Prevailing wage is imposed when: 1. A state, municipal, or local agency administers public funds for works of improvement which exceed $1,000; or, 2. Certain lease arrangements where a building is privately owned, and: A. A public entity leases 50% of the space in the building before construction begins; OR B. The building is built […]
Category Archives: Compliance Tips and Tricks
Federal Davis-Bacon Requirements: Mixed Funding Projects
A pure Davis-Bacon project is easy to spot because the main contract is between the prime contractor and the U.S. Department of XXXX. The work is performed on a military base (Department of Defense), for a federal penitentiary or courthouse (Department of Justice), the U.S. Post Office, or The Army Corp of Engineers, etc. Prevailing wage gets […]
Federal Davis-Bacon Requirements: Withholding and Debarment
A prime contractor is ALWAYS the guarantor of prevailing wages due to a worker on a project. That means if your subcontractor goes out of business, leaves the country or just flat does not pay his/her workers the correct prevailing wage rate, the prime contractor will be responsible to see that those wages are paid. Whether or […]
Federal Davis-Bacon Requirements: Statute of Limitations & Burden of Proof
The time period when a claim can be made against a contractor for unpaid wages is generally 2 years, 3 years if the violation is found to be willful. It is recommended that contractors keep all certified payrolls and related documents for at least three years from the completion of the project. In any investigation relating to […]
Federal Davis-Bacon Requirements: Trainees & Helpers
Unless the specific Davis-Bacon wage classification recognizes a Trainee or Helper as one of the specified classifications, then a contractor may not pay workers less than the specified prevailing wage rate for the classification of worker. Persons registered and receiving on-the-job training in a construction occupation under a program that has been approved in advance by DOL’s Employment […]
Federal Davis-Bacon Requirements: Apprentices
A contractor may employ apprentices and pay the applicable apprenticeship rate only for those individuals who are properly enrolled in a Bureau of Apprenticeship Training (BAT) program. The BAT may have agreements with various state apprenticeship agencies so that many (but not all) apprenticeship programs have both BAT and local state approval. Only those workers […]
Federal Davis-Bacon Requirements: Electronic Payroll Reporting & Posters
The Department of Labor (DOL) does accept the electronic submission of certified payrolls. There are several services available whereby a contractor may complete certified payroll through a web-based program and have the information submitted electronically to the agency. The “electronic signature” is accepted for the purposes of “certifying the payroll”. WH-347 forms can also be […]
Federal Davis-Bacon Requirements: Health Benefits
It is important to understand that the payment of benefits from Davis-Bacon wages may not pay for benefits covering non Davis-Bacon hours. One cannot use Davis Bacon the “fringe benefit” amount set forth in the Davis Bacon wage determination to pay for an employee’s entire month of healthcare, when the employee also works on many non-prevailing wage projects. […]
Federal Davis-Bacon Requirements: Wages, Fringe Benefits, Overtime, Holidays, Subsistence and Special Conditions
Federal Davis-Bacon Rates typically set forth a Wage Rate and a fringe Benefit Rate for each classification. The contractor MUST pay NOT LESS than the total of the wage and fringe benefit amount either to the employee or “for the benefit of the employee” Fringe benefits must be made irrevocably for the benefit of the […]
Federal Davis-Bacon Requirements: Who is Covered – Truck Drivers
Truck Drivers and the transportation of goods and materials to and from a job site is often a subject that confuses many contractors. The following guidelines for truck drivers and when Davis-Bacon rates apply is quoted directly from the Davis-Bacon Field Operation Manual: 1. Truck drivers employed by a construction prime contractor or subcontractor to […]