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?
A. Wisconsin actually has three (3) separate prevailing wage rate laws. Each law covers a different type of public works project. Section 66.0903, Wisconsin Statutes covers projects bid or negotiated by a local governmental unit. Section 103.49, Wisconsin Statutes covers projects bid by a state agency, except state highway and bridge projects. Section 103.50, Wisconsin Statutes covers state highway and bridge projects bid by the Department of Transportation. (Wisconsin Department of Workforce Development)
B. These laws generally apply only when a state agency or local governmental unit solicits bids or negotiate a contract for a public works project. A "turnkey" project may be subject to these laws depending on the ultimate use of the project. (Wisconsin Department of Workforce Development)
* A turnkey project is one that is pertaining to, or resulting from an arrangement under which a private contractor designs and constructs a project, building, etc., for sale when completely ready for occupancy or operation: turn-key housing, turnkey contract. (www.factmonster.com)
* "A project in which all components are within a single suppliers responsibility." (www.fwc.com)
C. Regardless of where the money to fund the project comes from, these laws are applicable when a state agency or local governmental unit solicits bids or negotiates a contract. (Wisconsin Department of Workforce Development)
What is the definition of a public works or related projects?
The term "project" means all labor, material, furnishings or other things of value required to be supplied by a bidder or bidders to construct a project for its intended use, excluding the cost of land, architectural and engineering fees and planning and research costs. (Wisconsin Department of Workforce Development)
Are there project monetary thresholds?
A. As of January 1, 2006 the threshold for a single trade project is $43,000 and the threshold for a multiple-trade project is $209,000. These laws do not cover projects below these thresholds. (Wisconsin Department of Workforce Development)
B. A "single trade project" is defined as one in which a single trade (such as a carpenter, glazier, electrician, etc.) accounts for 85% or more of the total labor cost of such project. (Wisconsin Department of Workforce Development)
C. A "multiple-trade project" is defined as one in which no single trade accounts for more than 85% of the total labor cost of such project. (Wisconsin Department of Workforce Development)
D. *** State highway and bridge projects have no threshold and are all covered by the law. Most work performed on the site of a project subject to any of these laws must normally be paid for at the proper prevailing wage rate. *** (Wisconsin Department of Workforce Development)
Are any types of projects specifically exempted?
Any local governmental unit that has adopted an ordinance or other enactment which sets forth standards as high or higher than those prescribed in s. 66.0903, Wisconsin Statutes, may be exempted from applying to the department for a prevailing wage rate determination. The local governmental unit is not exempt from the law but is merely exempt from applying to the department for prevailing wage rate determinations on a project-by-project basis. The department routinely exempts about a dozen local governmental units. Every local governmental unit that desires to be "exempt" must have a methodology in place to enforce the payment of the prevailing wage rates before an exemption will be granted. (Wisconsin Department of Workforce Development)
What is included in the calculation of wage rates?
A. The term "prevailing wage rate" means the hourly basic rate of pay, plus the hourly contribution for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly for a majority of the hours worked in a trade or occupation on projects in an area. If there is no rate at which a majority of the hours worked in a trade or occupation on projects in an area is paid, then the prevailing wage rate shall be the average hourly basic rate of pay, weighted by the number of hours worked, plus the average hourly contribution, weighted by the number of hours worked, for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly for all hours worked at the hourly basic rate of pay of the highest-paid 51% of hours worked in that trade or occupation. (Wisconsin Department of Workforce Development)
B. An employer is not required to provide any fringe benefits to a worker. An employer is only required to pay the total prevailing wage rate specified for each trade or occupation. Pay can be all in cash or any combination of cash and bona fide fringe benefits, paid by the employer. (Wisconsin Department of Workforce Development)
Who calculates the prevailing wage rates?
The department conducts an annual survey regarding the wages and fringe benefits paid to and hours worked by workers employed in the construction and related industries. Only employers in construction and related industries are allowed to participate in the annual survey. (Wisconsin Department of Workforce Development)
Enforcement: what are the penalties for violations? Criminal or fines?
