A.) The term "wages" means the basic
hourly rate of pay plus fringe benefits. (Character Similar)
B.) Fringe benefits may be considered in determining
whether an employer has met his/her prevailing wage obligations.
As a general rule, any fringe benefit may be considered as long
as the employer is not legally required to provide it. Therefore,
benefits such as health, welfare or retirement benefits, vacation,
holiday pay or sick leave pay could be considered fringe benefits.
Employer payments for unemployment insurance, workers' compensation,
FICA, etc. (which are required by law) would not be considered
fringe benefits. (Character Similar)
In order to be considered a valid fringe benefit, payments must
be made either in cash, or contributed to an irrevocable escrow
account at least once each month. "Irrevocable" means
that the benefit may not be forfeited. However, a benefit plan
can be considered by the Department provided that payments to
the plan are made irrevocably by the employer, even though certain
employees may forfeit their individual rights to the benefits
under certain prescribed conditions.(Character Similar)
Thus, if payments are made by the employer, and no return of
those payments is possible, the plan would be acceptable, even
though individual employees might not receive the benefits under
certain situations. Benefits forfeited by such employees remain
in an escrow account for the use of the other employees. (Character
Similar)
The actual cost of the benefit to the employer is the basis
for evaluating the value of the fringe benefit. Administration
costs are not considered fringe benefits. (Character Similar)
The cost of the benefits must be apportioned between employment
on both public and private projects. Thus, the total value of
the benefit would be divided by the total amount of time worked.
This will result in benefit per unit of time which would be
equally applicable to public and private employment projects.
(Character Similar)
