Prevailing Wage and Davis-Bacon Compliance in Missouri

Missouri's Public Works Regulations

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

• State Law: Missouri has a state-specific prevailing wage law for public works projects. The Missouri Prevailing Wage Law (RSMo Chapter 290.210-340) requires contractors and subcontractors working on public works projects funded by state or local governments to pay workers at least the prevailing wage rates set by the Missouri Department of Labor and Industrial Relations (DOLIR). These rates are determined for various job classifications based on local wage surveys.
• Federal Law: For federally funded or federally assisted public works projects in Missouri, contractors must comply with the federal Davis-Bacon Act, which mandates the payment of prevailing wages determined by the U.S. Department of Labor.
  

Definition of "Public Works" in Missouri

In Missouri, public works refers to construction, reconstruction, improvement, enlargement, alteration, painting, or major repair work financed by public funds. Public works projects include:

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

Key Point:

• The Missouri Prevailing Wage Law applies to state-funded public works projects, while the Davis-Bacon Act applies to federally-funded projects.

Missouri Prevailing Wage Determinations: State and Federal Requirements

Missouri Prevailing Wage Law

• For state-funded public works projects, the Missouri Department of Labor and Industrial Relations (DOLIR) establishes prevailing wage rates for various job classifications in the region where the work is performed.
  
• These rates are updated annually and reflect wages paid to workers in similar trades in the private sector.
  

Federal Davis-Bacon Act (DBA)

• The Davis-Bacon Act applies to federally funded or federally assisted public works projects in Missouri.
  
• Contractors and subcontractors must pay workers the prevailing wages determined by the U.S. Department of Labor.
  
• These wage determinations are based on local wage surveys and include a basic hourly wage and fringe benefits.

Components of Wage Determinations

Both state and federal wage determinations in Missouri include:

• Basic Hourly Rate: The minimum wage rate paid directly to workers for every 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 $25 and fringe benefits are valued at $5, the total hourly rate would be $30. The contractor must pay the full $30 in wages if no fringe benefits are provided.

Compliance for Contractors and Subcontractors

For both state-funded and federally-funded public works projects in Missouri, contractors and subcontractors must adhere to the following compliance guidelines:

1. Determine Applicable Wage Rates:

• For federal projects: Wage determinations can be accessed through the Wage Determinations Online (WDOL) portal at SAM.gov.
• For state projects, the Missouri Department of Labor and Industrial Relations (DOLIR) provides the prevailing wage rates.

2. Submit Certified Payroll Reports:

• For federal projects: These reports must be submitted weekly using Form WH-347.
• For state projects: Payroll records must be submitted to the Missouri Department of Labor.

3. Handle Fringe Benefits:

• Ensure workers are paid at least the applicable prevailing wage for their job classification, including both the basic hourly rate and fringe benefits.

4. Post Wage Rates On-Site:

• Contractors must post the prevailing wage determinations prominently on the job site where workers can see them.

5. Maintain Accurate Records:

• Contractors must maintain detailed records of hours worked, wages paid, and any fringe benefits provided. These records must be available for inspection by the Missouri Department of Labor or the U.S. Department of Labor.

Penalties for Non-Compliance

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

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

Unique Aspects of Connecticut's Prevailing Wage System

• Local Wage Determination: Missouri's system determines prevailing wages based on surveys within each county rather than applying a single statewide rate. This means wage rates can vary significantly depending on the local market rates in each county.
• Annual Wage Orders: Missouri issues updated wage orders each year to adjust for changes in wage rates. These orders establish the prevailing wage rates by occupation and are specific to different public works projects.
• Public Works Threshold: In Missouri, the prevailing wage requirement only applies to public works projects that exceed a specific threshold value. Projects below this threshold are exempt, allowing smaller projects to be completed without meeting prevailing wage requirements.

Relevant Resources

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

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

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