Labor requirements, also known as Federal Labor Standards, dictate wage and labor standards for federally assisted projects. Since their establishment, these standards have protected workers' rights and ensured that laborers receive fair treatment, safe and healthy work conditions, and compensation that reflects the prevailing wage in a PJ's jurisdiction.
Note: Federal Labor Standards apply only when contracts for capital projects contain twelve or more HOME-assisted units ("assistance" may include funds for construction and non-construction activities).
Which labor requirements must PJs and their partners adhere to when implementing their HOME programs?
Key labor requirements include the following:
- Davis-Bacon and Related Acts (40 U.S.C. 276 (A)-7)
Davis-Bacon and the related labor acts ensure that mechanics and laborers employed under Federally assisted contracts are paid wages and benefits equal to those that prevail in the locality in which the work is performed. This act also provides for the withholding of funds when PJs are in noncompliance. Apprentices enrolled in bona fide apprenticeship programs are exempt from wage requirements.
- Contract Work Hours and Safety Standards Act, as amended (40 U.S.C. 327-333)
This act provides that mechanics and laborers employed on Federally assisted projects are paid time and one-half for work in excess of forty hours per week, and provides for the payment of liquidated damages when violations of these provisions occur. The act also addresses safe and healthy working conditions.
- Copeland (Anti-Kickback) Act (40 U.S.C. 276c)
The Copeland Anti-Kickback Act governs allowable deductions from paychecks. Copeland makes it a criminal offense to coerce anyone employed on a Federally assisted project to relinquish compensation to which he/she is entitled, and requires all contractors to submit weekly payrolls and statements of compliance.
- Fair Labor Standards Act of 1938, As Amended (29 U.S.C. 201, et seq.)
The Fair Labor Standards Act establishes the basic minimum wage for all work and requires the payment of overtime at the rate of at least time and one-half for the entire time that an employee is required or permitted to work. It also establishes labor standards for children.
Note: PJs and their partners may be subject to additional state or local labor requirements. If that is the case, the more stringent standards apply.