A. Any employer who induces a worker to give up, waive or return any part of the wages that the worker is entitled to receive by threat not to employ, threat of dismissal, or any other means, is guilty of a class "E" felony. A class "E" felony is punishable by a fine of up to $10,000, imprisonment for up to 2 years, or both. Any worker who knowingly gives up, waives or returns any wages earned, is guilty of a class "C" misdemeanor which is punishable by a fine of up to $500, imprisonment for up to 30 days, or both. (Wisconsin Department of Workforce Development)
B. Compensation in lieu of reinstatement may be awarded if requested by any party and must be awarded if requested by all parties. Such compensation may not be less than 500 times or more than 1,000 times the hourly wage of the person discriminated against when such discrimination occurred. (Wisconsin Department of Workforce Development)
C. All prevailing wage rate laws contain one or more penalties, however, the department does not have the authority to impose any penalty. All penalties must be imposed by a court of law. The department's only responsibility is to conduct investigations and attempt to recover any unpaid wages. Any violation on a prevailing wage rate project can result in a fine of up to $200 a day, imprisonment for not more than 6 months, or both. Violations can also result in a forfeiture of $10 to $100 a day. If a worker files an action on their own behalf in a court of competent jurisdiction and is successful in such action, they are entitled to an amount equal to their unpaid wages as liquidated damages, plus reasonable attorney fees and costs. (Wisconsin Department of Workforce Development)
D. Under certain circumstances the department can recover up to an additional 50% of any unpaid wages found due. Normally, this additional compensation can only be recovered if an employer failed to complete a self-audit as instructed. (Wisconsin Department of Workforce Development)
Can contractors be debarred?
A. The department can debar an employer from working on a public works project if it is determined that the employer:
B. Debarment can be imposed against an employer, including its responsible officers, directors, members, shareholders or partners provided such individual is vested with the management of the affairs of the individual or legal entity. An employer cannot be debarred for any violation that occurred before July 1, 1987. (Wisconsin Department of Workforce Development)
C. The employer can be debarred for a period of up to three years. The length of the debarment period is determined by the department. (Wisconsin Department of Workforce Development)
Are there posting requirements?
A copy of the applicable prevailing wage rate determination must be posted, by the state agency or local governmental unit in at least one conspicuous and easily accessible place on the site of each project. If there is no common posting site on a project, a local governmental unit may post a copy of the applicable prevailing wage rate determination at the place normally used to post public notices. (Wisconsin Department of Workforce Development)
Does the agency retain any fines for enforcement (i.e. an enforcement fund)?
A. All prevailing wage rate laws contain one or more penalties, however, the department does not have the authority to impose any penalty. All penalties must be imposed by a court of law. The department's only responsibility is to conduct investigations and attempt to recover any unpaid wages. (Wisconsin Department of Workforce Development)
B. Therefore, because there can be no fines, the department does not retain fines for enforcement. (Wisconsin Department of Workforce Development)
Record Maintenance?
Weekly payroll reports are not required by law, administrative rule or regulation to be routinely filed with any state agency or local governmental unit. Every employer is required to keep good business records that accurately reflect each worker's name, work performed, hours worked and wages earned. Employers are, however, required to file this information with a state agency or local governmental unit if specifically requested to do so. A prime contractor may, however, require a subcontractor to remit a weekly payroll report to the prime contractor as a condition for obtaining a subcontract. (Wisconsin Department of Workforce Development)
Are there any provisions which discuss apprentices?
A. An apprentice can work on a public works project, however, in order to be a bona fide apprentice, the worker must be formally registered in an apprenticeship program administered by the U.S. Department of Labor, a state agency recognized by the U.S. Department of Labor or under Wisconsin's apprenticeship law, Chapter 106, Wisconsin Statutes. (Wisconsin Department of Workforce Development)
B. An employer must calculate an apprentice's hourly basic rate of pay as follows. The employer shall multiply the journey-persons hourly basic rate of pay specified in the prevailing wage rate determination issued for a project, or multiply the hourly basic rate of pay specified in the apprentice's indenture, whichever is greater, by the appropriate percentage specified in the apprentice's indenture. In addition, all apprentices must receive fringe benefits at the same percentage used to calculate the hourly basic rate of pay. An apprentice can only receive this reduced rate of pay if they perform work within the scope of their indenture. (Wisconsin Department of Workforce Development)
C. There is no prevailing wage rate law, administrative rule or regulation regarding the number of apprentices that an employer can use on a project subject to these laws. The appropriate Local Joint Apprenticeship Committee and the department's Bureau of Apprenticeship Standards prescribe the ratio of apprentices to journey-persons. (Wisconsin Department of Workforce Development)
References
1.) Wisconsin Department of Workforce Development
* This is the official web-site through the Wisconsin government. The information given is stated as fact.