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!
Utah does not have its own state laws to govern prevailing wage projects and their requirements. Public construction projects in Utah that receive funding from the federal government are under the prevailing wage laws of the Davis-Bacon Act.
Many public agencies implement labor compliance programs for projects not funded by the federal government. This is to avoid risks that come along with public works projects.
If you are a government contractor who works for federal projects in Utah, read on below to learn more about Utah’s labor compliance laws.
How much should a public construction cost so that Utah prevailing wage regulations will apply?. . .
Public construction projects that cost more than $2000 must follow the prevailing wage regulations prescribed in the Davis-Bacon Act.
Who has the authority to investigate labor laws compliance?. . .
The Civil Rights Office has the authority to investigate, monitor, and enforce compliance on labor laws for projects that are funded by the federal government.
How much should I pay my Utah prevailing wage workers?. . .
You must pay your workers who work for government contracted projects the prevailing wage rate for their job classification, as prescribed in the Davis-Bacon Act. Prevailing wage and overtime rates should be part of the contract.
The schedule of prevailing wage rates must be posted on site, in a bulletin board or where your wage workers can easily see them. It must contain all the applicable rates and job classifications for your project.
What makes up the prevailing wage rate?. . .
The total prevailing wage rate is the sum of the worker’s basic hourly rate plus his hourly fringe benefit rate.
How are fringe benefits given?. . .
You have two options on how to pay your employees with their fringe benefits: you can pay it in cash for all the hours worked, or your can provide bona fide fringe benefit plans to your wage workers. The benefit plans can be health insurance, pension plans, vacation pay, sick leave, and training programs. You must notify your wage workers of the fringe benefits paid to them in a letter..
Should I require my employees to keep a personal time record?. . .
Yes. This must be updated daily and must include the hours the worker has worked for each job classification, the type of duties performed the equipment he operated, the time he started work, and the time he ended work. You must keep a record of your worker’s personal time record, as this will be used to validate if you are compensating them properly and if you are compliant with federal law.
Can I hire apprentices for my public construction project in Utah?. . .
Yes, you can. If the apprentice is registered with an approved Apprenticeship or Training Program, then he can work at less than the prevailing wage rate.
Am I required to pay for travel and subsistence of my prevailing wage workers in Utah?. . .
No. Travel and subsistence pay are not fringe benefits, and therefore not part of the prevailing wage rate.
How do I compute for my worker’s overtime pay?. . .
Overtime pay is given when the employee has worked more than 40 hours in a week. He must be paid 1.5 times his basic hourly rate, plus hourly fringe benefit.
How often should I pay my workers’ wages?. . .
Salary of prevailing wage contractors must be paid in a weekly basis.
Are there allowable deductions that I can deduct from my employee’s pay?. . .
You cannot deduct for the following from your employee’s pay: loss, theft, damages, and tools, without the employee’s written permission. You are however, required by law to deduct the following: taxes, child support and other court ordered garnishments.
Aside from the fringe benefits as prescribed by the prevailing wage rate, are there other benefits I should provide to my Utah prevailing wage workers?. . .
It is your responsibility as an employer to provide your prevailing wage employees with Workers Compensation Insurance, at no cost to them. This insurance will cover your employees if they ever incur job related injuries.
Are you a Utah-based contractor working on government projects? ARCHER JORDAN is here to help you!
ARCHER JORDAN has been in the fringe benefits business for decades and has helped government contractors be compliant with the federal law. Our specialized and unique bona fide fringe benefits plans are made to meet law requirements, as well as the needs of your wage workers. Call us today and let us help you win more projects.