
Prevailing Wage and Davis-Bacon Compliance in Pennsylvania
Components of Wage Determinations
Both federal and state wage determinations in Pennsylvania 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.
For example, if the basic hourly rate is $25 and fringe benefits are $10, the total hourly rate would be $35. If the contractor does not provide fringe benefits, the worker must receive the entire $35 as wages.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in Pennsylvania must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
Contractors must identify the prevailing wage rates for each job classification in the area where the work is being performed.
For federal projects: Use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal via SAM.gov.
For state projects: Wage determinations are available through the Pennsylvania Department of Labor and Industry (L&I).
Submit Certified Payroll Reports
Submit Certified Payroll Reports
Contractors must submit certified payroll reports to the relevant authorities to demonstrate compliance with prevailing wage laws.
For federal projects: Use the U.S. Department of Labor's Form WH-347.
For state projects: Payroll records must be submitted to the Pennsylvania Department of Labor and Industry.
Handle Fringe Benefits
Handle Fringe Benefits
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 Pennsylvania can result in:
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Back pay to workers
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Fines
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Disqualification from bidding on future public works projects
Unique Aspects of Pennsylvania's Prevailing Wage System
- Statewide Coverage: Pennsylvania's Prevailing Wage Act applies to all public works projects exceeding $25,000, ensuring standardized wages across the state.
- Project-Specific Wage Determinations: The state sets prevailing wage rates uniquely for each project, considering local labor conditions and collective bargaining agreements.
- Certified Payroll Reporting: Contractors must submit detailed certified payroll records, ensuring transparency and compliance with wage requirements on public works projects.
Relevant Resources
- U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
- Pennsylvania Department of Labor and Industry (L&I) Prevailing Wage Information: Pennsylvania Prevailing Wage Information
Certified Payroll Form WH-347: U.S. Department of Labor Certified Payroll Form
Pennsylvania Prevailing Wage FAQs
What is the Pennsylvania Prevailing Wage Act?
The Pennsylvania Prevailing Wage Act requires contractors and subcontractors working on public works projects funded by state or local governments to pay their workers prevailing wage rates as determined by the Pennsylvania Department of Labor and Industry (L&I). The law applies to projects that cost $25,000 or more.
How are prevailing wage rates determined for public works projects in Pennsylvania?
For state-funded projects, prevailing wage rates are determined by the Pennsylvania Department of Labor and Industry (L&I) based on wage data and collective bargaining agreements. For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor.
What are the penalties for non-compliance with prevailing wage laws in Pennsylvania?
Penalties for non-compliance can include fines, back pay for underpaid workers, and possible debarment from bidding on future public works projects. Contractors may also face legal action if they fail to meet prevailing wage requirements.
How are fringe benefits handled under Pennsylvania’s prevailing wage laws?
Contractors can either provide fringe benefits directly, such as health insurance and retirement plans, or pay the equivalent value in cash. If no fringe benefits are provided, the contractor must pay the total wage (basic hourly rate + fringe benefits) as cash to the worker.