
Prevailing Wage and Davis-Bacon Compliance in Ohio
Components of Wage Determinations
Both federal and state wage determinations in Ohio include:
- Basic Hourly Rate: The minimum hourly wage that workers must be paid for their specific job classification, excluding fringe benefits. The basic hourly rate is determined by wage surveys conducted by the U.S. Department of Labor for federally funded projects and by the Ohio Department of Commerce for state-funded projects.
- Fringe Benefits: Non-cash benefits include health insurance, pensions, and vacation pay.
- Total Hourly Rate: This includes the basic hourly wage and fringe benefits. Contractors can either provide these fringe benefits directly to workers or pay the equivalent value in cash. If fringe benefits are not provided, the full total hourly rate (basic wage + fringe benefits) must be paid to workers in cash.
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
Contractors must determine the applicable prevailing wage rates for the specific job classifications and the project's location.
For federal projects: Wage rates are available on the Wage Determinations Online (WDOL) portal via SAM.gov
For state projects: Wage determinations are made by the Ohio Department of Commerce.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
Contractors working on public works projects must submit weekly certified payroll reports to the contracting agency.
For federal projects: Certified payrolls are submitted using Form WH-347 from the U.S. Department of Labor.
For state projects: Contractors must submit payroll reports to the Ohio Department of Commerce.
Pay Correct Wages
Pay Correct Wages
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 Ohio can result in:
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Back pay for underpaid workers
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Fines
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Debarment from future government contracts
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Disqualification from bidding on future public works projects
Unique Aspects of Ohio's Prevailing Wage System
- State-Specific Prevailing Wage Law: Ohio enforces a statewide prevailing wage law, which covers most public construction projects and ensures fair pay for workers.
- Threshold-Based Application: The law applies only to projects exceeding specific cost thresholds, which vary by type (e.g., new construction vs. renovation).
- State-Specific Wage Surveys: Ohio conducts its own wage surveys to determine prevailing rates, ensuring they reflect the state's unique economic conditions and labor market trends.
Relevant Resources
- U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
- Ohio Department of Commerce: Prevailing Wage: Ohio Prevailing Wage Information
- Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
Ohio Prevailing Wage FAQs
What is the Ohio Prevailing Wage Law?
The Ohio Prevailing Wage Law requires contractors working on public works projects funded by the state or local government to pay workers the prevailing wage rates as determined by the Ohio Department of Commerce. The law applies to new construction projects costing over $250,000 and repair or maintenance projects over $75,000.
How are prevailing wage rates determined for public works projects in Ohio?
Prevailing wage rates for state-funded projects are determined by the Ohio Department of Commerce based on wage surveys and collective bargaining agreements. For federally funded projects, the U.S. Department of Labor determines prevailing wage rates through local wage surveys.
What are the penalties for non-compliance with Ohio’s prevailing wage laws?
Penalties for non-compliance can include fines, the requirement to pay back wages to underpaid workers, and potential disqualification from bidding on future public works projects. Repeated violations can lead to debarment from future government contracts.
How are fringe benefits handled under Ohio’s prevailing wage laws?
Contractors must either provide fringe benefits, such as health insurance, pensions, and vacation pay, or pay the equivalent value in cash. If no fringe benefits are provided, the total hourly wage (basic wage + fringe benefits) must be paid as cash to the worker.