davis-bacon – federal labor laws, certified payrolls, · pdf...
TRANSCRIPT
1
Davis-Bacon ndash Federal Labor Laws Certified Payrolls
and Worker Classifications
May 9 2012
Davis-Bacon Labor Standards
Training
Presented by Carmen A Roldan TDHCA Senior Federal Labor Standards Specialist
2
FEDERAL LABOR LAWS
3
Federal Labor Laws
Davis-Bacon and Related Acts (DBA)
Contract Work Hours amp Safety Standards Act (CWSSA)
Copeland Act (CA)
Fair Labor Standards Act (FLSA)
4
Davis-Bacon Act (DBA)
Applies to construction contracts over $2000
Applies to all laborers and mechanics (trades) working on job site who actually work on the project
Requires minimum hourly wage pay and may include hourly fringe benefits payments for specific trades
Note Fringe payment can be paid in cash or actual benefits
5
DBA continuedhellip
Requires workers get paid weekly
Employee has the right to file a complaint or request investigative intervention related to underpaid wages
OwnerDeveloper must maintain payroll records for 3 years after completion of construction
6
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Davis-Bacon Labor Standards
Training
Presented by Carmen A Roldan TDHCA Senior Federal Labor Standards Specialist
2
FEDERAL LABOR LAWS
3
Federal Labor Laws
Davis-Bacon and Related Acts (DBA)
Contract Work Hours amp Safety Standards Act (CWSSA)
Copeland Act (CA)
Fair Labor Standards Act (FLSA)
4
Davis-Bacon Act (DBA)
Applies to construction contracts over $2000
Applies to all laborers and mechanics (trades) working on job site who actually work on the project
Requires minimum hourly wage pay and may include hourly fringe benefits payments for specific trades
Note Fringe payment can be paid in cash or actual benefits
5
DBA continuedhellip
Requires workers get paid weekly
Employee has the right to file a complaint or request investigative intervention related to underpaid wages
OwnerDeveloper must maintain payroll records for 3 years after completion of construction
6
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
FEDERAL LABOR LAWS
3
Federal Labor Laws
Davis-Bacon and Related Acts (DBA)
Contract Work Hours amp Safety Standards Act (CWSSA)
Copeland Act (CA)
Fair Labor Standards Act (FLSA)
4
Davis-Bacon Act (DBA)
Applies to construction contracts over $2000
Applies to all laborers and mechanics (trades) working on job site who actually work on the project
Requires minimum hourly wage pay and may include hourly fringe benefits payments for specific trades
Note Fringe payment can be paid in cash or actual benefits
5
DBA continuedhellip
Requires workers get paid weekly
Employee has the right to file a complaint or request investigative intervention related to underpaid wages
OwnerDeveloper must maintain payroll records for 3 years after completion of construction
6
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Federal Labor Laws
Davis-Bacon and Related Acts (DBA)
Contract Work Hours amp Safety Standards Act (CWSSA)
Copeland Act (CA)
Fair Labor Standards Act (FLSA)
4
Davis-Bacon Act (DBA)
Applies to construction contracts over $2000
Applies to all laborers and mechanics (trades) working on job site who actually work on the project
Requires minimum hourly wage pay and may include hourly fringe benefits payments for specific trades
Note Fringe payment can be paid in cash or actual benefits
5
DBA continuedhellip
Requires workers get paid weekly
Employee has the right to file a complaint or request investigative intervention related to underpaid wages
OwnerDeveloper must maintain payroll records for 3 years after completion of construction
6
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Davis-Bacon Act (DBA)
Applies to construction contracts over $2000
Applies to all laborers and mechanics (trades) working on job site who actually work on the project
Requires minimum hourly wage pay and may include hourly fringe benefits payments for specific trades
Note Fringe payment can be paid in cash or actual benefits
5
DBA continuedhellip
Requires workers get paid weekly
Employee has the right to file a complaint or request investigative intervention related to underpaid wages
OwnerDeveloper must maintain payroll records for 3 years after completion of construction
6
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
DBA continuedhellip
Requires workers get paid weekly
Employee has the right to file a complaint or request investigative intervention related to underpaid wages
OwnerDeveloper must maintain payroll records for 3 years after completion of construction
6
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
DBA continuedhellip
The Department of Labor (DOL) Wage and Hour Division publishes prevailing wage mandates for all workers who work on federally assisted construction projects
7
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Contract Work Hours and Safety Standards Act (CWHSSA)
Requires over-time payment at 15 times the basic hourly pay-rate for any hours worked in excess of 40 hours in a workweek (seven days)
Imposes payment of $10 liquidated damages (penalty) per employee per day for unpaid OT
Contractors MUST pay assessed liquidated damages out own funds and cannot charge to project
8
