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Prevailing Wage and Davis-Bacon Compliance in South Carolina

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South Carolina's Public Works Regulations

Unlike some states, South Carolina does not have a specific prevailing wage law. However, public works projects in the state are subject to federal regulations if federal funding is involved.

Federal Law: The Davis-Bacon and Related Acts (DBRA) apply to federally funded or assisted construction projects in South Carolina.
State Law: There is no "Little Davis-Bacon Act" or state-specific prevailing wage law in South Carolina.

The Davis-Bacon Act applies to public works projects that involve federal funds and have a total contract value exceeding $2,000. Contractors and subcontractors on these projects must adhere to the prevailing wage rates for the job classifications in the local area where the project is being carried out.

Definition of "Public Works" in South Carolina

In South Carolina, "public works" refers to the construction, repair, or maintenance of public infrastructure or government-owned facilities that are funded wholly or partly by public funds. Public works can include:

- Roads, highways, and bridges

- Government buildings, schools, and libraries

- Water and sewage systems

- Parks and recreational facilities

For federally funded public works projects, contractors must follow the Davis-Bacon wage regulations.

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Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

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

- Wage rates are based on surveys of wages paid to similar workers in the local area and include both a basic hourly wage and fringe benefits.

- Different rates apply for various worker classifications (e.g., laborers, carpenters, electricians).

- Contractors must consult the federal General Wage Determinations published by the U.S. Department of Labor.

- These determinations specify the prevailing wage rates, including fringe benefits, for each classification of workers.

Components of Wage Determinations

Federal wage determinations for South Carolina consist of:

- Basic Hourly Rate: The minimum hourly wage that must be paid to workers for their specific job classification, excluding fringe benefits.

- Fringe Benefits: Non-cash benefits that may include health insurance, retirement plans, and vacation/holiday pay.

- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits. For example, if the basic hourly rate is $20 and fringe benefits are $5, the total hourly rate would be $25. If the contractor does not provide fringe benefits, the worker must receive $25 as wages.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on federally funded public works projects in South Carolina must:

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Determine the Applicable Wage Rate

Contractors must identify the prevailing wage rate for each job classification and geographic area where the project is located. Wage rates are available through the Wage Determinations Online (WDOL) portal at SAM.gov.

Submit Certified Payroll Reports

Contractors are required to submit weekly certified payroll reports to demonstrate compliance with prevailing wage laws. For federally funded projects, these reports must be submitted using Form WH-347, provided by the U.S. Department of Labor.

Handle Fringe Benefits

Contractors can either provide specified fringe benefits or pay workers the equivalent value in cash.

Post Wage Rates On-Site

Prevailing wage determinations must be posted at the job site so that workers can access information about their wages.

Maintain Accurate Payroll Records

Contractors must keep payroll records that include hours worked, wages paid, and fringe benefits provided. These records should be retained for at least three years after the project's completion and must be available for inspection by the U.S. Department of Labor or other relevant authorities.

Penalties for Non-Compliance

While South Carolina doesn't have state-specific penalties, federal law enforces strict consequences for violations of the Davis-Bacon Act, which may include:

Back pay for underpaid workers
Fines
Disqualification from future federally funded contracts

Unique Aspects of South Carolina's Public Works System

No State Prevailing Wage Law: South Carolina relies solely on federal regulations for establishing prevailing wages on public works projects.
Limited Scope: Davis-Bacon requirements only apply to federally funded projects, not all public works in the state.
Environmental Regulations: Public works projects must comply with stringent environmental protections, particularly in ecologically sensitive areas like the Lowcountry, adding complexity to the planning and execution of such projects.

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

For the most current and detailed information, always refer to the U.S. Department of Labor website and consult with legal counsel familiar with federal labor laws and their application in South Carolina.

Does South Carolina have its own prevailing wage law?

No, South Carolina does not have a state-specific prevailing wage law. However, for federally funded public works projects, the federal Davis-Bacon Act requires that workers be paid prevailing wages as determined by the U.S. Department of Labor.

How are prevailing wage rates determined in South Carolina?

Prevailing wage rates for federally funded projects are determined by the U.S. Department of Labor based on local wage surveys. These rates include both a basic hourly wage and fringe benefits. Contractors can find applicable wage determinations through the Wage Determinations Online (WDOL) portal on SAM.gov.

What are the penalties for non-compliance with prevailing wage requirements in South Carolina?

Penalties for non-compliance with Davis-Bacon prevailing wage laws include the requirement to pay back wages to underpaid workers, fines, and potential disqualification from bidding on future federal projects. Repeat violators can also face debarment.

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

Contractors can either provide fringe benefits such as health insurance, pensions, and vacation pay or pay the equivalent value in cash. If no fringe benefits are provided, the total hourly wage (basic hourly rate + fringe benefits) must be paid to the worker in cash.