Attain higher margins
Higher margins yield more competitive bid submissions, thereby increasing your likelihood of winning the contract or project.
HUB Prevailing Wage Solutions
Comply with government regulations. Create a bidding competitive advantage. Retain employees. Improve your bottom line.
Construction companies that contract with the government (federal government, many state governments, municipalities, school districts, etc.) are subject to a multitude of laws and regulations. Included among these regulations are special requirements that dictate mandatory wage and fringe benefit payments commonly referred to as ‘prevailing wage regulations.’
HUB Prevailing Wage Solutions helps non-union contractors administer the complicated fringe benefit portion of prevailing wage regulations to prevent any misunderstanding or misapplication.
Fringe benefit confusion can lead to:
- Contractors missing opportunities to bid more competitively
- Compliance problems that generate large unanticipated liabilities
- Inferior benefit programs for your company compared to those provided by labor unions
Regulations impacting government contracts
The Davis-Bacon Act (DBA) has been a cornerstone of labor 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 be paid to any mechanics or laborers 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 forth 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 benefits 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 benefits 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 advisors if they have any doubt about the rules in the states in which they work.
Prevailing Wage Trust
HUB Prevailing Wage Solutions maintains a thorough understanding of the laws governing prevailing wage in the construction industry. We simplify the complicated process of complying with the Davis-Bacon Act or similar laws while saving your company money along the way.
We custom design each client’s plan to maximize savings, ensure compliance, reduce administrative burden, and provide flexible tailored benefits to your employees.
Benefits can include:
- Medical, dental, vision, life and disability insurance
- Health savings accounts (HSA)
- Vacation and holiday pay (paid time off)
- Safety and apprentice training reimbursement
- Supplemental unemployment benefits
- Retirement plans
- Funding during layoffs
Improve employee retention
Offering more competitive benefits will not only help you retain employees and reduce turnover, but it can also improve employee satisfaction, translating to lower labor costs.
Reduce business costs
HUB can help you utilize this bona fide fringe benefit plan and show you how it can reduce your taxes and insurance costs.
Building Workforce Resilience
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.
Optimize Your Fringe Benefits
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.
Real Results in Action
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.
Unlock Supplemental Unemployment Benefits
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.