DAVIS -BACON REQUIRED DOCUMENTS SUB M ISS I ON SAMPLE GUIDE FOR USE BY DOE SUBCONTRACTORS AND SUB-TIERS SUBJECT TO THE DAVIS-BACON AND RELATED ACTS AUGUST 2013 P RE PARED BY KATH E L . MA CHADO DAVI S-BACON CERTIFIED PAYRO LL COO RD IN ATOR WA SHINGTON CLOSURE HANFO RD Disclaimer: This Sample Guide contains information about preparing and reporting certified payroll and accompanying compliance statements. The information contained is not intended as an alternative to legal advice from an appropriately qualified professional. The preparer of this Sample Guide has made every effort to ensure that the information compiled, referenced, and presented in the Guide is accurate. This Guide includes links to other Web sites owned and operated by third parties and the preparer has no control over, nor accepts responsibility for, the contents of any of the third party Web sites referenced herein. This Sample Guide contains public information and forms and is not intended to, nor may it, be sold or traded for any financial gain. The preparer does not represent, warrant, or guarantee that the information in this Guide is complete or non­ misleading, or that the use ofguidance in this report will lead to any particular outcome or result. The preparer does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. Davis Bacon Sample Guide Contents Davis-Bacon Act ................................................................ ..........................................................4 History ................................................................................................................. .. ....................... 4 Overview ......................................................................................................................................4 Recordkeeping ................................................................. ............................................................. 5 Reporting ........... ................................................................. .......................................................... 6 Prime Contractor, Subcontractor, and Sub-tier Relationships (Chart 1) ......................................7 Davis-Bacon Certified Payroll Documents Submission Flow (Chart 2) ...................................... 8 Completing the SF1413 Accurately ............................................................................................. 9 Examples ofForms Example 1: Prime to WCH Subcontractor ................................... ................................ 11 Example 2 : WCH Subcontractor to First Level Sub-tier .............................................. 12 Example 3: First Level Sub-tier to Second Level Sub-tier ........................................... 13 Example 4: Second Level Sub-tier to Third Level Sub-tier ........................................ .14 Frequently Asked Questions about the SF 1413 ................................. ........................................ 15 Completing Form WH-347 Accurately ..................................................................................... 16 Examples of Forms Example 5: Payroll and Statement of Compliance for WCH Subcontractor ............... 18 Example 6: Payroll and Statement of Compliance for First Level Sub-tier ................. 20 Example 7: Payroll and Statement of Compliance for Second Level Sub-tier ............. 22 Example 8: Payroll and Statement of Compliance for Third Level Sub-tier ................ 24 Attachment A- Instructions for Completing Payroll Form, WH-347 ....................................... 26 Frequently Asked Questions about the Payroll Report and Statement of Compliance ..............30 Compliance Assistance Materials .............................................................................................. 32 Subcontractor Instructions for Naming Certified Payroll Documents ...................................... .33 References .......................................... ........................................................................................34 Other Resources .........................................................................................................................34 Forms ........................................................................................................................................35 Davis-Bacon Submittal Checklist ............ ... ..................................................... .......................... 36 Note: In order to view, fill out, and print the referenced PDF forms, you need Adobe® Acrobat® Reader® version 5 or later, which you may download for free at the following location: http://get.adobe.com/reader/. To save the completed forms on your workstation, you need to use the "Save As" method to save the file. Davis Bacon Sample Guide Davis-Bacon Act History The Davis-Bacon Act of 1931 was initially introduced in 1927. It is named after James J. Davis, a Senator from Pennsylvania and a former Secretary of Labor under three presidents, and Representative Robert L. Bacon of Long Island, New York. Subsequent amendments were adopted in 1935, 1964, and 1994. Overview The Davis Bacon and Related Acts (DBRA) requires all contractors and subcontractors performing work on federal or District of Columbia construction contracts or federally assisted contracts in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. The prevailing wage rates and fringe benefits are James J. Davis determined by the Secretary of Labor for inclusion in covered contracts. In addition to the Davis Bacon Act itself, Congress added Davis Bacon prevailing wage provisions to approximately 60 laws-"related Acts"-under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. (Examples of the related Acts are the Federal-Aid Highway Acts, the Housing and Community Development Act of 1974, and the Federal Water Pollution Control Act.) Generally, the application of prevailing wage requirements to projects receiving federal assistance under any particular "related" Act depends on the provisions ofthat law. The U.S. Department of Labor (DOL) has oversight responsibilities to assure coordination of administration and consistency of enforcement of the labor standards provisions of the Davis Bacon and Related Acts. Under this authority, DOL has issued regulations establishing standards and procedures for the administration and enforcement of the Davis-Bacon labor standards provisions. Federal contracting agencies have day-to-day responsibility for administration and enforcement of the Davis-Bacon labor standards provisions in covered contracts for which they are responsible or to which they provide federal assistance under laws they administer. Within DOL, the Wage and Hour Division (WHO) is responsible for administration and enforcement of the DBRA. See Fact Sheet #66: The Davis-Bacon and Related Acts (DBRA) Robert L. Bacon Page4 Davis Bacon Sample Guide Record keeping Under the Davis-Bacon and Related Acts, covered contractors must maintain payroll and basic records for all laborers and mechanics during the course of the work and for a period of three years thereafter. Records to be maintained include (but are not limited to): • Name, address, and Social Security number of each employee; • Each employee's work classification(s); • Hourly rate(s) of pay (including rates of contributions or costs anticipated for fringe benefits or their cash equivalents); • Daily and weekly numbers of hours worked; • Deductions made; • Actual wages paid; • If applicable, detailed information regarding various fringe benefit plans and programs, including records that show that the plan or program has been communicated in writing to the laborers and mechanics affected; • If applicable, detailed information regarding approved apprenticeship or trainee programs. See 29 CFR 5.5(a)(3) for further information. Some of the records required to be kept under the law are also required under the Fair Labor Standards Act. See Wage and Hour Division Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA) (http://www.dol.gov/whd/regs/compliance/whdfs2l.pdf). Page 5 Davis Bacon Sample Guide Reporting Each covered contractor and subcontractor must, on a weekly basis, provide the federal agency a copy of all payrolls providing the information listed above under "Recordkeeping" for the preceding weekly payroll period. Each payroll submitted must be accompanied by a "Statement of Compliance." The contractor, subcontractor, or the authorized officer or employee of the contractor or subcontractor who supervises the payment of wages, must sign the weekly statement. Statements of Compliance are to be made on the form WH-347 "Payroll (For Contractors Optional Use)" (http://www.dol.gov/whd/forms/wh347instr.htm) or on any form with identical wording. This must be completed within seven days after the regular pay date for the pay period. FAQ: Am I required to use the WH-347 from the U.S. Department ofLabor? "The payrolls submitted shall set out accurately and completely all of the Information required to be maintained under paragraph (a) of this clause, except that full social security numbers and home addresses shall