Prevailing Wage and Davis-Bacon Compliance in Iowa

Iowa's Public Works Regulations

Unlike some states, Iowa has no state-specific prevailing wage law. However, public works projects in Iowa 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 Iowa.
• State Law: Iowa does not have a "Little Davis-Bacon Act" or state-specific prevailing wage law.

The Davis-Bacon Act applies to all public works projects that involve federal funding and have a contract value exceeding $2,000.

Definition of "Public Works" in Iowa

In Iowa, "public works" generally refers to construction, maintenance, and repair projects funded by public funds from federal, state, or local governments. Public works projects include:

• Building and repairing roads and highways

• Constructing and maintaining government buildings, schools, and infrastructure

• Water treatment and utility facilities

For federally funded projects, the Davis-Bacon Act dictates wage compliance. For state-funded projects, there is no state-mandated prevailing wage law, unless otherwise required by the contract or local ordinances.

Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Iowa 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 Iowa.
• 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 Iowa include:

1. Basic Hourly Rate: The minimum wage rate paid directly to workers in a specific job classification.
2. Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation/holiday pay.
3. Total Hourly Rate: The sum of the introductory hourly rate and fringe benefits.

For example, if the basic hourly rate is $30 and fringe benefits are valued at $10, the total hourly rate would be $40. If fringe benefits are not provided, the contractor must pay the full $40 in wages.

Compliance for Contractors and Subcontractors

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

1. Determine Applicable Wage Rates:

• Contractors need to determine the correct prevailing wage rate for the job classification and geographic location of the project. This can be done using the Wage Determinations Online (WDOL) portal on SAM.gov.

2. Submit Certified Payroll Reports:

• Contractors are required to submit certified payroll reports weekly to demonstrate compliance with wage requirements. For federal projects, contractors typically use Form WH-347, which is provided by the U.S. Department of Labor.

3. Handle Fringe Benefits:

• Contractors must ensure that all workers are paid at least the prevailing wage for their job classification, which includes the basic hourly rate and any applicable fringe benefits.

4. Post Wage Rates On-Site:

• Contractors must post prevailing wage determinations in a visible location at the job site where workers can easily access the information.

5. Maintain Proper Documentation:

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

Penalties for Non-Compliance

While Iowa doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:

• FInes
• Back pay for underpaid workers
• Disqualification from bidding on future federally funded contracts

Unique Aspects of Iowa's Public Works System

• No State Prevailing Wage Law: Unlike many states, Iowa relies solely on federal regulations for prevailing wages on public works projects.
• Limited Scope: Davis-Bacon requirements only apply to federally funded projects, not all public works in the state.
• Local Government Autonomy: While there is no statewide prevailing wage law, certain cities or local governments in Iowa may impose their own wage requirements or standards for public works projects, depending on local ordinances.

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

• Iowa Department of Labor