Prevailing Wage and Davis-Bacon Compliance in New Hampshire
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New Hampshire's Public Works Regulations
Unlike some states, New Hampshire does not have a state-specific prevailing wage law. However, public works projects in the state are subject to federal regulations when federal funding is involved:
- Federal Law: The Davis-Bacon and Related Acts (DBRA) apply to federally funded or assisted construction projects in New Hampshire.
- State Law: New Hampshire does not have a "Little Davis-Bacon Act" or any state-specific prevailing wage law.
The New Hampshire Department of Labor oversees labor regulations in the state but does not set or enforce prevailing wage rates for public works projects.
Definition of "Public Works" in New Hampshire
In New Hampshire, "public works" refers to construction, repair, or maintenance projects financed by government funds. These projects can include:
- Roads, highways, and bridges
- Public schools and government buildings
- Water and sewage infrastructure
It is important to note that the requirements of the Davis-Bacon Act only apply when federal funds are used for these projects.
Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements
Since New Hampshire does not have state-specific prevailing wage laws, the U.S. Department of Labor sets the prevailing wages for federally funded projects under the Davis-Bacon Act. Key points include:
- The Davis-Bacon Act applies to all federally funded or federally assisted public works projects in New Hampshire.
- Under this act, contractors and subcontractors must pay workers at least the prevailing wage rates determined by the U.S. Department of Labor.
- These rates are based on local wage surveys and include both a basic hourly wage and fringe benefits.
- New Hampshire does not have state-level prevailing wage determinations for public works projects, but contractors on federally funded projects must adhere to the Davis-Bacon wage requirements.
Components of Wage Determinations
Federal wage determinations for New Hampshire include:
- Basic Hourly Rate: The minimum wage rate paid directly to workers in a specific job classification.
- Fringe Benefits: Non-cash benefits that can include health insurance, retirement plans, and vacation/holiday pay.
- Total Hourly Rate: This is the sum of the basic hourly rate and 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. If fringe benefits are not provided, the contractor must pay the full $35 in cash wages.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on federally funded public works projects in New Hampshire must:
1. Determine Applicable Wage Rates: Contractors must identify the appropriate prevailing wage rates for each job classification and location. Wage determinations for federally funded projects can be accessed through the Wage Determinations Online (WDOL) portal via SAM.gov.
2. Submit Certified Payroll Reports: Contractors must submit certified payroll reports weekly to the contracting agency, typically using Form WH-347. These reports verify that workers have been paid in compliance with prevailing wage laws.
3. Handle Fringe Benefits: Contractors must ensure that workers are paid at least the prevailing wage for their specific job classification, including both the basic hourly rate and any applicable fringe benefits.
4. Post Wage Rates On-Site: Contractors are required to display the applicable wage rates at the worksite for transparency and worker awareness.\
5. Maintain Proper Documentation: Contractors must keep detailed payroll records that include 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.
Penalties for Non-Compliance
While New Hampshire does not have its own state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, which can include:
- Back pay for underpaid workers
- Fines
- Debarment from future federally funded projects
Unique Aspects of New Hampshire's Public Works System
- No Overtime Mandates: New Hampshire does not mandate overtime pay specifically for public works projects, adhering to general state and federal labor laws.
- Open Bidding Process: The state encourages competitive bidding for public works projects without preference or wage stipulations tied to local contractors.
- DOT Oversight: The New Hampshire Department of Transportation oversees compliance with labor standards on public works but does not enforce separate prevailing wage standards.
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
- New Hampshire Department of Labor
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 New Hampshire.
New Hampshire Prevailing Wage FAQs
Q Does New Hampshire have a state-specific prevailing wage law?
No, New Hampshire does not have a state-specific prevailing wage law. Public works projects funded by state or local governments are not required to adhere to prevailing wage standards unless specified in the project contract. However, for federally funded projects, the Davis-Bacon Act applies.
Q How are prevailing wage rates determined in New Hampshire?
Q What are the penalties for non-compliance with Davis-Bacon regulations in New Hampshire?
Contractors who fail to comply with the Davis-Bacon Act may face several penalties. They could be required to provide back pay to workers for any underpaid wages. Additionally, contractors may incur fines for not adhering to wage regulations or certified payroll requirements. In cases of repeated violations, contractors may be debarred, disqualifying them from bidding on future federally funded public works projects.
Q How are fringe benefits handled under the Davis-Bacon Act in New Hampshire?
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 contributions) or pay the equivalent value in cash. If no fringe benefits are provided, the contractor must pay the full wage (basic hourly rate + fringe benefits) as cash wages to the worker.