Under Section 70.060 of the Collected Rules and Regulations, all construction work performed on University鈥憃wned or leased property must follow the prevailing wage rates for the community where the work occurs. This requirement applies to all construction work performed by non鈥慤niversity personnel.
The prevailing wage coordinator oversees this program and ensures contractor and subcontractor compliance with prevailing wage laws and OSHA 10 requirements. Compliance is monitored through on鈥憇ite worker interviews, review of certified payrolls, audits of payroll records and fringe benefit contributions, evaluation of apprenticeship standards and participation in pre鈥慴id and pre鈥慶onstruction meetings.
The prevailing wage coordinator also provides guidance on state and federal regulations, resolves compliance issues and supports construction management across the University system.
This information is provided to assist University staff, contractors and subcontractors working on or bidding University projects.
Resources
Resources
- (linked to State of 亚洲影院 website)
- (linked to State of 亚洲影院 website)
NOTE: The wage rates provided at this site are not password protected and may be merged into Adobe documents.
Prevailing wage throughout the University of 亚洲影院 System refers to a set of predetermined wage rates that are incorporated into the specifications and contracts. The Board of Curators policy is that the workers on University projects be paid the appropriate wage rate for work of a similar character within the county where construction takes place. Contractors are required to pay their workers those rates for the duration of the contract.
The wage rates for the University are determined by the director of Facilities Planning and Development. The prevailing wage coordinator is in that office and is responsible for activities necessary to ensure compliance with the prevailing wage rate portion of the contracts.
The campuses and facilities in the University System are not subject to the provisions of the 亚洲影院 prevailing wage law. However, because of the Board of Curators policy and the construction contracts requirements, the contractors and their employees should 鈥渇eel鈥 the same as they do when on a public works project covered the state prevailing wage law.
Wage Rates
The wage rates for the University are determined by adopting the Annual Wage Order issued by the State of 亚洲影院, Department of Labor and Industrial Relations, Division of Labor Standards. This takes advantage of the survey, analysis and publication process set up by the State, thus avoiding a duplicate process.
Some University projects are partially funded with federal money. When this occurs the specifications have not only the wage rates for the University but also those required by the Federal Davis-Bacon law. In those cases the contractor is required to comply with both wage rate requirements.
A wage rate for each construction occupation on a project is given on the rate sheet. The worker must be paid the total of the base rate of pay and the fringe benefit amount. The fringe benefit may be paid to 鈥渢hird party鈥 plans. The contractor may take credit only for the amount that is paid to such a plan. The remainder must be paid to the worker.
Each wage rate has accompanying overtime and holiday provisions. These explain how the overtime must be paid and for which holidays.
The contractor is required to post the wage rates for the project at the field office in such a manner that all employees can readily see it. They should remain posted for the duration of the project. In cases where there is not field office, the contractor may post them at their local office. Contractors should provide a copy of the wage rates to employees on request.
Work of a Similar Character
The rate sheets in the wage orders have approximately 39 different wage rates. There is one for each 鈥渃raft鈥 or occupational title found on a construction project. The rates are based on surveys of what rate is paid to each occupational title.
Each occupational title is defined is a state regulation. The University contracts include that regulation by reference to define what is 鈥渨ork of a similar character.鈥 The regulation describes what tasks a person in each of the different title does. For example: if a worker is building concrete framework, they should be paid the rate for a 鈥渃arpenter鈥
Who Should Be Paid
All persons who are working on the project site or in a temporary yard or a facility that is established for the project should be paid the prevailing wage rate for the type of work they are doing. Working foremen are considered to be workers and should be paid the correct rate. This is required of the prime contractor and any subcontractor of any tier.
The exception is work performed in permanent offices, fabrication plants and yards; and supervisory personnel or professional services.
Apprentices
A contractor may pay a lower rate of pay to workers if they are apprentices. In order for a worker to be considered an apprentice, they must be enrolled in a program that is registered with the U. S. Department of Labor, Office of Apprenticeship. Apprentices may not be employed in greater numbers (in relation to journey level workers) than the program standards allow.
