Form 4742 Labor Standards Remote Monitoring Review

Federal Labor Standards Monitoring Review Guide Agency Remote

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of Davis-Bacon and Labor Standards

OMB Approval No. 0000-0000 (exp. 00/00/0000)

Public reporting burden for this collection of information is estimated to average 8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. All Federal agencies administrating programs subject to Davis-Bacon wage provisions are required to enforce Federal wage and reporting provisions in an accordance with the U.S. Department of Labor (DOL) regulations at 29 CFR Part 5, Section 5.6 paragraphs (a)(1), (2) and (3). This information is being collected to assess compliance with Federal labor standards provisions. This information collection will assist the U.S. Department of Housing and Urban Development (HUD) to determine if an agency is in compliance with Federal labor standards wage and reporting requirements on covered HUD-assisted construction and maintenance work pursuant to the Davis-Bacon Act and HUD Davis-Bacon Related Acts. Participation in this collection is required. Failure to provide this information may result in a monitoring finding and sanctions may be imposed in accordance with 29 CFR Section 5. 6. No assurances of confidentiality are provided. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions to reduce this burden, to the Reports Management Officer, OMAC, US. Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410. When providing comments, please refer to OMB Approval No. XXXX-XXXX.
Part A. Agency Labor Standards Administration
1. Agency Information
Agency name                 	Agency Address                 	Agency No. (DBLS Use)                 
Chief Executive Officer/Director      	Agency Labor Standards Officer (LSO)                 	Agency Telephone No.      
2. Agency Labor Standards Officer (LSO) / Staff Yes No NA
Agency staff includes an LSO or key staff person with primary responsibility for labor compliance?
LSO is informed of all proposed projects funded/assisted with HUD funds?
LSO approval required prior to advertisement of contracts?
LSO approval required on all payments to contractors?
LSO examines subrecipient/subgrantee/subcontract management firm contract activity as necessary?
3. Federal Labor Standards Monitoring Review Process Yes No NA
Procedure established to verify inclusion of correct wage decision & labor standards provisions in contracts?
Procedure established to verify/document contractor eligibility?
Payrolls/documents are examined regularly to assess Federal labor standards compliance?
Procedure established to conduct/target employee interviews?
4. Wage Decision Issuance Process Yes No NA
Maintains a system to ensure that applicable wage decisions are obtained/applied timely? Maintains system to verify wage decision “lock-in?”
5. Other Requirements – Reports, Escrows Yes No NA
Make reports using HUD Form 4710 for CWHSSA liquidated damages?
Submits Labor Standards Enforcement Reports (HUD Form 4710), timely and complete?
Total amount of funds escrowed for HUD/DBRA/CWHSSA violations: $     

- End of Part A -

Part B. Agency Labor Standards Contract Compliance – Davis-Bacon Covered Projects
1. Contract Identification
Agency Name           		Grant No. & Type (Funding Source)           
Project Name      		Project Identifier (Agency’s contract number, etc.)           
Location of Project           		Prime Contractor           
Description (Scope) of Work – Include number of units & stories for housing projects      				Contract Amount $      
Labor Standards Provisions (HUD Form No. Used)           	Wage Decision No. Used – Include Modification No.           			Bid Opening Date      
Contract Award Date      	Construction Start Date      		% Complete or Completion Date      
2. Contract Documents					Yes	No	NA
Labor standards provisions incorporated in contract?
Wage decision incorporated in contract?
Is prime contractor eligibility verification on file?
3. Weekly Payrolls Yes No NA
Did the agency obtain all payrolls (first to current/last) for each contractor on the job?
All contractors / trades represented by payrolls received?
Payroll data consistent of periodic inspections & employee interviews?
Payroll certification statements signed by employer or authorized representative?
Apprentices or trainees reported on payrolls?
Apprentice/trainee certification obtained?
Contractors in compliance with apprentice/trainee ratio requirements?
Do payrolls report generic job classifications (e.g., “mechanic,” “operator,” “installer,” “journeyman”) not on wage decision? If yes, please explain the circumstances and action taken, if any.
Do payrolls report job classifications for which an “Additional Classification” request was necessary?
Did the agency obtain DOL/HUD approval to add classifications to the wage decision?
Did the agency review to ensure that the correct wages were paid in accordance with the wage decision?

