(888) 745-0754

Important Things to know if you are a Government Contractor in Iowa

The Davis-Bacon Act on prevailing wages was conceptualized in accordance with trade classification, type of work, or geographic location. This article hopes to provide you with good to know information about Iowa’s special prevailing wage determinations based on area practice and jurisdiction.

Rules in a No State Prevailing Wage Law in Iowa           

In Iowa, there is no state prevailing wage law. In this case, their public works projects are governed by the federal Department of Labor (DOL) and are subject to the Davis-Bacon and Related Acts (DBRA). It is for this reason that Iowa is dubbed as “Little Davis-Bacon State”.

Contractors and subcontractors in the state of Iowa that engage in public works and projects must pay their prevailing wage workers equal to those who were paid by other contractors having similar projects. The contracting agency is responsible for enforcing the Davis-Bacon Act compliance in Iowa.

Wage Determinations in Iowa

Wage determinations consist of wage rates and fringe benefits prevailing per state such as in Iowa. The Department of Labor (DOL) base the prevailing wage rates on the hourly rate paid on Iowa public works and projects to workers having a particular work type. When no single rate is adhered to, the modal rate used for paying the majority of workers in a locality will serve as the prevailing wage determination there. 

Iowa has a current basic minimum rate of $7.25 per hour and with a minimum wage that is the same as the federal rate. There is also no threshold amount for contract coverage under Iowa where there is no prevailing wage laws.

Special Determinations in an Iowa Davis-Bacon Project

The contracting agency or awarding body in Iowa could contain pre-determined increases and in particular to the Iowa DBRA job. It can be requested on a per project basis and determinations are good for the entire duration of the project.  In Iowa, the prevailing wage contractor must fulfill the obligation to pay no less than the wage and fringe benefit rates listed in the Davis-Bacon wage decision for the lowest specialized trade while waiting for a special wage determination decision.

ARCHER JORDAN is committed to Helping Prevailing Wage Contractors Comply with Federal and State Laws

Whether you are in a state with existing prevailing wage laws or not, ARCHER JORDAN is committed to ensure that state specific requirements are complied with. Our team at ARCHER JORDAN will guide you with DBRA so you can have the confidence to do your business with the government.