Ed Jennings U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Regional Director Region IV An Intermittent OLR Publication Region IV Labor Relations News Late Summer 2010 Upcoming Events What it’s All About - HUD Office of Labor Relations Agency Training— The OLR Web site now includes all train- Protecting the Rights of Construction Workers ing scheduled for agencies and other clients. In Region IV, we The following true stories illustrate the daily determined that $162,456.90 in restitution was do send out invitations, mass work of Labor Relations Specialists in the due to over 70 affected workers engaged in emails and faxes to notify poten- Office of Labor Relations (OLR), Atlanta painting, carpentry, and drywall trades. Regional Office, and how the OLR fulfills tial participants, but please check The violations were found through routine com- its mission to ensure compliance with fed- the site frequently, as there may pliance monitoring of the kind performed by eral prevailing wage requirements through- OLR staff every day. While wage underpay- be training available in a nearby out Region IV. state. The URL is: http:// ments of this magnitude do not occur on every www.hud.gov/offices/olr/ Representatives of the Department olrtrainingsem1.cfm of Housing and Urban Develop- ment came calling recently, bring- ing good news to construction workers in Nashville, Tennessee. The workers were to receive wage restitution for work they performed helping build an FHA-insured housing development. For some, the substantial amounts would “Wisdom doesn't automatically make the difference between losing come with old age. Nothing does their home and keeping it. - except wrinkles. It's true, The project on which they worked some wines improve with age. was subject to federal laws (the But only if the grapes were good Davis-Bacon and Related Acts), in the first place.” which requires prevailing wages to be paid to all laborers and mechan- ics employed on the project. Pre- vailing hourly wages are deter- mined by the U.S. Department of Inside this issue: Labor (DOL) through surveys of wages paid in localities such as HUD project, staff must be vigilant to detect OLR—What It’s All About I Pg 1 Nashville. The prevailing wages, at mini- evidence of miss-classification, underpayment, mum, must be paid to all workers according OLR—What It’s All About II Pg 2 and fraud every day. to the classification of work performed. PHAs & ARRA Funddng Pg 3 Absent OLR's efforts, the workers in Nashville HUD staff in the Office of Labor Relations would not have received fair treatment under ARRA & Davis-Bacon Coverage Pg 3 reviewed payroll and other documentation the law. Ed Jennings Profile Pg 4 submitted by contractors and found workers had not received the local prevailing wage for the work they performed. In all, HUD Page 2 Region IV Labor Relations News Office of Labor Relations What it’s All About, continued Dondra J. Merrell Regional Labor Relations Officer HUD Office of Labor Alfreida Doe Relations and the U.S. Program Support Assistant x2605 Department of Labor Cooperation Leads to Justice for Construction Workers Atlanta Staff On another Tennessee pro- ject, located in Knoxville, a by State / Function subcontractor underpaid Save four digits; dial us direct! many workers performing Dial (678) 732 + extension: electrical duties. As a re- sult, restitution was paid to Alabama 64 employees, totaling Rhonda Lindquist x2585 $73,662.64. Caribbean Through a routine review Leslie Gibson x2042 of certified payrolls sub- mitted by a subcontractor, Florida (South) the law (the Davis-Bacon to them. Steve Bales x2039 a Labor Relations Special- ist noted warning signs that and Related Acts), all la- The Office of Labor Rela- Florida (North) laborers might have per- borers and mechanics per- tions in Atlanta serves Ira Turman x2062 formed electrical work forming work on the pro- HUD Region IV ject site must be paid the Georgia without receiving the ap- (Alabama, Florida, Geor- prevailing wage rate for the Melanie Dalton x2045 propriate hourly wage for gia, Kentucky, Mississippi, the trade. Worse, further work actually performed. North Carolina, Puerto Kentucky / City of Atlanta & review indicated many In this case, the contractor Rico, South Carolina, Ten- Atlanta Housing Authority payrolls were falsified. was getting by on cheap nessee, and the U.S. Virgin Tony Bacon x2046 More documents were labor for skilled work. Islands). For further infor- Mississippi reviewed, workers inter- HUD works closely with mation, please visit the Patrick Richards x2710 viewed, and the contractor the Department of Labor main OLR Web Page: North Carolina contacted. In this case, the (DOL), especially on in- http://www.hud.gov/office Jennifer DuPont x2034 subcontractor refused to vestigative cases. The s/olr/ comply. Atlanta OLR contacted the South Carolina Knoxville DOL office for Debra Tilley x2003 OLR staff explained to the subcontractor that the du- assistance in this matter; Tennessee ties performed by the the local DOL investigator Deborah Conyers x2044 "laborers" (such as wiring was able