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.
Laborers must receive weekly pay checks, and the contracting agency must receive weekly payroll reports. If you are awarded a prime contract, which is one where the cost exceeds one hundred fifty thousand dollars, you need to pay workers time and a half for all hours they work beyond the regular weekly forty hours. If you fail to follow these regulations, there may be complaints lodged against you and registered with the Department of Labor's Wage and Hour Division.
An employee rights poster has to be posted on the site where laborers can read it easily. There must also be a posted list of the pay determinations. The contractor has to keep payroll records, and other basic records, for employees for the duration of the contract and for three years after the contract. There is specific information that must be included in these records.
Records must include the Social Security number, address, and name of every covered employee. There has to be a job description and the number of hours worked daily and weekly. Any contributions to fringe benefits have to be in the records.
All the money deducted from weekly pay checks must be itemized. Detailed information regarding fringe benefit plans and programs must be included. If you hire trainees or apprentices, the program registration information has to be part of their records.
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.
Contractors who don't follow the Davis-Bacon Law face significant penalties. They may be debarred from bidding on contracts for three years. The contracting agency can withhold payments due the contractor until all penalties and delinquent payments have been satisfied.
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.
Laborers must receive weekly pay checks, and the contracting agency must receive weekly payroll reports. If you are awarded a prime contract, which is one where the cost exceeds one hundred fifty thousand dollars, you need to pay workers time and a half for all hours they work beyond the regular weekly forty hours. If you fail to follow these regulations, there may be complaints lodged against you and registered with the Department of Labor's Wage and Hour Division.
An employee rights poster has to be posted on the site where laborers can read it easily. There must also be a posted list of the pay determinations. The contractor has to keep payroll records, and other basic records, for employees for the duration of the contract and for three years after the contract. There is specific information that must be included in these records.
Records must include the Social Security number, address, and name of every covered employee. There has to be a job description and the number of hours worked daily and weekly. Any contributions to fringe benefits have to be in the records.
All the money deducted from weekly pay checks must be itemized. Detailed information regarding fringe benefit plans and programs must be included. If you hire trainees or apprentices, the program registration information has to be part of their records.
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.
Contractors who don't follow the Davis-Bacon Law face significant penalties. They may be debarred from bidding on contracts for three years. The contracting agency can withhold payments due the contractor until all penalties and delinquent payments have been satisfied.
About the Author:
Prevailing wage contractors who work on projects can get the support they need directly from us. To read the relevant blog posts about what we do, visit http://www.beneco.com/solutions.
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