How are Davis-Bacon wages determined?

Davis-Bacon Wage Determinations The “prevailing wages” are determined based on wages paid to various classes of laborers and mechanics employed on specific types of construction projects in an area.

How are prevailing wage fringe benefits paid?

Many contractors choose to pay the fringe portion of the prevailing wage in cash, believing it’s the simplest way to comply with the law. Simply by providing employees a bona fide benefit plan, the contractor can reduce payroll costs by the same amount, while also helping employees secure their futures.

What is considered fringe benefits for Davis-Bacon?

Examples:

• Life insurance.
• Health insurance.
• Pension.
• Vacation.
• Holidays.
• Sick leave.
• Other “bona fide” fringe benefits.

How is prevailing wage determined under the Davis Bacon Act?

The Davis-Bacon Act directs the Department of Labor to determine such locally prevailing wage rates. The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts.

What do you need to know about Davis Bacon?

Davis-Bacon labor standards clauses must be included in covered contracts. The Davis-Bacon “prevailing wage” is the combination of the basic hourly rate and any fringe benefits listed in a Davis-Bacon wage determination.

What happens if you violate the Davis Bacon contract?

In addition, violations of the Davis-Bacon contract clauses may be grounds for contract termination, contractor liability for any resulting costs to the government and debarment from future contracts for a period up to three years.

How does the Davis Bacon Act compensate for fringe benefits?

May compensate for hourly fringe rate with: (1) bona fide fringe benefits; (2) cash in lieu of benefits (taxable inc ome); (3) combination of (1) and (2); or (4) any wages paid in excess of the wage rate Fringe rate overage may be used to offset wage rate For further information regarding bona fide fringe benefits, see Appendix E