Davis-Bacon Labor Standards
HUD-Community Planning & Development (CPD) Programs
Certain projects funded by HUD must comply with Fair Labor Standards. The Department of Labor (DOL.gov) has published rules and regulations concerning Davis-Bacon and other labor laws in the Wage and Hour Division (WHD) Handy Reference Guide to the Fair Labor Standards Act (DOL.gov). These regulations ensure that mechanics and laborers employed by construction work under federally-assisted contracts are paid wages and fringe benefits equal to those that prevail in the locality where the work is performed. Davis-Bacon wage rates apply to HUD-funded projects because of labor provisions contained in Federal Labor Standards Requirements in Housing and Community Development Programs (HUD.gov) such as the U.S. Housing Act of 1937, the National Housing Act, the Housing and Community Development Act of 1974, the National Affordable Housing Act of 1990, and the Native American Housing Assistance and Self-Determination Act of 1996.
Davis-Bacon and Related Acts
Covered HUD-Community Planning & Development (CPD) Programs
- The liquidated damages penalty pay mandate under the Contract Work Hours Safety Standards Act (CWHSSA) increased from $27 to $29 effective January 16, 2022.
- HOME – HOME Investment Partnerships Program (www.hud.gov/cpd)
- HOME–ARP – HOME American Rescue Plan Program (https://www.hudexchange.info/programs/home-arp/)
- NSP – Neighborhood Stabilization Program (www.hudexchange.info/nsp/)
- Section 811 Project Rental Assistance (PRA) follows HOME Program Labor Standards, see Section 811 PRA - Resource Documents, Cooperative Agreement Documents, Exhibit 5 of the Cooperative Agreement – § PRA.213 Davis Bacon Labor Standards (PDF p. 6)
TDHCA Davis-Bacon Compliance Mandates for Subrecipients
These compliance procedures apply to all HUD-funded projects.
- Labor Standards Officer (LSO) – Project owner must appoint an individual responsible for administrative and on-site labor standards compliance. An LSO must not be an employee of or paid by the contracted construction company.
- Preconstruction Conference – Project LSO, prime contractor and owner or owner representative must participate in TDHCA-sponsored discussion about labor standards
- Notice to Proceed – TDHCA issues this to subrecipient, owner or owner representative upon receiving all required documentation, to enforce Davis-Bacon prevailing wage mandates and to authorize rehab or construction work to begin.
Labor Standards CWHSSA Liquidated Damages
Penalty increases for failure to pay overtime wage rate. The change affects the Contract Work Hours and Safety Standards Act (CWHSSA) under The Federal Civil Penalties Inflation Adjustment Act Improvements Act enacted in 2015. The law allows adjustments for inflation each year in January.
CWHSSA (29 CFR 5.8) falls under the umbrella of the Davis Bacon and Related Acts (DBRA) labor laws that apply to TDHCA federally funded projects that are subject to comply with DBRA.
The CWHSSA “liquidated damages” penalizes employers for failing to pay laborers and mechanics overtime hours (exceeding 40 per week), at a rate not less than one and one-half times their basic rate. Agencies across the federal government must adjust penalties for inflation each year. For more information on the penalty adjustments that occur annually each January under this statute, please go to https://www.dol.gov/whd/govcontracts/cwhssa.htm.
Federal Agency Support
- US Department of Labor (DOL)
- Housing Urban Development (HUD) – Labor Standards Websites
TDHCA Resources
- Davis-Bacon – Labor Standards Guide (PDF) (updated March 2023)
- Pre-Construction Conference Guide (DOCX) (updated March 2023)
