Prevailing Wage and Davis-Bacon Compliance in Delaware
Prevailing Wage Determinations: Federal and State Requirements
Federal Davis-Bacon Act
- This applies to federally funded or assisted projects
- U.S. Department of Labor sets wage rates
- Includes basic hourly wage and fringe benefits
Delaware's Prevailing Wage Law
- Applies to state-funded public works projects
- The Delaware Department of Labor (DDOL) determines rates
- The DDOL determines prevailing wages based on surveys of wages paid to workers in the same job classification within the project's geographic region. Delaware's wage determinations may differ from federal Davis-Bacon rates, so contractors must be sure to follow the correct set of wage determinations depending on the funding source.
Components of Wage Determinations
Both federal and state wage determinations in Delaware 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 vacation pay.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits.
Delaware's wage determinations may differ from federal Davis-Bacon rates, so contractors must be sure to follow the correct set of wage determinations depending on the funding source.
Compliance for Contractors and Subcontractors
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: Refer to the Delaware Department of Labor
Submit Certified Payroll Reports
Submit Certified Payroll Reports
For state projects: Submit to the Delaware Department of Labor.
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 prevailing wage laws in Delaware can result in:
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Fines and financial penalties
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Disqualification from future public works projects
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Back pay requirements
Unique Aspects of Delaware's Prevailing Wage System
- Annual Wage Surveys: Delaware determines its prevailing wage rates through an annual survey of contractors working on public projects
- Project Thresholds: Delaware's prevailing wage law applies to new construction projects exceeding $500,000 and renovation projects over $45,000, which is specific to the state's legislation
- Fringe Benefits Requirement: Delaware's prevailing wage system mandates that fringe benefits, such as health insurance, pensions, and vacation pay, be included in the total compensation, either through actual benefits provided or as part of wages
Relevant Resources
- U.S. Department of Labor Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
- Delaware Department of Labor: Prevailing Wage Information
- U.S. Department of Labor Certified Payroll Form: Form WH-347
Delaware Prevailing Wage FAQs
Does Delaware have its own prevailing wage law?
Yes, Delaware has its own prevailing wage law for state-funded public works projects. The Delaware Department of Labor (DDOL) determines the prevailing wage rates for state projects. If a project is federally funded, the federal Davis-Bacon Act applies.
How are prevailing wage rates determined in Delaware?
For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor through local wage surveys. For state-funded projects, the Delaware Department of Labor determines prevailing wage rates based on wage data collected from similar jobs in the project's geographic area.
What are the penalties for non-compliance with prevailing wage laws in Delaware?
Non-compliance can result in back pay requirements, fines, and debarment.
How are fringe benefits handled under Delaware’s prevailing wage laws?
Fringe benefits are part of the total prevailing wage. If contractors provide benefits like health insurance or retirement plans, these can be credited toward the total wage requirement. If no fringe benefits are provided, contractors must pay the equivalent value in cash to the workers as part of their wages.