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Prevailing Wage and Davis-Bacon Compliance in Louisiana

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Louisiana's Public Works Regulations

Louisiana does not have a state-specific prevailing wage law. Public works projects funded solely by state or local governments are not subject to prevailing wage regulations. However, suppose federal funding is involved in a public works project in Louisiana. In that case, the project must comply with the federal Davis-Bacon Act, which mandates that contractors and subcontractors pay prevailing wages to workers.

The Davis-Bacon Act applies to federal construction or federally assisted projects with a contract value of $2,000 or more.

Definition of "Public Works" in Louisiana

In Louisiana, public works refers to any construction, alteration, or repair work financed by public funds. This can include:

  • Building or maintaining roads, highways, and bridges

  • Public schools, government buildings, and facilities

  • Water treatment plants and utility infrastructure

Prevailing wage requirements under the Davis-Bacon Act apply to federally funded public works projects. State-funded public works projects do not have specific prevailing wage requirements unless stipulated in the contract.

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Prevailing Wage Determinations: Federal (Davis-Bacon) and State-Specific Requirements

  • Federal Davis-Bacon Act: The Davis-Bacon Act applies to federally funded or assisted construction projects in Louisiana. It requires contractors and subcontractors to pay laborers and mechanics at least the prevailing wage rates determined by the U.S. Department of Labor. These wage determinations are based on surveys of wages for specific job classifications in the local area and include both a basic hourly wage and fringe benefits.

  • State-Specific Requirements: Since Louisiana does not have a state prevailing wage law, there are no state-mandated wage requirements for state-funded public works projects. Contractors on such projects can set wages based on market conditions or contract terms.

Basic Hourly Rate vs. Total Hourly Rate

  • Basic Hourly Rate: This minimum wage must be paid to workers for their labor, excluding fringe benefits. Under the Davis-Bacon Act, the U.S. Department of Labor determines the basic hourly wage through local wage surveys.

  • Total Hourly Rate: The total hourly rate includes the basic hourly wage and any applicable fringe benefits. Fringe benefits include health insurance, pensions, vacation pay, and other non-wage compensation. If a contractor does not provide fringe benefits, they must pay the equivalent value in cash. For example, if the basic hourly wage is $25 and the fringe benefits are valued at $7, the total hourly rate would be $32. The full $32 must be paid in cash if no fringe benefits are provided.

Compliance for Contractors and Subcontractors

To comply with the Davis-Bacon Act for federally funded public works projects in Louisiana, contractors and subcontractors must adhere to the following guidelines:

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Determine the Applicable Wage Rate

Determine the Applicable Wage Rate

Contractors must identify the correct prevailing wage rates for the job classifications required for the project and its location. They can do this by accessing the Wage Determinations Online (WDOL) portal on SAM.gov.

Submit Certified Payroll Reports

Submit Certified Payroll Reports

Contractors must submit certified payroll reports weekly to the contracting agency. For federal projects, contractors typically use Form WH-347, provided by the U.S. Department of Labor, to document hours worked, wages paid, and fringe benefits provided.

Pay the Correct Wages

Pay the Correct Wages

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

Post Wage Determinations On-Site

Post Wage Determinations On-Site

Contractors must post the prevailing wage determinations in a prominent location at the job site where workers can easily view them.

Maintain Accurate Records

Maintain Accurate Records

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

Penalties for Non-Compliance

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

  • Penalties

  • Fines

  • Back pay for underpaid workers

  • Disqualification from bidding on future federally funded contracts

Determining the Applicable Prevailing Wage Rate for Louisiana

  • To determine the prevailing wage rate for federally funded public works projects in Louisiana:

    • Visit the Wage Determinations Online (WDOL) portal via SAM.gov, where the U.S. Department of Labor publishes wage determinations for different job classifications and geographic regions.

    • Enter the relevant information, such as the state (Louisiana), county, and type of project (e.g., building, highway, heavy construction), to find your project's most up-to-date wage determinations.

    Ensure that you use the correct wage determination for the contract and check for updates throughout the project.

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Louisiana Prevailing Wage FAQs

Does Louisiana have a state-specific prevailing wage law?
No, Louisiana does not have a state-specific prevailing wage law. Public works projects funded solely by state or local governments are not required to comply with prevailing wage standards unless specified in the project contract. However, federally funded projects must comply with the federal Davis-Bacon Act.
How are prevailing wage rates determined in Louisiana?

For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor based on wage surveys conducted in the local region where the project is located. These rates include both a basic hourly wage and fringe benefits, and they are published on the Wage Determinations Online (WDOL) portal on SAM.gov.

What are the penalties for non-compliance with prevailing wage laws in Louisiana?

Penalties for non-compliance with Davis-Bacon regulations can include:

  • Fines: Contractors can face financial penalties for failing to pay the prevailing wage.
  • Back pay: Contractors may be required to compensate workers for any wage underpayment.
  • Debarment: Contractors who fail to comply with wage laws may be disqualified from bidding on future federally funded public works projects.
How are fringe benefits handled under Louisiana's prevailing wage laws?

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

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