
Prevailing Wage and Davis-Bacon Compliance in Kansas
Components of Wage Determinations
Federal wage determinations for Kansas 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 $5, the total hourly rate would be $30. If no fringe benefits are provided, the contractor must pay the full $30 in wages.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on federally funded public works projects in Kansas must:
Determine the Applicable Wage Rate
Determine the Applicable Wage Rate
Submit Certified Payroll Records
Submit Certified Payroll Records
Handle Fringe Benefits
Handle Fringe Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Records
Maintain Records
Penalties for Non-Compliance
Failure to comply with the Davis-Bacon Act can result in severe consequences, including:
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Fines
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Back pay for unerpaid workers
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Disqualification from bidding on future federally funded contracts
Unique Aspects of Kansas's Public Works System
- Recent Repeal of State Law: In 1987, Kansas repealed its state prevailing wage law, making it one of the few states without such regulations.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
Kansas Prevailing Wage FAQs
Does Kansas have a state-specific prevailing wage law?
No, Kansas does not have a state-specific prevailing wage law. The state repealed its prevailing wage statute in 1987. Public works projects that are entirely state or locally funded are not subject to prevailing wage requirements, unless specified by the contract. However, federally funded projects in Kansas must comply with the federal Davis-Bacon Act.
How are prevailing wage rates determined in Kansas?
For federally funded projects, prevailing wage rates in Kansas are determined by the U.S. Department of Labor through wage surveys conducted in the local area. These rates include a basic hourly wage and fringe benefits, and they are published in the Wage Determinations Online (WDOL) portal on SAM.gov.
What are the penalties for non-compliance with Davis-Bacon regulations in Kansas?
Contractors may be required to compensate workers for any underpayment of wages through back pay. Additionally, contractors can face financial penalties for failing to pay the prevailing wage. In severe cases, contractors may be prohibited from bidding on future federally funded public works projects through debarment.
How are fringe benefits handled under the Davis-Bacon Act in Kansas?
Fringe benefits are part of the total prevailing wage that contractors must pay to workers. Contractors can provide fringe benefits such as health insurance, retirement plans, or paid leave, or they can pay the equivalent value in cash. If no fringe benefits are provided, the contractor must pay the full total wage (basic hourly wage + fringe benefits) directly to the worker in cash.