There is big money to be made with government contracts. Construction companies that win bids can see profits increase significantly when a job is on time, within the budget, and in compliance with the Davis-Bacon Act. If you have been awarded a project with a projected cost of more than two thousand dollars, the employees you hire must be paid wages that are in line with what other workers in the area are getting for similar jobs. Prevailing wage contractors must comply with this law or be subject to all kinds of penalties and sanctions.
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 be paid on a weekly basis. If you have a prime contract, a contract valued at one hundred fifty thousand dollars or more, you also have to pay your laborers for any overtime. That is any time worked over the standard 40 hours per work week. If these laws are violated, a complaint can be registered with the Department of Labor's Wage and Hour Division.
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.
The contractor must have the name, address, and Social Security number of each covered employee. The records must include the laborer's job description, pay rate, and contributions to fringe benefits. The number of hours worked each day and week is required.
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.
Every week the contractor must provide the contracting agent with a payroll report with all the pertinent information. The home address and Social Security number are not required, but a four digit identifying number is. The contractor, or an authorized representative, has to sign the report, which must be submitted within seven days of the pay period being reported.
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 be paid on a weekly basis. If you have a prime contract, a contract valued at one hundred fifty thousand dollars or more, you also have to pay your laborers for any overtime. That is any time worked over the standard 40 hours per work week. If these laws are violated, a complaint can be registered with the Department of Labor's Wage and Hour Division.
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.
The contractor must have the name, address, and Social Security number of each covered employee. The records must include the laborer's job description, pay rate, and contributions to fringe benefits. The number of hours worked each day and week is required.
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.
Every week the contractor must provide the contracting agent with a payroll report with all the pertinent information. The home address and Social Security number are not required, but a four digit identifying number is. The contractor, or an authorized representative, has to sign the report, which must be submitted within seven days of the pay period being reported.
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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