Prevailing Wage and Davis-Bacon Compliance in Utah
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Utah's Public Works Regulations
Unlike some states, Utah does not have a specific prevailing wage law. However, public works projects in Utah are subject to federal regulations if federal funding is involved:
- Federal Law: The Davis-Bacon and Related Acts (DBRA) apply to Utah's federally funded or assisted construction projects.
- State Law: Utah does not have a "Little Davis-Bacon Act" or any state-specific prevailing wage law.
Definition of "Public Works" in Utah
In Utah, public works generally refer to construction, reconstruction, improvement, repair, or maintenance projects funded wholly or partially by public funds. These projects may include:
Roads, highways, and bridges
Public buildings, schools, and government facilities
Water and sewage treatment plants
Parks and recreational facilities
Utah's federally funded public works projects are subject to prevailing wage requirements under the Davis-Bacon Act.
Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements
Since Utah lacks 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:
- The U.S. Department of Labor determines prevailing wages through local wage surveys.
- These rates include a basic hourly wage and fringe benefits for different job classifications.
- Contractors must consult the federal General Wage Determinations published by the U.S. Department of Labor.
Components of Wage Determinations
Federal wage determinations for Utah include:
- Basic Hourly Rate: The minimum hourly wage contractors must pay workers, excluding fringe benefits.
- Fringe Benefits: Non-cash benefits 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 a 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 Utah must:
- Determine Applicable Wage Rates:
- Use the Wage Determinations Online (WDOL) portal via SAM.gov to identify the correct prevailing wage rates for each job classification and project location.
- Submit Certified Payroll Reports:
- Utilize the U.S. Department of Labor's WH-347 form or an equivalent to ensure appropriate wages and fringe benefits are paid to workers.
- Handle Fringe Benefits:
- Ensure that workers receive the full prevailing wage rate, including fringe benefits.
- Post Wage Rates On-Site:
- Display prevailing wage rates at the job site for workers' awareness.
- Maintain Proper Documentation:
- Keep records of all wages paid to employees for inspection in case of audits or investigations.
Penalties for Non-Compliance
While Utah does not have state-specific penalties, federal law imposes strict consequences for violations of the Davis-Bacon Act, including:
- Back wages for underpaid workers
- Fines
- Disqualification from future federally funded projects
Unique Aspects of Utah's Public Works System
- Reliance on Federal Regulations for Prevailing Wages: Utah relies solely on the federal Davis-Bacon Act for wage determinations on federally funded or assisted construction projects because state-specific prevailing wage laws do not exist.
- Focus on Infrastructure Growth in a Rapidly Expanding State: As Utah experiences significant population and economic growth, the state prioritizes public works projects that support expanding infrastructure, such as highways, water systems, and schools.
Relevant Resources
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 Utah.
Utah Prevailing Wage FAQs
Q Does Utah have its own prevailing wage law?
No, Utah does not have a state-specific prevailing wage law. Federally funded projects in Utah follow the Davis-Bacon Act.
Q How are prevailing wage rates determined for public works projects in Utah?
Q What are the penalties for non-compliance with prevailing wage laws in Utah?
Penalties for non-compliance include fines, back pay for underpaid workers, and potential disqualification from future federally funded projects.
Q How are fringe benefits handled under the Davis-Bacon Act in Utah?
Contractors must either provide fringe benefits or pay their equivalent value in cash. If fringe benefits are not provided, the total hourly wage must be paid directly to the worker.