Prevailing Wage and Davis-Bacon Compliance in Oklahoma

Oklahoma's Public Works Regulations Definition of "Public Works" in Oklahoma

Unlike some states, Oklahoma does not have a specific prevailing wage law at the state level. However, public works projects in Oklahoma must adhere to federal regulations when federal funding is involved:

• Federal Law: Contractors and subcontractors working on federally funded or federally assisted public works projects in Oklahoma must comply with the Davis-Bacon Act. This act mandates that workers on federal public works projects receive at least the locally prevailing wage rates as determined by the U.S. Department of Labor.
• State Law: Oklahoma has no standalone prevailing wage law.

Definition of "Public Works" in Oklahoma

In Oklahoma, "public works" typically refers to the construction, reconstruction, maintenance, or improvement of public infrastructure, including:

• Roads, highways, and bridges
• Government buildings
• Public schools
• Public utilities, water systems, and other essential infrastructure

Any public works projects that involve federal funding or assistance fall under the Davis-Bacon prevailing wage requirements.

Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Oklahoma does not have its own state-specific prevailing wage laws, the U.S. Department of Labor establishes prevailing wages for federally funded projects under the Davis-Bacon Act. Key points include:

Components of Wage Determinations

Federal wage determinations for Oklahoma include:

• Basic Hourly Rate: The minimum hourly wage that must be paid to workers in specific job classifications, as determined by prevailing wage laws. For federally funded projects, the U.S. Department of Labor assesses this rate based on local wage surveys.
• Fringe Benefits: Non-cash benefits such as health insurance, retirement plans, and vacation or holiday pay.
• Total Hourly Rate: This includes both the basic hourly wage and fringe benefits. Contractors can provide these benefits directly to workers or pay the equivalent amount in cash. If no fringe benefits are provided, the total hourly rate (basic wage plus fringe benefits) must be paid to the worker in cash.

Compliance for Contractors and Subcontractors

To adhere to federal prevailing wage laws, contractors and subcontractors in Oklahoma involved in federally funded public works projects must follow these steps:

1. Determine Applicable Wage Rates:

• Contractors must identify the prevailing wage rates for each job classification and project location. Wage determinations for federally funded projects are accessible via the Wage Determinations Online (WDOL) portal at SAM.gov.

2. Submit Certified Payroll Reports:

• Contractors must submit certified payroll reports to the contracting agency when working on federally funded projects. For federal projects, they must use Form WH-347, as provided by the U.S. Department of Labor.

3. Pay the Correct Wages:

• Contractors must ensure that workers are compensated at least the prevailing wage for their job classification, which encompasses both the basic hourly wage and the applicable fringe benefits.

4. Post Wage Rates On-Site:

• Display the applicable wage rates at the job site to ensure transparency and provide workers with awareness of their compensation.

5. Maintain Proper Documentation:

• Contractors should keep payroll records, including hours worked, wages paid, and fringe benefits provided, for a minimum of three years. These records must be available for inspection by the U.S. Department of Labor or other relevant authorities.

Penalties for Non-Compliance

While Oklahoma does not enforce state-specific penalties, federal law imposes strict consequences for violations of the Davis-Bacon Act, including:

• Back pay for underpaid workers
• Fines
• Disqualification from bidding on future federal public works projects

Unique Aspects of Oklahoma's Public Works System

• No Statewide Prevailing Wage Law: Oklahoma does not maintain a state-mandated prevailing wage system, relying instead on federal Davis-Bacon Act requirements for federally funded projects.
• Emphasis on Cost Efficiency: The public works system in Oklahoma prioritizes competitive bidding and cost-effective project delivery, minimizing wage-related regulations at the state level.
• Contractor Flexibility: Without state-imposed prevailing wage mandates, contractors have increased flexibility in setting wages for local and state-funded public works projects.Relevant Resources

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

• Oklahoma Department of Labor