Prevailing Wage and Davis-Bacon Compliance in Rhode Island

Rhode Island's Public Works Regulations

Rhode Island has two sets of prevailing wage laws:

• State Law: The Rhode Island General Law, Title 37, Chapter 13, mandates that contractors and subcontractors on public works projects funded by state or local governments must pay their workers no less than the prevailing wage rates established by the Rhode Island Department of Labor and Training (DLT).
• Federal Law: The federal Davis-Bacon Act requires that workers be compensated at prevailing wage rates set by the U.S. Department of Labor.

Key Point: The Rhode Island General Law applies to public works projects costing $1,000 or more.

Definition of "Public Works" in Rhode Island

In Rhode Island, public works encompasses construction, reconstruction, alteration, repair, maintenance, or improvement projects funded in whole or in part by public funds. This includes:

• Roads, highways, and bridges

• Public schools, libraries, and government buildings

• Water and sewage systems

• Public parks and other infrastructure projects

Public works projects funded by state or local governments must adhere to Rhode Island's prevailing wage law, while federally funded projects are subject to the Davis-Bacon Act.

Prevailing Wage Determinations: Federal and State Requirements

Federal Davis-Bacon Act:

• This applies to federally funded or assisted public works projects in Rhode Island.
• Wage rates are set by the U.S. Department of Labor based on local wage surveys for specific labor classifications and geographic areas.

Rhode Island's Prevailing Wage Law:

• For state and local public works projects, the Rhode Island Department of Labor and Training (DLT) determines the prevailing wage rates for different job classifications.
• These rates are based on collective bargaining agreements and wage data from local markets, and they are updated periodically.

Components of Wage Determinations

Both federal and state wage determinations in Rhode Island include the following components:

• Basic Hourly Rate: The minimum wage rate paid directly to workers in a specific job classification. Both the federal Davis-Bacon Act and Rhode Island's prevailing wage law require contractors to pay this basic wage to workers on public works projects.
• Fringe Benefits: Non-cash benefits that 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 Rhode Island must follow these steps to comply with prevailing wage requirements:

1. Determine Applicable Wage Rates:

• For federal projects: Use the U.S. Department of Labor's Wage Determinations Online (WDOL) portal available via SAM.gov.
• For state projects: Wage determinations can be obtained from the Rhode Island Department of Labor and Training (DLT).

2. Submit Certified Payroll Reports:

• For federal projects: Certified payrolls are typically submitted using Form WH-347, provided by the U.S. Department of Labor.
• For state projects: Payroll reports must be submitted to the Rhode Island Department of Labor and Training.

3. Pay Correct Wages:

• Contractors must ensure that workers are compensated at the correct prevailing wage, which includes both the basic hourly wage and applicable fringe benefits.

4. Post Wage Rates On-Site:

• Display the prevailing wage determinations in a conspicuous place on the job site.

5. Maintain Accurate Records:

• Contractors must keep detailed payroll records, including hours worked, wages paid, and fringe benefits provided to each worker. These records must be retained for at least three years after the project's completion and should be made available for inspection upon request.

Penalties for Non-Compliance

Failure to comply with prevailing wage laws in Rhode Island may result in:

• Back pay for underpaid workers
• Fines
• Possible disqualification from bidding on future public works contracts.

Unique Aspects of Rhode Island's Prevailing Wage System

• Weekly Wage Payments: Rhode Island's prevailing wage law mandates that workers on public works projects be paid weekly, ensuring timely compensation.
• Holiday and Overtime Provisions: The state requires contractors to adhere to specific overtime and holiday pay regulations, which enhance worker protections.
• Apprenticeship Ratio Requirements: Rhode Island enforces strict apprentice-to-journeyman ratios on public works projects, promoting workforce training while maintaining productivity standards.

Relevant Resources

• U.S. Department of Labor: Wage Determinations Online (WDOL): SAM.gov - Wage Determinations
• Rhode Island Department of Labor and Training (DLT): Prevailing Wage Information: Rhode Island Prevailing Wage Information
• U.S. Department of Labor Certified Payroll Form: Form WH-347