
Prevailing Wage and Davis-Bacon Compliance in Nevada
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:
Determine Applicable Wage Rates
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
Submit Certified Payroll Reports
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.
Handle Fringe Benefits
Handle Fringe Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Accurate Records
Maintain Accurate Records
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in Nevada can result in
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Fines
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Back pay for underpaid workers
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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
Nevada Prevailing Wage FAQs
Does Nevada have a state-specific prevailing wage law?
Yes, Nevada has its own prevailing wage law that applies to state-funded public works projects with a value of $250,000 or more. Contractors working on these projects must pay workers the prevailing wage rates determined by the Nevada Labor Commissioner. Federally funded projects must follow the Davis-Bacon Act.
How are prevailing wage rates determined in Nevada?
For state-funded projects, the Nevada Labor Commissioner determines prevailing wage rates based on local wage surveys and collective bargaining agreements. For federally funded projects, the U.S. Department of Labor sets the prevailing wage rates based on similar wage surveys.
What are the penalties for non-compliance with prevailing wage laws in Nevada?
Penalties for non-compliance can include several serious consequences. Contractors may be required to provide back pay to workers to cover any wage underpayment. Additionally, contractors can face fines for failing to comply with wage regulations or for not submitting accurate payroll reports. In cases of repeated violations, contractors may be disqualified from bidding on future public works projects, a process known as debarment.
How are fringe benefits handled under Nevada’s prevailing wage laws?
Fringe benefits are part of the total prevailing wage that must be paid to workers. Contractors can either provide fringe benefits (such as health insurance or retirement plans) 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) directly to the worker in cash.