Prevailing Wage and Davis-Bacon Compliance in Ohio
eMars provides certified payroll and compliance solutions tailored primarily for federal projects and select state jurisdictions. While many agencies accept the standard WH-347 form, some states will require their own form. For questions about supported jurisdictions, please contact our team directly.
Components of Wage Determinations
Both federal and state wage determinations in Ohio include:
- Basic Hourly Rate: The minimum hourly wage paid directly to workers for their specific job classification, excluding fringe benefits. For federal projects, DOL sets the rate through local wage surveys; for Ohio public works, the Bureau of Wage and Hour Administration sets the rate based on the prevailing CBAs for the trade and locality.
- Fringe Benefits: Non-cash compensation such as health insurance, pensions, and vacation pay paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits. Contractors can provide bona fide fringe benefits or pay the equivalent value as additional cash on top of the basic rate. If no fringe benefits are provided, the full total hourly rate must be paid as cash, matching the basic rate plus the fringe rate listed on the applicable determination.
Compliance for Contractors and Subcontractors
To comply with prevailing wage laws in Ohio, contractors and subcontractors must follow these steps:
Determine the Wage Rates
Determine the Wage Rates
For federal projects, pull the DOL wage determination from SAM.gov, applying the determination in effect ten days before bid opening. For Ohio public works projects, request the project-specific prevailing wage schedule from the awarding public authority's Prevailing Wage Coordinator or access current commercial rates through the Ohio Prevailing Wage Portal.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
On Ohio public works projects, file weekly certified payroll reports with the public authority's Prevailing Wage Coordinator (not directly with the Ohio Department of Commerce), with the first report due within two weeks of project commencement. On federally funded projects, file Form WH-347 weekly with the contracting agency.
File an affidavit of compliance
File an affidavit of compliance
Post Wage Rates On-Site
Post Wage Rates On-Site
Display the prevailing wage determination in a visible location on the job site for the duration of the project.
Maintain Accurate Records
Maintain Accurate Records
Keep payroll records, including hours worked, classifications, wages, and fringe benefits, for at least three years after the project's completion. Federal Davis-Bacon recordkeeping runs three years after the prime contract is completed and requires worker telephone and email contact information on DOL request.
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in Ohio can result in:
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Civil Penalties of up to 100 percent of the underpayment under ORC 4115.13
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Withholding of Contract Payments by the public authority
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Back Wages owed to underpaid workers
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Debarment from public works contracts for contractors that have three or more violations within a five-year period (ORC 4115.133)
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Civil Action by the Director of Commerce, an underpaid employee, or an interested party
Unique Aspects of Ohio's Prevailing Wage System
- Threshold-Based Application: The law applies only to projects exceeding specific cost thresholds, which vary by type (e.g., new construction vs. renovation).
- Prevailing Wage Coordinator at Every Public Authority: Each public authority awarding a covered project must designate one of its own employees as the Prevailing Wage Coordinator before work begins. Certified payroll, classification questions, and compliance communications all flow through the Coordinator, not directly through the Ohio Department of Commerce.
- Notarized Affidavit of Compliance: Each contractor and subcontractor must file a notarized Affidavit of Compliance certifying that prevailing wages have been paid in accordance with ORC Chapter 4115.
Relevant Resources
- U.S. Department of Labor Davis-Bacon: Wage Determinations On SAM.gov
- U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts
- Updating the Davis-Bacon and Related Acts Regulations - DOL Final Rule
- Ohio Department of Commerce: Prevailing Wage: Ohio Prevailing Wage Portal
For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or the Ohio Department of Commerce, Bureau of Wage and Hour Administration.
Ohio Prevailing Wage FAQs
What is the Ohio Prevailing Wage Law?
The Ohio Prevailing Wage Law (Ohio Revised Code Chapter 4115) requires contractors and subcontractors working on covered public improvement projects to pay workers the prevailing wage rates set by the Ohio Department of Commerce, Bureau of Wage and Hour Administration. The law applies to new building construction at $250,000 or more, reconstruction or repair at $75,000 or more, and road and bridge construction at approximately $84,314 or more (biennially adjusted). Every awarding public authority must designate a Prevailing Wage Coordinator before work begins.
How are prevailing wage rates determined for public works projects in Ohio?
For Ohio public works, the Department of Commerce's Bureau of Wage and Hour Administration sets rates predominantly from the wages in collective bargaining agreements in effect for the trade and locality. Contractors and public authorities can access current commercial rates through the Ohio Prevailing Wage Portal. For federally funded projects, the U.S. Department of Labor sets rates by county and construction type through local wage surveys, published on SAM.gov, with the determination in effect ten days before bid opening governing the contract.
What are the penalties for non-compliance with Ohio’s prevailing wage laws?
Penalties include back wages owed to underpaid workers, civil penalties of up to 100 percent of the underpayment under ORC 4115.13, withholding of contract payments by the public authority, three-year debarment from public works contracts for contractors with three or more violations in a five-year period under ORC 4115.133, and civil action by the Director of Commerce, an underpaid employee, or an interested party. Federal Davis-Bacon penalties layer on top when federal funds are involved.
How are fringe benefits handled under Ohio’s prevailing wage laws?
Contractors must provide bona fide fringe benefits such as health insurance, pensions, or paid leave, or pay the equivalent value as additional cash on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate listed on the applicable Ohio Department of Commerce or SAM.gov wage determination. If no fringe benefits are provided, the full total hourly rate must be paid as cash directly to the worker.