mercredi 19 septembre 2018

The Davis-Bacon Act Governs Prevailing Wage Contractors And What They Pay Laborers

By Robert Green


Government contracts can be very lucrative. The construction businesses that win the bids usually see a big increase in their net profits as long as the jobs they do are within the budget, on time, and comply with the Davis-Bacon Act. Jobs that have a projected cost of over two thousand dollars are subject to this act. Prevailing wage contractors are required to offer wages to laborers that are equal to similar jobs in the surrounding area. If they disregard the act, contractors are subject to a variety of sanctions and penalties.

This law states that the wages laborers and mechanics receive, when they are working on the job site, have to be at least as high as they would receive if they were working for a contractor in the private sector. This includes fringe benefits. The agreement you sign with the contracting agency must include labor standards clauses and a list of pay rates for laborers. You can hire trainees and apprentices and pay them less than the standard rate, but only if they have registered for apprentice and trainee programs with the Labor Department.

As a contractor, or subcontractor, you have to pay laborers every week and submit a certified payroll record to the contracting agency. If you have been awarded a prime contract, one in excess of a hundred fifty thousand dollars, you must also pay laborers time and a half for any hours they work over the standard forty hours per work week. If these laws are not followed, complaints may be registered with the Wage and Hour Division of the Department of Labor.

A poster outlining employee rights must be posted on site in a conspicuous place. A pay determinations list must also be posted. Contractors are required to maintain payroll records for their employees for the term of the contract and for a period of three years after the contract. Contractors are required to keep specific information in the records.

Every record must include the employee's Social Security number, legal name, and address. There should be a job description for every laborer as well as pay rate and fringe benefit contributions. The number of hours worked daily and weekly have to be included.

Money deducted from the paycheck has to be included as well as detailed information about fringe benefit programs and plans. If you have apprentices or trainees, their registrations must be included in the records. More detailed information may be required as per the contract.

Each week the contractor has to send the contracting agent a payroll report containing all the required information. Home addresses and Social Security numbers are not required, but the four number identifying numbers must be included. The contractor, or a representative of the company, must sign each report. Reports have to be in the hands of the contracting agent within 7 days of the reported pay period.

There are significant penalties if the Davis-Bacon Law is violated. Contractors can be debarred from contracts for up to three years. Payments due may be withheld until such time as all delinquent payroll payments and penalties have been satisfied.




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