Prevailing Wage and Davis-Bacon Compliance in Maine

Maine's Public Works Regulations

Maine has both state and federal regulations governing prevailing wages for public works projects:

• State Law: The Maine Prevailing Wage and Benefits Law applies to state-funded public works projects and ensures that workers on specific public projects receive wages comparable to those earned in similar jobs in the same region.
• Federal Law: For federally funded or federally assisted public works projects, Maine must comply with the federal Davis-Bacon Act, which mandates the payment of prevailing wages as determined by the U.S. Department of Labor.

Definition of "Public Works" in Maine

In Maine, "public works" refers to construction, reconstruction, and significant maintenance projects financed by state or local government. These include projects such as:

• Roads, bridges, and highways

• Schools, public buildings, and infrastructure

• Government facilities and utility projects

Key Points:

• The Maine Prevailing Wage Law applies to state-funded public works projects that exceed $50,000.

• For federally funded projects, the Davis-Bacon Act applies.

Maine Prevailing Wage Determinations: State and Federal Requirements

Maine Prevailing Wage Act:

• For state-funded projects, the Maine Department of Labor sets prevailing wage rates for specific job classifications in the region where the work is being performed. These rates are updated annually and must be followed for public works projects over $50,000.

Federal Davis-Bacon Act (DBA):

• Under the Davis-Bacon Act, the U.S. Department of Labor sets prevailing wages for federally funded projects. These rates are based on local wage surveys and cover basic hourly wages and fringe benefits for various job classifications.

Components of Wage Determinations

Both state and federal wage determinations in Maine include:

• Basic Hourly Rate: The minimum wage rate paid directly to workers for every hour worked.
• Fringe Benefits: Non-cash benefits, including health insurance, retirement plans, and vacation pay.
• Total Hourly Rate: The sum of the basic hourly rate and fringe benefits. For example, if the basic hourly rate is $25 and the fringe benefits are valued at $5, the total hourly rate is $30. The contractor must pay the full $30 in wages if no fringe benefits are provided.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on public works projects in Maine must:

1. Determine Applicable Wage Rates:

• For federal projects, use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal via SAM.gov. The Maine Department of Labor sets the prevailing wage rates for state projects.

2. Submit Certified Payroll Reports:

• For federal projects: Use the U.S. Department of Labor's Form WH-347.
• For state projects: Submit to the Maine Department of Labor.

3. Handle Fringe Benefits:

• Contractors must ensure that workers are paid at least the prevailing wage for their specific job classification, including 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 Accurate Records:

• Contractors must maintain detailed payroll records that include hours worked, wages paid, and fringe benefits provided to each worker. These records should be available for inspection by the Maine Department of Labor or the U.S. Department of Labor.

Penalties for Non-Compliance

Failure to comply with prevailing wage laws in Maine can result in:

• Fines
• Back pay for underpaid workers.
• Disqualification from bidding on future public works contracts

Unique Aspects of Maine's Prevailing Wage System

• Project Threshold Requirement: In Maine, the Prevailing Wage Law applies only to public works projects with a total cost exceeding $50,000. Projects below this threshold are exempt, allowing smaller projects to operate without prevailing wage requirements.
• Wage Determinations Based on Union Rates: Maine's prevailing wage rates are heavily influenced by union wage and benefit rates in the area. The state uses these rates to establish minimum wages that contractors must meet or exceed for specific job classifications.
• Inclusion of Apprentice Rates: Maine's prevailing wage system includes provisions for apprentices working on public projects. These rates are often lower than those for fully qualified workers. Still, they are structured to meet the state's wage standards and align with Maine's Department of Labor guidelines on apprenticeship programs.

Relevant Resources

• U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations

• Maine Department of Labor: Prevailing Wage Information: Maine Prevailing Wage
  

• Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form