Indiana Prevailing Wage

Information for IN Government Contractors

Indiana’s prevailing wage law was repealed effective July 1, 2015. It means that prevailing wage requirements were eliminated for publicly-funded construction projects unless mandated by federal or state law. However, prevailing wage contractors working on federally-funded projects covered by Davis-Bacon and Related Acts (DBRA) is not affected by the said repeal.

For projects that was awarded before the repeal, contractors must comply with the Common Construction Wage Act. Under this Act, prevailing wage workers must be paid at or above the wage and fringe benefits rates for the duration of the project.

New Requirements for Contractors

The Indiana General Assembly added new requirements for public works contractors following the repeal.

The new requirements include:

1.    General Contractors (Tier 1) must contribute at least 15% of the contract price in work, materials, services or any of these factors combined

2.    Contractors must not pay employees in cash

3.    Contractors must E-Verify each employee on a project

4.    Contractors must certify that they comply with the federal Fair Labor Standards Act (FLSA) and the Indiana Minimum Wage Law

5.    Contractors may be required to have a drug testing program in accordance with IC 4-13-18

6.    Contractors must maintain required levels of general liability insurance

It is important to note that Indiana’s Department of Labor (DOL) has no lawful authority to enforce the General Contractor’s contribution nor certify with FLSA. Contractors may consult their legal advisors on how to satisfy the requirements. Furthermore, any potential violations should be directed to the government agency that awarded the project’s contract.

In the event that there’s a suspected misclassification of one or more prevailing wage workers, the agency that owns the public works project may request in writing for an investigation by the Indiana Department of Workforce Development.

ARCHER JORDAN Keeps You Informed

As a third party administrator, ARCHER JORDAN knows how important it is to keep you informed with what goes on before and after the repeal of a prevailing wage law in a particular state.

Regardless of the changes that takes place when it comes to state requirements, we make sure that no new instructions or guidelines are missed. Let ARCHER JORDAN lead you to be in compliance with those new state specific requirements.

5-Easy Steps to Fringe Benefit Compliance

In this FREE guide we’ll show you how to create a fringe benefit plan that secures your business