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Liquidated Damages EXAMPLE
Contractor establishes workweek (7 days) from Sunday through Saturday Four construction employees work 10 hours each Sunday through Wednesday (40 hrs) then each works 1 hour Thursday Friday and Saturday( 3 days of OT) Contractor did NOT pay workers OT
Liquidated Damages Assessed 4 workers X $1000 per day = $4000 $4000 (4 workers) X 3 days = $12000 Liquidated Damages Owed = $12000 (contractor
liable) Note Workers MUST also receive over-time restitution pay
9
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Copeland (Anti-Kickback) Act (CA)
ldquoAnti-Kickbackrdquo provisions prohibit the coerced payment of fees wages commissions or granting of gifts by employees or contractors to work or benefit from federal Project funds
CA enforces submission of certified payrolls weekly (every 7 days)
CA regulates deductions allowed and disallowed from employee payroll wages
10
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
CA continuedhellip
CA authorizes recovery of underpayment of restitution owed to employees by reducing the amount paid to contractor
CA Provides basis for termination of contract and possible criminal prosecution
11
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Fair Labor Standards Act (FLSA)
Establishes minimum wage and overtime standards (15hr) for all workers not just construction workers
Effective July 24 2009 minimum wage was raised to $725 hour
Regulates employment of minors and prohibits discrimination based on gender
Governs rules for ldquoIndependent Contractorsrdquo 12
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
CERTIFIED PAYROLLS
13
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Certified Payroll Requirements
TDHCA requires all contractors complete DOL 347-WH ndash Payroll Contractor may use a substitute for 347-WH Payroll
if contractorrsquos form contains same information and is approved by TDHCA-LSS
Verify periodically that workers are paid weekly (every 7 days) ( DBA and Copeland Act)
Effective January 18 2009 full disclosure of employee Social Security number or physical address is not required ndash only last 4-digits of SSN on Payroll Prime contractor is responsible for ensuring on-file
information is available for auditing purposes 14
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 - Payroll Instructions ldquoContractorrdquo or ldquoSubcontractorrdquo Check which label applies to your company
All working Owners and Independent Contractors (IC) should submit proof of ownership or IC status This also applies to 1099 Employees
Submit one of the following documents Tax Identification Number License from the City Texas Department of Insurance Division of Workersrsquo
Compensation Articles of Incorporation filed with Secretary of State County Clerk (Doing Business As [dba])
Note Attach verification to first payroll 15
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions
Business Address for reporting contractor
TDHCA Contract No and Project Name
For Week Ending ndash Enter last day worked during 7 day workweek
Column 1 ndash Employee Name and last four digits of SSN
Column 2 ndash Number of employee withholding exemptions ndash not required by TDHCA Note This helps employer keep track of how many exemptions employee claims
16
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions
Column 3 ndash Worker classification (DBA) Note if worker performs work under multiple
classifications list each classification separately John Smith 0001 Carpenter $1500 John Smith 0001 Glazier $1200 John Smith 0001 Roofer $1350
DBA allows employers the right to pay employee required wage for each classification OR pay employee HIGHEST classification hourly rate
17
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions Column 4 ndash Day amp Date must consist of seven day
work week Must match For Week Ending noted on top
section of 347 payroll List only hours worked on TDHCA project
O (overtime) and S (straight time) Overtime is calculated as 15 x basic rate for all
hours worked in excess of 40 hours in a 7-daywork week
Work week schedule identified by contractor on FIRST payroll must not change for project durationExample Monday to Sunday or Wed to Tues etc
18
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions
Column 5 ndash Total hours worked on TDHCA project Column 6 ndash Rate of hourly pay rate for every
Employee (DBA) S (straight time) actual hourly pay rate paid plus fringe hourly
rate if applicable O (Overtime) ndash list actual rate (Base rate X 15)
O $2250
S $1500 + $100
19
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions
Column 6 ndash continued
Fringe benefit hourly is paid at straight time DBA
Not Required to Pay Overtime on Fringe
Over-time and Fringe calculation
HVAC $1500 + $ 100 Fringe Required pay per hour Overtime Rate $1500 X 15 Overtime Rate $2250 Fringe Rate $100 Fringe $100 hourly (cash or
actual benefit)
20
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Fringe Benefit ndash Percentage EXAMPLE
GWD states $2300 base hourly rate plus $605+8 Fringe Benefits
Base Rate $2300 Fringe Benefit 1 $ 605 Fringe Benefit 2 8
(8 of the base rate = 08 X $23=$184) Add $2300
