234
(1) ELIGIBILITY REQUIREMENT.—For an entity 
to be eligible for selection to receive a grant under 
this section, the unit of local government within 
which the eligible entity will carry out the appren-
ticeship program shall establish a apprenticeship ad-
visory board to advise and report regarding activities 
and progress under apprenticeship programs carried 
out within the jurisdiction of such unit. 
(2) MEETING AND REPORTS.—Each apprentice-
ship advisory board shall—
(A) meet not less than 4 times annually; 
and 
(B) submit an annual report to the unit of 
local government, the applicable entity, and the 
Secretary regarding activities and progress 
under apprenticeship programs carried out 
within jurisdiction of such unit. 
(3) MEMBERSHIP.—Each apprenticeship advi-
sory board for a unit of general local government 
shall consist of 15 members, who shall include indi-
viduals who are—
(1) officials of the unit of general local govern-
ment; 
(2) representatives of the faith community;
235
(3) representatives of private entities engaged 
in residential development; 
(4) representatives of private entities engaged 
in residential construction; 
(5) officials or members of labor unions; 
(6) representatives of local social services agen-
cies; 
(7) homeless individuals; 
(8) representatives of organizations involved in 
providing affordable housing and assistance for 
homeless individuals; and 
(9) representatives of academic institutions. 
(g) APPLICATIONS AND SELECTION OF GRANTS.—
(1) IN GENERAL.—To be eligible for selection to 
receive a grant under this section, an entity shall 
submit to the Secretary an application containing—
(A) a description of the job training activi-
ties, work opportunities, and other services that 
will be provided to participants in the appren-
ticeship program; 
(B) a description of the manner in which 
eligible participants will be recruited and se-
lected; 
(C) a description of how the proposed 
project will be coordinated with other Federal,
236
State, and local activities, including vocational 
and job training programs; 
(D) a detailed budget and description of 
the system of fiscal controls and auditing and 
accounting procedures that will be used; 
(E) a description of the membership of ad-
visory board; and 
(F) a description of the capacity of the 
community to leverage funding from other pri-
vate and public sources. 
(2) SELECTION CRITERIA.—The Secretary shall 
select applicants to receive grants under this section 
based upon a selection criteria which shall include 
the following: 
(A) POTENTIAL
FOR
SUCCESS.—The ex-
tent to which the application is likely to suc-
ceed, as indicated by such factors as the past 
experience of an applicant with housing reha-
bilitation or construction, education and em-
ployment training programs, management ca-
pacity, fiscal reliability, and community sup-
port. 
(B) NEED.—To extent to which the appli-
cant has need for assistance, as determined by 
factors such as—
237
(i) the degree of economic distress of 
the community from which participants 
would be recruited, including—
(I) the extent of poverty; 
(II) the extent of unemployment; 
and 
(ii) the degree of economic distress of 
the locality in which the housing would be 
rehabilitated or constructed, including—
(I) objective measures of the inci-
dence of homelessness; 
(II) the relationship between the 
supply of affordable housing for low-
income persons and the number of 
such persons in the locality; 
(III) the extent of housing over-
crowding; and 
(IV) the extent of poverty. 
(C) OTHER.—Any other criteria the Sec-
retary determines to be reasonably appropriate. 
(h) DEFINITIONS.—For purposes of this section, the 
following definitions apply: 
(1) APPLICANT.—The term ‘‘applicant’’ means 
an eligible entity that has submitted an application
238
under section 476 that the Secretary determines 
complies with the requirements under this section. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means—
(A) a public housing agency; 
(B) a labor union; or 
(C) a nonprofit organization that is in-
volved in the development of affordable housing 
(3) EXTREMELY
LOW-INCOME
HOUSEHOLD.—
The term ‘‘extremely low-income household’’ means 
a household, including an individual or family, that 
has an income that does not exceed 30 percent of 
the median family income for the area, as deter-
mined by the Secretary with adjustments for smaller 
and larger families, except that the Secretary may 
establish income ceilings higher or lower than 30 
percent of the median for the area on the basis of 
the Secretary’s findings that such variations are nec-
essary because of prevailing levels of construction 
costs or fair market rents, or unusually high or low 
household incomes. 
(4) LABOR UNION.—The term ‘‘labor union’’ 
has the meaning given the term ‘labor organization’ 
in section 2 of the National Labor Relations Act (29 
U.S.C. 152).
239
(5) 
LOW-INCOME
HOUSEHOLD.—The 
term 
‘‘low-income household’’ means a household, includ-
ing an individual or family, that has an income that 
does not exceed 80 percent of the median family in-
come for the area, as determined by the Secretary 
with adjustments for smaller and larger families, ex-
cept that the Secretary may establish income ceilings 
higher or lower than 80 percent of the median for 
the area on the basis of the Secretary’s findings that 
such variations are necessary because of prevailing 
levels of construction costs or fair market rents, or 
unusually high or low household incomes. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section, $50,000,000 for fiscal year 2004, and 
such sums as may be necessary for each of fiscal years 
2005 through 2008. 