Part B, Continued
3. Weekly Payrolls, Continued	Yes	No	NA
Where reported, were payroll deductions permissible per DOL regulations? If reported, were fringe benefits acceptable per DOL regulations? Did the agency spot-check the Statements of Compliance to verify the appropriate box for fringe benefit payments (4a or 4b) has been checked? Was the Contract Work Hours and Safety Standards Act (CWHSSA) threshold met? (overtime)
Has any laborer or mechanic worked over 40 hours per week on this project?
If yes to (n) and (o), has overtime (1.5 times the regular rate of pay) been paid for hours worked over 40/wk?
If answer to (n) is yes and (p) is no, was the employer notified to pay restitution & were liquidated damages computed/recommended?

4. Employee Interviews Yes No NA

Were employee interviews completed?
Did the agency target interviews?
Did interviews record work performed by worker and observed by the interviewer?
Were interviews compared to payrolls?
Send to DBLS copies of interviews completed for this project. Copies attached
Did the agency send mail-out questionnaires to employees if needed?
Did the agency follow up on leads developed from interviews/questionnaires?

5. Contract Administration Yes No NA

Were any complaints received on this contract?
Were violations (misclassification, underpayment, etc.) corrected?
Were violations reported to HUD?

- End of Part B -

Part C. Agency Contract Labor Standards Compliance – HUD-Determined Wage Rates for Routine and Non-routine Maintenance Contracts
1. Contract Identification
Agency Name                 
Project Name           		Project Identifier (Agency’s Contract Number, etc.)                 
Location of Project      		Prime Contractor            
Description (Scope) of Work                 		Contract Amount                 
Wage Decision Used – Include Effective Date and Routine or Non-Routine            	Labor Standards Provisions Used (HUD form used, if applicable)            		Bid Opening Date                 
Contract Award Date                 	Work Start Date                 	% Complete, or Completion Date                 
2. Contract Documents				Yes	No	NA
Labor standards requirements incorporated in contract, purchase order, or similar agreement?
Wage decision incorporated in contract, purchase order, or similar agreement?
3. Wage Payment Yes No NA
Has the agency established a method to ensure workers are paid not less than the rate determined by HUD? Describe methodology on separate sheet.
Does work require classifications not included on the applicable HUD wage decision?
If yes to (b), did the agency obtain HUD approval to add classifications to the applicable wage decision?
Were the correct wages paid in accordance with the applicable wage decision?
Has the agency established a method to ensure laborers or mechanics working over 40 hours per week on this project have been paid overtime?
Was the Contract Work Hours and Safety Standards Act (CWHSSA) threshold met? (prime contract exceeds $100,000)?
Has any laborer or mechanic worked over 40 hours per week on this project?
If yes to (f) and (g), has overtime (1.5 x the regular rate of pay) been paid for hours worked over 40/wk?
If answer to (f) is yes and (h) is no, was the employer notified to pay restitution & were liquated damages computed/recommended?

Part C., Continued
4. Employee Interviews	Yes		No		NA
Were employee interviews completed?
Did the agency target interviews?
Did interviews record work actually performed by the worker and observed by the interviewer?
Were interviews compared to the HUD-determined rate schedule?
Send to DBLS copies of interviews completed for this project. Copies attached
Did the agency conduct mail-out questionnaires if needed?
Did the agency follow up on leads developed from interviews/questionnaires?

5. Contract Administration Yes No NA

Were any complaints received on this contract?
Were violations (misclassification, underpayment, etc.) corrected?

- End of Part C -

Part D. Agency Maintenance Wage Rate Administration

Agency Name:      

1. Maintenance Wage Enforcement Yes No NA

Please submit a copy of the maintenance staffing portion of the current operating budget.
Identify, on a separate sheet, all maintenance laborers and mechanics employed by the agency. Please provide employee name, classification, base hourly wage rate.
Is part of the base hourly wage rate offset by allowances or fringe benefits? If yes, explain on a separate sheet.
Is part of the required fringe benefits offset by other allowances or cash payments? If yes, explain on a separate sheet.
Does the agency have position descriptions that accurately describe the work performed by maintenance staff?
Has the agency submitted to HUD copies of current position descriptions for maintenance laborers and mechanics?
Effective date of current maintenance wage decision (HUD-52158) on file:
Please submit copies of recently completed work orders for each maintenance employee. > If a written form is not used, submit a description of the system used for recording maintenance assignments, the type of work performed, and by whom.     
Are employees working within assigned classifications?
Are employees properly compensated for hours worked over 40 per week?
Has the agency issued contracts or purchase orders for routine or emergency maintenance work? > If the answer to (k) is “yes” please complete a separate Part C for HUD Determined Wage Rates for each contract or purchase order work selected for review.