605 184 $3089
21
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions Column 7
Gross Amount Earned plus Fringe Benefits if applicable Top Portion show pay only for TDHCA project S
and O gross amounts Bottom Portion includes workerrsquos total gross earned
for entire 7-day workweek (DBA) $360 = Gross earned for hours
worked on TDHCA project ONLY $60000 = Grossed earned for entire
7-day workweek Note If worker ONLY works on
TDHCA project topbottom should match
$36000
$60000
22
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions Column 8
Form 347- has 5 columns to enter deductions if more are needed complete first 4 columns and listremaining deductions in ldquoOtherrdquo column
Deductions listed in ldquoOtherrdquo must be described on Statement of Compliance including amount taken out per deduction
ALL deductions must comply with the Copeland Act 29 CFR Part 3
Deductions taken out are based on gross earning
23
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions
Column 8 - Deductions (continued)
All Voluntary Deductions must be authorized by the employee and signed authorization must be attached to first payroll Authorization must include Employee approval signature Typedescription of deduction Amount withdrawn Frequency of deduction (weekly biweekly
etc)
24
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
347 ndashPayroll Instructions
Column 9
Net Wages Paid For Week
= Gross Amount ndash Total Deductions
25
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Statement of Compliance (also known as DOL form 348)
(1) Contractor or Subcontractor (Name of Company)
(1) Building or Work (TDHCA project name)
(1) Payroll Period (Must match work week in Column 4 of Certified Payroll
WH 347) and For Week Ending (347 top section)
(1) Additional Lines (Indicate descriptiontype any additional deductions)
26
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Statement of Compliance
(4) A Where Fringe Benefits Are Paid to Approved Plans Funds or Programs Select this box if fringe benefits have been or will be
paid in actual benefits For example health insurance 401K vacation sick leave etc
Companies should place these funds in separate ESCROW account for easy matching to fringe hours worked
27
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Statement of Compliance
(4) B Where Fringe Benefits Are Paid In Cash
Select this box if each employee 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 required hourly fringe benefit rate
Example - $1100hr plus $100FB and employee is paid $1200 per hour
Note Fringe benefit paid in ldquocashrdquo is easier to trace
28
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Statement of Compliance Name and Title (Corporate Official) Signed by corporate official or authorized individual If authorized individual signs owner must attach
authorization signed by employee and Owner and include statement stating ldquo Owner will not relinquish DB responsibilitiesrdquo
Working owner CANNOT self-certify if he is the only employee (employs no crew)
Owner must submit ONE signed ldquoStatementrdquo weekly Owner or partner should sign payrolls in blue ink
29
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Certified Payrolls WH 347 Revisions
REVISED PAYROLLS
All payrolls requiring revision must be resubmitted Show ldquoPayroll _ Revisedrdquo and make required corrections
Example
Payroll 3 Revised Payroll should not include errors
Note Do NOT return original payrolls to contractors for them to revise
30
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Compliance Review Responsibilities
31
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Certified Payroll Compliance Review
Ensure contractor submits certified payrolls weekly (every seven days)
Ensure payroll is legible if not request revised payroll
Ensure correct classifications and wages (verify against applicable DOL required wage rate)
32
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Compliance review continuedhellip Check for accuracy of OT hour payment
15 X basic rate
Ensure required ldquofringerdquo benefits are paid (cash or employee benefit) to workers
Check for discrepancy between number of trade workers vs laborers ndash Ratio is 11
Note ldquolaborersrdquo must not perform ldquotraderdquo work or use trade tools
If Revised payroll is required of Contractor ensure Payroll contains correct Payroll Revised and contains no errors
33
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Compliance review continuedhellip
Ensure timely payment of employee restitution Allow contractor reasonable time to make
corrections and pay restitution but follow-up promptly
Retain original certified payrolls ndash do not return payrolls to contractor
34
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Compliance review continuedhellip
Schedule employee interviews if payrolls show signs of falsifications Compare employee interview results against
certified payrolls and wage decision Example hourlywage classification hours worked etc
Follow-up immediately on discrepancies Note All employee interviews conducted on job-site MUST
also be compared against applicable payroll date results documented and discrepancies followed-up
