Accuracy and documentation are key to prevailing wage compliance

prevailing wage payroll and benefits


Because prevailing wage law is complex, it can be helpful to learn from the mistakes of other companies and put protocols in-place to protect your own. In this article we’ll take a brief look at on such scenario. In July of 2019 the U.S. Department of Labor Wage & Hours Division issued a press release that Georgia based Lowndes Advocacy Resource Center Inc. (LARC) must pay $157,473 in back wages to its employees. The center violated federal prevailing wage regulations on three important fronts.

LARC had been incorrectly rounding two of the prevailing wage rates used to determine employee’s pay resulting in underpayment.

LARC deducted 15 minute breaks and travel time from workers payroll when both (breaks and travel) should have been included paid work-time.

LARC failed to produce documentation that it was in full compliance with DOL/WHD policies around hiring and paying employees with disabilities.

What can government contractors working under the service contract or davis bacon acts learn from LARC’s $150,000 mistake?
• Be aware of DOL/WHD’s policies on rounding
• Break times and travel are payable in certain contexts, ensure your hourly payroll is accurate.
• Keep full documentation on the hiring process for all new workers

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