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Resources for Maine prevailing wage contractors

 

FREQUENTLY ASKED QUESTIONS ON STATE PREVAILING WAGE

Whether you are just starting out as a prevailing wage contractor or just looking to keep yourself updated, we have compiled these resources about state prevailing wage. Here are the most common questions of prevailing wage contractors and workers to help expand your knowledge!

Navigating the complexities of the Maine Prevailing Wage Law as a contractor can be challenging if you don’t know the specific rules and regulations. By working with the right team and by knowing all the relevant facts, you can successfully conduct business with the state for public works construction projects. Read on to see the answers to some of the most frequently asked questions about Maine Prevailing Wage. For help with fully compliant fringe benefit plans in Maine please get in-touch via email or give us a call today!

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Does the Maine prevailing wage law apply to all public works construction projects?
There is a threshold regarding the applicability of Maine prevailing wage law. The regulations apply only to public works construction projects under a state agency that have a value exceeding $50000 and that are funded with state money.
How are prevailing wage rates determined in Maine?

The prevailing wage determinations in Maine include the minimum hourly wages and benefits that workers should receive when working on a project where the prevailing wage law applies.

Prevailing wages are determined through an annual survey of wages and benefits paid to a number of trades in various localities throughout the state. This survey is conducted by the Maine Bureau of Labor Standards during the second and third weeks of September. To be the basis of prevailing wage, the survey should cover at least ten workers in each trade or occupational category.

These surveys serve as the basis for establishing four different categories of construction prevailing wages and benefits, which are:

  • Building 1 (1 or 2 family homes)
  • Building 2 (other than 1 or 2 family homes)
  • Heavy and Bridge
  • Highway and Earthwork

The construction companies which define the population survey need not be a Maine company; they can be any construction company that works in the state of Maine. The wages for all companies with equal to or more than five employees are put into a county database.

Sometimes, there are no increases in Maryland prevailing wage and benefits from one year to the next.

You can find the current Maryland prevailing wage rates here. Note that bidders should always include project-specific, formal wage determinations, instead of relying on the general wage determinations posted.

How are travel and subsistence rates determined in Maine?
The employer determines the travel and subsistence rates in the state of Maine.
Does the prevailing wage law cover work on the weekend, legal holidays and other differentials?
Under the Maine Prevailing Wage Law, workers should be paid overtime for any hours worked on a project that are in excess of 40 hours per week. The compensation should be equal to time and one half. The same law does not require payment of different wages for weekend work, working on legal holidays and shift differentials. Payment when working on a legal holiday is instead determined by the employer. Differences in shift worked does not influence an increase or decrease in the prevailing wage.
Are fringe benefits to employees covered by the Maine Prevailing Wage Law?
The prevailing wage rate under the Maine Prevailing Wage Law for government contractors includes an hourly base rate and fringe benefits. These benefits mean contributions to health and welfare, pension or individual retirement account contributions, and vacation and annuity contributions. These benefits are made to or on behalf of the employee, in lieu of wages or any other form of compensation. If there is no given defined contribution amount, the most accurate estimated value of contributions should be included.
What types of contractors require a license to operate in Maine?

General building contractors do not need to obtain a license in Maine. However, the following trades or occupations are required a license:

  • Asbestos abatement work
  • Electrician
  • Oil or fuel burner servicer or installer
  • Plumber
  • Propane or natural gas servicer or installer

Call (207) 624-8610 to verify if you are dealing with a licensed electrical contractor. Similarly, you can verify your plumber, electrician, or asbestos abatement contractor online.

What are the duties of prevailing wage contractors in Maine?

Covered contractors and subcontractors should complete and submit Certified Payrolls each payroll period. They are required to make a statement regarding the wages paid each employee during the preceding pay period. Copies of the payrolls should be submitted to the General Contractor and the Maine state contracting agency.

The copies should be accompanied by a signed “Statement of Compliance”. This statement indicates that the payrolls submitted are correct and complete, showing that the prevailing wage rate for the work performed was met in the payment of each laborer or mechanic.

The Certified Payroll Form to be completed and submitted can be found here.

The Bureau of Labor Standards reviews the information to ensure compliance.

Are there any regulations on training contribution in Maine?
Covered contractors and subcontractors should complete and submit Certified Payrolls each payroll period. They are required to make a statement regarding the wages paid each employee during the preceding pay period. Copies of the payrolls should be submitted to the General Contractor and the Maine state contracting agency.
The copies should be accompanied by a signed “Statement of Compliance”. This statement indicates that the payrolls submitted are correct and complete, showing that the prevailing wage rate for the work performed was met in the payment of each laborer or mechanic.
The Certified Payroll Form to be completed and submitted can be found here.
The Bureau of Labor Standards reviews the information to ensure compliance.
Are there any apprentice requirements in the Maine Prevailing Wage Law?

The Prevailing Wage Law Title 27 Chapter 37 defines what qualifies an individual as an apprentice in Maine. The individual must:

  • a. Be at least 16 years of age
  • b. Employed to learn and in an apprenticeship occupation approved by the department
  • c. Registered with the Maine Apprenticeship Program (MAP) There are several apprenticeship forms that may need to be accomplished, such as the Tuition Authorization Form, Vendor Form, Certificate of Completion Request Form and Apprentice Registration Form. You can find more information about the MAP here.

FIND OUT MORE ABOUT MAINE PREVAILING WAGE WITH ARCHER JORDAN

Underpayment of wages and other violations of the Prevailing Wage Law can incur certain consequences. A contractor that knowingly and also willfully violates prevailing wage payment is subject to paying no less than $250 as a fine per underpaid employee. There is a separate section violated for each day the contractor employs a laborer at less than the minimum determined wage and benefit.
Aside from this penalty, the underpaid worker in the public works construction project can recover from the prevailing wage contractor or subcontractor the difference in payment. The contractor or subcontractor’s surety, however, may not be liable for the penalty or attorney’s fees.
These complications are a headache and a business threat to any contractor. It is better to be prepared by ensuring compliance with prevailing wage and benefit regulations. With ARCHER JORDAN, you can ensure compliance and smooth operations for your public works projects.

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