Prevailing Wage and Davis-Bacon Compliance in Georgia
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Georgia's Public Works Regulations
Unlike some states, Georgia has no state-specific prevailing wage law. However, public works projects in Georgia are subject to federal regulations when federal funding is involved:
- Federal Law: Compliance with prevailing wage regulations in Georgia is primarily determined by the federal Davis-Bacon Act for federally funded or federally assisted public works projects.
- State Law: Georgia does not have a state-level mandate for state-funded public works projects.
Definition of "Public Works" in Georgia
In Georgia, "public works" generally refers to:
Construction, alteration, repair, or maintenance projects are funded by public money. This includes but is not limited to:
- Highways
- Bridges
- Schools
- Government buildings
It's important to note that the Davis-Bacon Act requirements only apply when federal funds are involved in these projects.
Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements
Since Georgia does not 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 Georgia.
- 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 Georgia 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 $25 and fringe benefits are $5, the total hourly rate would be $30. If fringe benefits are not provided, the contractor must pay the full $30 in wages.
Compliance for Contractors and Subcontractors
1. Determine the Applicable Wage Rate: 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.
2. Submit Certified Payroll Reports: Contractors are required to submit certified payroll reports weekly. The U.S. Department of Labor's Form WH-347 reports wages and hours worked for federal projects.
3. Handle Fringe Benefits: Ensure that all workers are paid at least the prevailing wage for their classification, including the basic hourly rate and applicable fringe benefits.
4. Post-Wage Determinations at the Job Site: Post the applicable wage determinations in a visible location on the job site.
5. Maintain Records: Keep detailed records of wages, hours worked, and any fringe benefits provided, and make them available for inspection by the U.S. Department of Labor or the contracting agency.
Penalties for Non-Compliance
While Georgia doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:
- Debarment from bidding on future federally funded projects
- Back pay
- Fines
Unique Aspects of Georgia's Public Works System
- No State Prevailing Wage Law: Georgia does not have its own state-level prevailing wage law, relying solely on the Davis-Bacon Act when applicable
- Low Bid Requirement: Georgia's public works projects are generally awarded to the lowest responsible bidder, ensuring that public construction projects are cost-effective while requiring contractors to meet qualifications and performance standards.
- Local Government Autonomy: While the state doesn't impose its own prevailing wage law, local governments in Georgia have a degree of autonomy to set additional standards or project requirements.
Relevant Resources
- U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
Georgia Prevailing Wage FAQs
Q Does Georgia have its own prevailing wage law?
No, Georgia does not have a state-specific prevailing wage law. Federally funded public works projects in Georgia must comply with the Davis-Bacon Act, which requires contractors to pay workers prevailing wages. State-funded projects do not have a prevailing wage requirement unless local ordinances dictate otherwise.
Q How are prevailing wage rates determined in Georgia?
Prevailing wage rates in Georgia for federally funded projects are determined by the U.S. Department of Labor through local wage surveys. These surveys assess the wages paid to workers in specific job classifications within the area where the project is being conducted. The rates include both a basic hourly wage and fringe benefits.
Q What are the penalties for non-compliance with Davis-Bacon regulations in Georgia?
Penalties for non-compliance with prevailing wage requirements can include several serious consequences. Contractors may be required to provide back pay to workers who were underpaid, ensuring they receive the correct wages. Additionally, contractors may face financial fines for failing to meet the prevailing wage standards. In more severe cases, non-compliant contractors could be subject to debarment, disqualifying them from bidding on future federally funded projects.
Q How are fringe benefits handled under Davis-Bacon in Georgia?
Fringe benefits are part of the total prevailing wage requirement. Contractors can either provide fringe benefits, such as health insurance and retirement plans, or pay the equivalent value in cash to the workers. If fringe benefits are not provided, the contractor must pay the full amount (basic hourly rate + fringe benefits) as wages directly to the worker.