rates.
- Submission of certified payroll records - The contractor must submit weekly a copy of all payrolls to the contracting agency. The payrolls submitted must set out accurately and completely all of the basic payroll information listed above, 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 individual identifying number for each employee, such as the last four digits of a social security number.
- The payroll information may be submitted in any form desired. Optional payroll form WH-347 is available on the WHD website at: https://www.dol.gov/whd/forms/wh347instr.htm . The form available there can be used as an electronically fillable form. (The WH-347 form is also published in the Federal Acquisition Regulations at 48 C.F.R. § 53.303-WH-347).
- The prime contractor is responsible for the submission of the certified payrolls to the contracting agency (including for all subcontractors on the project).
- Each payroll submitted must be accompanied by a "Statement of Compliance" as required by the Copeland Act and 29 C.F.R. Part 3. (A form for this purpose is available on the second page of Optional form WH-347.)
- The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution. Thus, the contractor is put on notice in the contract itself that criminal prosecution could result if falsified payrolls are submitted to the government. (See 29 C.F.R. § 5.5(a)(3)(ii)(D); reiterated at FAR 48 C.F.R. § 52.222-8(b)(4).)
- The contractor or subcontractor must make the payroll records available for inspection, copying, or transcription by authorized representatives of the contracting agency or the DOL, and must 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, the federal agency 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.
- Apprentices - Apprentices are permitted to work at less than the predetermined rate for the work they perform only when:
- They are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. DOL, Employment and Training Administration (ETA) Office of Apprenticeship (OA), or with a state apprenticeship agency recognized by ETA/OA. (Note - the program itself must be registered and the apprentice must be individually registered in the program);
- The allowable ratio of apprentices to journeyworkers on the job site in any craft classification does not exceed the ratio permitted to the contractor as to the entire work force under the registered program;
- (Note: In view of the apprenticeship regulations at 29 C.F.R. Part 29, as revised in 2008, any questions concerning portability of the wages and ratio provisions on DBA/DBRA covered projects in light of 29 C.F.R. 29.13(b)(7) may require careful consideration by WHD.)
- Fringe benefits are paid to apprentices according to the provisions of their apprenticeship program, or if the program is silent with respect to fringe benefits, they receive the full fringe benefit amount stipulated on the applicable wage decision for the craft in which they are employed (unless WHD determines that a different practice prevails for them).
- Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated at 29 C.F.R. § 5.5(a)(4)(i), shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.
- Trainees - Trainees are not 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 ETA). (Note: State agency approval of trainee programs is not recognized for DBA/DBRA purposes); and
- The ratio of trainees to journeymen on the job site does not exceed that permitted under the plan approved by ETA.
- The labor standards contract clause requirements regarding payments for fringe benefits for trainees are met.
- There is no portability of a trainee program from one locality to another.
- Copeland requirements - All contractors must comply with the Copeland Act regulatory requirements in 29 C.F.R. Part 3, which prohibit kick-backs and set forth rules concerning deductions from employees' wages.
- Subcontracts - The labor standards provisions require the contractor to insert the labor standards clauses in any subcontract. This clause further stipulates that the prime contractor shall be responsible for compliance by any subcontractor with the labor standards requirements in the contract.
- Note: A subcontractor may be any person (other than an employee) or firm who has agreed, either verbally or in writing, to perform any of the work required under the contract.
- Contract termination and debarment - If a contractor violates any of the labor standards requirements, the contractor may be terminated from the contract and/or debarred for a period not to exceed three years. (Debarment means that a firm and its responsible officers, and firms in which they have an interest (or substantial interest for related Act cases) are not permitted to work on covered contracts.)
- All rulings and interpretations contained in 29 C.F.R. Parts 1, 3 & 5 are incorporated by reference in the contract.
- Disputes under the contract relating to the Davis-Bacon labor standards requirements must be submitted to the DOL for resolution pursuant to the Secretary of Labor's authority under Reorganization Plan No. 14 of 1950, and 29 C.F.R. Parts 5, 6 and 7.
- Certification of eligibility - By entering into the 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 federal government contracts (debarred).
- This labor standards clause further stipulates that no part of the contract shall be subcontracted to any person or firm debarred.
- The penalty for making false statements about eligibility for government contract work can be criminal prosecution.
- 29 C.F.R. 5(b) requires contracting agencies to include CWHSSA contract clauses in covered contracts. The requirements at 29 C.F.R. § 5.5(b) include:
- Overtime requirements - The contractor or subcontractor contracting for any part of the contract work and employing any laborer(s) or mechanic(s), including watchmen or guards, over 40 hours in a workweek on such work is required to pay such laborer(s) and mechanic(s) at least one and one-half times the basic rate of pay for all hours worked in excess of 40 in the workweek.
- Violation; liability for unpaid wages; liquidated damages - The contractor and any subcontractor responsible for violation(s) of the above CWHSSA contract requirement are liable for the unpaid wages and, in addition, are liable for liquidated damages computed with respect to laborers and mechanics in violation of the CWHSSA overtime requirements.
- Withholding - The withholding requirements regarding CWHSSA parallel those in the Davis-Bacon contract clauses described above.
- Subcontracts - The CWHSSA contract clause requirements parallel those in the Davis-Bacon contract clauses described above.
- These requirements are reiterated at 48 C.F.R. § 52.222-4.
CWHSSA contract clauses
Consulting Services We Provide
- Review public works preconstruction contracts
- Monitor DIR contractor/subcontractor certified payrolls
- Audit labor classification for each worker employed
- Review DIR pre-DAS 140/142 submissions
- Review CAC training fund contributions form CAC-2
- Review DIR Fringe Benefits Statement PW-26
- Monitor DIR wage determinations
- Audit fringe benefits allowances
- Review DIR holiday payment requirements
- Audit DIR travel & subsistence requirements
- Caltrans Labor Compliance
- County of Sacramento Labor Compliance
- City of Los Angeles Labor Compliance
- Los Angeles Unified School District Labor Compliance
- Federal Davis-Bacon Project Monitoring
- Federal DBE Implementation & Review
- Federal FAA AIP Goal Setting
- DIR & Davis-Bacon Training
- DIR Civil Wage Penalty Review
- Local-Hire Review (e.g., San Francisco)
- Skilled and Trained Workforce
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