Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Program Services Announcements

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.

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.  The penalty for this infraction has increased from $10 to $25 per day per event (per worker) effective August 1, 2016.  The new law allows adjustments for inflation each year in January.

Contract Work Hours and Safety Standards Act (CWHSSA) Summary of 2016 Change

Type of Violation:  (1) Failure to pay laborers and mechanics at a rate not less than one and one-half times their basic rate of pay
Statutory Citation:  40 USC 3702(c)
CFR Citation:  29 CFR 5.8(a) and 29 CFR 5.5(b)(2)
Maximum Civil Monetary Penalty before 8/1/2016:  $10
Maximum Civil Monetary Penalty after 8/1/2016:  $25

For more information on the adjustment law and rules, please go to www.dol.gov/whd/resources/cmp.htm.

Section 3 Business Registry

HUD encourages recipients, subrecipients, contractors, and eligible small businesses to use the Section 3 business registry. https://portalapps.hud.gov/Sec3BusReg/BRegistry/BRegistryHome