Prevailing Wage and Davis-Bacon Compliance in Arizona
Components of Wage Determinations
Federal wage determinations for Arizona 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, pensions, and paid vacation.
- Total Hourly Rate: The sum of the basic 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 the entire $25 as wages.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on federally funded public works projects in Arizona must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
Enter the state (Arizona), county, and type of project (e.g., building, heavy, highway) to determine the correct wage.
Handle Fringe Benefits
Handle Fringe Benefits
Either provide the fringe benefits as specified or pay the equivalent value in cash to workers.
Maintain proper documentation to demonstrate compliance.
Post Wage Rates On-Site
Post Wage Rates On-Site
Submit Certified Payroll Records
Submit Certified Payroll Records
Maintain Accurate Records
Maintain Accurate Records
Keep detailed payroll records for all employees working on public works projects.
Penalties for Non-Compliance
Failure to comply with the Davis-Bacon Act can result in severe consequences, including:
-
Penalties and fines
-
The requirement to pay back wages
-
Disqualification from future federal contracts
Unique Aspects of Arizona's Public Works System
- No State Prevailing Wage Law: Unlike many states, Arizona 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.
- Threshold: The Davis-Bacon Act applies to federal construction projects exceeding $2,000.
Relevant Resources
- U.S. Department of Labor Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
- Arizona Department of Transportation (ADOT): https://azdot.gov/
- U.S. Department of Labor Davis-Bacon and Related Acts Compliance: DOL Davis-Bacon Compliance
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 Arizona.
Arizona Prevailing Wage FAQs
Does Arizona have a state-specific prevailing wage law?
No, Arizona does not have a state-specific prevailing wage law. However, public works projects that receive federal funding must comply with the federal Davis-Bacon Act, which mandates the payment of prevailing wages to workers.
How are fringe benefits handled under the Davis-Bacon Act in Arizona?
Fringe benefits are part of the total prevailing wage. Contractors can provide workers with fringe benefits such as health insurance, retirement contributions, and vacation time, or they can opt to pay the workers the equivalent of those benefits. The contractor must pay the total wage rate in cash if fringe benefits are not provided.
How are prevailing wage rates determined in Arizona?
For federally funded projects, the U.S. Department of Labor determines prevailing wage rates through wage surveys that assess wages paid to similarly skilled workers in the same geographic region. These rates are published on the SAM.gov website, where contractors can find wage determinations for various job classifications.
What are the penalties for non-compliance with Davis-Bacon regulations in Arizona?
Contractors who fail to comply with Davis-Bacon requirements can face severe penalties, including:
Back payment of wages: Contractors may be required to compensate workers for unpaid wages if they are found to have paid less than the prevailing wage.
Fines: Civil or criminal fines may be imposed.
- Debarment: Non-compliant contractors can be disqualified from bidding on future federal contracts.