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Certain Housing Authority contracts, including services acquired through a purchase order, require the payment of minimum wage rates. In addition, there are a number of other labor requirements related to construction contracts covered by Davis-Bacon and Related Acts.
LABOR REQUIREMENTS FOR MAINTENANCE CONTRACTS
Certain labor requirements apply to Public Housing maintenance contracts over $ 2,000.00. All laborers and mechanics employed in maintenance contracts must be paid at least the minimum wage rates established for their wage classifications no less often than semi-monthly.
Contractors working on maintenance contracts are not required to submit payroll reports; however they must prepare and maintain reports for three years from the completion of the work. The contractor and each subcontractor shall make and maintain payroll records, which must be available for inspection, copying and transcription by authorized representatives of HUD or the Housing Authority and shall permit such representatives to interview employees during working hours on the job.
DAVIS-BACON WAGE RATES
Each contract subject to Davis-Bacon labor standards requirements must contain labor standards clauses and a Davis-Bacon wage decision. These labor standards clauses describe the responsibilities of the contractor concerning the payment of DavisBacon wages and obligate the contractor to comply with the labor requirements.
The Davis-Bacon wage decision (or wage determination) is a listing of various construction work classifications, such as Carpenter, Electrician, Plumber and Laborer, and the minimum wage rates (and fringe benefits, where prevailing) that people performing work in those classifications must be paid.
Davis-Bacon wage decisions are established by the U.S. Department of Labor (DOL) for various types of construction (e.g. residential, heavy, highway) and apply to specific geographic areas, usually a county or group of counties. The wage decisions are included in the contract and are posted at the work sites.
The prime contractor is responsible for the labor compliance for all his/her subcontractors and all lower tier contractors.
CERTIFIED PAYROLL REPORTS
Contractors subject to Davis Bacon and Related Acts requirements must submit weekly certified payroll reports for every week that work is being performed. Each payroll report must be certified, i.e. signed by an authorized member of the contractor's staff. The payroll reports will be reviewed by the Authority to assure that the contractor is paying the appropriate wage rates and fringe benefits. In conjunction with the submission of weekly payroll reports by the contractor, the Authority must interview workers periodically regarding the contractor's compliance with the payment wages and any required fringe benefits.
Overtime hours are defined as all hours worked on the contract in excess of 40 hours in any work week. Overtime hours must be paid at no less than one and on-half time the regular rate of basic pay plus the straight time rate of any required fringe benefits.
Certain payroll deductions are allowed by DOL regulations including income taxes, Social Security payments, insurance premiums, retirement, savings accounts and any other legally-permissible deduction authorized by the employee. Deductions may also be made for payments on judgments and other financial obligations legally imposed against the employee.
Each employee must be classified in accordance with the wage decision based on the type of work they actually perform. Employees who work in different classifications in a payroll period must be paid the appropriate wage rate for the hours work in each classification. Apprentices and trainees must be paid according to the approved program and the approved programs wage rates are to be submitted with the first payroll on which the apprentice or trainee appears.