Prevailing Wage and Davis-Bacon Compliance in Indiana

Indiana's Public Works Regulations

Indiana has a unique situation regarding public works regulations:

• State Law: As of 2015, Indiana 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 Indiana.

Key point: In 2015, Indiana repealed its Common Construction Wage Law, which previously required contractors working on state-funded public works projects to pay prevailing wages. Now, public works projects that are entirely state or locally funded do not have any prevailing wage requirements.

Definition of "Public Works" in Indiana

In Indiana, "public works" generally refers to construction, alteration, or repair projects funded by public money, including federal, state, or local government funds. Public works projects can include:

• Construction and repair of roads and highways

• Government buildings

• Public schools

• Bridges and infrastructure

Important note: Even though Indiana 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.

Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Indiana does not have state-specific prevailing wage laws, only the federal Davis-Bacon Act applies to certain public works projects:

• For federally funded public works projects in Indiana, the Davis-Bacon Act requires contractors and subcontractors to pay workers no less than the prevailing wages determined by the U.S. Department of Labor.
• These rates are based on wage surveys for specific job classifications in the area where the project is located.
  
• The wage rates include both a basic hourly wage and fringe benefits.
  

Components of Wage Determinations

Federal wage determinations for Indiana 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 wage is $25 and fringe benefits are valued at $8, the total hourly rate is $33. If fringe benefits are not provided, the full $33 must be paid in wages.

Compliance for Contractors and Subcontractors

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

1. 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.

2. Submit Certified Payroll Records:

• Contractors must submit certified payroll reports weekly to the contracting agency.
• For federally funded projects, use the U.S. Department of Labor's Form WH-347 to report wages, hours worked, and benefits provided.

3. Handle Fringe Benefits:

• Ensure that workers are paid no less than the prevailing wage for their job classification, including the basic hourly rate and fringe benefits.

4. Post Wage Rates On-Site:

• Contractors are required to post the prevailing wage determinations in a visible location at the job site so workers can easily access the information.

5. Maintain Accurate Records:

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

Penalties for Non-Compliance

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

• Fines
• Back pay for underpaid workers
• Disqualification from future federally funded contracts

Unique Aspects of Indiana's Public Works System

• Recent Repeal of State Law: In 2015, Indiana 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
• Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
• Indiana Department of Labor