Information for Prevailing Wage Contractors in Utah
The state of Utah does not have its own state prevailing wage laws. Projects that are funded by the federal government and have a total cost of more than $2000 are covered by the Davis-Bacon Act. Federal and public agencies implement labor compliance programs to avoid the risks that come with public works projects.
Mandated Duties of Utah Government Contractors
You are required to pay your prevailing wage workers the wage rate determined in the contract for their job classification. The total prevailing wage rate includes the base hourly rate and the hourly fringe benefit rate. Fringe benefits can include health insurance, pension plans, vacation, sick leave, and training programs. You can use the fringe benefit hourly rate to pay for the benefits that you provide your employees.
Should you opt to provide fringe benefits in cash, it must be paid for all the hours a prevailing wage employee has worked on the public works project. However, fringe benefits paid in cash are considered as wages and are taxed. Your prevailing wage employees must be paid on a weekly basis.
You are also required to pay for overtime work. If an employee worked for more than 40 hours in a given work week, then the excess hours must be paid 1.5 times his basic hourly rate plus the hourly fringe benefit rate.
It is your responsibility to keep payroll records of your employees which reflect the following information: number of hour worked in each trade or job classification, the type of duties and equipment an employee has operated, and the start and end time of his work on a daily basis.
Utah Prevailing Wage Compliance
The Utah Civil Rights Office is authorized to investigate, monitor, and enforce labor compliance of contractors who work for federally funded highway construction projects. Contractors are required to accomplish the following to ensure prevailing wage law compliance: certified payrolls, statement of compliance, training, and monitoring.
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