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!
Vermont has its own state prevailing wage law called the Capital Construction Act (CCA). Prevailing wage workers in Vermont must be paid not less than the average prevailing wage. Wage determination is done by the Vermont Department of Labor.
The state of Vermont is divided into three areas in determining prevailing wage rates: Burlington-South Burlington Metropolitan New England City and Town Area (NECTA), Southern Vermont Area, and Northern Vermont Area.
If you are a government contractor in Vermont working for federal projects, or have just acquired a contract for a public works contract, or is planning to build a contracting company, read on below to know more about the prevailing wage laws in Vermont.
How much should a public construction cost in Vermont so that prevailing wage regulations will apply?. . .
Projects contracted or funded by the CCA which cost more than $100,000 is regulated and covered by the Vermont prevailing wage laws.
You can also verify with the Department of Buildings and General Services.
How are the prevailing wage rates determined in Vermont?. . .
The Vermont prevailing wage law specifies that the source of wage data is the Bureau of Labor Statistics’ (BLS) Occupational and Employment Statistics (OES) data series. Wage rates are updated every year based on these data, and wage rates of each trade may increase or decrease based on the OES estimate.
Is there a regulation regarding overtime in the Vermont prevailing wage law?. . .
There is no requirement under the CCA that workers should receive different overtime rates depending on their job classification. Workers are paid 1.5 times their basic hourly rate for every hour worked in excess of 40 hours incurred in a week. The Vermont Department of Labor Wage and Hour Division covers the overtime regulations for prevailing wage projects.
Is there a different rate for work incurred on weekends?. . .
There is no regulation in the CCA that mandates different rates for work incurred on weekends.
Is there a different rate for work incurred on legal holidays?. . .
The CCA does not require the payment of different rates for work performed during legal holidays. It is your prerogative as an employer to identify which holidays you would compensate.
Is there a different rate for each working shift?. . .
There is no provision in the CCA that requires different rates for different working shifts, depending on their trade classification.
Am I required to pay my wage employees fringe benefits in Vermont?. . .
Yes. All prevailing wage workers performing federal projects, shall be paid at least the mean prevailing wage which is determined by the Vermont Department of Labor. There must also be a 42.5% fringe benefit component in addition to the prevailing wage.
Am I required to contribute to a training fund?. . .
No. The CCA does not require you to contribute to a training fund.
I want to hire apprentices in my prevailing wage project in Vermont. What should I know before hiring one?. . .
Vermont has a state-developed apprenticeship program called “VT Registered Apprenticeship”. It is an employer- sponsored training program that gives the apprentice work experience under a supervisor and related instruction.
The apprentice must attend an apprenticeship training program, and the requirements vary from program to program. Most programs require a high school diploma or GED certificate.
The prevailing wage rate for apprentices are the same as the occupation for which they are under training.
Do I need to pay for travel and subsistence of my prevailing wage workers?. . .
No. The CCA does not require travel and subsistence pay,
What are the licensing requirements that I need to note as a contractor?. . .
License requirements vary per trade classification. Contact the licensing board for the most current requirements.
What are the penalties for erring and violating contractors?. . .
Anyone who “knowingly and with intent to defraud makes a false statement, causes a misrepresentation, which affects or denies any payment or benefit, will be fined at most $10,000 or imprisoned for maximum of three years.
The Agency of Administration maintains the list of contractors that are not allowed to bid with the state or any of its agencies.
Are you a Contractor Working for Government Projects in Vermont? ARCHER JORDAN Can Help with Your Prevailing Wage Law Compliance!
Prevailing wage laws and regulations vary from state to state. It is also very important to be updated with every amendment and change in existing prevailing wage laws.
ARCHER JORDAN is a third-party fringe benefit expert that has helped thousands of companies in prevailing wage law compliance. We can help you save thousands of dollars just by ensuring you are compliant with the law. Contact us today and let us be your partner in your government contracting business!