1. When is the prevailing wage rate used?
2. What is the definition of a public works or related projects?
3. Are there project monetary thresholds?
4. Are any types of projects specifically exempted?
5. What is included in the calculation of wage rates?
6. Who calculates the prevailing wage rates?
7. Enforcement: what are the penalties for violations? Criminal or fines?
8. Can contractors be debarred?
9. Are there posting requirements?
10. Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
11. Record Maintenance?
12. Are there any provisions which discuss apprentices?
When is the prevailing wage rate used?
It is declared to be the policy of the State of Arkansas that a wage of not less than the minimum prevailing hourly rate of wages for work of a similar character in the county or locality in which the work is performed and not less than the prevailing hourly rate of wages for holiday and overtime work shall be paid to all workmen employed by or on behalf of any public body engaged in the construction of public works, exclusive of maintenance work. (29-9-301)
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What is the definition of a public works or related projects?
Public works means all works constructed for public use, whether or not done under public supervision or direction or paid for wholly or in part out of public funds, but it does not include any work done for or by any drainage, improvement, or levee district. (22-9-302)
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Are there project monetary thresholds?
The law requires the division to issue a wage determination for each public works project where the cost of all labor and materials exceeds $75,000. (Arkansas Department of Labor)
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Are any types of projects specifically exempted?
A.) Exemptions are public school construction; work done for or by any drainage, improvement, or levee district; highway, road, street or bridge construction and maintenance, or related work contracted for or performed by incorporated towns, cities, counties, or the Arkansas Highway Department. (Arkansas Department of Labor)
B.) Maintenance work means the repair, but not the replacement, of existing facilities when the size, type, or extent of the existing facilities is not thereby changed or increased. (22-9-302)
C.) The provisions of this sub-chapter shall not apply to workers who are employed as part- time or full- time employees of any public body; it is not the intent of this sub-chapter to prohibit any public body from performing necessary improvements of their public property, either by construction or maintenance, with public employees. (22-9-303)
D.) Nothing contained in this sub-chapter shall be construed to apply to or affect highway, road, street, or bridge construction and maintenance or related work contracted for or performed by incorporated towns, cities, counties, or the Arkansas State Highway and Transportation Department. (22-9-303)
E.) This sub-chapter shall not affect any public school construction unless federal matching funds are employed in paying for the construction. (22-9-303)
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What is included in the calculation of wage rates?
Straight rates, overtime rates and holiday rates. (22-9-308)
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Who calculates the prevailing wage rates?
The Prevailing Wage Division, which is a branch of the Arkansas Department of Labor. (Arkansas Department of Labor)
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Enforcement: what are the penalties for violations? Criminal or fines?
A.) Any officer, agent, or representative of any public body who knowingly violates, or omits to comply with, any of the provisions of this sub-chapter, and any contractor or subcontractor, or agent or representative thereof, doing public works who neglects to keep an accurate record of the name, address, social security number, occupation or work classification, hours worked, and actual wages paid to each worker employed by him in connection with the public works, or who refuses to allow access to the records at any reasonable hour to any person authorized to inspect the records under this sub-chapter, or who knowingly submits to the department false payroll or wage information, shall be subject to a civil penalty of not less than fifty dollars ($ 50.00) and not more than one thousand dollars ($ 1,000) for each violation. Each day the violation continues shall, with respect to each employee, constitute a separate offense. In no event shall the civil penalty exceed ten percent (10%) of the contract or subcontract or ten percent (10%) of any unpaid wages due employees under the provisions of this sub-chapter, whichever sum is greater. (22-9-305)
B.) Any workman who knowingly submits to the department a false claim for unpaid wages under the provisions of this sub-chapter shall be subject to a civil penalty of not less than fifty dollars ($ 50.00) and not more than one thousand dollars ($ 1,000). (22-9-305)
C.)
D.) Sums collected under this section shall be paid into the General Revenue Fund of the State Treasury. (22-9-305)
E.) Assessment of a civil penalty by the Director of the Department of Labor shall be made no later than three (3) years from the date of the occurrence of the violation. (22-9-305)
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Can contractors be debarred?
A.) Every contract within the scope of this sub-chapter shall contain the provision that in the event it is found by the contracting officer or public body that any laborer or mechanic employed by the public body or by the contractor or subcontractor, if any, directly on the site of the work covered by the contract has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid, the pubic body concerned may, by written notice to the contractor, terminate the contractor=s right to proceed with the work or such part of the work as to which there has been a failure to pay the required wages and to prosecute the work to completion by contract or otherwise, and the contractor and his sureties shall be liable to the public body concerned for any excess costs occasioned thereby. (22-3-312)
B.) (1) Any contractor or subcontractor determined by the department to have violated the provisions of this sub-chapter shall be ineligible to bid on or be awarded any public works contract or to perform any construction work in any manner for any public body for a period of two years from the date of the final administrative determination.
(2)
Any firm, partnership, corporation or other entity in which such ineligible contractor is an officer, stockholder, or has a financial
interest, or supervises or directs work shall be ineligible to bid on or be awarded any public works contract or perform any construction work in any manner for any public body for a period of two years after the date of such determination. (22-9-314)
C.) Notwithstanding the provisions of subsection (a) of this section, any contractor or subcontractor may complete any work in progress or contract awarded prior to the date of the contractor=s or subcontractor=s ineligibility. (22-9-314)
D.) 1. The department shall compile a quarterly list which
shall include
2.
E.) Any contractor or subcontractor shall submit a bid, be awarded a contract, or begin performance of construction while ineligible pursuant to the provisions of this section may have its state contractor=s license suspended for a period of time as set by the State Contractors Licensing Board. (22-9-314)
F.) Any public works contract awarded to an ineligible contractor, or on which an ineligible subcontractor performs, may be declared in default by the public body.
G.) Nothing in this section shall be construed as a waiver of sovereign immunity or as creating a cause of action for money damages against any public body. (22-9-314)
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Are there posting requirements?
A.) The scale of wages to be paid shall be posted by the contractor in a prominent and easily accessible place at the site of the work.
B.) There may be withheld from the contractor so much of accrued payments as may be considered necessary by the contracting officer or agency to pay to laborers and mechanics employed by the contractor or subcontractor, if any, of the work, the difference between the rates of wages required by the contract to be paid laborers and mechanics on the work and the rates of wages received by the laborers and mechanics and not refunded to the contractor, subcontractor, or their agents.
C.) Payment for the withholding required under subsection (b) of this section shall be made upon entry of a written final administrative order by the Department of Labor directing the public body or agency to release such funds to the Department of Labor directing the public body or agency to release such funds to the Department of Labor.
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Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
There is no information that would lead me to believe that the monetary fines from prevailing wage violations go toward an enforcement fund.
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Record Maintenance?
A.) The contractor and each subcontractor shall keep an accurate record showing the names, addresses, social security numbers, occupations or work classifications, and hours worked of all workers employed by them in connection with the public works, and showing the actual wages paid to each of the workers.
B.) These records shall be open at all reasonable hours to the inspection of the department or the public body awarding the contract, its officers, and agents.
C.) The contractor and each subcontractor shall, within ten (10) days after receipt of a written request from the department, the public body awarding the contract, or both, forward a certified copy of these records to the person making the request.
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Are there any provisions which discuss apprentices?
"Workmen" means laborers, workmen, and mechanics, but special rates for apprentices shall apply only when the apprentices are registered in a recognized management-labor apprenticeship training program.
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References
Arkansas Department of Labor