US Department of HUD
Office of Labor Relations
United States Department of Housing and Urban
Development
Midwest Regional Office of Labor Relations
77 West Jackson Blvd, Room 2307
Chicago, IL 60604
www.hud.gov
Deborah Diez
Labor Relations Michigan Specialist (Chicago Regional Office)
(312) 913-8127
deborah.a.diez@hud.gov
Roxanne Volkmann
Labor Relations Illinois Specialist (Chicago Regional Office)
(312) 913-8438
roxanne.volkmann@hud.gov
U.S. Housing Act of 1937, Sec. 12a,
(42 U.S.C. 1437j)
….not less than the wages prevailing in the
locality, as determined or adopted…by the
Secretary, shall be paid to…all maintenance
laborers and mechanics employed in the
operation of the low-income housing
project involved...
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Enacted 1931, amended 1935 & 1964
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Federal construction contracts >$2,000
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Sets minimum hourly wage rates for workers
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The Act is “site-based”
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Includes alteration, repair, painting &
decorating
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Applies to all laborers & mechanics (workers whose
duties are manual or physical in nature including
those workers who use tools or who are performing
work of a trade, as distinguished from mental or
managerial duties).
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Requires payment of  prevailing wages
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Requires weekly payment of wages
Community Development Block Grants
 HOME
 Public Housing
 Tribally-Designated Housing
Authorities
 FHA Multi-Family Housing
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Enacted 1962
Requires overtime at 1½ times the basic hourly
rate of pay for all work 40 hrs/week
Applies to contracts $100,000
Liquidated damages apply to violations ($10 per
day, per violation)
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Enacted 1934, regulates deductions from wages
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Prohibits “kick-backs” of pay
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Requires submission of certified weekly payrolls
and accompanying signed Statement of Compliance
For properties subject to a conventional
Annual Contributions Contract, construction,
rehabilitation, and maintenance work are
covered by some type of prevailing wage to all
maintenance laborers and mechanics engaged
in the operation of low-income housing
projects (Section 12(a) of the US Housing Act
of 1937).
Routine Maintenance
Non-Routine Maintenance
Development (Davis-Bacon)
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Work that involves the regular upkeep and
preservation of buildings, grounds, and
facilities
Routine maintenance wage rates are
determined or adopted by HUD
Applicable to all laborers and mechanics
engaged in covered work, including force
account, contractors, temporaries, residents
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Agencies collect local wage data and submit
HUD 4750 to Labor Relations Specialist on an
annual basis
Labor Relations reviews and works with HA to
determine the Maintenance Wage Rate
Determination
A HUD 52158 is issued for all work
classifications (force account and anticipated
contracts)
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52158 - In employee common area (lunch
room, office, etc)
52158 - Incorporate into routine
maintenance contracts
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Work items that ordinarily would be
performed on a regular basis in the course of
upkeep of a property…but have become
substantial in scope because they have been
put off
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Involves expenditures that would otherwise
materially distort the level trend of
maintenance expenses
Includes the replacement of equipment and
materials rendered unsatisfactory because of
normal wear and tear by items of
substantially the same kind
Each Maintenance contract MUST incorporate:
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Current, appropriate wage decision and Federal Labor
Standards provision applicable to work being done.
Federal LS HUD 5370-C (General conditions for Nonconstruction contracts-HUD determined)
◦ Non-construction contracts (without maintenance) greater
than $100,000 – Use Section I
◦ Maintenance contracts (including non-routine maintenance)
over $2,000 but not more than $100,000–Use Section II
◦ Maintenance contracts (including non-routine maintenance)
greater than $100,000 – Use Section I and II
Certain professional services are excluded from
HUD-determined wage requirements
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Periodic inspections or testing of equipment
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Testing for lead-based paint
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Pest control
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Installation, service or maintenance of leased
equipment, fixtures or appliances
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New construction
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Reconstruction
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A substantial improvement in the quality or
kind or original equipment and materials
Remodeling that alters the nature or type of
housing units falls within the purview of
“development” (24 CFR 968.203)
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DB wages determined by DOL
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Agency gets DB rates on-line or from HUD OLR
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Applicable to all laborers and mechanics engaged
in covered work, including force account,
contractors, temporaries, residents
CWHSSA applies to contractors after 40 hours
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Each covered DB contract for construction,
alteration, or repair work MUST incorporate:
Current, appropriate wage decision and Federal
Labor Standards provision applicable to work
being done.
