July 10, 1992
Subject: Submission requirements for §5.7 Labor Standards
Enforcement Reports (Davis-Bacon and Related Acts)
U. S. Department of Labor (DOL) Regulations (29 CFR 5.7) require
Federal agencies to submit a report to the Secretary of Labor on
all enforcement actions where underpayments by a contractor or subcontractor
total $1,000 or more, or where there is reason to believe
that the violations are aggravated or willful. These reports must
be furnished to the DOL within 60 days after the completion of the
investigation. (Note that the $1,000 threshold refers to the underpayments
of a single employer to his/her entire workforce and not
to individual employees.)
HUD Handbook 1344.1 (REV-1, CHG-1) separates the reports into two
categories: those which may be submitted to the DOL by the HUD Regional
Labor Relations Officer and those that must be submitted through
Headquarters. The reporting distinction is made based upon three
criteria. A report may be submitted directly to the DOL by the Regional
Office if the following conditions exist:
1) There is no reason to believe that the violations were aggravated
or willful; and
2) Full restitution and required payments (e.g., liquidated damages)
have been made; and
3) No further action (e.g., debarment) is recommended.
Where the Regional Office submits the report directly to the DOL,
a copy of the report must be provided to Headquarters Labor Relations.
In all other cases, the report must be submitted to the DOL
through Headquarters Labor Relations. (See Handbook, Chapter 6,
Reports.) Note that all referrals for §5.11(b)
hearings, all recommendations for debarment, and all
referrals for decisions concerning the assessment of liquidated
damages for CWHSSA overtime violations must be accompanied
by a detailed §5.7 report.
Contracting agencies (e.g., PHAs, CDBG recipients, etc.) are also
required to submit reports of enforcement activity [see Handbook,
Chapter 3, 3-4(g)]. Enforcement reports from contracting agencies
must be forwarded to the DOL through HUD in accordance with
these guidelines. This requirement should be discussed during training
sessions and made a part of routine technical assistance.
of the Report
DOL regulations require submission of enforcement reports within
60 days after the completion of the investigation. "Investigation"
for the purpose of this discussion is broadly defined as ranging
from routine payroll reviews to "full-scale" investigations.
Additionally, in this use "investigation" is meant to
include all actions taken by the agency or contractor toward disposition
of the case including settlement by restitution or refusal to pay
and/or a request for a hearing under §5.11(b). Therefore, the
§5.7 enforcement report should not be prepared until after
final disposition at the local level (e.g., restitution, request
for a hearing, request for a waiver or reduction of CWHSSA liquidated
damages) has been reached. It is not necessary, however, to wait
until all of the underpaid workers are located or until disbursement
is completed to prepare the report.
Where the report must be submitted to the DOL through Headquarters,
the Regional Office must furnish the report to this office (Headquarters)
sufficiently in advance of the due date to ensure timely submission
to the DOL (i.e., within 60 days after completion of the investigation).
Consequently, these reports must be received in this office not
later than forty-five (45) days after completion of the investigation
which will allow fifteen (15) days for Headquarters review and transmittal
to DOL. (See also Handbook, Chapter 4, HUD Labor Standards Investigations.)
of the Report
The amount of detail needed in the report and any exhibits is directly
related to the purpose the report will serve. Each report should
contain basic coverage information, a description of the violation(s),
and the disposition of the case, and must be accompanied by a schedule
of the wages found due. A report submitted directly to the DOL by
the Regional Office (i.e., where restitution has been paid, and
there is no evidence of willful or aggravated action with respect
to the violations, and no administrative sanctions are recommended)
can be brief. Reports that refer a request for a hearing or that
recommend debarment must be much more detailed in narrative and
must be accompanied by exhibits which, together, are sufficient
to substantiate the violations and document the investigative actions
of the agency. Judgment must be used to determine the amount of
detail and documentation that is appropriate in each case.
A sample format for §5.7 labor standards enforcement reports
is attached. The basic format should be adequate in most cases where
restitution has been paid and no further administrative action is
recommended. Modifications may be made to appropriately reflect
the circumstances of specific cases. The format will need to be
expanded where a more detailed report is required (e.g., debarment
recommendations, §5.11(b) hearing requests).
The LRAP software currently in development is expected to contain
an enforcement report component. If necessary, the instructions
contained in this Letter will be modified to ensure consistency.
Section 5.7 Enforcement
to OLR letters