Compliance Concerns with Prevailing Wage

Compliance concerns with Prevailing Wage


Are compliance concerns keeping you from bidding on prevailing wage projects or stressing you out on the jobs that you win? Beneco has been helping prevailing wage contractors for over 35 years, and we’ve heard it all. Here are some of the most frequently asked compliance questions we get:

What projects fall under prevailing wage guidelines? All federally funded construction projects over $2,000 are subject to the federal Davis-Bacon Act. Several states have their own prevailing wage laws that must be followed for locally-funded construction projects.

How often do I have to process payroll on prevailing wage projects? On federally funded projects, payroll must be paid on a weekly basis.

Which employees need to be paid prevailing wage rates? All laborers and mechanics on qualifying projects whose duties are manual or physical in nature must be paid prevailing wages.

Do I need to submit certified payroll? Yes, all federally funded projects and most state prevailing wage laws also require you to submit certified payroll.

How are prevailing wage rates established? Prevailing wage rates are determined by annual prevailing wage rate surveys that are issued to registered contractors, associations, and labor organizations.

Where do I find my local prevailing wage rates? All wage determinations are posted on the Department of Labor website.

What are the approved methods of paying fringe dollars to my employees? The fringe portion of the prevailing wage can be comprised of any combination of cash wages and creditable “bona fide” fringe benefits, including retirement, health & welfare, vacation & holiday, and qualified apprenticeship plan.

How do I calculate overtime? Fringe benefits must be paid for all hours worked, including overtime hours. However, fringe dollars paid to a bona fide benefit plan do not need to be paid at time and a half.

We know prevailing wage can be overwhelming and we’re here to help! If you’re uncertain if your plan is in compliance, or have state-specific questions, reach out to us.