Prevailing Wage and Davis-Bacon Compliance in North Dakota

North Dakota's Public Works Regulations

Unlike some states, North Dakota has no state-specific prevailing wage law. However, public works projects in North Dakota 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 North Dakota.
• State Law: North Dakota does not have a "Little Davis-Bacon Act" or a state-specific prevailing wage law.

Definition of "Public Works" in North Dakota

In North Dakota, public works generally refer to construction, repair, or maintenance projects involving public infrastructure or government-owned facilities. These include schools, highways, water treatment plants, and government buildings. When these projects are federally funded, they are subject to Davis-Bacon prevailing wage requirements.

Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since North Dakota doesn't have state-specific prevailing wage laws, the U.S. Department of Labor sets prevailing wages for federally funded projects under the Davis-Bacon Act. Key points include:

• Davis-Bacon Act (Federal Requirement): The U.S. Department of Labor determines the prevailing wage rates based on local wage data for public works projects receiving federal funding in North Dakota. These wage determinations are based on surveys of wages paid to various labor categories in the area where the project is located.
• No State-Specific Requirements: North Dakota does not have a state prevailing wage law, meaning only federally-funded projects are affected by prevailing wage requirements. This includes projects funded through federal programs such as the Department of Transportation or the Department of Housing and Urban Development.

Components of Wage Determinations

Federal wage determinations for North Dakota include:

1. 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.
2. Fringe Benefits: Non-cash benefits include health insurance, retirement plans, and vacation/holiday pay.
3. 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:

1. Determine if Davis-Bacon applies:
   • If the project is federally funded, prevailing wage laws must be followed.
2. Obtain wage determinations:
   • Contractors can find the appropriate wage determinations for the project by visiting the U.S. Department of Labor's SAM.gov website.
3. Post wage rates at the job site:
   • Contractors are required to post the wage determinations at the job site so workers are aware of the wages they are entitled to.
4. Submit certified payrolls:
   • Contractors must submit weekly certified payroll records to the contracting agency, showing the wages paid to each worker.
5. Maintain accurate records:
   • Records of wages, hours worked, and fringe benefits provided must be kept for at least three years after the project is completed.

Penalties for Non-Compliance

While North Dakota doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:

• Withholding of contract funds
• Contract termination
• Debarment from future government contracts
• 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