Frequently Asked Questions
What is prevailing wage?
Prevailing wage is defined as the base hourly wage plus fringe benefits paid to certain laborers within a particular area.
What is a wage determination?
A Wage Decision is a listing of classifications with applicable base and fringe benefits rates. There are two types of wage decisions; General (GWD) and Project specific (PWD) decisions. GWDs are now in effect for most counties in the country for each of the four types; residential, building, highway and heavy. When there is no GWD in effect, PWDs can be requested and are issued on a case by case basis. Some municipalities have their own prevailing wage determinations.
What are my responsibilities as a prime contractor on a Davis Bacon project?
Are supervisors supposed to report wages?
Workers classified as supervisors have to report in the right classification if their manual labor work time exceeds 20% of their total work time.
What if we cannot find a classification in the wage determination for our scope of work?
If the scope of work can be carried out by an existing classification no additional classification is needed. It is good to address this question the prime contractor on the project.
What are the approved payroll deductions on a certified payroll?
Social Security, Medicare Tax, Federal and /or State Tax. For other deductions employee authorization will be requested.
Can credit be taken for vacation benefit against fringe benefits for the classification?
Vacation credit against fringes can be taken only if the vacation benefit is payable even if the employee is separated otherwise; it cannot be used as a fringe credit.
Can we use unskilled helpers at a lesser rate to assist skilled laborers?
Contractors and subcontractors may not employ helpers, on a Davis-Bacon covered project unless the wage determination contains the classification or the classification is approved pursuant to DOL’s conformance procedures.
Are EO s 13658 & 14026 applicable to a Davis Bacon project?
EO 14026 replaced 13658. The Executive Orders apply to government direct Davis Bacon projects. They are not applicable in DBRA (Davis Bacon and Related Acts) projects.
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