2. Training, Apprenticeship, & Special Employment Programs Yes No NA

Does the agency participate in an apprenticeship program for maintenance employees?
Has the agency obtained HUD approval for maintenance apprenticeship programs?
Does agency participate in job/skill training for agency residents or other low-income persons?
Does the agency employ youth in maintenance at any time during the year?
Are youth compensated at less than prevailing rates?

- End of Part D -

Part E. Agency Labor Standards Compliance – Force Account Work
This review guide, Part E for Force Account work, is for work performed by the regular employees hired specifically for a project or work item of a PHA, IHA, TDHE or DHHL maintenance employees and/or mechanics. Depending on the type of work, HUD Determined or Davis-Bacon wage rates could apply to the work.
1. Project Identification
Agency Name                 			Activity Type (development or operations) / Grant No. (if any)                  
Project Name                  			Project Identifier / Work Item Number                 
Location of Project                 		Description of Work (include number of stories for housing projects)      
HUD Maintenance Wage Rate Decision – Include Effective Date or Davis-Bacon Wage Decision-Include Modficiation Number      				Budgeted Cost (Labor & Materials)      
Work Start Date          			% Complete, or Completion Date      
2. Enforcement – General					Yes	No	NA
Has the agency established a method to ensure force account workers are paid not less than the rate required?
Did the agency maintain work records for employees showing employee name, address, Social Security Number?
Did the agency maintain weekly work records showing daily hours worked, classification (trade), pay rate & deductions for each worker?
Were apprentices or trainees employed on the project?
Was the apprentice/trainee program approved? (if no apprentices, answer ‘NA’)
Were apprentices/trainee ratio requirements met? (if no apprentices, answer ‘NA’)
Did the applicable wage decision include all classifications needed for completion of the project?
If no to (g), did the agency obtain approval from/through HUD DBLS to add classifications to the wage decision?
3. Project Administration Yes No NA
Procedure established to track complaint resolution?
Were any complaints received from workers or others?
Were violations (misclassification, underpayment, etc.) corrected?

- End of Part E –

Part X. Exit Conference
Agency Name           	Agency ID No.                 
Conference Method                 	Conference Date and Time                 
Conference Attendees/Participants - Name, Organization, and Title (attach list to this form if more room needed)                 
Reviewer(s) - Name and Title      

☐ Agency representatives were advised of problem areas, and were provided an opportunity to question and discuss the basis for preliminary conclusions. The following principal areas were discussed; additional items are covered on a separate page and attached to this form.

	Staffing Knowledge, capacity, sufficient number for volume of work. Is the work that is being done effective? Is there a disproportionate amount of covered activity not being reviewed?
	Information Systems / Tracking Mechanisms Note: Agencies have very wide latitude in the configuration, locations, and functioning of the system.
	Enforcement Files / Records Note: Agencies have very wide latitude in the configuration, locations, and functioning of the system. The focus in this section is that complete records for covered activities are maintained for the duration required and that they be retrievable in a reasonable time. As with management system, “blind spots” can be brought to the attention of the agency. Reviewers are cautioned about requiring revisions in the absence of violations resulting from a flawed system.
	Labor Standards Review – Procedures Agency processes to review funded/assisted projects for applicability of labor standards ensure appropriate wage decisions/determinations and labor standards provisions are included in agreements/orders for covered work and that project records are established and managed with the knowledge of appropriate officials and offices of the agency.

Part X., continued
	Labor Standards Review – Effectiveness Outcome of the agency’s systems and efficiency, including actions of grantee agencies and management firms.
	Technical Assistance and Training Quality and effectiveness of the technical assistance and training provided by the agency to its grantees, contractors, and management firms. Also covers the technical assistance and training needs of the agency’s staff.
	Wage Decision Issuances The agency’s application of wage decisions/determinations, including applying for changes.
	Complaints Actual complaints received or procedures established/needed.
	Restitution and Escrow Administration Conclusions concerning the “perfection” of restitution. Were certified payroll reports submitted for the restitution payments, as well as an assurance of future compliance? Were sufficient funds retained when needed? Were funds handled appropriately? Does the agency have appropriate documentation on the circumstances requiring escrows?
	Reporting Requirements (Semi-Annual Reports, Enforcement Reports) Conclusions about the validation of the reports were sent to HUD/DOL.
	Other (summarize below or provide details on separate sheet and attach to this form)      
	Preliminary Conclusions      

Part X., continued
	Areas of Disagreements, if any      
	Required follow-up actions by LCA or Reviewers, if any      
	Additional Comments      

- End of Form -

Provide explanatory information for each "No" response, as needed; NA = Not Applicable

Page 5 of 9 Form HUD-4742 (10/2021)