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WEST VIRGINIA 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 West Virginia Division of Labor establishes the prevailing hourly wage rates for workmen employed in public works and construction. The rates are defined for the classification of work performed, in the county where the site is located.

If you are a contractor based in West Virginia working for government funded projects, read on below for the commonly asked questions of contractors like you.

What does the term construction mean in terms of prevailing wage projects?
It means any construction, reconstruction, decorating, painting, repair, improvement or enlargement of a public structure. It does not include temporary and emergency repairs.
How are the prevailing wage rates determined? Where can I find them?

The prevailing wage rates are determined each year by the Division of Labor every first week of January for Building, Heavy, and Highway construction projects. Each trade or job classification has its own prevailing wage rate. The schedule of rates are posted in the Secretary of State’s website, www.wvsos.org.

The prevailing wage rate is based on the job or trade classification of the work performed. Location of the project and type of the project are also considerations for the prevailing wage rate determination.

I see two rates for each trade classification. Which rate do I follow?
The prevailing wage rate is made up of two parts: the basic hourly rate and the fringe benefit rate. The two rates are added together to determine the total prevailing wage rate.
Do I have to pay for the fringe benefit amount if I don’t provide my employees their fringe benefits?
If you do not provide your prevailing wage workers with fringe benefits, you must pay them the determined fringe benefit rate as part of their wages. Your prevailing wage workers will therefore receive the basic hourly rate plus the fringe benefit rate.
What is considered as a fringe benefit?
A fringe benefit is a benefit given by the employer to a prevailing wage worker by company policy. It can be in the form of holiday pay, vacation pay, health insurance, bona fide pension plans, and others. Fringe benefit plans must be authorized by the employee so that it can be used as a credit against the fringe benefit part of the prevailing wage rate. Workers compensation, unemployment premiums and social security are not considered as fringe benefits.

You can calculate the monetary equivalent of a qualified fringe benefit by dividing the annual cost of the benefit by 2080 hours for each prevailing wage worker.

How do I compute for the overtime pay of my prevailing wage workers in West Virginia?
Overtime incurred by prevailing wage workers are paid at 1.5 times the basic hourly rate. Overtime is incurred when the worker has worked beyond forty hours in a workweek. The fringe benefit portion is still paid as it is, regardless of the number of hours worked by the employee.
Do owners, corporate officers, and salaried employees need to be paid the prevailing wage?
All workmen in prevailing wage projects must be paid with the prevailing wage rate for the type of work performed, regardless if they are paid hourly, or if they receive a regular salary. This is with the exception for sole proprietors. To qualify as a sole proprietor, you must be registered for sole proprietorship with the West Virginia Department of Tax and Revenue.
Do I need to have complete certified payrolls?
Submission of certified payroll record on a weekly basis is usually required by the federal government or the general contractor for the duration of the construction project. They are also used for prevailing wage investigations, as they contain the necessary information required under the prevailing wage statute

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