Section 8.8 Enforcement Reports

Grant Administration: Section 8.8 Enforcement Reports

The U.S. Department of Labor regulations require all agencies administering labor standards to submit two reports. CDFA coordinates the submission of those reports for CDBG grantees.

• Section 5.7 Enforcement Report: DOL requires a report regarding all enforcement actions where underpayments by a contractor or subcontractor occurred in excess of $1,000 or where there is reason to believe that the violations were willful. Grantees, generally the LSO, must prepare and submit such reports called Section 5.7 Enforcement Reports to CDFA to then be forwarded to HUD. The Section 5.7 Enforcement Report should be submitted after completing an investigation and after final disposition is reached at the local level. An example report and the instructions for filling out the report itself can be found in Attachment 8-15: Section 5.7 Enforcement Report.
• Semi-Annual Labor Standards Enforcement Report: All enforcement activities, including any activities described in a Section 5.7 Enforcement Report AND enforcement activities that did not reach the threshold requiring a Section 5.7 Enforcement Report are listed and summarized in the semi-annual report. This report also lists all contracts that were issued during the six-month reporting period that are subject to Davis-Bacon wage decisions. This semi-annual report is sent to CDFA.  Attachment 8-16: Semi-Annual Labor Standards Enforcement Report (HUD Form 4710) contains the Semi-Annual Labor Standards Enforcement Report (HUD Form 4710).

Labor standards reporting requirements are also referenced in Chapter 11: Reporting and Recordkeeping.

Liquidated Damages for Overtime Violations
As mentioned previously, failure to pay workers at least time and a half whenever overtime violates the Contract Work Hours and Safety Standards Act (more than 40 hours per week) makes the contractor liable for liquidated damages of $27 per day (updated annually) for every day each worker exceeded 40 hours a week without being paid time and a half. Grantees should contact their CDFA staff for assistance if a violation occurs. See the web link for current CWHSS penalty amount.
CWHSS Liquidated Damages Penalty