Form 4741 Labor Standards On-Site Monitoring Review

Federal Labor Standards Monitoring Review Guide Agency On-Site

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 .5 hour 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.
HUD Reviewer:      		HUD Review Date(s):      
Part A. Agency Overall Labor Standards Administration
1. Agency Information
Agency Name                 	Agency Address                 		Agency No. (HUD Use)            CPD/PIH No. (if different)           
Principal Program Director/ Executive Director      	Agency Labor Standards Officer (LSO)                 		Agency Telephone No.      
Agency Personnel Contacted During Review
Name:                   4      	Title                        :		Phone:                        
Projects/Contracts Reviewed
Project Name and Identifier:                        	Brief Description:                        		Contract/Budget Amount                        
Part A, continued
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 usually has sufficient time to obtain wage decisions and include in bid documents?
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 and 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? Violations and corrective actions are communicated timely? Maintains a system to track deficiencies and resolves them timely, and in accordance with established requirements? Procedure established to track complaint resolution? Examines subcontracts/subgrantee/subcontract management entity files as necessary? Schedule for monitoring grantees: Total subgrantee monitoring reviews performed during past ______ months:
4. Wage Decision Issuance Process Yes No NA
Maintains a system to ensure that applicable wage decisions are obtained/applied timely? Wage decision requests processed correctly (correct WD type and WD number)? Wage decision modification issued timely? Maintains system to verify wage decision “lock-in”?
5. HUD-Determined Maintenance Wage Rate Administration and Enforcement Yes No NA
Does the agency effectively administer HUD-determined maintenance wage rates for its regular staff? Does the agency effectively administer HUD-determined maintenance wage requirements for other force account labor? Does the agency effectively administer HUD-determined maintenance wage rates (routine/non-routine) requirements in contracted work? Does the agency correctly utilize training or apprenticeship programs for workers subject to HUD-determined maintenance wage rates?
6. Training Yes No NA
Provides labor standards training for subgrantees/contractors? Training materials used are accurate (current)?

Part A, continued
7. Other Requirements – Reports and Escrows Yes No NA
Make reports using HUD Form 4710 for CWHSSA liquidated damages?
Submits Labor Standards Enforcement Reports (5.7), timely and complete?
Number of active escrow agreements: #       Total amount of funds escrowed for HUD/DBRA/CWHSSA violations: $      
8. Summary – Labors Standards Administration Yes No NA
Staffing Information systems/tracking mechanisms Enforcement files/records Labor standards review – procedures Labor standards review - effectiveness Training Wage decision issuances Complaints Restitution and escrow administration Reporting requirements – Semi-annual reports, Enforcement Reports HUD-determined wage rate administration

Summary Key: A = Acceptable; NI = Needs Improvement; NA = Not Applicable

☐ Additional deficiencies identified are listed on a separate page and attached to this form, along with copies of supporting documentation.

- End of Part A -

Part B. Agency Labor Standards Contract Compliance – Davis-Bacon Covered Projects

1. Contract Identification

1. Agency Name and Identification

          

2. Grant No. & Type (Funding Source)

          

3. Project Name

     

4. Project Identifier (Agency’s contract number, etc.)

          

5. Location of Project (City, County, State)

          

6. Prime Contractor

     

7. Description (Scope) of Work – Include number of units & stories for housing projects

     

8. Contract Amount

$      

9. Labor Standards Provisions (HUD Form Used)

          

10. Wage Decision No. Used – Include type and modification date

          

11. Bid Opening Date

          

12. Contract Award Date

     

13. Construction Start Date

     

14. % Complete or Completion Date

          

2. Contract Documents

Yes

No

NA

1. Correct labor standards provisions incorporated in contract?

2. Correct wage decision incorporated in contract?

3. Was the prime contractor eligibility verification on file?

3. Weekly Payrolls Yes No NA

1. Did the agency obtain all payrolls (first to current/last) for each contractor on the job?

2. All contractors / trades represented by payrolls received?

3. Payroll data consistent with inspection & employee interviews (HUD-11)?

4. Payroll certification statements signed by employer or authorized representative?

5. Apprentices or trainees reported on payrolls?

6. Apprentice/trainee certification obtained?

7. Contractors in compliance with apprentice/trainee ratio requirements?

8. Do payrolls report generic job classifications (e.g., “mechanic,” “operator,” “installer,” “journeyman”) not on wage decision?

