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?
Info not available at this time
What is the definition of a public works or related projects?
Contracts to which this State or any subdivision thereof is a party and for which the State appropriated any part of the funds and which requires or involves the employment of mechanics and/or laborers. (Introduction)
*For further clarification, the terms "laborer" and "mechanic" includes at least those workers whose duties are manual or physical in nature (including those workers who use tools or who are performing the work of a trade), as distinguished from mental or managerial. The term "laborer" or "mechanic" includes apprentices and Supportive Service Program (SSP) trainees. The term does not apply to workers whose duties are primarily administrative, executive, or clerical, rather than manual. Persons employed in a bona fide executive, administrative, or professional capacity are not deemed to be laborers or mechanics. Working foremen who devote more than twenty (20) percent of their time during a workweek to mechanic or laborer duties are deemed to be laborers and mechanics for the time so spent.(Concepts and Definitions)
Are there project monetary thresholds?
$100,000 for new construction (including painting and decorating) or $15,000 for alteration, repair, renovation, rehabilitation, demolition or reconstruction (including painting and decorating of building or works)
Are any types of projects specifically exempted?
A) Exemptions include those projects that are valued at less than $100,000 for new construction (including painting and decorating) or less than $15,000 for alteration, repair, renovation, rehabilitation, demolition or reconstruction (including painting and decorating of building or works)
B) Furthermore, the State or any subdivision thereof must be a party to the publics works contract. (State of Delaware)
C) And, the State must have appropriated any part of the funds. (State of Delaware)
*Other than these requirements, there are no specific exemptions in Delaware for prevailing wage laws.
What is included in the calculation of wage rates?
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)
Who calculates the prevailing wage rates?
A) The prevailing wage rates are "prevailing in the county in which the work is to be performed." (Introduction)
B) Delaware Department of Labor, Division of Industrial Affairs (Introduction)
C) The Department will enter usable data (from the summary ledgers) in the computer. If a majority (i.e., more than 50% of the workers reported in a particular category are paid at the same rate, that rate shall be the prevailing wage rate for the classification. (The Survey)
D) In the absence of a majority, the computer will determine the average (mean) of the wages paid, weighted by the numbers of workers paid at each rate. (The Survey)
Enforcement: what are the penalties for violations? Criminal or fines?
(For an employer who fails to pay the prevailing wage rates ) "the Department may direct the contracting agency and/or the prime contractor to withhold payments to the employer (in an amount equal to the prevailing wage deficiencies, as determined by the Department) which are to be remitted to the Department for distribution upon resolution of the matter. In addition, the Secretary may terminate all rights of the employer to proceed with the work under the contract and the employer shall be responsible for all damages resulting therefrom." (Enforcement)
* The State of Delaware does not discuss fines for any reason in relation to the prevailing wage laws. The above paragraph is the only reference to monetary punishment.
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Can contractors be debarred?
There is no information given in the Delaware Department of Labor book, or on the Official Delaware Department of Labor web-site that would lead me to believe that contractors can be debarred.
Are there posting requirements?
Every contractor and subcontractor on a public project shall:
Post in a prominent and accessible place at the site of the work, a legible copy of the applicable prevailing wage determination issued by the Department. The notice must remain posted during the life of the contract and must be supplemented in its entirety whenever amended wage rate determinations are issued by the Department. (Enforcement)
Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
While the Department of Labor is in charge of enforcing the prevailing wage laws, they do not discuss fines or the retention of fines for enforcement purposes.
Record Maintenance?
A) Every employer who employs an apprentice or SSP trainee under this part must keep the records required by Title 19, Delaware Code, Chapters 9 and 11, including designation of apprentices or trainees on the payroll. In addition, every employer who employs apprentices or SSP trainees shall preserve the agreements under which the individuals were employed. (Records)
B) Every joint apprenticeship committee or SSP Program sponsor shall keep a record of the cumulative amount of work experience gained by the apprentice or trainee. (Records)
C) Every joint apprenticeship committee shall keep a list of the employers to whom the apprentice was assigned and the period of time (s)he worked for each. Every SSP Program sponsor shall keep a list of the projects to which the trainee was assigned and the period of time (s)he worked on each. (Records)
D) The records required by paragraphs (a), (b), and (c) of this section shall be maintained and preserved for at least three (3) years from the termination of the apprenticeship or training period. Such records shall be kept safe and accessible at the place or places of employment or at a central location where such records are customarily maintained. All records shall be available at any time for inspection and copying by the Department of Labor. (Records)
E) Every employer performing work on a public project shall furnish weekly payroll reports to the Department of Labor on forms provided (upon request) by the Department. Payroll reports shall be mailed or delivered by the employer to the Department within one week from the last work day covered by the report. Failure to complete each and every section of the report (including the requirement that the form be notarized) will constitute a failure to submit sworn payroll information as required by the Department. (Enforcement)
F) An employer must keep the following records for a period of three years:
Are there any provisions which discuss apprentices?
A) The term "apprentice" means persons who are indentured and employed in a bona fide apprenticeship program and individually registered by the program sponsor with the Delaware Department of Labor. (Concepts and Definitions)
B) Apprentices and SSP Trainees will be permitted to work as such on State contracts in excess of $100,000 for new construction or $15,000 for alteration, repair, renovation, rehabilitation, demolition or reconstruction only when they are registered with the Department of Labor or an approved SSP Training Program. (Concepts and Definitions)
C) The ratio of apprentices to mechanics on the site of any work covered by 29 Del.C. '6960 in any craft classification may not be greater than the ratio permitted to the contractor for the entire workforce under the registered apprenticeship program. Any apprentice performing work on the job site in excess of the ratio permitted under the registered program must be paid not less than the wage rate that the applicable wage determination specifies for the work (s)he actually performs. Entitlement to mechanic's wages shall be based upon seniority in the apprenticeship program or (in the case of equal seniority) seniority on the job site. (Concepts and Definitions)
References
1.) Delaware Prevailing Wage Regulations - State of Delaware Department of Labor:
* This information is presented in a Word document. It appears to be a book that is published by Delaware's Department of Labor.
2.) State of Delaware:
* This is information that was taken from the Official State of Delaware website. The information provided is divided by subject, and is stated as facts.