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.
According to the Davis-Bacon Act, any wages you pay laborers, while they are on the contract job site, have to be commensurate with pay they would receive from a private sector contractor for a comparable job. Fringe benefits must also be commensurate. The government contract will list rates for mechanics and laborers and as well as outline labor standards. Apprentice and trainees may be paid less than regular workers if they have registered with programs with the DOL.
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.
A poster describing employee rights must be posted at the job site in a location where it is clearly visible. The contractor must also post a list of pay determinations. Payroll records, and any other pertinent records, have to be maintained for the length of the contract and for a three year period afterward. The Davis-Bacon Act is specific about what information must be logged.
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.
Money deducted from the paycheck has to be included as well as detailed information about fringe benefit programs and plans. If you have apprentices or trainees, their registrations must be included in the records. More detailed information may be required as per the contract.
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.
Any deviation from this law is subject to significant penalties. The contract can be terminated immediately. Debarment for a period of three years may be initiated. Payments for work completed can be withheld from the contractor until delinquent wages and penalties are satisfied.
According to the Davis-Bacon Act, any wages you pay laborers, while they are on the contract job site, have to be commensurate with pay they would receive from a private sector contractor for a comparable job. Fringe benefits must also be commensurate. The government contract will list rates for mechanics and laborers and as well as outline labor standards. Apprentice and trainees may be paid less than regular workers if they have registered with programs with the DOL.
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.
A poster describing employee rights must be posted at the job site in a location where it is clearly visible. The contractor must also post a list of pay determinations. Payroll records, and any other pertinent records, have to be maintained for the length of the contract and for a three year period afterward. The Davis-Bacon Act is specific about what information must be logged.
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.
Money deducted from the paycheck has to be included as well as detailed information about fringe benefit programs and plans. If you have apprentices or trainees, their registrations must be included in the records. More detailed information may be required as per the contract.
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.
Any deviation from this law is subject to significant penalties. The contract can be terminated immediately. Debarment for a period of three years may be initiated. Payments for work completed can be withheld from the contractor until delinquent wages and penalties are satisfied.
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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.
