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Maryland

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?
Information not available at this time.

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What is the definition of a public works or related projects?
Public work" means a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage disposal plant, that: is constructed for public use or benefit; or is paid for wholly or partly by public money.

* "Public work" does not include, unless let to contract, a structure or work whose construction is performed by a public service company under order of the Public Service Commission or other public authority regardless of: public supervision or direction; or payment wholly or partly from public money.

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Are there project monetary thresholds?
A) Prevailing wage does not apply to a public work contract of less than $500,000,

B) Or the part of a public work contract for which the federal government provides money if, as to that part, the contractor is required to pay the prevailing wage rate as determined by the United States Secretary of Labor.

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Are any types of projects specifically exempted?
The only exemption in this case would be the monetary threshold, thus projects which have a value of less than $500,000 are exempt from Maryland's prevailing wage laws.

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What is included in the calculation of wage rates?
The calculation of the rate paid in the locality shall include the basic hourly rate of pay and either:

  • if a contractor is not required by law to provide fringe benefits, the hourly rate of contribution irrevocably made by a contractor or subcontractor to a third person under a fund, plan, or program that provides:
    • medical, surgical or hospital care;
    • retirement, disability or death benefits, including a profit sharing plan that provides benefits on retirement;
    • unemployment, life, or accident insurance or compensation;
    • insurance or compensation for injury or illness resulting from occupational activity;
    • vacation and holiday pay;
    • subsidies to defray costs of apprenticeship or other similar programs; or
    • other bona fide fringe benefits; or
  • the hourly rate of costs to the contractor or subcontractor that reasonably may be anticipated in providing the fringe benefits specified in item (1) of this subsection under an enforceable commitment to carry out a financially responsible plan or program that is communicated in writing to the workers.

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Who calculates the prevailing wage rates?
A) For each public work to which this subtitle applies, the Commissioner shall determine the prevailing wage rate for each classification of worker engaged in work of the same or a similar character.

B) The prevailing wage rate is determined in each locality where the work is being performed.

C) The rate that is paid to 50% or more of the workers in the workers occupational field is the prevailing wage rate.

D) If 50% is not available, the percentage drops to 40%.

E) If 40% is not available, then the rates are averaged.

* For better understanding, the definition of locality is as follows:
(1) "Locality" means the county in which the work is to be performed.

(2) If the public work is located within 2 or more counties, the locality includes all counties in which the public work is located.

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Enforcement: what are the penalties for violations? Criminal or fines?
A) Penalties for noncompliance in regards to records and record maintenance.- If a contractor is late in submitting copies of the payroll records required under subsection (b) of this section:

  • the public body may postpone the processing of partial payment estimates under the public work contract pending receipt of the copies; and
  • the contractor shall be liable to the public body for liquidated damages of $10 for each calendar day the records are late.
    * This information is taken from section 17-220.

B) A contractor under a public work contract is liable to the public body for liquidated damages of $20 for each laborer or other employee for each day for which:

  • the laborer is paid less than the prevailing wage rate of a mechanic while performing a task required to be performed by a mechanic or mechanic's apprentice; or
  • the employee is paid less than the prevailing wage rate.

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Can contractors be debarred?
Several watered down debarment bills were passed which basically states that if you have been debarred by the federal government, you would be debarred at the state level as well. It does allow that if the federal debarment is lifted, so too would be the state.

* This information is taken from the Associated Builders and Contractors, Inc. Web-site. The specific article is entitled, A2005 Maryland General Assembly Report.

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Are there posting requirements?
A) Each contractor under a public work contract subject to this subtitle shall:

  • post a clearly legible statement of each prevailing wage rate to be paid under the public work contract; and
  • keep the statement posted during the full time that any employee is employed on the public work contract.

B) Place for posting.- The statement of prevailing wage rates shall be posted in a prominent and easily accessible place at the site of the public work.

C) Penalty.- Subject to section 1.10-1001 of the State Government Article, the Commissioner may impose on a person that violates this section a civil penalty of up to $50 per violation.

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Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
There is no information which states how the money from the fines for prevailing wage violations will be spent.

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Record Maintenance?
A) Each contractor required to pay the prevailing wage rate shall:

  • keep payroll records covering work performed directly at the work site in accordance with regulations adopted by the Commissioner; and
  • allow the Commissioner or the public body to inspect the records at any reasonable time and as often as necessary.
  • Copies to Commissioner and public body.
  • Each contractor shall submit a complete copy of the payroll records of the contractor and, for work performed at the work site, of the subcontractors in the form that the Commissioner specifies by regulation to:
    • the public body; and
    • the Commissioner.
    • The Commissioner and the public body shall make payroll records available for public inspection during regular business hours.
  • Statements of contractors and subcontractors.- Each copy of the payroll records shall be accompanied by a statement that is signed by the contractor or, for the subcontractor's records, by the subcontractor and indicates that:
    • the payroll records are correct;
    • the wage rates paid are not less than those established by the Commissioner as set forth in the public work contract;
    • the classification set forth for each employee conforms with the work performed by that employee; and
    • the contractor or subcontractor has complied with each requirement of this subtitle.
  • Penalties for noncompliance.- If a contractor is late in submitting copies of the payroll records required under subsection (b) of this section:
    • the public body may postpone the processing of partial payment estimates under the public work contract pending receipt of the copies; and
    • the contractor shall be liable to the public body for liquidated damages of $10 for each calendar day the records are late.

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Are there any provisions which discuss apprentices?
A) Apprentice.- "Apprentice" means an individual who:

  • is at least 16 years old;
  • has signed with an employer or employer's agent, an association of employers, an organization of employees, or a joint committee from both, an agreement including a statement of:
    • the trade, craft, or occupation that the individual is learning; and
    • the beginning and ending dates of the apprenticeship; and
  • is registered in a program of the Council or the Bureau of Apprenticeship and Training of the United States Department of Labor.

B) An apprentice under a public work contract shall be paid at least the percentage, set by the Council, of the prevailing wage rate for a mechanic in the trade in which the apprentice is employed.

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References
1.) LexisNexis: Maryland Code : BUSINESS REGULATION : TITLE 2. DEPARTMENT OF LABOR, LICENSING, AND REGULATION : ' 2-108. Units in Department.

2.) This information is taken from the Associated Builders and Contractors, Inc. Web-site. The specific article is entitled, A 2005 Maryland General Assembly Report.