Bidding on government contracts can be a hassle, but there is a lot of money to be made if you win one. You'll have the edge on the next project if you come in on time, on budget, and are compliant with the Davis-Bacon Act. If you won the bid on a project with a cost projection in excess of two thousand dollars, the laborers you hire have to be paid wages that are commensurate with the wages other workers are receiving in the same area of the country. It's mandatory that prevailing wage contractors follow the guidelines of the Davis-Bacon Act exactly.
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 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.
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.
Every record must include the employee's Social Security number, legal name, and address. There should be a job description for every laborer as well as pay rate and fringe benefit contributions. The number of hours worked daily and weekly have to be included.
Every deduction taken must be included in the records. Detailed information regarding the fringe benefit plans and programs must be included. If you hired trainees and apprentices, you must include their registration information in their records.
During the course of the contract, the contracting agent must receive a weekly payroll report with all the required information included. For these reports, the contractor does not have to provide the Social Security number or home address, but must include the four digit identifying number. The report must be signed by the contractor, or authorized representative, and submitted within a week of the payroll 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 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.
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.
Every record must include the employee's Social Security number, legal name, and address. There should be a job description for every laborer as well as pay rate and fringe benefit contributions. The number of hours worked daily and weekly have to be included.
Every deduction taken must be included in the records. Detailed information regarding the fringe benefit plans and programs must be included. If you hired trainees and apprentices, you must include their registration information in their records.
During the course of the contract, the contracting agent must receive a weekly payroll report with all the required information included. For these reports, the contractor does not have to provide the Social Security number or home address, but must include the four digit identifying number. The report must be signed by the contractor, or authorized representative, and submitted within a week of the payroll 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.
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