Davis Bacon Wage Surveys Set for Change
The Davis Bacon Act wage survey and determination procedures are subject to improvements under a new Labor Department reengineering plan announced May 5, 1998. While still in the early stages, the full scope of changes under consideration would go a long way in addressing both the industry's and public policy makers' acknowledged need to update the 1931 law to address current workforce needs. The primary elements of the planned reengineering include the following changes:
- Survey Form Simplification The DOL Wage and Hour Division is considering simplifying the wage survey form (WD-10) to allow reporting of total hours worked by trade classification on a project-by-project basis in addition to or in place of the current confusing "peak week" reporting period which is widely acknowledged to be not only time consuming but also the source of a high percentage of reporting errors. While DOL has not finally decided on this improvement, the Alliance partners, MCAA, NECA and SMACNA, have been and will continue to press for and comment on the substantial paperwork reduction and increased accuracy of total hours reporting as compared with "peak week" research. Labor Department officials announced that final changes to the WD-10 form will be decided in the next few months, and then submitted for paperwork assessment by the Office of Management and Budget by the end of the year. See the Internet (construction alliance.org) for copies of comments by the Alliance to the Labor Department suggesting changes in the wage survey process.
- Greater Electronic Data Processing Other changes under consideration include electronic access to wage and hour forms, schedules and instructions. (The Wage and Hour Division now has a "Davis Bacon & Related Acts" website at: http://www.dol.gov/dol/esa/public/ programs/dbra/index.html.) Moreover, DOL is considering computer scanning of survey responses, computer analysis of data, and eventual electronic filing of survey responses. Again, the Alliance is considering ways to use each association's sophisticated computer network to support the DOL efforts.
- Greater Industry Outreach Finally, DOL announced an ambitious plan to consider whether the agency could leverage all these changes to allow it to conduct wage surveys and issue wage determinations in one-third of the states each year, achieving a three-year nationwide wage survey schedule. Overall, DOL's main goals are to increase participation in the wage determination process, gain more accurate data and issue timely wage determination. To further this goal, DOL is considering much broader outreach to industry groups on a state-by-state basis.
- Oregon Test Program The full scope of the DOL changes under consideration were announced in relation to a test pilot program to be conducted in Oregon beginning later this month. Choosing Oregon as the "test bed" for evaluating the feasibility of many of the larger reengineering goals, DOL officials detailed the statewide wage survey that will begin there in late May, as follows.
- Use Of Unemployment Data The Oregon survey is to be virtually universal, with some 24,000 construction industry employers set to receive survey forms in late May. The list was compiled using state unemployment compensation reports, which permit a very comprehensive survey mailing (not all state permit use of unemployment data in this way).
- Census Bureau Assistance To help with the extraordinary volume of the mailing, DOL has entered into a Memorandum of Understanding with the Census Bureau to gain their assistance in mailing the survey and various follow-up correspondence. (The mailing response forms are bar coded so those who respond can be taken off the list for subsequent mailings.)
- Statewide Outreach DOL already has been involved in comprehensive statewide industry outreach in Oregon contacting employers, state officials, and third parties involved in the process, including employer associations and labor unions. The DOL process used in Oregon is to be the "test bed" for the comprehensive industry outreach, which ultimately aims to achieve greater participation, with simplified reporting, and therefore greater accuracy in the ultimate wage determinations.
- Verification Remains Intact DOL officials noted that recently adopted verification procedures will be applied in the Oregon survey. Under these new procedures, some 10% of employer responses are randomly selected for audit and on-site verification. Third party submissions are subject to phone check and letter verification. Labor Department officials noted that the on-site verification results this past year continue to reflect findings similar to those issued by DOL's Inspector General last year: that is, the "peak week" requirements are confusing and lead to a high percentage of the errors found yet, the mistakes themselves do not lead to a high percentage of erroneous wage determinations.
- Future Plans DOL also announced its "business process model" tested in Oregon also may include greater outreach in other states to a broader range of industry shareholders, including codes and permits officials and groups, public policy and government financial officials, and financial reporting groups.
- BLS Tests on Parallel Track Finally, Wage and Hour officials acknowledged that the Bureau of Labor Statistics (BLS) also is considering pilot changes to two of its separate wage and benefit surveys Occupational Employment Statistics (OES) and National Compensation Survey (NCS) to see if these surveys can provide usable data suitable to serve as the primary basis for Davis-Bacon wage determinations. Officials noted that that assessment may eventually serve as an alternative option to the reengineering plan or as a supplement to the Wage and Hour program.
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