Prevailing Wage and Davis-Bacon Compliance in Massachusetts

Massachusetts Public Works Regulations

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

• State Law: The Massachusetts Prevailing Wage Law (M.G.L. c. 149, §§ 26-27) requires that contractors and subcontractors pay prevailing wages to workers on public works projects funded by state or local government. The Massachusetts Department of Labor Standards (DLS) sets these wages.
• Federal Law: For federally funded or federally assisted projects, contractors must comply with the Davis-Bacon Act, which establishes wage standards based on federal determinations.

Definition of "Public Works" in Massachusetts

In Massachusetts, "public works" refers to construction, reconstruction, installation, demolition, maintenance, or repair work performed on public buildings or public infrastructure funded by public money. Public works projects can include:

• Roads, bridges, and highways
• Public schools and universities
• Public buildings, parks, and facilities
• Water and sewage systems

Key Point: The Massachusetts Prevailing Wage Law applies to state—and locally-funded public works projects, while the Davis-Bacon Act applies to federally funded projects.

Massachusetts Prevailing Wage Determinations: State and Federal Requirements

Massachusetts Prevailing Wage Law

The Massachusetts Department of Labor Standards (DLS) establishes the prevailing wage rates for state-funded projects across various job classifications. These rates are based on collective bargaining agreements or wage rates within the local private construction industry. Contractors on state or local projects must pay workers at least these rates, which are updated regularly.

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 encompass basic hourly wages and fringe benefits for various job classifications.

Components of Wage Determinations

Both state and federal wage determinations in Massachusetts include the following components:

• Basic Hourly Rate: The minimum wage paid directly to workers for each hour worked.
• Fringe Benefits: Non-cash benefits include 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 wage is $30 and the fringe benefits are valued at $7, the total hourly rate would be $37. The contractor must pay $37 wages if no fringe benefits are provided.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on public works projects in Massachusetts 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.
• For state projects, the wage rates are provided by the Massachusetts Department of Labor Standards (DLS).

2. Submit Certified Payroll Reports:

• For federal projects, use the U.S. Department of Labor's Form WH-347.
• For state projects, submit the reports to the Massachusetts Department of Labor Standards (DLS).

3. Handle Fringe Benefits:

• Contractors must ensure that 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 display the prevailing wage determinations at the job site in a visible location accessible to workers.

5. Maintain Accurate Records:

• Contractors must keep detailed payroll records, including hours worked, wages paid, and fringe benefits provided to workers. These records should be available for inspection by the Massachusetts Department of Labor Standards or the U.S. Department of Labor.

Penalties for Non-Compliance

Failure to comply with either the Massachusetts Prevailing Wage Law or the Davis-Bacon Act may result in penalties including:

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

Unique Aspects of Massachusetts' Prevailing Wage System

• Expanded Coverage to Non-Construction Services: Massachusetts' prevailing wage law includes specific construction work, such as moving services for public facilities, which is uncommon in many other states.
• Charter School Project Coverage: Prevailing wages are required for charter school construction projects, extending the law to these publicly funded schools.
• Local Submission of Payroll Reports: Contractors must submit certified payroll reports to the local awarding authority, allowing for more direct, local oversight of wage compliance.

Relevant Resources

• U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
• Massachusetts Department of Labor Standards (DLS): Prevailing Wage Information
• Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form