Prevailing Wage and Davis-Bacon Compliance in Kansas

Kansas' Public Works Regulations

Kansas has a unique situation regarding public works regulations:

• State Law: As of 1987, Kansas repealed its prevailing wage statute that required contractors on state and local public works projects to pay prevailing wages.
• Federal Law: The Davis-Bacon Act (DBA) applies to federally funded or assisted construction projects in Kansas.

Key point: For federally funded or federally assisted public works projects, contractors in Kansas must comply with the federal Davis-Bacon Act, which mandates the payment of prevailing wages to workers on such projects. This law applies to construction projects with a contract value of $2,000 or more and requires contractors to pay workers at least the prevailing wage rates determined by the U.S. Department of Labor.

Definition of "Public Works" in Kansas

In Kansas, public works refers to the construction, maintenance, or repair of infrastructure projects financed by government funds, including:

• Roads, highways, and bridges

• Public schools and government buildings

• Water treatment and utility facilities

• Other infrastructure projects that are funded by federal, state, or local public funds

For federally funded projects, prevailing wage regulations under the Davis-Bacon Act must be followed. For state or locally funded projects, there are no state-imposed prevailing wage requirements unless specifically outlined in the project contract.

Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Kansas doesn't have state-specific prevailing wage laws, only the federal Davis-Bacon Act applies to certain public works projects:

• For federally funded or federally assisted public works projects in Kansas, the Davis-Bacon Act requires contractors to pay at least the prevailing wages determined by the U.S. Department of Labor.
• These wage determinations are based on local wage surveys for specific job classifications and geographic areas.
  
• The wages include both a basic hourly wage and fringe benefits.
  

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:

1. Determine the Applicable Wage Rate:

• Contractors must identify the correct prevailing wage rates for each job classification based on the geographic location of the project. These wage rates can be found through the Wage Determinations Online (WDOL) portal via SAM.gov.

2. Submit Certified Payroll Records:

• Contractors must submit weekly certified payroll reports to the contracting agency to demonstrate compliance with wage requirements. For federal projects, Form WH-347 from the U.S. Department of Labor is typically used.

3. Handle Fringe Benefits:

• Ensure that workers are paid no less than the prevailing wage rate, including both the basic hourly wage and 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 Records:

• Contractors must maintain accurate records of wages paid, hours worked, and fringe benefits provided to workers. 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 bidding on future federally funded contracts

Unique Aspects of Kansas' 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 Department of Labor