Prevailing Wage and Davis-Bacon Compliance in Wisconsin

Wisconsin's Public Works Regulations

Unlike some states, Wisconsin has no state-specific prevailing wage law. However, public works projects in Wisconsin are subject to federal regulations when federal funding is involved:

• Federal Law: The Davis-Bacon and Related Acts (DBRA) apply to Wisconsin's federally funded or assisted construction projects.
• State Law: Wisconsin does not have a "Little Davis-Bacon Act" or state-specific prevailing wage law.

Historically, Wisconsin maintained a state prevailing wage law for public works projects. Still, legislative changes repealed these requirements in stages. They ended for locally funded projects on January 1, 2017, and for state-funded building projects on September 1, 2018.

Definition of "Public Works" in Wisconsin

While Wisconsin no longer enforces a state prevailing wage law, "public works" traditionally refers to construction, repair, or improvement projects funded or administered by public entities, such as:

• Construction and renovation of public buildings (e.g., schools, municipal buildings)
• Road, bridge, and infrastructure projects
• Maintenance or improvement of public utilities or facilities

If a project receives federal funding and meets Davis-Bacon thresholds (usually $2,000 or more), the federal definition of "public works" under Davis-Bacon applies.

Prevailing Wage Determinations: Federal (Davis-Bacon) Requirements

Since Wisconsin doesn't 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:

• Coverage: Federally funded or assisted projects valued at $2,000 or more.
• Wage Rates: Set by the U.S. Department of Labor, published at SAM.gov (Wage Determinations).
• Fringe Benefits: Contractors must provide fringe benefits or equivalent cash in addition to the basic hourly rate.

Components of Wage Determinations

Even though there is no statewide requirement, federal Davis-Bacon standards apply when a project is federally funded:

• Basic Hourly Rate: The minimum "base" wage for a given trade or classification.
• Fringe Benefits: May include health insurance, retirement plans, or paid leave. Under Davis-Bacon, contractors can either offer bona fide benefits or pay the equivalent amount in cash on top of the basic wage.
• Total Hourly Rate = Basic Hourly Rate + Fringe Benefit Amount

Contractors on federally funded projects in Wisconsin must ensure wages (including fringe benefits) at least meet the Davis-Bacon determination for the project's location and job classifications.

Compliance for Contractors and Subcontractors

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

1. Identify Applicable Wage Determinations:
   
   • Check the relevant county or region wage determination at SAM.gov.
2. Submit Certified Payroll Reports:
   • Use the U.S. Department of Labor's WH-347 form or equivalent to ensure appropriate wages and fringe benefits are paid to workers.
3. Pay Required Wages and Benefits:
   
   • Ensure each classification worker gets the correct basic wage plus the required fringe benefit or a cash equivalent.
4. Post Wage Rates On-Site:
   • Post the applicable wage determination where workers can easily view it.
5. Maintain Proper Documentation:
   • Keep records of all wages paid to employees for inspection in case of audits or investigations.

Penalties for Non-Compliance

While Wisconsin doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:

• Withholding of contract payments
• Contract termination
• Debarment from future federal contracts for up to three years

Unique Aspects of Wisconsin's Public Works System

• Repeal of the State Prevailing Wage Law: Once governed by a statewide prevailing wage requirement, Wisconsin repealed those rules by 2018, making it distinct from states that have kept or expanded similar laws.

• Reliance on Federal Davis-Bacon for Federal Projects: Since there is no state-level prevailing wage mandate, projects funded in whole or in part by federal dollars must follow the Davis-Bacon Act, which ensures workers receive federally determined wages and benefits.

Relevant Resources

• U.S. Department of Labor Davis-Bacon Wage Determinations: Wage Determinations Online
• Wisconsin Department of Workforce Development
  
• U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts

This overview is intended for general informational purposes. Given frequent changes to laws and regulations, always confirm details with official sources or seek legal counsel for up-to-date guidance on labor law compliance in Wisconsin.