Finding 959141 (2023-008)

Labor Standards Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants ALN 14.228 Fiscal year finding initially occurred: 2023 CONDITION: Payroll deduction authorization forms were not available for review with regard to eight contractor employees for the LCDBG Grant project. CRITERIA: Federal law, 29 CFR 3.5, states in part, that deductions are permitted when “…(2)(i) Voluntarily consented to by the employee in writing…” “Payroll deduction authorization forms must be utilized when “other deductions not required by law are made.” CAUSE: Contractor failed to submit the authorization forms to the City timely. EFFECT: Payroll deductions may be incurred without proper authorization from employees. RECOMMENDATION: The City must ensure that all “other deductions” withheld from payroll by contractor for an employee has the proper authorization currently and for any future LCDBG program projects.