Compliance concerns can make bidding on prevailing wage projects feel overwhelming. For over 35 years, Beneco has partnered with prevailing wage contractors, helping them navigate the complexities and build their businesses. We understand the challenges you face because we’ve heard it all.

To help you stay ahead, we’ve compiled answers to some of the most common compliance questions.

What projects fall under prevailing wage guidelines?

Any federally funded construction project exceeding $2,000 is subject to the federal Davis-Bacon Act. Many states also have their own prevailing wage laws, often called “Little Davis-Bacon Acts,” which apply to state or locally funded public works projects. It’s crucial to know the specific requirements for your project’s location and funding source.

Which employees must receive prevailing wage rates?

All laborers and mechanics working directly on the site of a qualifying project must be paid prevailing wages. This rule applies to any employee whose duties are manual or physical in nature, including those working for subcontractors.

Do I have to process payroll weekly?

Yes, for federally funded projects under the Davis-Bacon Act, payroll must be processed and paid on a weekly basis. State laws may have different requirements, so always verify local regulations.

Is certified payroll required?

Certified payroll is a non-negotiable requirement for all federally funded projects. Most state prevailing wage laws also mandate the submission of certified payroll reports, which confirm that you have paid your workers the correct rates for the hours they worked.

How are prevailing wage rates established?

Prevailing wage rates are set by the Department of Labor (DOL) and are based on what is determined to be the prevailing pay for a specific type of work in a given location. The DOL conducts surveys of wages and benefits paid to workers on similar projects in the area.

Where can I find local prevailing wage rates?

The official source for all Davis-Bacon wage determinations is the System for Award Management website, SAM.gov. For state-level projects, you will need to check with the state’s department of labor or equivalent agency. It is the contracting agency’s responsibility to include the correct, up-to-date wage determination in the contract documents.

How can I pay the fringe portion of the prevailing wage?

The fringe portion can be paid as additional cash wages, contributed to a “bona fide” fringe benefit plan, or a combination of both. Creditable fringe benefits can include contributions to health insurance, retirement plans like a 401(k), vacation and holiday pay, and qualified apprenticeship training programs. Structuring these benefits correctly is key to optimizing your bids and ensuring compliance.

How is overtime calculated on prevailing wage jobs?

Overtime must be paid for all hours worked over 40 in a week. While the base hourly rate is paid at time and a half, fringe benefits contributed to a bona fide benefit plan do not need to be factored into the overtime calculation. This means you only pay the fringe portion at the straight-time rate for all hours worked, including overtime. This distinction can lead to significant cost savings when managed properly.

We Build for You, So You Can Build Our Country

Navigating prevailing wage requirements is complex, but you don’t have to do it alone. The benefits needs of contractors are unique, and we have focused on one thing for nearly four decades: building prevailing wage solutions that address the specific challenges and opportunities you face.

If you are uncertain about your compliance or have questions about state-specific rules, contact the Beneco team. We’re here to provide the support you need. Let us handle the complexities of benefits administration so you can focus on what you do best: building our country.