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A Quick Guide for AK Government Contractors

A prevailing wage is set for a given class of labor and type of project in a particular location. Government authorities determine this prevailing wage in the interest of fairness when bidding for government contracts. The prevailing wage rate is composed of an hourly pay rate and fringe benefits.

There are federal laws, including the Davis Bacon Act and the McNamara-O’Hara Service Contract Act, which govern prevailing wage regulations on federal projects. State projects, on the other hand, may or may not have to be governed by a state prevailing wage law.

If you are hoping to work as a government contractor in Arkansas, here are some of the things you should know:

Things You Should Know About Arkansas Prevailing Wage

The Arkansas Department of Labor publishes wage determinations annually on or about July 1, in accordance with Arkansas prevailing wage law. The state prevailing wage law used to apply to public contracts which exceed $75,000 in value. Failure to comply with the state prevailing wage law resulted in penalties and even debarment.

However, changes in state legislation has resulted to the repeal of the Arkansas Prevailing Wage Law.

  • Repeal of the Arkansas Prevailing Wage Law

On April 7 2017, the Arkansas Governor Asa Hutchinson signed a bill (known as Act 1068, Repeal of Prevailing Wage Law) which effectively repealed the state’s prevailing wage law. Work performed after the effective date of the act would no longer be covered by the prevailing wage law, such that the Department of Labor will no longer issue wage determinations in the future.

This repeal was made in order to create more value for taxpayers as well as to create more opportunities for qualified local contractors, who would have otherwise not been able to compete in contract bidding because of the prevailing wage requirements.

The repeal is said to have reduced outdated job restrictions which do not match the current competitive construction industry. The old prevailing wage requirements are said to have discouraged many qualified small and minority-owned contractors. Lastly, the laws may have also contributed to inflating construction costs.

  • Prevailing Wage Law in Arkansas

Arkansas is now the 22nd state in the US without its own state prevailing wage law. However, federal prevailing wage law still applies for public works projects by federal departments and agencies done in Arkansas and awarded to Arkansas contractors.

Learn More about Arkansas Prevailing Wage Laws with ARCHER JORDAN

AR Prevailing wage contractors are still bound by federal law to provide the proper hourly rate and fringe benefits to their employees for federal projects. But for state projects, the requirements and bidding process now differs. With the changing requirements and the rising competitiveness in the industry, stay on top with the help of ARCHER JORDAN.

ARCHER JORDAN is your trusted fringe benefits experts. We can guide you through compliance with the Davis Bacon Act and Service Contract Act so you can stay focused on winning more contracts. Call us now at +1 888-745-0754 for a consult.