SEC. 707. DAY LABORER FAIRNESS AND PROTECTION. 
(a) FINDINGS.—Congress finds the following: 
(1) According to the General Accounting Office, 
contingent workers comprise approximately 30 per-
cent of the workforce and research indicates that the
240
size of the day labor workforce may be greater than 
nationally available data suggests. 
(2) Employers increasingly rely on contingent 
workers rather than permanent workers. Employers 
benefit from the reduced costs and increased flexi-
bility of utilizing a contingent workforce. This reli-
ance has resulted in a significant decrease in the 
number of workers with health insurance coverage, 
included in retirement and pension plans, and receiv-
ing other employment benefits such as long-term dis-
ability coverage. Contingent workers have lower fam-
ily incomes than those in full-time permanent em-
ployment. Many contingent workers live below the 
Federal poverty line. 
(3) The General Accounting Office has found 
that the day labor workforce is particularly vulner-
able to workplace abuses. Day laborers are subject 
to a wide range of abuses of their civil rights, em-
ployment and labor rights, and health and safety 
rights. Although day laborers and contingent work-
ers face higher incidences of workplace abuse, the 
General Accounting Office has found current prac-
tices and laws make it difficult to detect violations 
affecting contingent workers and day laborers.
241
(4) Wage and hour abuses are of particular 
concern to day laborers. Despite current legal wage 
and hour protections afforded to day laborers, such 
laborers are subject to pervasive wage and hour vio-
lations committed by day labor employers and tem-
porary labor agencies. The short nature of the em-
ployment relationship, multiple barriers to enforce-
ment resources and the lack of strong protective 
wage and hour laws render day laborers particularly 
vulnerable to nonpayment of wages. Wage and hour 
problems confronting day laborers take many forms 
and include: complete nonpayment of wages; pay-
ment of less than the agreed upon rate; payment by 
checks with insufficient funds and late payment of 
wages. Day labor employers often delay payments of 
promised wages until the completion of a job. Upon 
completion, day laborers are commonly left with less 
than promised or a void check. Lack of access to so-
cial and legal services that could assist them in en-
forcing their workplace rights leave few options for 
day laborers seeking to recover unpaid wages. 
(5) Occupational injury and fatality rates for 
day laborers are disproportionately higher than such 
rates for other workers. Desperate for work and 
fearing retaliation, day laborers often risk life and
242
limb without ever reporting work hazards. Day la-
borers are often assigned to the dangerous tasks 
shunned by workers with more options. Employers 
often neglect their duties to provide safe employment 
that is free from hazards to a day laborers’ health. 
Employers regularly fail to provide necessary health 
and safety equipment and training to day laborers. 
Due to the lack of notice requirements, most day la-
borers have no advance warning about possible expo-
sure to hazardous materials or dangerous tasks. 
(6) Day laborers and contingent workers seek-
ing to enforce the employment and labor laws are 
frequently subject to intimidating retaliatory acts by 
the employer. Absent stronger antiretaliation protec-
tions, day laborers will continue to endure dangerous 
and unjust working conditions without recourse. 
(7) Day laborers and contingent workers pro-
vide employers with a flexible workforce and con-
tribute significantly to interstate commerce. Despite 
these contributions, day laborers are routinely sub-
jected to workplace abuse with little or no recourse. 
The growing numbers of day laborers and other con-
tingent workers in the workforce calls for legislative 
reforms that expand and protect the rights of day 
laborers.
243
(b) PURPOSE.—The purpose of this section is to en-
sure that individuals working as day laborers, or tem-
porary workers, are afforded full protection of and access 
to employment and labor laws that ensure workplace dig-
nity and to reduce unfair competitive advantage for firms 
that abuse day laborers. 
(c) DEFINITIONS.—In this section the following defi-
nitions apply: 
(1) DAY LABORER.—The term ‘‘day laborer’’ 
means an individual who is engaged in or waiting to 
be engaged in day labor. 
(2) DAY LABOR.—The term ‘‘day labor’’ means 
labor or employment that is occasional or irregular 
for which an individual is employed for not longer 
than the time period required to complete the as-
signment for which the individual was hired and in 
which wage payments are made directly to the day 
laborer or indirectly by the day labor service agency 
or the third party employer for work undertaken by 
a day laborer. Day labor does not include labor or 
employment of a professional or clerical nature. 
