
Prevailing Wage and Davis-Bacon Compliance in North Dakota
Components of Wage Determinations
Federal wage determinations for North Dakota include:
- Basic Hourly Rate: This is the hourly wage rate contractors must pay workers under prevailing wage laws. It is determined based on local wage surveys for specific job classifications.
- Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation/holiday pay.
- Total Hourly Rate: This includes the basic hourly wage plus any fringe benefits (such as health insurance, retirement, or vacation pay) the worker is entitled to. Contractors can either provide these fringe benefits directly or pay the total hourly rate in cash if benefits are not provided.
If a contractor does not offer fringe benefits, they must compensate the worker by paying the total hourly rate, including the basic wage and an equivalent amount instead of benefits.
Compliance for Contractors and Subcontractors
Contractors and subcontractors on federally funded public works projects must ensure compliance with the Davis-Bacon Act. The following steps help ensure adherence to prevailing wage requirements:
Determine if Davis-Bacon applies
Determine if Davis-Bacon applies
Obtain wage determinations
Obtain wage determinations
Post wage rates at the job site
Post wage rates at the job site
Submit certified payrolls
Submit certified payrolls
Maintain accurate records
Maintain accurate records
Penalties for Non-Compliance
While North Dakota doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:
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Withholding of contract funds
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Contract termination
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Debarment from future government contracts
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Payment of back wages to workers
Unique Aspects of North Dakota's Public Works System
- No Statewide Prevailing Wage Law: North Dakota does not enforce a statewide prevailing wage law, relying instead on federal Davis-Bacon Act requirements for federally funded projects.
- Simplified Compliance Oversight: With fewer state-specific wage mandates, North Dakota's public works system emphasizes streamlined project oversight and reduced administrative complexity for contractors.
- Local Government Flexibility: Municipalities and counties in North Dakota may establish their own public works policies and wage standards, allowing flexibility to meet local needs and conditions.
Relevant Resources
- U.S. Department of Labor - Davis-Bacon and Related Acts: DOL Davis-Bacon Overview
- Wage Determinations Online: SAM.gov
North Dakota Prevailing Wage FAQs
Does North Dakota have its own prevailing wage law?
No, North Dakota does not have its own state-level prevailing wage law. However, federal prevailing wage laws under the Davis-Bacon Act apply to federally-funded or federally-assisted public works projects in the state.
How are prevailing wage rates determined for federally-funded projects in North Dakota?
What are the penalties for non-compliance with prevailing wage requirements?
Contractors who fail to comply with prevailing wage laws can face penalties including withholding of contract funds, termination of the contract, debarment from future government contracts, and payment of back wages to workers.
How are fringe benefits handled under the Davis-Bacon Act?
Contractors must either provide fringe benefits (such as health insurance, pensions, and vacation pay) or pay the full total hourly rate in cash, which includes both the basic wage and an equivalent amount for fringe benefits.