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Prevailing Wage and Davis-Bacon Compliance in Idaho

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Idaho's Public Works Regulations

Unlike some states, Idaho does not have a state-specific prevailing wage law. However, public works projects in Idaho 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 Idaho.
State Law: Idaho does not have a "Little Davis-Bacon Act" or state-specific prevailing wage law.

Definition of "Public Works" in Idaho

In Idaho, "public works" generally refers to:

Construction, repair, or improvement projects that are financed by government funds. These include projects like:

Road and highway construction
Bridges and public transportation systems
Schools and other government buildings
Water treatment facilities

If the public works project receives federal funding, it falls under the Davis-Bacon Act, and contractors must follow federal prevailing wage requirements.

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Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Idaho 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:

For federally funded or federally assisted public works projects, the Davis-Bacon Act requires contractors to pay at least the prevailing wages set by the U.S. Department of Labor.
These wages are determined through local wage surveys and vary by job classification and geographic location.
The wages include both a basic hourly wage and fringe benefits.

Components of Wage Determinations

Federal wage determinations for Idaho 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 valued at $7, the total hourly rate would be $32. If fringe benefits are not provided, the contractor must pay the full $32 in wages.

Compliance for Contractors and Subcontractors

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

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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.

Submit Certified Payroll Reports

Submit certified payroll reports weekly to prove that contractors are paying the correct wages. For federal projects, they must use the U.S. Department of Labor's Form WH-347.

Handle Fringe Benefits

Ensure that workers are paid at least the prevailing wage for their classification, which includes both the basic hourly rate and any applicable fringe benefits.

Post Wage Rates On-Site

Post the applicable wage determinations in a visible location at the job site where workers can easily access the information.

Maintain Proper Documentation

Must keep detailed records of hours worked, wages paid, and fringe benefits provided. These records must be available for inspection by the U.S. Department of Labor or the contracting agency.

Penalties for Non-Compliance

While Idaho does not have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:

Fines for failure to pay the correct prevailing wage
Back pay to workers who were underpaid
Debarment from bidding on future federally funded public works projects

Unique Aspects of Idaho's Public Works System

1. No State Prevailing Wage Law: Idaho does not have its own state prevailing wage law, meaning public works projects only need to comply with federal Davis-Bacon Act requirements if federal funding is involved.

2. Low Bid Requirement: Idaho mandates that public works contracts are awarded to the lowest responsible bidder, ensuring cost-effective project completion while meeting minimum performance standards.

3. Right-to-Work State: Idaho's right-to-work laws prevent workers on public projects from being required to join or financially support a union, which impacts labor practices and workforce organization on public works projects.

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
Idaho Department of Labor

Does Idaho have a state-specific prevailing wage law?

No, Idaho does not have a state-specific prevailing wage law. Federally funded public works projects in Idaho are required to comply with the Davis-Bacon Act, which mandates prevailing wages. State-funded projects do not have prevailing wage requirements unless specified by local ordinances or project contracts.

How are prevailing wage rates determined in Idaho?

For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor through surveys of wages paid to workers in specific job classifications within the local area. These rates include a basic hourly wage and fringe benefits and are published on the SAM.gov portal.

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

Penalties for non-compliance can include fines for failing to pay the correct prevailing wage. Contractors may also be required to provide back pay to workers who were underpaid. In severe cases, non-compliant contractors may face debarment, preventing them from bidding on future federally funded public works projects.

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

Fringe benefits are part of the total prevailing wage. Contractors can provide fringe benefits, such as health insurance and retirement contributions, or pay the equivalent value in cash to the workers. If no fringe benefits are provided, the contractor must pay the full amount (basic hourly wage plus fringe benefits) as wages directly to the worker.