Davis Bacon Related Acts

Resources for Texas 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!

There are two prevailing wage laws adopted in the state of Texas: the state prevailing wage statute Texas Government Code Chapter 2258, and the Davis-Bacon Act. The 255 counties of Texas have a choice to adopt Chapter 2258 or Davis-Bacon. The cities that have adopted the latter are:

  1. Austin
  2. Baytown
  3. Houston
  4. Houston Airports
  5. Lubbock
  6. Pasadena
  7. Texas City
  8. Galveston County
  9. Galveston County College of Mainland
  10. Harris County
  11. Harris County Hospital District
  12. Metropolitan Transportation Authority of Harris County
  13. Texas Facilities Commission

If you are a contractor based in Texas and you plan to bid for government projects, here are the commonly asked questions that you should know the answers to, before you start any government funded projects. For help with fully compliant fringe benefit plans in Texas please get in-touch via email or give us a call today!

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How much should a public construction cost in Texas so that prevailing wage regulations will apply?
There is no monetary threshold indicated in the Texas Prevailing Statute that must be met for prevailing wage regulations to apply.
How are the prevailing wage rates determined in Texas?
The prevailing wage rate is determined through a survey of wages paid for same trade classifications in the locality, or by using the prevailing wage determined by the Davis-Bacon Act.
Is there a regulation regarding overtime in the Texas prevailing wage law?
There is no requirement n Texas that workers should receive different overtime rates depending on their trade classification. Workers are paid 1.5 times their basic hourly rate for every hour worked in excess of 40 hours incurred in a week, or 8 hours in a day.
Is there a different rate for work incurred on weekends?
There is no provision in Texas that mandates different rates for work incurred on weekends.
Is there a different rate for work incurred on legal holidays?
Texas Prevailing Wage Law does not compensate prevailing wage employees for working on legal holidays.
What are fringe benefits?
As defined in the Texas Prevailing Wage law, prevailing wage refers to the base hourly rate plus fringe benefits. Fringe benefits can include life insurance, health insurance, pension, vacation, holidays and sick leave.
Am I required to contribute to a training fund?
No, Texas Prevailing Wage law does not mandate contribution to a training fund.
I want to hire apprentices in my prevailing wage project in Texas. What should I know before hiring one?
The apprentice must be registered under a bona fide apprenticeship program.
Do I need to pay for travel and subsistence of my prevailing wage workers?
Yes. Time used for traveling while on a government contract must be paid according to the Texas Prevailing Wage Law.
What are the licensing requirements that I need to note as a government contractor in Texas?
The Texas Department of Licensing and the Texas Board of Plumbing Examiners ensure that licensing requirements are met by contractors. Specialty contractors, however, (HVAC, fire sprinklers systems, elevators, etc.) do not need to be licensed. Home builders must be registered with the state, but do not need to be licensed.
What are the required and optional posters I should note of when working on Texas government funded projects.
All Texas employers must display posters on the following: Texas Payday Law, the Workers’ Compensation Program, the Uniformed Services Employment and Reemployment Rights Act, the Fair Labor Standards Act, the Employee Polygraph Protection Act, and the Occupational Safety and Health Act. Contractors governed by the Texas Unemployment Compensation Act must display a poster that includes information about both unemployment compensation and the Texas Payday Law.
Also, every employer with 15 or more employees, and smaller employers with federal grants and contracts, must post the poster entitled “Equal Employment Opportunity Is the Law,” which contains information about the Equal Employment Opportunity/Americans with Disabilities Act laws.
What are the penalties should a contractor violate the Texas Prevailing Wage Law?
A contractor who fails to pay the correct prevailing wage will be fined $60 for each prevailing wage employee for each calendar day that the worker was paid less than the prevailing wage rates. Same is true for failure in maintaining correct payrolls.
A contractor of a public work who violates Section 2258.058(b) commits a criminal offense. It is punishable by: 1) a fine of $500, at maximum; or 2) confinement in jail for a term that does not exceed six months; or 3) both a fine and confinement. 2258.058(c).
However, there is no provision for debarment of contractors in Texas.

ARE YOU A GOVERNMENT CONTRACTOR BASED IN TEXAS? LET ARCHER JORDAN BE YOUR TRUSTED FRINGE BENEFIT PARTNER!

Wherever you are in Texas, be sure to be compliant to the adopted prevailing wage law in your city or county. ARCHER JORDAN’s team of fringe benefits experts will help you be compliant with the law, while helping your company save thousands of dollars.
Call our team today, and see why our bona fide fringe benefit plans are the perfect plans for your prevailing wage employees!

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