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INDIANA PREVAILING WAGE

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!

The Indiana Prevailing Wage Law, or the Indiana Common Construction Wage Act, was effectively repealed back in July 1, 2015. As a government contractor or subcontractor, you need to be able to navigate the new rules and regulations regarding prevailing wage laws in Indiana.

Read on to find out more facts about Indiana Prevailing Wage.

What are the effects of the repeal of the Common Construction Wage Act in Indiana?
Government contractors who are working on Common Construction Wage projects awarded before the repeal are required to continue compliance with the regulations of the Act as it was before the repeal. The workers in these projects must be paid an amount equal to or above the established wage and fringe benefits determined for the duration of that project. A list of adopted Common Construction Wage or Prevailing Wage Schedules can be found here.

For any public works contract awarded after July 1, 2015, a public agency can no longer establish or mandate a wage scale or schedule, unless a federal or state law provides otherwise.

Are federally-funded projects affected by the repeal of the Indiana Prevailing Wage Law?
No. Work performed on federally-funded projects is not affected by the repeal of the state law. These public works projects are covered by the Davis-Bacon and Related Acts.
Are there any new requirements for public works contractors after the repeal?

New requirements were added for public works project contractors after the repeal. These requirements include:

  • Contractors cannot pay employees in cash
  • Contractors are required to E-Verify each employee on a projec
  • Tier 1 (General or Prime) Contractors need to contribute at least 15% of the contract price in work, materials, services or any combination of the above
  • Contractors can be required to have a drug testing program
  • Contractors need to maintain general liability insurance as required
How are suspected violations of the requirements investigated or handled?
Suspected violations of requirements regarding the contributions of a Tier 1 contractor, or regarding the payment of employees in cash, cannot be lawfully investigated or enforced by the Indiana Department of Labor. Instead, these concerns are directed to the awarding government agency.

Suspected violations are directed to the awarding government agency. The Department of Labor in Indiana is not vested with authority to investigate cases involving failure to e-verify employees on a federal project.

Complaints for failure to comply with Indiana Prevailing Wage Law or Common Construction Wage on contracts awarded before the repeal will still be accepted by the Indiana Department of Labor. The Common Construction Wage Complaint Form can be found here.

A public agency with any suspicion of misclassification of one or more workers in a public works project can request in writing an investigation by the Indiana Department of Workforce Development.

Where can contractors get certification on compliance with wage and hour laws?
Certifying that contractors are in compliance with federal or state wage and hour laws does not fall under the Indiana Department of Labor. Contractors and subcontractors who seek certification can consult with legal advisors.

TO KNOW MORE ABOUT INDIANA PREVAILING WAGE, CONTACT ARCHER JORDAN NOW!

Changing rules and regulations can be damaging to the success of a construction business if they are improperly managed. To ensure compliance with existing laws and to prevent complications from happening, work with a trusted professional team.

With ARCHER JORDAN as a third party administrator, providing fringe benefits to government contractors and hourly hires and compliance with the law become less daunting and more efficient.