Appropriate modification or superseded wage
decision
Federal labor standards clauses
◦ HUD-5370 PHA Programs – Contracts greater than
$100,000
◦ HUD-5370-EZ Contracts greater than $2,000 but not
more than $100,000
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Ensure ALL maintenance laborers and
mechanics are paid a prevailing wage
Create and maintain documents
demonstrating compliance
Ensure permissible deductions as allowed
by law or regulation
Conduct employee interviews (HUD-11)
Comply with Labor Relations Letter LR
2004-01
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Wage Decision or Project Wage Rate Sheet
(HUD-4720)
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Any Additional Classifications
(HUD-4230A)
The Employees Rights under the Davis-Bacon
Act (WH-1321)
A Davis-Bacon Wage Decision is
simply a listing of different work
classifications and the minimum
wage rates that must be paid to
anyone performing in those
classifications
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Must be incorporated in prime contracts &
sub-contracts
Identifies work classifications, basic hourly
wages, fringe benefits
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Must be posted at the job site
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May be modified periodically
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Published for 4 types of construction
RESIDENTIAL
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Single family houses, townhouses
Apartment buildings less than 5 stories
BUILDING
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Sheltered enclosures for the purpose of
housing persons, machinery, and
equipment
Apartment buildings more than 4 stories
Commercial buildings
HIGHWAY
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Roads
Highways
Sidewalks
Parking areas
Other paving work not incidental to other
construction
HEAVY
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Projects which cannot be classified as Building,
Residential, or Highway
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Go On-line at: www.wdol.gov

NEW – DOL renumbered wage
decisions effective January 6, 2012.
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Contact your HUD Labor Relations
Specialist
<- WD Number
<- Construction Type
<- Counties
<- Description
Mod Number & Publish Date
CLASSIFICATION
RATE
FRINGES
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Lock-in at bid opening provided contract
is awarded within 90 days
Must update wage decision if contract is
awarded more than 90 days after bid
opening
Modifications published days before bid
opening are applicable if there is
sufficient time to notify bidders (10 days no
longer applicable with online access)
 Verify
prime
contractor eligibility
against GSA
Debarred List
www.sam.gov
 Make
record of
verification to
contract file
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Name of employee. Address and SSN are no
longer required on CPR but must be on file and
available upon request.
Properly classified according to the work
performed
Established work week
Hours worked each week
Gross wages and net wages properly calculated
“Other” deductions
Overtime computed properly
Statement of Compliance – Authorized Original
Signature
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Classification Errors
Copy or Fax Statement of Compliance
Inadequate or Incomplete Payroll
Information
Missing Addresses and SSN
One Statement of Compliance for Multiple
Work Weeks
Other Deductions
Ratio of Laborers to Mechanics
Unauthorized Signature on Statement of
Compliance
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Contractors must permit interviews
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Interviews may be performed at random
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Interviews are confidential
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Interviews must be checked against payrolls
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Can include health and life insurance
premiums, retirement/pension contributions,
vacation irrevocably made to a trustee or
third party pursuant to bona fide fringe
benefits fund, plan, or program.
May be paid directly to worker
Do not include employer payments or
contributions required by Federal, State or
local laws (i.e., the employer’s contribution to
Social Security, workers’ compensation
insurance, etc.)
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Prevailing wage requirements may be met by
any combination of cash wages and
creditable “bona fide” fringe benefits
provided by the employer.
◦ May be paid entirely as cash wages
◦ Payments made or costs incurred by the contractor
for “bona fide” fringe benefits may be creditable
◦ Combination of cash wages paid and “bona fide”
fringe benefits may be used together
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Under Davis-Bacon, fringe benefits must be
paid for ALL hours worked, including
overtime hours. However, the fringe benefit
amounts may be excluded from the half-time
premium due as overtime compensation.
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Where underpayments are found, the employer
will be required to pay wage restitution to the
affected employees.
Must be paid promptly and in the full amounts
due, less permissible and authorized deductions.
Funds may be withheld if violations are not
corrected promptly
Deposit of funds may be necessary if matter is
under appeal, or workers cannot be found
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Computing Wage Restitution
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Corrected Payrolls
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Contract Administrator Review
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Document restitution on certified corrected
payroll report
Submit 5.7 report where restitution totals
$1,000 per contractor (See LR-92-02 for
instructions)
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Funds may be withheld if violations are not
corrected promptly
Deposit of funds may be necessary if
matter is under appeal, or workers cannot
be found
Administrative sanctions may be necessary
◦ Limited Denial of Participation
◦ Debarment
You’ll want to make sure that the
work classification(s) you need are
contained in the wage decision.