(3) DAY LABOR EMPLOYER.—The term ‘‘day la-
borer employer’’ refers to any person or entity that 
directly or indirectly, through an agent, day labor 
service agency or any other entity acting in the em-
244
ployer’s interest, engages, suffers or permits a day 
laborer to work or otherwise has the right to exercise 
control over the wages, hours or working conditions 
of a day laborer. The term includes day labor service 
agencies and third party employers as defined in this 
section. 
(4) DAY LABORER SHAPE-UP SITE.—The term 
‘‘day laborer shape-up site’’ means any public area 
or street corner, residential or commercial, where 
day laborers assemble to seek employment. 
(5) DAY
LABORER
HIRING
SITE.—The term 
‘‘day laborer hiring site’’ refers to any program 
sponsored by a public entity or nonprofit organiza-
tion that provides a space for day laborers to assem-
ble for work and participate in skills development 
workshops and classes. For the purposes of this sec-
tion, day laborer hiring sites are not day labor em-
ployers. 
(6) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Labor. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(8) REGULAR RATE OF PAY.—The term ‘‘reg-
ular rate of pay’’ means an hourly wage rate agreed 
to by the day labor employer and day laborer. If a
245
daily rate is negotiated, the regular rate of pay shall 
be calculated by dividing the total remuneration 
agreed upon for 1 week by 40. On jobs that require 
prevailing wage rates, the regular rate of pay shall 
be the prevailing wage or wage agreed to by the day 
laborer employer and day laborer, whichever is high-
er. In no circumstances shall the regular rate of pay 
be less than that required by law. 
(9) DAY LABOR SERVICE AGENCY.—The term 
‘‘day labor service agency’’ means any person or en-
tity that recruits, dispatches, or otherwise facilitates 
the employment of day laborers by a third party em-
ployer. A day labor service agency is a day labor em-
ployer and shares all legal obligations placed on a 
day labor employer by this section. A not-for-profit 
organization is not a day labor service agency. 
(10) WORKDAY AND DAY.—The terms ‘‘work-
day’’ and ‘‘day’’ mean any consecutive 24 hours pe-
riod beginning at the same time each calendar day. 
(11) THIRD
PARTY
EMPLOYER.—The term 
‘‘third party employer’’ refers to a person or entity 
that suffers or permits a day laborer to work by con-
tracting with a day labor service agency. Third party 
employers are day labor employers and share all 
legal obligations placed on day labor employers.
246
(d) SUSTAINABLE WAGES.—
(1) SUSTAINABLE WAGE.—A day laborer shall 
be paid not less than the equivalent of the prevailing 
wage rate paid to permanent employees who are per-
forming substantially equivalent work, with due con-
sideration given to seniority, experience, and skills. 
(2) NOTICE OF WAGE RATE.—Day labor em-
ployers shall provide notice of the wage rate ex-
pected to be paid to each day laborer. A day labor 
service agency shall provide notice of the wage rate 
expected to be paid by each third party employer 
using the services of the agency. A day laborer shall 
be paid by a third party employer not less than the 
wage rate stated in the notice of the agency for all 
work performed for the third party employer, includ-
ing work contained in the description issued under 
subsection (g). 
(3) WAGE REDUCTION.—Day labor employers 
are prohibited from reducing the wage rate of any 
permanent full time employee in order to comply 
with paragraph (1) or (2). 
(4) OVERTIME.—A day laborer shall be com-
pensated at a rate of 1 and one-half times the reg-
ular rate of pay for each hour worked beyond 8 
hours up to and including 12 hours in a workday,
247
and for the first 8 hours worked on the seventh con-
secutive day of work in a work week. 
(5) DAILY OVERTIME.—Day laborers are enti-
tled to double the regular rate of pay for all hours 
worked in excess of 12 hours in any workday and for 
all hours worked in excess of 8 hours on the seventh 
consecutive day of work in a work week. 
(6) MINIMUM DAILY RATE.—A day laborer per-
forming day labor shall be compensated for not less 
than 4 hours of work for each day worked. 
(7) CALL IN PAY.—If the day labor employer 
fails to appear after requesting a day laborer’s serv-
ices at a designated time and location, the day la-
borer shall be compensated for not less than 4 hours 
at the regular rate of pay. 
(8) WAIT TIME.—If a day laborer arrives for 
employment at the request of a day labor employer, 
time spent waiting for the employer is wait time 
compensable at the regular rate of pay. 
(9) REDUCTION OF SALARY.—If a day labor 
employer has offered and a day laborer has accepted 
a wage rate, the day labor employer cannot reduce 
that negotiated salary during that day of employ-
ment.
248
(10) TRAVEL TIME.—Day laborers are to be 
compensated for travel time if such activity is an in-
tegral and indispensable part of the principal activi-
ties that the workers are employed to perform. For 
the purposes of this section, time spent traveling 
from a day labor shape-up site, day labor hiring site, 
or day labor service agency to the worksite shall be 
compensable at the regular rate of pay. 
