Guide to Prevailing Wage Act
Every contractor needs to adhere to the prevailing wage act which requires them to pay their workers an hourly wage. This is the case when they work on any construction project of the federal government. It is worth noting that the wage is based on the wages workers get on a similar project. This act aims at protecting workers from getting distorted by contractors.
The wage consists of two parts. The first is the basic hourly rate that every work gets. The second is a per-hour dollar amount that every worker gets as part of their wage. The per-hour dollar can be used to fund benefits plans including vacation pay, life, and health insurance as well as training programs.
When a public body does not notify a contractor, the contractor will still be responsible for paying the prevailing wage. When the contractor fails to pay the wage, they are liable for the difference in the amount paid and the prevailing wage. In addition, the public body will pay any interest and fines since it has an obligation of notification. This means that the contractor will not be liable for such costs.
In the event a contractor does not give a notice of a prevailing wage project to a subcontractor, they will be responsible for the penalties and fines. The subcontractor will also pay the proper prevailing wage rate of pay.
Another question people often ask is if a contractor will not keep and maintain records provided by the act when they submit and maintain a copy of certified payroll. It is worth noting that payroll is not sufficient enough to substantiate compliance with the Prevailing Wage Act. The contractor must keep the underlying records.
What you need to know about the prevailing wage act is that a contractor cannot reduce the wage component by paying a greater amount. In the event the contractor pays less in the allowable benefit component, the difference must be included in the base wage component. This is also the case even when the contractor is complying with the collective bargaining agreement terms.
In this section, we will take you through how a contractor calculates the allowable benefits. If a contractor is looking forward to taking credit for training and pension benefits, they must maintain records such as eligibility, calculation of fringe benefit credit, among others.
If you would like to learn much about the prevailing wage act, you need to research. You can find a lot of information on the internet. The internet is a good source of information on the act. When searching, you need to remember that the wage act may differ from one state to another. Therefore, you need to look for a copy of the act that is acceptable in your region. Knowing much about the act will help you know your right as a contractor or worker in the state you reside in. By observing the steps discussed in this post, you will become knowledgeable about the prevailing wage act.