Spot check payrolls even if no problems are detected at first
Attach Apprentice and Trainee certifications to payrolls
35
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Apprentices and Trainees
Apprentices and trainees must be registered in a bona fide DOL Employment and Training Administration Office of Apprenticeship (ETA) program
Attach copy of DOL certification to first certified payroll or payroll where apprentice first appears and request new andor update if it expires during construction scheduled work
If DOL certification is not attached worker must be paid the Mechanicrsquos (trade worker) wage rate if higher
DOL does not recognize ldquoHelperrdquo classification
36
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Falsification Indicators These things should raise ldquored flagsrdquo
Ratio of laborers to mechanics greater than 11
Too few or irregular hours Repeat discrepancies in wage computations Extraordinary deductions Worker complaints
37
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Withholding Funds
Must document legitimate cause (failure to pay restitution when requested or refusal to pay)
Contractor must be notified in writing Payment issuer may deduct restitution or overtime
amount owed to worker from amount owed to contractor
Continued violations by contractor may cause suspension of any further release of funds including debarment
38
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
ADDITIONAL CLASSIFICATIONS
39
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Additional Classifications process
Review DOL wage decision ndash check to see if all job classifications needed for the project are listed
If no LSO must complete Additional Classification Rate Report (Exhibit 7) List classification and propose wage amp fringes Typical missing classes Glazier Insulator (Blower Bat) Attach subcontractor letter andor contractor form
signed by employee accepting proposed wage Send request to TDHCA LSS for review and conditional
approval DOL has final decision
40
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Additional Classification Instructions
It is permissible to hire employees in the interim to avoid construction delays Documentation confirming that employee accepted
the wage must be in employee file (ie letter of hire with employee signature) If higher wage payment mandate is rendered LSO
must ensure worker is paid difference (restitution) retroactive to date of hire
Remember Post DOL approved classification and wage letter at job-site make it clearly visible to all workers
41
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
RESOURCES
42
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
TDHCA ndash Davis Bacon Information
TDHCA Labor Standards Specialist
Carmen A Roldan telephone ndash 512475-2215 carmenroldantdhcastatetxus
Davis-Bacon Resources and Forms
Located on TDHCA website httpwwwtdhcastatetxusprogram-servicesdavis-baconhudhtm
43
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
HELPFUL Davis-Bacon Websites
HUD Office of Labor Relations wwwhudgovofficesolr
Department of Labor ndash wwwdolgov
Davis-Bacon Wage Decisions ndash wwwwdolgov
DOL Regulations ndash httpwwwdolgovopaaboutdollawsproghtm
Employment and Training Administration Office of Apprenticeship (ETA) - httpwwwdoletagovoa
44
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
DISCLAIMER
This presentation is intended as general information only and does not carry the force of legal action
TDHCA provides this information as a public service to Sub-recipients
As regulations andor labor standards information are updated TDHCA will make every effort to keep the information current and to correct errors brought to our attention
45
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-
Thank You
Carmen A Roldan carmenroldantdhcastatetxus
Labor Standards Specialist
46
- Davis-Bacon ndash Federal Labor Laws Certified Payrolls and Worker ClassificationsMay 9 2012
- Davis-Bacon Labor Standards Training
- FEDERAL LABOR LAWS
- Federal Labor Laws
- Davis-Bacon Act (DBA)
- DBA continuedhellip
- DBA continuedhellip
- Contract Work Hours and Safety Standards Act (CWHSSA)
- Liquidated DamagesEXAMPLE
- Copeland (Anti-Kickback) Act (CA)
- CA continuedhellip
- Fair Labor Standards Act (FLSA)
- CERTIFIED PAYROLLS
- Certified Payroll Requirements
- 347 - Payroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Fringe Benefit ndash Percentage EXAMPLE
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- 347 ndashPayroll Instructions
- Statement of Compliance(also known as DOL form 348)
- Statement of Compliance
- Statement of Compliance
- Statement of Compliance
- Certified Payrolls WH 347Revisions
- Compliance Review Responsibilities
- Certified Payroll Compliance Review
- Compliance review continuedhellip
- Compliance review continuedhellip
- Compliance review continuedhellip
- Apprentices and Trainees
- Falsification Indicators
- Withholding Funds
- ADDITIONAL CLASSIFICATIONS
- Additional Classifications process
- Additional Classification Instructions
- RESOURCES
- TDHCA ndash Davis Bacon Information
- HELPFUL Davis-Bacon Websites
- DISCLAIMER
- Thank You
-