Fringe Benefits and Deductions from Workers Pay
The contractor can take credit for payments to 鈥榯hird party鈥 funds for health and insurance, vacation funds, pension plans, cost of apprenticeship programs, etc. Such payments may not be considered as fringe benefits if required by law. State required workers compensation insurance is an example.
Bonuses, travel pay, mileage, meals or other similar expenses cannot be considered to be fringe benefits.
The contractor may not make any deductions from the workers pay for meals, sleeping accommodations, transportation, use of small tools, uniforms or anything of any kind or description unless they have entered into an agreement in writing at the beginning of the workers term of employment. Such an agreement has to be approved by the University.
The contractors cannot demand that their workers make contributions or give part or all of their wages back in order to get or keep a job. The exception to this is to an agent of representative of a duly constituted labor organization acting in the collection of dues or assessments of such an organization.
How Compliance is Monitored
The contractor and all subcontractors are required to submit certified payroll reports to the Construction Project Manager. These reports are submitted and uploaded online via projex. The reports are reviewed by University personnel and the Prevailing Wage Coordinator.
The Prevailing Wage Coordinator may also conduct wage interviews with workers. Interviews will generally be conducted on the projects but may also be conducted at other times.
The contractors and subcontractors on a project are required to maintain and permit audits of the payroll accounting records related to the project. The Prevailing Wage Coordinator will conduct audits for compliance with the wage provisions.
There is often understandable confusion between when 鈥渉eavy鈥 rates apply to a construction project and when 鈥渂uilding鈥 rates are applicable to the construction.
In short, construction of buildings, stadiums, water and waste-water treatment plants require building construction rates as do storm and sanitary sewers inside the building and to the curb line, sidewalks and parking lots as part of a building project as well as demolition and landscaping incidental to a building project.
The confusion begins because sidewalks and parking lots also can be 鈥渉eavy鈥 projects. For example, parking lots not incidental to a building construction project and sidewalks when poured as part of a street or road project are 鈥渉eavy鈥 projects. Demolition also can be a heavy project if the demolition is site preparation for any highway and heavy construction.
Please read the entire regulation when making the decision as to whether the appropriate rates are 鈥渂uilding鈥 or 鈥渉eavy.鈥 If the regulation doesn鈥檛 specifically address the construction classification, please contact the prevailing wage coordinator.
What is the complaint process involving restitution payments to workers?
This is a very small part of what may have been a very lengthy, time-intensive process. If the contractor has been found in violation of a contract regarding the prevailing wage requirements, the contractor will be advised of the amount determined to be owed to each worker.
The contractor will be provided with a release for the amount of restitution due to each worker. Once the contractor pays the workers the restitution due and provides the University with the notarized releases signed by the workers, payment will be released to the extent that workers are paid restitution.
This is the contractor鈥檚 responsibility. The University does not attempt to find or pay the contractor鈥檚 workers.
The University will release withheld funds to the contractor to the extent that the contractor provides the notarized affidavits that its workers have been paid.
Does the University accept anonymous complaints?
The answer is 鈥測es鈥 but with some qualifiers. All complaints are addressed based upon each complaint鈥檚 merits. An anonymous complaint would naturally be less of a priority since there is not an 鈥渁ffected party鈥 who could provide testimony or supporting evidence. Also, when the contractor anticipates the complaint, the contractor already had a fairly good idea of the complainant鈥檚 identity.
Investigations and audits are an expensive proposition for both the contractor in question and the University. The University takes precautions to avoid this process involving complaints that lack merit. Anonymous complaints often come from disgruntled former employees, competitors who were not the successful bidder and third party complainants with their own agenda. The primary question is whether the evidence in the complaint, anonymous or otherwise, sufficient to suspect the contractor of being in violation of their contract.
If you have a complaint, please complete the Complaint Form (DOC).
- - This document is used by the UM executive director of Facilities Planning and Development to make determinations.
- General Conditions of the Contract for Construction - Section 13.6 cites the contract requirements regarding wage compliance
- - This safety training is required on all University contracts for construction.
- - This is a reference for compliance with the federal prevailing wage law.