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Prevailing Wage and Davis-Bacon Compliance in Alabama

Construction workers applying asphalt on a road surface with shovels and heavy machinery nearby.

Historic courthouse with clock tower amid modern skyscrapers and blue sky.

Alabama's Public Works Regulations

Unlike some states, Alabama has no state-specific prevailing wage law. However, public works projects in Alabama are subject to federal regulations when federal funding is involved:

Federal Law: The Davis-Bacon and Related Acts (DBRA) apply to federally funded or assisted construction projects in Alabama.
State Law: Alabama does not have a "Little Davis-Bacon Act" or state-specific prevailing wage law.

The Alabama Department of Labor (ADOL) oversees labor regulations in the state but does not set or enforce prevailing wage rates for public works projects.

Definition of "Public Works" in Alabama

In Alabama, "public works" generally refers to:

Construction, alteration, repair, or maintenance projects that are funded, in whole or part, with public funds. This includes but is not limited to:

Roads and bridges
Schools
Government buildings
Other infrastructure developments

It's important to note that the Davis-Bacon Act requirements only apply when federal funds are involved in these projects.

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Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Alabama doesn't have state-specific prevailing wage laws, the U.S. Department of Labor sets prevailing wages for federally funded projects under the Davis-Bacon Act. Key points include:

Wages are determined for specific geographical areas within Alabama.
Different rates apply based on worker classifications (e.g., laborers, carpenters, electricians).
Contractors must consult the federal General Wage Determinations published by the U.S. Department of Labor.
These determinations specify prevailing wage rates, including fringe benefits, for each classification of workers.

Components of Wage Determinations

Federal wage determinations for Alabama include:

Basic Hourly Rate: The minimum wage rate paid directly to workers in a specific job classification.
Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation/holiday pay.
Total Hourly Rate: The sum of the introductory hourly rate and fringe benefits.

For example, if the basic hourly rate is $20 and fringe benefits are $5, the total hourly rate would be $25. If the contractor does not provide fringe benefits, the worker must receive $25 as wages.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on federally funded public works projects in Alabama must:

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Determine Applicable Wage Rates

Use the U.S. Department of Labor's Davis-Bacon Wage Determinations site to find the correct rates based on the project's location and worker classifications.

Submit Certified Payroll Reports

Use the U.S. Department of Labor's WH-347 form or equivalent to ensure appropriate wages and fringe benefits are paid to workers.

Handle Fringe Benefits

Either provide the fringe benefits as specified or pay workers the equivalent value in cash.

Post Wage Rates On-Site

Display the applicable wage rates at the worksite for transparency and worker awareness.

Maintain Proper Documentation

Keep records of all wages paid to employees for inspection in case of audits or investigations.

Penalties for Non-Compliance

While Alabama doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:

Withholding of contract payment
Contract termination
Debarment from future federal contracts for up to three years

Unique Aspects of Alabama's Public Works System

No State Prevailing Wage Law: Unlike many states, Alabama relies solely on federal regulations for prevailing wages on public works projects.
Limited Scope: Davis-Bacon requirements only apply to federally funded projects, not all public works in the state.
ADOL's Role: The Alabama Department of Labor oversees labor regulations but does not set or enforce prevailing wage rates.

Relevant Resources

U.S. Department of Labor Davis-Bacon Wage Determinations: Wage Determinations Online
Alabama Department of Labor: https://labor.alabama.gov/
U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts

For the most current and detailed information, always refer to the U.S. Department of Labor website and consult with legal counsel familiar with federal labor laws and their application in Alabama.

What is the Davis-Bacon Act, and how does it apply to public works projects in Alabama?

The Davis-Bacon Act is a federal law that requires contractors and subcontractors on federally funded or assisted construction projects to pay their laborers and mechanics no less than the prevailing wages for similar projects in the area. In Alabama, while there is no state-specific prevailing wage law, the Davis-Bacon Act applies to public works projects that receive federal funding. These projects include infrastructure developments like roads, bridges, and schools.

How are prevailing wage rates determined for public works projects in Alabama?

The U.S. Department of Labor determines the prevailing wage rates for public works projects in Alabama. The rates are based on the local wages paid for similar work in the area and are outlined in the General Wage Determinations. These rates include a Basic and Total Hourly Rate, which covers fringe benefits such as health insurance and retirement plans.

Are fringe benefits required to meet the prevailing wage in Alabama?

Yes, fringe benefits are part of the prevailing wage requirement for federally funded public works projects covered by the Davis-Bacon Act in Alabama. Employers can provide fringe benefits directly to workers or contribute to bona fide benefit plans. The total compensation, including wages and fringe benefits, must meet or exceed the Total Hourly Rate specified in the wage determination.

What are the consequences of not complying with prevailing wage requirements on public works projects in Alabama?

Failure to comply with prevailing wage requirements on federally funded public works projects in Alabama can result in significant penalties. Contractors may face fines, withholding federal funds, or disqualification from future federal projects. In some cases, investigations may lead to back pay for workers and potential legal action. To avoid these penalties, it is crucial for contractors and subcontractors to maintain accurate payroll records and adhere to wage determinations.