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Prevailing Wage and Davis-Bacon Compliance in Oklahoma

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Oklahoma's Public Works Regulations

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.

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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:

The Davis-Bacon Act applies to federally funded or federally assisted public works projects in Oklahoma.

Contractors must pay workers at least the prevailing wage rates set by the U.S. Department of Labor.

These wage rates are based on local wage surveys conducted in the area where the project is located and include both a basic hourly wage and fringe benefits.

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:

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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.

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.

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.

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.

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

Does Oklahoma have its own prevailing wage law?

No, Oklahoma does not have a state-specific prevailing wage law. However, federally funded public works projects in Oklahoma are subject to the federal Davis-Bacon Act.

How are prevailing wage rates determined in Oklahoma?

For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor based on local wage surveys conducted in the area. These rates are published on the Wage Determinations Online (WDOL) portal on SAM.gov.

What are the penalties for non-compliance with prevailing wage laws in Oklahoma?

Penalties for non-compliance with prevailing wage laws can include the withholding of contract funds, termination of contracts, debarment from future public works projects, and the requirement to pay back wages to affected workers.

How are fringe benefits handled under the Davis-Bacon Act in Oklahoma?

Fringe benefits are part of the total wage required to be paid under the Davis-Bacon Act. Contractors can either provide fringe benefits such as health insurance and retirement plans or pay the equivalent value in cash to the workers. If fringe benefits are not provided, the full total wage (basic hourly rate + fringe benefits) must be paid in cash.