to obtain addi- tional information substan- apartments, installing un- derground electrical con- tiating Atlanta's initial duits, meter services, in- findings, further develop stalling electrical outlets, the case, and proceed to installing electrical recommend debarment of For Information on Tribal the subcontractor. Authorities Call: switches, pulling and run- ning wires) were the duties Postscript - During the Jennifer DuPont of the electricians trade. investigation, the subcon- All Region IV Tribes in AL, FL, Nevertheless, the subcon- tractor in violation aban- MS, NC, &FL tractor disagreed with our doned the job. The general (678) 732-2034 findings and insisted the contractor was responsible workers were unskilled for ensuring all workers on laborers, not skilled electri- the project site were paid cians. He further argued properly, in accordance the men were homeless, with applicable laws. Af- living in halfway houses, ter meeting with his attor- and what should matter neys and DOL investiga- most is he was doing them tors, the general contractor a favor by employing agreed to pay all affected them. Nevertheless, under workers the back pay owed An Intermittent OLR Publication Page 3 PHAs, ARRA Funding, & Davis-Bacon Requirements News that bears repeating as we travel throughout the region is how Davis-Bacon prevailing wage requirements apply to construction/repair work funded under the American Recovery and Reinvest- ment Act of 2009 (Recovery Act). For projects funded or assisted under the Recovery Act (Public Housing Capital Funds programs, HUD Mission CDBG-R & NSP-2), Davis-Bacon applies to con- Create strong, sustainable, inclu- struction/repair in the same manner as it is under the sive communities and quality existing statutes for the Capital Funds and CDBG affordable homes for all. HUD is programs, respectively. working to strengthen the housing Similarly, for Recovery Act Native American pro- market to bolster the economy grams, the provisions contained in existing statutes and protect consumers; meet the are applicable: Indian CDBG is exempt from Davis- need for quality affordable rental Bacon and tribally-determined prevailing wages homes; utilize housing as plat- may pre-empt Davis-Bacon rates. form for improving quality of life; build inclusive and sustainable To recap, the Supplemental Appropriations Act of 2009 extended the regular thresholds for communities free from discrimi- CDBG, Public Housing and NAHASDA projects to the Recovery Act. Recovery Act CDBG-R, nation; and transform the way NSP-2, ICDBG, IHBG and Capital Fund programs will operate under the same Davis-Bacon HUD does business. rules and thresholds as their regular program counterparts. Be sure to incorporate Federal prevailing wage requirements and the applicable Wage Decision into construction contracts to which Davis-Bacon applies, monitor for compliance. Wage restitu- tion, whether paid by the contractor or the contracting agency must be reported to HUD in your Semi-Annual Enforcement Reports. SEMI-ANNUAL LABOR Caution: For Certain Programs Under ARRA, STANDARDS Davis-Bacon Applies Very Broadly ENFORCEMENT REPORTS DUE There are certain programs under the Recovery Act to which Davis-Bacon prevailing wage requirements apply very broadly and for which exclusions with which you may be familiar do not apply. Please submit reports to your labor specialist in Atlanta no Under the Tax Credit Assistance Program (TCAP), Assisted Housing Green Retrofit, and the Lead later than Friday October 8th. Hazard Reduction / Healthy Homes Program, there is no 8-unit threshold before prevailing wages Be sure to include all applicable apply; there is no exclusion of acquisition, equipment purchase or “soft costs;” and there is no projects from your agency and exclusion for volunteers. Simply put, Davis-Bacon applies to any construction or rehabilitation report all wage restitution, project where the prime contract exceeds $2,000. whether collected by the agency or paid directly by contractors. If your agency only purchases property with funds from one of these programs, and the dollar amount exceeds just $2,000, then associated construction or rehabilitation will be subject to Davis- Bacon. If your agency rehabilitates a single family dwelling with funds from one of these programs, and the dollar amount exceeds $2,000, the rehabilitation work will be subject to Davis-Bacon. As you can see, the requirements are much more restrictive than under the CDBG program. Please contact your Labor Relations Specialist in Atlanta if you have any questions. Page 4 Region IV Welcomes Ed Jennings, Regional Director mercial/retail space. As a communities throughout the priations Committee; and the business leader, Jennings region and nation." Insurance Committee. He served on the boards of the: also served as a Fannie Mae Alachua County Public A fifth generation Floridian, Fellow at Harvard’s Kennedy Schools’ Foundation, Gaines- Jennings served as a State School of Government in the ville Area Chamber of Com- Representative from 2000- Senior Executives and merce, Builder’s Association 2006.