(11) AGENCY PROCESSING DELAY.—
(A) IN GENERAL.—If a day labor service 
agency expends more than 30 minutes in proc-
essing a day laborer’s work assignment, the day 
labor service agency shall pay the day laborer 
for any additional waiting time at the regular 
rate of pay. 
(B) LIMITATION.—The time spent in tran-
sit to or from the designated worksite or to or 
from the day labor service agency shall not be 
included in computing processing time. 
(e) OTHER RIGHTS OF DAY LABORERS.—
(1) PUBLIC
ACCESS
AREA.—Each day labor 
service agency shall provide adequate seating in the 
public access area of the offices of the agency. Em-
ployment and wage notices required by this section 
shall be posted in the public access area. The public
249
access area shall allow for access to restrooms and 
water. 
(2) WORK RESTRICTION.—No day labor service 
agency shall restrict the right of a day laborer to ac-
cept a permanent position with a third party em-
ployer to whom the day laborer has been referred for 
temporary work or restrict the right of such third 
party employer to offer such employment to a day 
laborer. This paragraph shall be understood to out-
law the charging of fines or additional amounts for 
making or accepting an offer of employment. 
(3) BREAKS AND MEALS.—For each 4-hour pe-
riod of uninterrupted day labor, a 15-minute com-
pensated break shall be provided. For periods of un-
interrupted day labor lasting longer than 6 hours, a 
30-minute compensated lunch period shall be pro-
vided. 
(4) DISCLOSURE
OF
EMPLOYER
INFORMA-
TION.—At the time of hire, a day labor employer 
must provide a day laborer with the day labor em-
ployers’ phone number and business address. 
(5) TRANSPORTATION
BACK
TO
POINT
OF 
HIRE.—Unless the day laborer requests otherwise, 
the day labor employer shall provide transportation
250
back to the point of hire at the end of each work 
day. 
(6) TRANSPORTATION FEES.—Day labor service 
agencies, third party employers and day laborer em-
ployers shall not charge a day laborer for the costs 
of transportation to and from the premises of the 
day labor agency, day laborer shape-up site, or day 
laborer hiring site to the worksite. 
(7) PAYMENTS.—
(A) IN GENERAL.—At the time of the pay-
ment of wages, a day labor service agency shall 
provide each day laborer with an itemized state-
ment showing in detail each deduction made 
from the wages. 
(B) ANNUAL
STATEMENT.—A day labor 
service agency shall provide each worker an an-
nual earnings summary within a reasonable 
time after the preceding calendar year, but in 
no case later than February 1. A day labor 
service agency shall, at the time of each wage 
payment, give notice to day laborers of the 
availability of the annual earnings summary or 
post such a notice in a conspicuous place in the 
public reception area.
251
(C) PAYMENT SCHEDULES.— At the re-
quest of a day laborer, a day labor service agen-
cy or day labor employer shall hold the daily 
wages of the day laborer and make either week-
ly or semimonthly payments. The wages shall 
be paid in a single check representing the wages 
earned during the period for which wage pay-
ments are to be made, as designated by the day 
laborer. A day labor service agency or day labor 
employer that makes daily wage payments shall 
provide written notification to all day laborers 
of the right to request weekly or semimonthly 
checks. The day laborer service agency may 
provide such notice by conspicuously posting 
the notice at the location where the wages are 
received by the day laborers. 
(D) DAILY WAGES.—If day labor employ-
ment lasts less than 1 week wages shall be paid 
at the end of each workday. 
(E) CHECK CASHING.—A day labor service 
agency, day labor employer, or third party em-
ployer may not directly or indirectly charge any 
day laborer for cashing a check issued by the 
day labor service agency, day labor employer, or 
third party employer for wages earned by a day
252
laborer who performed work through that day 
labor service agency, day labor employer or 
third party employer. 
(F) OVERPAYMENT.—A day laborer shall 
not be charged fees for overpayment by the day 
labor agency. 
(G) NEGOTIABLE
TENDER.—All noncash 
wage payments shall be in the form of imme-
diately negotiable tender payable in cash, on de-
mand at a financial institution, and without dis-
count. 
(H) PAYMENT BY CHECK.—If a day labor 
service agency or day labor employer pays by 
check, that check shall be immediately redeem-
able. 
(I) 
PAYMENT
ON
TERMINATION.—All 
wages must be paid within 72 hours of termi-
nation. 
(J) PLACE
OF
PAYMENT
ON
TERMI-
NATION.—Upon termination, a day laborer may 
choose to be paid either at the worksite, the day 
labor site, or the day labor service agency. A 
day laborer may also request that the check be 
sent by first class mail. Unless the day laborer