
Prevailing Wage and Davis-Bacon Compliance in Massachusetts
Components of Wage Determinations
Both state and federal wage determinations in Massachusetts include the following components:
- Basic Hourly Rate: The minimum wage paid directly to workers for each hour worked.
- Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation pay.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits. For example, if the basic hourly wage is $30 and the fringe benefits are valued at $7, the total hourly rate would be $37. The contractor must pay $37 wages if no fringe benefits are provided.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in Massachusetts must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
For federal projects, use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal via SAM.gov.
For state projects, the wage rates are provided by the Massachusetts Department of Labor Standards (DLS).
Submit Certified Payroll Reports
Submit Certified Payroll Reports
For federal projects, use the U.S. Department of Labor's Form WH-347.
For state projects, submit the reports to the Massachusetts Department of Labor Standards (DLS).
Handle Fringe Benefits
Handle Fringe Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Accurate Records
Maintain Accurate Records
Penalties for Non-Compliance
Failure to comply with either the Massachusetts Prevailing Wage Law or the Davis-Bacon Act may result in penalties, including:
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Fines
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Back pay for underpaid workers
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Disqualification from future public works contracts
Unique Aspects of Massachusetts's Prevailing Wage System
- Expanded Coverage to Non-Construction Services: Massachusetts' prevailing wage law includes specific construction work, such as moving services for public facilities, which is uncommon in many other states.
- Charter School Project Coverage: Prevailing wages are required for charter school construction projects, extending the law to these publicly funded schools.
- Local Submission of Payroll Reports: Contractors must submit certified payroll reports to the local awarding authority, allowing for more direct, local oversight of wage compliance.
Relevant Resources
- U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
- Massachusetts Department of Labor Standards (DLS): Prevailing Wage Information
- Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
Massachusetts Prevailing Wage FAQs
Does Massachusetts have a state-specific prevailing wage law?
Yes, Massachusetts has a prevailing wage law that applies to state-funded public works projects. Contractors on these projects must pay workers at least the prevailing wage rates set by the Massachusetts Department of Labor Standards (DLS). For federally funded projects, the Davis-Bacon Act applies.
How are prevailing wage rates determined in Massachusetts?
For state-funded projects, the Massachusetts Department of Labor Standards (DLS) determines prevailing wage rates based on collective bargaining agreements and local wage data. For federally funded projects, the U.S. Department of Labor sets prevailing wage rates through local wage surveys.
What are the penalties for non-compliance with prevailing wage laws in Massachusetts?
Penalties for non-compliance with Massachusetts' prevailing wage law can be significant. Contractors may be required to provide back pay to workers who were underpaid. Additionally, they may face fines for failing to adhere to wage regulations. In cases of serious or repeated violations, contractors risk debarment, which prevents them from bidding on future public works contracts.
How are fringe benefits handled under Massachusetts prevailing wage laws?
Fringe benefits are part of the total prevailing wage. Contractors can provide fringe benefits like health insurance or retirement plans, or they can pay the equivalent value in cash. If no fringe benefits are provided, the contractor must pay the full total wage (basic hourly rate + fringe benefits) as cash wages to the worker.