Prevailing Wage and Davis-Bacon Compliance in Nevada

Nevada's Public Works Regulations

Nevada has state and federal regulations governing prevailing wages for public works projects.

• State Law: The Nevada Prevailing Wage Law (NRS Chapter 338) requires that contractors and subcontractors working on public works projects funded by state or local governments pay workers the prevailing wage rates determined by the Nevada Labor Commissioner. This law applies to public works projects with a total value of $250,000 or more.
• Federal Law: For federally funded or federally assisted projects, contractors 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 Nevada

In Nevada, "public works" refers to construction, reconstruction, improvement, and maintenance projects funded by public money. Common public works projects include:

• Roads, highways, and bridges
• Public schools, government buildings, and other infrastructure
• Water and sewer systems
• Public parks and recreational facilities

Key Points:

• The Nevada Prevailing Wage Law applies to all state and locally-funded projects valued at $250,000 or more.
• The Davis-Bacon Act applies to federally funded or federally assisted public works projects.

Nevada Prevailing Wage Determinations: State and Federal Requirements

Nevada Prevailing Wage Law

• The Nevada Labor Commissioner establishes prevailing wage rates for state-funded public works projects across different job classifications.
• These rates are updated annually based on wage data and collective bargaining agreements from the local area.
• Contractors working on public works projects in Nevada must adhere to these wage rates.

Federal Davis-Bacon Act (DBA)

• Under the Davis-Bacon Act, the U.S. Department of Labor sets prevailing wage rates for federally funded projects based on wage surveys conducted in the local area. These rates include both a basic hourly wage and fringe benefits.

Components of Wage Determinations

Both state and federal wage determinations in Nevada include:

• Basic Hourly Rate: The minimum wage rate paid directly to workers for every hour worked. The basic hourly wage is determined by wage surveys or collective bargaining agreements in the local area.
• Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation pay.
• Total Hourly Rate: The sum of the basic hourly rate and the fringe benefits. For example, if the basic hourly wage is $30 and fringe benefits are valued at $5, the total hourly rate would be $35. The contractor must pay the full $35 in cash wages if no fringe benefits are provided.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on public works projects in Nevada, whether state or federally funded, must follow these steps:

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: Wage rates are available on the Nevada Labor Commissioner website.

2. Submit Certified Payroll Reports:

• For federal projects: Use the U.S. Department of Labor's Form WH-347.
• For state projects: Contractors must submit certified payrolls to the Nevada Labor Commissioner.

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

5. Maintain Accurate Records:

• Contractors must keep detailed records of hours worked, wages paid, and any fringe benefits provided. These records should be maintained for at least three years and be available for inspection by the U.S. Department of Labor or the Nevada Labor Commissioner.

Penalties for Non-Compliance

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

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

Unique Aspects of Nevada's Prevailing Wage System

• Threshold for Public Works Projects: Nevada's prevailing wage law applies only to public works projects valued at $100,000 or more, meaning smaller projects are exempt. This allows for more flexibility and cost savings on lower-value projects.
• Reduced Wage Rates for School Districts and Higher Education: Nevada sets a 90% prevailing wage rate for school districts and higher education construction projects, providing cost savings for educational institutions while ensuring fair pay.
• Prevailing Wage Determined by the State Labor Commissioner: Unlike many states that rely on surveys or union rates, Nevada's prevailing wages are determined by the State Labor Commissioner, who conducts annual wage surveys using local wage data.

Relevant Resources

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