Comply with government regulations. Create a competitive bidding advantage. Retain employees. Improve your bottom line.
Construction businesses face a myriad of challenges in their day-to-day operations. From supply chain disruptions to safety concerns to skilled workforce retention, construction firms must continually seek creative solutions to remain profitable and resilient.
Here are three critical tools that will help your construction business proactively manage risk.
The Davis-Bacon Act (DBA) has been a cornerstone of labour law in the United States since its establishment in 1931, ensuring workers on federally funded construction projects receive fair wages and benefits. The DBA applies to federal government contracts in excess of $2,000 for the construction, alteration, or repair of public buildings and public works. The U.S. Department of Labor (USDOL) determines what is “prevailing” in the location of a given federal contract and requires those rates to be paid to any mechanics or labourers working on job sites.
On August 8, 2023, the USDOL published a final rule titled “Updating the Davis-Bacon Act and Related Acts Regulations” that set out rules for the administration of the law which became effective on October 23, 2023.
DBA prevailing wage requirements are applicable in numerous other statutes such as the National Housing Act, Federal-Aid Highway Act and, most recently, the bipartisan Infrastructure Investment and Jobs Act, among others.
Currently, 28 states and the District of Columbia have prevailing wage-type laws and regulations affecting companies that contract directly with the state or local governments for construction or service-type contracts.
In states that designate only a prevailing wage amount, and not a separate fringe benefit rate, contractors are commonly allowed to take credit for bona fide fringe benefit payments and reduce the amount paid towards wages.
Some states’ laws closely mirror the DBA. However, many states have more restrictive laws, especially as they pertain to fringe benefit requirements. In our examination of state prevailing wage laws, we found important nuances in how states define bona fide benefits, grant or limit credit for benefit programs, and prohibit certain types of common bona fide benefits … along with other very unusual rules.
Contractors are strongly encouraged to consult with their advisers if they have any doubt about the rules in the states in which they work.
Consistent engagement is key. To keep users engaged and provide ongoing value, the HUB Fin Path team has created a communication system of digital and print assets. We can even oversee all emails, newsletters, and social media efforts.
You will receive detailed reports to help track the success of HUB FinPath within your organization. Reports will help provide high level insight on areas your employees are improving on. Together, we can help target specific areas of opportunity and improve financial wellness.
To ensure long-term program success, each organization is assigned a Client Success Manager. They will proactively reach out with updates, campaigns, marketing collateral, and other efforts to promote program adoption, as well as achieve your organization’s desired outcomes.
Prevailing wage is a cornerstone of labor regulations, shaping the construction industry's financial landscape and ensuring fair worker compensation. Learn more below about prevailing wage regulations and strategies to build a resilient workforce.
Discover practical strategies to optimize your fringe benefit plans while ensuring compliance with prevailing wage laws. This guide is tailored for non-union contractors aiming to maximize savings and enhance employee benefits. Contact a Prevailing Wage specialist for personalized support.
Discover practical strategies to optimize your fringe benefit plans while ensuring compliance with prevailing wage laws. This guide is tailored for non-union contractors aiming to maximize savings and enhance employee benefits. Contact a Prevailing Wage specialist for personalized support.
Explore how supplemental unemployment benefit plans create a win-win for contractors and employees. This guide breaks down key benefits, compliance insights, and how these plans enhance workforce stability. Contact a Prevailing Wage specialist to get started.