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Review and discuss the wage decision with
contractor early to identify missing
classifications
Submit Requests immediately after
contract award (HUD-4230A)
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HUD will respond in writing
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Post new classification & rate
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Make restitution payment if necessary
Form HUD-4230A
Request of Additional Classification and Rate
AND
Employer needs to send a letter on company
letterhead requesting the job classification and
detailing the duties the employee will be
performing
DATE OF REPORT
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
REPORT OF ADDITIONAL CLASSIFICATION AND RATE
TO: (Appropriate Regional Office, U.S. Department of Labor)
FROM: (Name and Location of HUD Office)
U.S. DEPARTMENT OF LABOR
EMPLOYMENT STANDARDS ADMINISTRATION
WAGE-HOUR / DIVISION OF CONSTRUCTION
WAGE RATE DETERMINATION - ROOM S-3012
WASHINGTON, DC 20210
PROJECT NUMBER
LOCATION OF PROJECT (City, County and State)
DESCRIPTION OF WORK
WAGE DECISION NO. & MODIFICATION NO. (Also attach copy of applicable wage decision)
WAGE DECISION EFFECTIVE DATE
In order to complete the project, it is necessary to establish wage rates for the following classifications not included in the
above-referenced U.S. Department of Labor Wage Decision:
CLASSIFICATIONS
BASIC HOURLY RATE(S)
Electrician
NAME, ADDRESS & ZIP CODE OF LABOR ORGANIZATION
22.50
FRINGE BENEFIT PAYMENTS
4.50
NAME, ADDRESS & ZIP CODE OF PRIME CONTRACTOR
Contractor, Labor Organization
TITLE OF LABOR ORGANIZATION REPRESENTATIVE
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TITLE OF CONTRACTOR’S REPRESENTATIVE
Supporting documents attached.
Do all parties agree?
The interested parties, including the employees or their authorized representatives, agree on the classification and wage rate.
The interested parties, including the employees or their authorized representatives, cannot agree on the proper classification and wage rate.
A determination of the question by the Secretary of Labor is therefore requested. Available information and recommendations are attached.
 APPROVED
(Signature of HUD Area Insuring Office Representative)
_______________________________
Date
HUD-4230A (4-73) PREVIOUS EDITION IS OBSOLETE
(Signature of HUD Regional Labor Relations Officer)
_______________________________
Date
HUD 4230A
Community Center
CD2002-24
Miami, Dade County, FL
BLDG constr: rehab comm center
4/2/02
FL020001/Mod 1
NAME OF PROJECT
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Apprentices and trainees are persons
registered and receiving on-the-job
training in a construction occupation under
a program which has been approved in
advance by DOL
Apprentices and trainees must be
registered in a Department of Laborapproved program
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Contractor must submit a copy of
registration/apprentice agreement and ratio
language
Apprentices/trainees that are not registered
or that are utilized out of ratio must be paid
the full rate (base + fringes) listed on the
wage decision for the classification of work
they perform.
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All laborers and mechanics are covered
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Must be paid weekly
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regardless of any contractual relationship
alleged to exist
May not certify to payment of own wages
(may not sign own payrolls) - Exception:
Owners of business working with their crew
Instructions
and
Fillable Form (HUD-4710)
can be found at:
www.hud.gov/offices/olr/olrform.cfm
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Semi-Annual Labor Standards Enforcement
Report - HUD 4710
Period 1 Oct 1 – Mar 31 Due April 4
Period 2 Apr 1 – Sep 30 Due October 4
Maintenance Wage Rate Determination Annual
Renewal of 52158
HUD sends a reminder prior to the
end of the Fiscal Year. The housing
commission then sends in the HUD-4750,
personnel policy or CBA, and job descriptions.
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1344.1 Rev 2 – February, 2012
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Contractor’s Guide – Jan. 2012
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Wage Determinations – http://www.wdol.gov
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Wage and Hour Division –
http://www.dol.gov/whd/index.htm
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Office of the Administrative Law Judges Law Library –
http://www.oalj.dol.gov
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Administrative Review Board – http://www.dol.gov/arb
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Debarred Bidders List – http://www.sam.gov
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HUD – http://www.HUD.gov/offices/olr