What Every Contractor Should Know About Prevailing Wages
by
Book Cover & Preview Text
Introduction and Overview of Prevailing Wages:
The history of prevailing wage law dates back to the days of the Great Depression. In the 1930s work was scarce. The Federal and state governments poured millions of dollars into publicly funded construction projects in order to put people to work and pump money into the economy. The California prevailing wage law and the Federal Davis-Bacon Act were actually discrimination laws in favor of local contractors. The feeling was that out of town (or out of state) contractors would move into the town, underbid the local contractors, then take the money earned and leave town. By creating a mandatory minimum wage for public works, local contractors would actually have an advantage because they did not have the additional travel and subsistence costs which an out of town contractor would have. Additionally, the thought was that if local contractors received the contract, then the public funds spent would actually stay and be spent in the local community.
Since the 1930s, the area of prevailing wage law has expanded tremendously. In addition to the federal Davis- Bacon requirements, California and many other states have created their own prevailing wage requirements. California is by far the most complicated and a good deal of this book will be spent explaining a number of the intricacies of those requirements. One thing to remember is that California and other state prevailing wage laws are different (usually more restrictive) than the Federal Davis-Bacon law. There are many other states and local communities which also have their own prevailing wage laws. Which one to apply may depend on the “funding source” or the jurisdiction of the agency awarding the contract.
Many times contractors may believe they already know all about prevailing wage law and still not have a full understanding of the subject matter. What many contractors do not realize is that prevailing wage requirements are ever changing. Not only do wages generally rise over time, but state prevailing wage requirements continue to be added, amended and changed each year. So a contractor who has been performing public works for 35 years should be aware that the law in their state, as well as federal wages could change at least once a year. Many contractors are “doing what they have always done”, but that does not mean they are in compliance today.
Another area of misperception is the belief that because a contractor is union signatory, that prevailing wage is using “the union contract”. While many provisions in union contracts have been adopted by the U.S. Department of Labor (DOL), the California Department of Industrial Relations (DIR) and other state Labor Commissions, not ALL wages or working conditions have been adopted. One key point to remember is when there are both State or Federal prevailing wage requirements on a project, the more restrictive work condition will control over the union contract.
One of the areas which has greatly expanded in the last decade is the area of apprenticeship training. While Davis-Bacon does recognize the use of apprentices on public works projects as an option for a contractor, the State of California has taken the position that apprenticeship training is a vital state interest. So, not only does a contractor need to comply with prevailing wage requirements, but various apprenticeship registration, recruitment and training is also mandated for contractors performing public works.
This book will cover the general requirements and principles of federal Davis-Bacon and California prevailing wage compliance, including apprenticeship obligations. I specifically stayed away from quoting the specific legal names of nearly 60 laws which now impact Davis-Bacon or the specific case law that might be applicable. This workbook is written for the average contractor who may be considering performing public works for the first time or reentering the public works field after an absence of some years. The book will cover the basic requirements and understanding of the Davis-Bacon Act and the payment of prevailing wages on Federal projects. It will not c
Formats
Book Details
About the Book
Revised Third Edition: This book is written for the average contractor who may be considering performing public works for the first time or reentering the public works field after an absence of some years. It includes not only an overview of the prevailing wage requirements, but also best practices and tips and examples to understanding some of the more complex aspects of California and Federal prevailing wage compliance.
About the Author
Deborah Wilder is a licensed attorney in both Oregon (since 1981) and California (since 1983) and is admitted to practice law before the U.S. Supreme Court. She is also the founder (2002) and president of Contractor Compliance and Monitoring, Inc. (CCMI). CCMI provides training and assistance to contractors and public agencies seeking to fully enforce prevailing wage requirements and comply with other labor law related requirements on a state and federal basis.
Deborah is also a past national president of Women Construction Owners and Executives, USA, the former Mayor of Foster City (1998-2000), and a member of the Foster City Council (1997-2005). She has been a national speaker on the topic of Prevailing Wages for decades, including presentations sponsored by the Small Business Administration, California Department of Transportation, World of Concrete, Associated General Contractors, Associated Builders and Contractors and others. She has been a speaker at every LCPtracker Annual Conference and is the instructor for LCPtracker Academy on California Prevailing Wages for Contractors and/or Agencies and Mixed Use Funding.