Prevailing Wage and Davis-Bacon Compliance in Oregon

Oregon's Public Works Regulations

Oregon has a dual system of prevailing wage laws:

• State Law: Oregon's state-specific prevailing wage law is the Oregon Prevailing Wage Rate (PWR) Law, governed by ORS Chapter 279C.800 to 279C.870. This law requires contractors and subcontractors working on public works projects funded by the state, county, or local government to pay workers no less than the prevailing wage rates established by the Oregon Bureau of Labor and Industries (BOLI).
• Federal Law: Oregon contractors must comply with the federal Davis-Bacon Act, which mandates the payment of prevailing wages set by the U.S. Department of Labor.

Key point: The Oregon Prevailing Wage Rate applies to public works contracts exceeding $50,000.

Definition of "Public Works" in Oregon

In Oregon, public works refers to the construction, reconstruction, demolition, repair, painting, or maintenance of public infrastructure or facilities funded in whole or in part by public funds. Public works projects can include:

• Highways, roads, and bridges

• Government buildings, schools, and libraries

• Water and sewage systems

• Parks and other public spaces

Both the state prevailing wage law and the federal Davis-Bacon Act apply to public works projects funded by state or local government agencies or federal government funds.

1. Prevailing Wage Determinations: Federal and State Requirements

Federal Davis-Bacon Act

• This applies to federally funded or assisted projects
• U.S. Department of Labor sets wage rates
• Includes basic hourly wage and fringe benefits

Oregon's Prevailing Wage Law

• The Oregon Bureau of Labor and Industries (BOLI) determines prevailing wage rates.
• BOLI conducts wage surveys to establish rates that reflect wages typically paid to workers in specific occupations in the area where the project is located.

• These wage rates are updated twice a year and must be adhered to by contractors and subcontractors working on public projects in Oregon.

Components of Wage Determinations

Both federal and state wage determinations in Oregon include:

• Basic Hourly Rate: The minimum wage rate paid directly to workers in a specific job classification.
• Fringe Benefits: Non-cash benefits include health insurance, pensions, and vacation pay.
• Total Hourly Rate: The sum of the basic hourly rate and fringe benefits.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on public works projects in Oregon must:

1. Determine Applicable Wage Rates:
   • For federal projects: Use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal via SAM.gov
   • For state projects: Wage rates are provided by the Oregon Bureau of Labor and Industries (BOLI)
2. Submit Certified Payroll Reports:
   • For federal projects: Use the U.S. Department of Labor's Form WH-347
   • For state projects: Reports must be submitted to BOLI.
3. Ensure Correct Wages:
   • Contractors must ensure all workers are paid the correct prevailing wage for their job classification, including the basic hourly wage and applicable fringe benefits.
4. Post Wage Rates On-Site:
   • Contractors must post the prevailing wage rates at the job site in a visible location, allowing workers to know the wages they are entitled to.
5. Maintain Accurate Records:
   • Contractors must maintain detailed payroll records, including hours worked, wages paid, and fringe benefits provided. These records must be kept for at least three years after project completion and made available for inspection by BOLI or the U.S. Department of Labor.

Penalties for Non-Compliance

Failure to comply with prevailing wage laws in Oregon can result in:

• Back pay for underpaid workers
• Fines

• Disqualification from bidding on future public works projects

Unique Aspects of Oregon's Prevailing Wage System

• Locally Determined Wage Rates: Oregon calculates prevailing wages based on state-conducted surveys of local wage data and collective bargaining agreements, ensuring region-specific accuracy.
• Apprenticeship and Training Promotion: The system actively supports apprenticeship programs by encouraging contractors to hire and train apprentices on public works projects, fostering workforce development.
• Strong Enforcement Mechanisms: Oregon's prevailing wage system includes stringent compliance monitoring and penalties for violations, ensuring contractors adhere to wage standards.

Relevant Resources

• Oregon Bureau of Labor and Industries (BOLI) Prevailing Wage Information: BOLI Prevailing Wage Information
• 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