FREQUENTLY ASKED QUESTIONS ON STATE PREVAILING WAGE
Whether you are just starting out as a prevailing wage contractor or just looking to keep yourself updated, we have compiled these resources about state prevailing wage. Here are the most common questions of prevailing wage contractors and workers to help expand your knowledge!
The Missouri Prevailing Wage Law decides the wage rate that must be paid to employees of public work projects in the state of Missouri. These wage rates differ depending on the trade classification and the county where the work is going to be done.
The Division of Labor Standards is the department responsible for the release and enforcement of prevailing wage Missouri. These determinations must be renewed annually, and must include the hourly wage rate and fringe benefits of the prevailing wage worker. Prevailing wage contractors must send a “Contractor’s Wage Survey” as hours of work as completed to the Division of Labor Standards.
Read below the most common questions asked about Missouri Prevailing Wage.
In Missouri, if there are hours submitted through the Contractor’s Wage Survey, the Division of Labor Standards will choose the most-used wage rate to set the prevailing wage rate for each trade in each county. If there are no hours submitted for first and second-class counties with populations beyond the range of 58 000 – 65 000, the most recent CBA will be considered as the prevailing wage rate.
If there are hours submitted for a particular occupational title, the Division of Labor Standards must separate the hours by non-CBA and CBA categories. The Division of Labor Standards will then determine the prevailing wage rate depending on the grouping with the most submitted hours.
If there are no hours submitted for a work title, the Department of Labor Standards must study the last six years of hours submitted. The category (CBA and non-CBA) with the most years as the prevailing wage will become the new prevailing wage rate.
If, through last the six years, no hours have been submitted for a specific occupation, the Department of Labor Standards must study the hours of all surrounding counties. The latest reported wage rate in the surrounding counties with the most reported hours in each category (CBA and non-CBA) will then become the new prevailing wage rate.
Finally, if there are no hours submitted through the last six years in the surrounding counties as well, the current CBA will become the prevailing wage rate.
No. Missouri does not have a minimum monetary threshold requisite for prevailing wage laws in public works projects.
Technically, there can be increases in Missouri prevailing wage rates. Annual wage determinations per occupational title in a certain locality may be changed once a year. If the prevailing wage for an occupational title is adjusted, the representative from the collective bargaining agreement shall inform the depart of the adjustment, including the date it will take effect. The adjusted prevailing wage will then be effective until the next wage order is issued. Prevailing wage rates for occupational titles set as a result of the yearly or adjusted wage order shall be effective through the duration of that particular job.
Employees who work more than 8 hours a day or 40 hours a week must be given overtime pay. The rate for overtime pay must not be less than 1.5x the regular prevailing wage rate of the employee.
Since the state of Missouri does not have a different rate for weekend work to prevailing wage workers, overtime rates apply after the employee has worked for more than 8 hours a day or 40 hours a week.
Shift differentials in Missouri depends upon the trade of the prevailing wage contractors’ employees. To know more about the shift differentials in Missouri, visit Missouri’s Department of Labor and Industrial Relations website.
The prevailing wage law of Missouri recognizes the legal holidays in the United States.
Prevailing wage contractors are required to pay the prevailing wage rate to their employees working on public works projects. The prevailing wage rate in comprised of the hourly wage rate and the fringe benefits for employees.
In Missouri, fringe benefits can be provided in many different ways. Some these include pensions, medical and hospital care, compensation for job-related injuries, paid leaves, and other kinds of bona fide benefits. Travel and subsistence payments must also be given to prevailing wage workers. However, these do not qualify as bona fide fringe benefits.
Prevailing wage contractors may take credit for hourly cost of fringe benefits by providing health insurance, pension plans, and training programs to apprentices. Apprentices are employees enrolled in training programs, and are registered with the Federal Bureau of Apprenticeship Training. Apprentices can work for less than the prevailing wage rate, but they must be registered with the Office of Apprenticeship first.
No. Missouri does not license construction contractors.
Prevailing wage contractors must first request a copy of the occupational title rule before bidding for a project. The bid of the prevailing wage contractors must be based on the rate provided in the sheet, and they must incorporate prevailing wages into their bids. Prevailing wage contractors are required to pay the prevailing wage to their employees, and must submit certified payroll records to the public entity.
Apart from submitting the certified payroll records, prevailing wage contractors should also submit an affidavit of compliance and wage survey forms to the public entity and the Division of Labor Standards.
Public bodies need to submit a request form to the Division of Labor Standards in order to get a copy of the Annual Wage Order. The annual wage order must be included in the bid spec.
Public bodies should also submit a Project Notification – Contractor Notification Form before starting any public works project. They must also study the payroll records carefully to make sure that all rules are being followed by the prevailing wage contactors.
After the project has been completed, the public body must complete the affidavit of compliance and send it to the Division of Labor Standards, together with the Wage Survey Forms.
Workers must at least be paid the prevailing wage rate for the type of work that they perform. They are also entitled to fringe benefits, which their prevailing wage contractors may take credit for. In the event that the employer pays below the prevailing wage rates, or does not offer fringe benefits whether in cash or kind, workers can sue for double the amount that they have been owed, in addition to attorney’s fees.
LET ARCHER JORDAN HELP YOU THROUGH YOUR MISSOURI PREVAILING WAGE LAW COMPLIANCE!
Prevailing wage contractors are required to comply with the regulations set by the Davis-Bacon Act and the Missouri Prevailing Wage Laws. Failure to do so can result to penalties, and can even lead to imprisonment. Prevailing wage contactors who have violated the Missouri prevailing wage law will also be debarred, and are prohibited to seek contracting projects from any contracting agencies for the duration of the debarment.
To ensure that your business always complies with these rules, seek the assistance of ARCHER JORDAN. We have specialized in giving advice to contractors doing business with government agencies, and we can help your company achieve its full potential in the field of government contracting. Contact our team now for inquiries!