9. Do payrolls report job classifications for which an “Additional Classification” request was necessary?

10. Did the agency obtain DOL approval to add classifications to the wage decision?

11. Did the agency review to ensure that the correct wages were paid in accordance with the wage decision?

12. Where reported, were payroll deductions permissible per DOL regulations?

13. If reported, were fringe benefits acceptable per DOL regulations?

14. Was the Contract Work Hours and Safety Standards Act (CWHSSA) threshold met?

15. Has any laborer or mechanic worked over 40 hours per week on this project?

16. If yes to (n) and (o), has overtime (1.5 times the regular rate of pay) been paid for hours worked over 40/wk?

17. If answer to (n) is yes and (p) is no, was the employer notified to pay restitution & were liquidated damages computed?

Part B, Continued

4. Employee Interviews Yes No NA

1. Were employee interviews completed?

2. Did the agency target interviews?

3. Did interviews record work performed by worker and observed by the interviewer?

4. Were interviews compared to payrolls?

5. Did the agency send mail-out questionnaires to employees if needed?

6. Did the agency follow up on leads developed from interviews/questionnaires?

5. Contract Administration Yes No NA

Were contract records available, including all documentation required?
Were violations (misclassification, underpayment, etc.) corrected/addressed?
Were violations reported to HUD or DOL? Were any complaints received on this contract? Do records indicate other violations (not covered above) that the agency failed to address?

☐ Additional deficiencies identified are listed on a separate page and attached to this form, along with copies of supporting documentation (contracts, payrolls, interviews, correspondence, etc.)

- 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           		Agency ID and Activity Type      
Project Name                 		Project Identifier (e.g. Agency’s Contract Number)           
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? Wage Rates correct? Prime contractor eligibility verification, when required, on file?
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.
Are site inspections or other on-site reports used to corroborate proper classication/payment? Does work require classifications not included on the applicable HUD wage decision?
If yes to (c), 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 (HUD-52158)?
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 (g) and (h), has overtime (1.5 x the regular rate of pay) been paid for hours worked over 40/wk?
If answer to (h) is yes and (i) is no, was the employer notified to pay restitution & were liquated damages computed?

4. Employee Interviews Yes No NA
Part C, Continued
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?
Did the agency conduct mail-out questionnaires if needed?
Did the agency follow up on leads developed from interviews/questionnaires/on-site reports, etc?

5. Contract Administration Yes No NA

Were records available, including all documentation required? Were violations/discrepancies (misclassificatons, underpayment, etc.) corrected? Were any complaints received on this contract? Do records indicate other violations (not covered above) that the agency failed to address?

☐ Additional deficiencies identified are listed on a separate page and attached to this form, along with copies of supporting documentation (contract payrolls, interviews, correspondence, etc.)

- End of Part c -

Part D. Agency Maintenance Wage Rate Administration
Agency Name:      	Agency ID No.:      

1. Maintenance Wage Enforcement Yes No NA

Are the agency’s personnel policies for maintenance laborers and mechanics acceptable?
Does the agency have position descriptions that accurately describe the work performed by maintenance staff?
Is a copy of the current HUD-52158 on file?
Do the maintenance classification/wage rates identified in the current operating budget correspond to the current HUD-52158? Are employees working within assigned classifications?
Are employees properly compensated for hours worked over 40 per week?
Were maintenance employees interviewed? Number interviewed:      
Has the agency conducted work employing force account workers? If yes, record individual projects using force account employees on part E, Force Account Work.

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?

☐ Additional deficiencies identified are listed on a separate page and attached to this form, along with copies of supporting documentation (contract payrolls, interviews, correspondence, etc.)

- End of Part D -

Part E. Agency Labor Standards Compliance – Force Account Work
Part E is for work performed by the regular employees of a PHA, IHA, TDHE, or DHHL or by other workers hired by the agency specifically for a project or work item (i.e. “Force Account” labor”). Depending on the type of work, HUD-Determined or Davis-Bacon wage rates could apply to the work. If a contractor performed part of the force account work, fill out Part B or Part C to review the contracted 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 and if Routing/Non-Routing or if Davis-Bacon Wage Decision - Include Modification 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?

☐ Additional deficiencies identified are listed on a separate page and attached to this form, along with copies of supporting documentation (contract payrolls, interviews, correspondence, etc.) -- End of Part E –

Part X. Exit Conference
Agency Name                 	Agency ID No.                 
Conference Location                 	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 7 of 10 Form HUD-4741 (10/2021)