Prevailing Wage and Davis-Bacon Compliance in Nebraska
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Nebraska's Public Works Regulations
Unlike some states, Nebraska does not have a state-specific prevailing wage law. However, public works projects in Nebraska are subject to federal regulations when federal funding is involved.
- Federal Law: The Davis-Bacon and Related Acts (DBRA) apply to Nebraska's federally funded or assisted construction projects. The Davis-Bacon Act mandates that contractors and subcontractors on these projects pay workers at least the prevailing wage rates set by the U.S. Department of Labor.
- State Law: Nebraska does not have a "Little Davis-Bacon Act" or any state-specific prevailing wage law.
Definition of "Public Works" in Nebraska
In Nebraska, public works refers to construction, maintenance, repair, or improvement projects financed by government funds. Examples of public works projects include:
- Roads, highways, and bridges
- Public schools, government buildings, and infrastructure
- Water and sewage systems
The Davis-Bacon Act ensures that workers on federally funded projects are paid according to the prevailing wage rates in the area where the project occurs.
Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements
Since Nebraska does not have state-specific prevailing wage laws, the U.S. Department of Labor establishes the prevailing wages for federally funded projects under the Davis-Bacon Act. Key points include:
- The Davis-Bacon Act applies to Nebraska's federally funded or assisted public works projects.
- Under this act, contractors must pay workers the prevailing wages determined by the U.S. Department of Labor.
- Wage rates are based on local wage surveys and include a basic hourly wage and fringe benefits.
Components of Wage Determinations
Federal wage determinations for Nebraska include:
- Basic Hourly Rate: The minimum wage paid directly to workers for a specific job classification, determined by the U.S. Department of Labor through local wage surveys.
- Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation/holiday 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
Contractors and subcontractors working on federally funded public works projects in Nebraska must:
1. Determine Applicable Wage Rates: Contractors must identify the prevailing wage rates for each job classification and project location. Wage rates can be accessed through the Wage Determinations Online portal via SAM.gov.
2. Submit Certified Payroll Reports: To demonstrate compliance, contractors must submit certified payroll reports weekly. Form WH-347, provided by the U.S. Department of Labor, is typically used for federal projects.
3. Handle Fringe Benefits: Contractors must ensure that workers are paid at least the prevailing wage for their job classification, including both the basic hourly rate and any applicable fringe benefits.
4. Post-Wage Rates On-Site: Contractors must display prevailing wage determinations at the job site in a visible location that workers can easily access.
5. Maintain Accurate Records: Contractors must keep 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 Nebraska does not have state-specific penalties, federal law imposes strict consequences for violations of the Davis-Bacon Act, which may include:- Fines
- Back pay for underpaid workers
- Disqualification from bidding on future federally funded projects.
Unique Aspects of Nebraska's Public Works System
1. No Statewide Prevailing Wage Law: Nebraska does not have a state-mandated prevailing wage law, meaning only federally funded projects must adhere to prevailing wage requirements under the Davis-Bacon Act. This provides more flexibility for state and local projects.
2. Emphasis on Local Control: Nebraska's public works policies grant significant authority to local governments, allowing cities and counties to establish their own standards and requirements for public projects instead of following a uniform statewide guideline.
3. Focus on Competitive Bidding: Nebraska's public works projects prioritize a competitive bidding process for contractors to ensure the cost-effective use of taxpayer funds. This emphasis aims to enhance efficiency and accountability in public works projects across the state.
Relevant Resources
- U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
- Nevada Labor Commissioner: Prevailing Wage Information: Nevada Prevailing Wage Information
- Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
Nebraska Prevailing Wage FAQs
Q Does Nebraska have a state-specific prevailing wage law?
No, Nebraska does not have a state-specific prevailing wage law. Public works projects that are state or locally funded are not required to comply with prevailing wage standards. However, federally funded projects in Nebraska must follow the federal Davis-Bacon Act.
Q How are prevailing wage rates determined in Nebraska?
For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor based on 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.
Q What are the penalties for non-compliance with Davis-Bacon regulations in Nebraska?
Penalties for non-compliance with the Davis-Bacon Act can be significant. Contractors may be required to compensate workers with back pay for any wage underpayment. Additionally, contractors can face fines for failing to adhere to wage regulations or certified payroll requirements. For repeated violations, contractors risk debarment, disqualifying them from bidding on future federally funded public works projects.
Q How are fringe benefits handled under the Davis-Bacon Act in Nebraska?
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.