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Prevailing Wage and Davis-Bacon Compliance in Mississippi

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Mississippi's Public Works Regulations

Unlike some states, Mississippi has no state-specific prevailing wage law. However, public works projects in Mississippi are subject to federal regulations when federal funding is involved:

Federal Law: For federally funded or federally assisted public works projects, contractors in Mississippi must comply with the federal Davis-Bacon Act.
State Law: Mississippi does not have a state-specific prevailing wage law. This means that prevailing wage requirements for state-funded public works projects are not established unless explicitly stated in the contract or through local ordinances.

Definition of "Public Works" in Mississippi

In Mississippi, public works refers to construction, repair, or maintenance projects financed by government funds. This includes projects such as:

Roads, highways, and bridges
Public schools, government buildings, and infrastructure
Water and sewer systems

The Davis-Bacon Act applies to projects funded by federal money, ensuring that workers are paid according to the prevailing wage rates in the region where the project is taking place.

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Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Mississippi doesn't have state-specific prevailing wage laws, the U.S. Department of Labor sets prevailing wages for federally funded projects under the Davis-Bacon Act. Key points include:

The Davis-Bacon Act applies to federally funded or federally assisted public works projects in Mississippi.
Under this act, contractors must pay workers the prevailing wages determined by the U.S. Department of Labor.
These wage rates are based on wage surveys conducted in the local area and include both a basic hourly wage and fringe benefits.

Components of Wage Determinations

Federal wage determinations for Mississippi 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 vacation/holiday pay.
Total Hourly Rate: The sum of the introductory 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. The contractor must pay the full $30 as wages if no fringe benefits are provided.

Compliance for Contractors and Subcontractors

For federally funded public works projects in Mississippi, contractors and subcontractors must follow these steps to comply with the Davis-Bacon Act:

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Determine Applicable Wage Rates

Contractors must identify the appropriate prevailing wage rates for their project's location and job classifications. These rates are available on the Wage Determinations Online (WDOL) portal via SAM.gov.

Submit Certified Payroll Reports

Contractors must submit certified payroll reports weekly to demonstrate compliance with the prevailing wage requirements. For federal projects, contractors typically use Form WH-347, provided by the U.S. Department of Labor.

Handle Fringe Benefits

Contractors must ensure workers are paid at least the prevailing wage rate, including the basic hourly rate and any applicable fringe benefits.

Post Wage Rates On-Site

Contractors must post the prevailing wage determinations at the job site in a visible location so workers can easily access the information.

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

Failure to comply with Davis-Bacon wage requirements can result in penalties such as:

Fines
Back pay for underpaid workers
Disqualification from bidding on future federally funded projects

Unique Aspects of Mississippi's Public Works System

No State Prevailing Wage Law: Mississippi relies solely on federal regulations for prevailing wages on public works projects, unlike many states.
Reliance on Federal Davis-Bacon Act for Federal Projects: For federally funded projects in Mississippi, the prevailing wage requirements fall under the federal Davis-Bacon Act, which sets wage standards for federal construction contracts but does not impact state or locally-funded projects.
Local Jurisdiction Flexibility: Without a state prevailing wage law, local jurisdictions in Mississippi have more flexibility in setting labor standards for their projects. However, most do not implement local prevailing wage requirements.

Relevant Resources

Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations

For the most current and detailed information, always refer to the U.S. Department of Labor website and consult with legal counsel familiar with federal labor laws and their application in Mississippi.

Does Mississippi have a state-specific prevailing wage law?

No, Mississippi does not have a state-specific prevailing wage law. Public works projects that are funded by the state or local governments are not required to comply with prevailing wage standards. However, federally funded projects in Mississippi must follow the federal Davis-Bacon Act.

How are prevailing wage rates determined in Mississippi?

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

What are the penalties for non-compliance with Davis-Bacon regulations in Mississippi?

Penalties for non-compliance with the Davis-Bacon Act can be substantial. Contractors may be required to provide back pay to workers to cover any wage differences if they were underpaid. Additionally, contractors can face fines for failing to comply with wage regulations or certified payroll requirements. For those who repeatedly violate the Davis-Bacon Act, the consequence may include debarment, disqualifying them from bidding on future federally funded public works projects.

How are fringe benefits handled under the Davis-Bacon Act in Mississippi?

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