Davis Bacon Act Resources for Arizona Prevailing Wage Contractors
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Arizona does not have its own local prevailing wage law. Instead, its public works projects must comply with the Davis-Bacon Act, and must answer to the regulations made by the Department of Labor. Additionally all service contracts fall under the authority of the McNamara O’Hara Service Contract Act. Prevailing wage contractors are expected to follow such regulations, or risk penalties and fines. Click below for detailed information regarding Prevailing Wage law in Arizona.
Calculating Arizona Prevailing Wage
Obtaining Rates may be complex, but the math is simple
$_____ / hr fringe + $______ / hr cash = $________ minimum prevailing wage
What you Need to Know about Fringe
Fringe dollars may be counted towards meeting the minimum prevailing wage requirement. For example, let’s say the prevailing wage for a certain worker is $27/hour. You may pay them $17.00/hour in cash and $10.00/hour in fringe benefits. Why not simply pay the employee $27/hour in cash? Because that $27 is subject to payroll taxes such as FICA, FUTA, state unemployment and workers comp. Leverage fringe benefits and you are only getting taxed on $17.00/hour. You are also investing in keeping your workforce healthy and prepared for the future.
Archer Jordan provides professionally managed , DOL Approved Fringe Benefit Plans designed to protect your workforce and increase your profitability.
Avoid Audits, Fines, and/or Debarment
5-Easy Steps to Fringe Benefit Compliance
In this guide we’ll show you how to create a fringe benefit plan that secures your business
What agency is tasked with the enforcement of the Davis-Bacon Act?
Does Arizona publish wage determinations online?
Yes, Arizona prevailing wage determinations can be seen online. All rates are posted on the Department of Labor’s Wage and Hour Division website. Prevailing wage contractors must double check the published prevailing wage rates online with the bid specifications to avoid issues and inaccuracies in the wage determinations.
How does apprenticeship work in Arizona?
How can prevailing wage contractors request special prevailing wage determinations in Arizona?
All requests for special prevailing wage determinations must be forwarded to the Wage and Hour Division of the Department of Labor by the agency or the contracting officer. Prevailing wage contractors must begin the request by sending a Request for Authorization of Additional Classification and Rate (Standard Form – 1444) to the agency or the contracting officer. The agency will then submit a Request for Determination and Response to Request (Standard Form – 308) to the Wage and Hour Division of the Department of Labor.
Generally, all requests for special wage determinations must be made before the bid. However, there are cases when workers have already begun their work on a public works projects. When this happens, prevailing wage contractors must pay their workers no less than the wage and benefit rates listed on the general Davis-Bacon Act wage decision for the lowest specialized trade that is most similar to the job in question. After the wage decision has been given, it must then be added to the bid document.
Will there be special determinations or increases in prevailing wage rates?
Arizona prevailing wage rates in public works projects have no scheduled pre-determined increases. However, special determinations can be requested per public works project, and could take about 30 days to process. The response to your request may contain pre-determined increases, and are only applicable to your specific public works project. Special determinations are valid for 180 days.
How do you determine the prevailing wage rates under Davis-Bacon Act?
Arizona prevailing wage rates are determined by the Department of Labor. They base it on the hourly rate payment to workers in a certain type of work within the locality or the labor market area. If there is no single rate paid to a majority of workers, then the modal rate that is being paid to the most workers is going to be considered as the prevailing wage rate. If you are bidding on a public works project in Arizona, you can obtain the wage rate determinations in the bid documents provided by the contracting agency. If there are no wage determinations in the bid document, prevailing wage contractors may request it from the DBRA.
What are the documentary requirements for Arizona Prevailing Wage projects?
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Prevailing wage contracts must meet all of the requirements and follow all regulations set by the Davis-Bacon Act and the Department of Labor. Failure to comply with the law amounts to penalties and fines, and a tarnished reputation for your company.
To make sure that you are complying with the law, contact ARCHER JORDAN today and seek for advice regarding Arizona Prevailing Wage laws. We have years of experience with conducting business with government agencies. We can help you maximize this opportunity for your company’s growth. Contact our team for more details!
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