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Labor Standards

Federal labor standards known as the Davis-Bacon and Related Acts (DBRA), apply to HUD-funded projects based on criteria established for each HUD program. For the HOME Program, the DBRA apply to contracts for construction that cover 12 or more HOME-assisted units. For the 542(c) Risk Sharing Program, the DBRA apply if all of the following conditions are met: a) advances for the project are insured under this part; b) the project involves new construction or substantial rehabilitation; and, c) the project will contain 12 or more dwelling units.

When DBRA requirements are triggered for any HUD program, they apply not only to the HUD-assisted units but to all units on the project including market rate units. Contractors and subcontractors on DBRA-covered projects must pay the laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefit -as determined by the U.S. Department of Labor. They must submit weekly certified payroll reports. 

The Davis-Bacon Act requires locally prevailing wages to be paid to laborers and mechanics. The "Related Acts" are: 1) the Contract Work Hours and Safety Standards Act (CWHSSA), which requires time-and-a-half pay for overtime hours (over 40 in any workweek) worked on a covered project; 2) the Copeland Act, which makes it a crime to require employees to kickback any part of their wages; and 3) the Fair Labor Standards Act (FLSA), which contains federal minimum-wage rates, overtime and child labor requirements.

Developers, owners, and/or general contractors on DBRA-covered projects should utilize the fact sheet and manual below. Contact MFA's Labor Standards Officer, listed in the tab below, early in the development process in order to ensure compliance.

Fact Sheet

DBRA Applicability and Requirements


Manual

Labor Standards Compliance Manual

Davis-Bacon Contract Provisions (HUD 4010)

Poster for Display at Construction Site

Poster for Display at Construction Site (spanish)

Start of Work Notice

Termination of Work Notice

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