Important Information for Government Contractors in SC
Under the Davis-Bacon and Related Act (DBRA), SC government contractors and subcontractors must pay their workers with no less than the state-mandated prevailing wage and provide fringe benefits for work on similar projects in the area.
South Carolina is a Davis-Bacon state. It is the federal government’s Department of Labor (DOL) that determines the prevailing wage rates. Furthermore, the basis for wage and benefit rates is the Davis-Bacon Wage Decision list.
In the event that there is a trade in question, it is your role as a contractor to refer to the lowest trade listed that resembles the trade in question, and pay no less than that rate. Otherwise, prompt correction must be done to the payroll.
South Carolina Davis-Bacon Project
South Carolina is governed by Davis-Bacon rules. In a nutshell, what it means is that prevailing wage rates serve only the life of the project. Although there may be cases where the contracting agency or awarding body can request special determinations on a per project basis, it is specific to the DBRA job in South Carolina.
For the most accurate wage decision, it is best to refer to the bid specific Davis-Bacon rate for your prevailing wage project.
Enforcement of DBRA on a No Prevailing Wage Law State
All public works projects fall under DBRA and governed by DOL in South Carolina. It is the contracting agency’s responsibility to enforce DBRA compliance within the state. They hire inspectors to perform on-site inspections and audits. If there would be any extreme errors or discrepancy found, contractors must report them to DOL Wage and Hour Division for further enforcement.
Executive Order (EO) 13658 Minimum Wages
For calendar year 2017, an hourly minimum wage of $10.20 applies to all contracts subject to DBRA. The contractor must pay all workers is any work classification at least $10.20 per hour or the wage rate listed in the wage determination if it is higher.
For further guidance on contractor requirements and worker protection under the EO, you may refer to www.dol.gov/whd/govcontracts.
ARCHER JORDAN Helps You Comply with SC Prevailing Wage Law
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Here at ARCHER JORDAN, our dedicated team aims to serve government contractors with the best benefits. Our objective is help you save thousands in payroll taxes by complying with the laws. Contact us today!