Labor Laws & Regulations – What they mean for HUD Projects
The following post is a breakdown of Davis-Bacon and other labor laws and regulations that apply to HUD projects. We breakdown the regulations as well as how they may matter to your contract or subcontract:
Davis-Bacon Act requires the payment of prevailing wage rates (determined by the U.S. Department of Labor) to all laborers and mechanics on federal or federally-assisted construction projects in excess of $2,000. Construction includes alteration and/or repair. This includes painting and decorating, of public buildings or public works.
Contract Work Hours and Safety Standards Act (CWHSSA) requires time and one-half pay for overtime (O/T) hours worked on the covered project. Any hours in excess of 40 for the week are overtime hours. The CWHSSA applies to both federal and federally-assisted contracts or subcontracts like Davis-Bacon, except where the prime contract is of $100,000 or less, or if the assistance is solely in the nature of a loan guarantee or insurance. CWHSSA also does not apply to construction or rehabilitation contracts that are not subject to Federal prevailing wage rates (e.g., Davis-Bacon wage rates, or HUD-determined rates for operation of public housing and Indian block grantassisted housing).
CWHSSA violations carry a liquidated damages penalty ($10/day per violation). Intentional violations of CWHSSA standards may be considered for Federal criminal prosecution. Even though CWHSSA overtime pay is not required, Fair Labor Standards Act (FLSA) overtime pay is probably still applicable. Most HUD construction work is not covered by the DBA itself since HUD seldom contracts directly for construction services. Most often, if Davis-Bacon wage rates apply to a HUD project it is because of a labor provision contained in one of HUD’s “Related Acts” such as the U. S. Housing Act of 1937, the National Housing Act, the Housing and Community Development Act of 1974, the National Affordable Housing Act of 1990, and the Native American Housing Assistance and Self-Determination Act of 1996. The Related Acts are often referred to as the Davis-Bacon and Related Acts or DBRA.
The Copeland Act (Anti-Kickback Act) makes it a federal crime for anyone to require a laborer or mechanic employed on a federal or federally-assisted project to give up or pay back any part of their wages. The Copeland Act requires every contractors and subcontractor to submit weekly certified payroll reports (CPRs) and regulates permissible payroll deductions.
The Fair Labor Standards Act (FLSA) contains Federal minimum wage rates, overtime (O/T), and child labor requirements. These requirements generally apply to any labor performed.
