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Prevailing Wage and Davis-Bacon Compliance in Arkansas

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Arkansas's Public Works Regulations

Arkansas has a unique situation regarding public works regulations:

State Law: As of 2017, Arkansas has no state-specific prevailing wage law for public works projects.
Federal Law: The Davis-Bacon Act (DBA) applies to federally funded or assisted construction projects in Arkansas.

Key point: In 2017, the Arkansas state legislature repealed the prevailing wage law, meaning contractors are no longer required to follow state prevailing wage requirements for state-funded public works projects.

Definition of "Public Works" in Arkansas

In Arkansas, "public works" generally refers to:

Construction, repair, and maintenance projects financed by public funds
Projects including highways, bridges, schools, government buildings, and other infrastructure

Important note: Even though Arkansas no longer enforces a state prevailing wage law, federally funded public works projects within the state still require compliance with the Davis-Bacon Act's wage requirements.

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Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Arkansas doesn't have state-specific prevailing wage laws, only the federal Davis-Bacon Act applies to certain public works projects:

The U.S. Department of Labor (DOL) establishes prevailing wage rates for federally funded or assisted projects.
Rates are based on wage surveys for various construction classifications in the project's geographic area.
Contractors must pay at least the prevailing wage rate, including the basic hourly wage and any required fringe benefits.

Components of Wage Determinations

Federal wage determinations for Arkansas 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 paid leave.
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 Arkansas must:

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Determine Applicable Wage Rates

Use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal, now available at SAM.gov.

Select the appropriate wage determination based on the project type and specific location.

Submit Certified Payroll Records

Submit weekly certified payroll records (Form WH-347) showing compliance with prevailing wage laws.

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 prevailing wage determinations in a visible location on the job site.

Maintain Proper Documentation

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

Penalties for Non-Compliance

Failure to comply with the Davis-Bacon Act can result in severe consequences, including:

Fines
Contract termination
Debarment from future federal contracts

Unique Aspects of Arkansas's Public Works System

Recent Repeal of State Law: In 2017, Arkansas repealed its state prevailing wage law, making it one of the few states without such regulations.
No State Prevailing Wage Requirements: State-funded projects are not subject to prevailing wage requirements, allowing contractors more flexibility in setting wages (while still complying with general labor laws like minimum wage).
Limited Scope: Davis-Bacon requirements only apply to federally funded projects, not all public works in the state.

Relevant Resources

U.S. Department of Labor Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
U.S. Department of Labor Davis-Bacon and Related Acts Compliance: DOL Davis-Bacon Compliance
Arkansas Department of Labor and Licensing: https://www.labor.arkansas.gov/

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 Arkansas.

Does Arkansas have a state-specific prevailing wage law?

No, Arkansas does not have a state-specific prevailing wage law. The state repealed its prevailing wage law in 2017. However, federally funded public works projects in Arkansas must comply with the federal Davis-Bacon Act, which sets minimum wage rates for workers on those projects.

How are prevailing wage rates determined in Arkansas?

For federally funded projects, the U.S. Department of Labor determines prevailing wage rates in Arkansas through wage surveys of workers in various construction classifications. The wage rates are based on what is paid to the majority of workers in the same job classification within the local area where the project is located.

What are the penalties for non-compliance with Davis-Bacon regulations in Arkansas?

Penalties for non-compliance with the Davis-Bacon Act can include:

Fines and back wages: Contractors may be required to pay back wages if they fail to pay the proper prevailing wage rate.
Contract termination: A contract may be terminated if a contractor fails to comply with the Davis-Bacon requirements.
Debarment: Contractors may be barred from bidding on future federal contracts.

How are fringe benefits handled under the Davis-Bacon Act in Arkansas?

Under the Davis-Bacon Act, fringe benefits are part of the total prevailing wage. To meet the total wage requirement, contractors can provide fringe benefits, such as health insurance or retirement plans. Contractors must pay the equivalent amount in cash if no fringe benefits are offered, ensuring the total wage meets the prevailing wage rate specified by the wage determination.