DBA: PREVAILING WAGE RATES  (40 U.S.C. 276 (a)) <ul><li>DBA requires that laborers and mechanics employed on construction ...
DBA: LABORERS AND MECHANICS  <ul><li>Includes Workers Whose Duties are Manual or Physical </li></ul><ul><li>Includes Appre...
DBA: APPRENTICES AND TRAINEES <ul><li>Two Categories of Laborers and Mechanics Not Listed on a WD  </li></ul><ul><li>Permi...
DBA: SATISFYING WAGE AND  BENEFIT REQUIREMENT <ul><li>“ Any combination” of Wages and Fringe Benefits (40 U.S.C. 276a) (29...
DBA Example: Payment of  Cash Wages and Benefits  <ul><li>Basic Hourly Rate: $12.00 </li></ul><ul><li>Fringe Benefits: $  ...
DBA: EXAMPLES OF FRINGE BENEFITS <ul><li>Funded Plans: </li></ul><ul><li>Life Insurance  </li></ul><ul><li>Health Insuranc...
DBA: OTHER UNFUNDED FRINGE  BENEFIT PLANS <ul><li>Normally Not Considered to be B ona Fide  Benefits  </li></ul><ul><li>Re...
DBA: CERTIFIED PAYROLLS   <ul><li>Copeland Act requires DBRA contractors to submit weekly a “statement of compliance” of  ...
Contact Information <ul><li>Phillip B. Russell, Esq. </li></ul><ul><li>[email_address] </li></ul><ul><li>Ogletree, Deakins...
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IEC Atlanta Davis Bacon Act Seminar - Selected Slides

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IEC Atlanta Davis Bacon Act Seminar - Selected Slides

  1. 2. DBA: PREVAILING WAGE RATES (40 U.S.C. 276 (a)) <ul><li>DBA requires that laborers and mechanics employed on construction contracts in excess of $2,000, be paid no less than the wage rate determined to be prevailing “for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the city, town, village, or other civil subdivision of the State in which the work is to be performed.” </li></ul>
  2. 3. DBA: LABORERS AND MECHANICS <ul><li>Includes Workers Whose Duties are Manual or Physical </li></ul><ul><li>Includes Apprentices </li></ul><ul><ul><li>May include trainees or helpers </li></ul></ul><ul><li>Employee Coverage Does Not Depend upon Contractual Relationship </li></ul><ul><li>(40 U.S.C. 276a) </li></ul><ul><li>Does Not Include: </li></ul><ul><ul><li>Timekeepers, inspectors, architects, and engineers </li></ul></ul><ul><ul><li>Bona fide executive, administrative, or professional </li></ul></ul><ul><ul><li>employees as defined by the FLSA </li></ul></ul>
  3. 4. DBA: APPRENTICES AND TRAINEES <ul><li>Two Categories of Laborers and Mechanics Not Listed on a WD </li></ul><ul><li>Permitted on Covered Projects and are Paid Less Than the Journeymen Rate When: </li></ul><ul><ul><li>Registered in an approved apprenticeship or trainee plan; and </li></ul></ul><ul><ul><li>Paid the percentage of basic hourly rate required by WD </li></ul></ul><ul><ul><li>Ratio requirement – apprentices or trainees to journeymen </li></ul></ul>See sections 5.2(n) and 5.5(a)(4)(i) and (ii) of Regulations, 29 CFR Part 5.
  4. 5. DBA: SATISFYING WAGE AND BENEFIT REQUIREMENT <ul><li>“ Any combination” of Wages and Fringe Benefits (40 U.S.C. 276a) (29 CFR 5.31(b)(4)) </li></ul><ul><li>Wages Paid Weekly (40 U.S.C. 276a) (29 CFR 5.5 (a)(1)) </li></ul><ul><li>Fringe Benefits Contributions No Less Often Than Quarterly (29 CFR 5.5(a)(1)) </li></ul>
  5. 6. DBA Example: Payment of Cash Wages and Benefits <ul><li>Basic Hourly Rate: $12.00 </li></ul><ul><li>Fringe Benefits: $ 2.00 </li></ul><ul><li>Total Prevailing Wage is: $14.00 </li></ul><ul><li>The contractor may comply by paying: </li></ul><ul><ul><li>$14.00 in cash wages </li></ul></ul><ul><ul><li>$12.00 in cash wages plus $2.00 in FB’s </li></ul></ul><ul><ul><li>$11.00 in cash wages plus $3.00 in FB’s </li></ul></ul><ul><li>The contractor or subcontract can comply with the “prevailing wage” Requirements for the payment of both straight time wages and fringe benefits: </li></ul><ul><li>$14.00 in cash wages; </li></ul><ul><li>$12.00 in cash wages plus $2.00 in health and welfare contributions or other bona fide fringe benefits; or </li></ul><ul><li>3.$11.00 in cash wages plus $2.00 in health and welfare and $1.00 in pension contributions or any other contributions of bona fide fringe benefits. In this case, overtime must be paid at one and one half times the basic hour rate of $12.00. </li></ul>
  6. 7. DBA: EXAMPLES OF FRINGE BENEFITS <ul><li>Funded Plans: </li></ul><ul><li>Life Insurance </li></ul><ul><li>Health Insurance </li></ul><ul><li>Pension </li></ul><ul><li>Unfunded Plans: </li></ul><ul><li>Vacation </li></ul><ul><li>Holiday </li></ul><ul><li>Sick Leave </li></ul>Examples of conventional fringe benefits common to the construction industry that are paid directly to the employees in cash or into a third-party fund, plan, or program. Such fringe benefits are recognized under the Davis Bacon Act and may be credited towards meeting “prevailing wage” requirements. Contractors may not take credit for any benefit required by Federal, State, or local law such as Workers’ Compensation, Unemployment Compensation, and Social Security contributions. See Section 1(b)(2) of the Davis-Bacon Act and section 5.23 of Regulations, 29 CFR Part 5.
  7. 8. DBA: OTHER UNFUNDED FRINGE BENEFIT PLANS <ul><li>Normally Not Considered to be B ona Fide Benefits </li></ul><ul><li>Require Advance Approval of the Administrator </li></ul><ul><ul><li>No type of an “unfunded” fringe benefit plan is eligible for consideration unless it meets certain regulatory requirements in order to ensure full compliance with the Act. Such “unfunded” plans or programs are not creditable against the “prevailing wage” until they have been approved. </li></ul></ul><ul><li>See sections 5.5(a)(1)(iv) and 5.28 of Regulations, 29 CFR Part 5. </li></ul>
  8. 9. DBA: CERTIFIED PAYROLLS <ul><li>Copeland Act requires DBRA contractors to submit weekly a “statement of compliance” of wage information (40 U.S.C. 276c-2) </li></ul><ul><li>Also required by regulation (29 CFR 5.5(a)(3)); court decision Building & Construction Trades v Donovan , 712 F2d611 (C.A. D.C., 1983) </li></ul><ul><li>Violation subject to criminal prosecution (18 U.S.C. 1001) </li></ul>
  9. 10. Contact Information <ul><li>Phillip B. Russell, Esq. </li></ul><ul><li>[email_address] </li></ul><ul><li>Ogletree, Deakins, Nash, Smoak & Stewart, P.C. </li></ul><ul><li>100 N. Tampa Street, Ste. 3600 </li></ul><ul><li>Tampa, FL 33602 </li></ul><ul><li>(813) 221-7265 </li></ul><ul><li>IEC Member-Special Services </li></ul>

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