Category:110 State and Federal Wage Rates and Other Requirements
Missouri and federal law often require minimum wage rates (pay) for the various skilled trades. These wage rates are specified in the contract at the time of bidding and are enforced by MoDOT and the Department of Labor during the construction of the project. Typical MoDOT contracts that do not require Wage Rate Determinations are railroad adjustments, utility adjustments and some Maintenance funded projects.
Two flowcharts are available to help guide the application of wage rate compliance, one for federally funded projects and one for state funded projects.
Contents
110.1 Wage Rates (Guidance for Sec 110.1)
Contractors on MoDOT projects are required to pay either the state or federal prevailing hourly wage rate for any craft or type of worker required to perform the work, except when expressly provided by the contract document.
The state and federal wage rates are posted on MoDOT’s website. Select the desired letting date, click the "View Letting" button and then procede to State Wage Rates and Current Federal Wage Rates.
The resident engineer or delegated representative is responsible for monitoring compliance with the wage rate laws at the project level. Wage Rate Compliance Checks (WRCC) shall be performed on active projects when applicable. WRCC consist of two major items: Reviewing Payrolls and Wage Rate Interviews.
Payrolls, wage rate interviews and all other labor compliance related documents are to be kept in the resident engineer's office for the duration of the project. After project completion, payrolls shall be stored for a period of three years. All filing related to labor compliance should be kept in a secure storage area in those instances where the Social Security numbers of the contractor’s employees are included.
110.2 Federal-Aid Projects (Guidance for Sec 110.2)
For any contract where a federal rate applies, the greater of the federal or state rate shall be paid.
Required Notices and Posters
The contracts for highway construction projects require certain information to be conspicuously displayed on the project where employees regularly congregate in preparation for the day's work. The number of locations will depend on the contractor's operations. The resident engineer, or a delegated representative, is to conduct inspections of the bulletin boards. The first inspection should occur when employees begin work on the project. After the initial review, inspections should be conducted every other month until the project is completed to ensure the bulletin board is in good condition and still displays the required posters. The following is a list of required information to be posted both on the project and in the resident engineer's office:
- Many of the posters can be downloaded from MoDOT’s internet contractor resources website. A checklist of the jobsite posters is also available.
- POSTERS AND PACKETS TO BE DISPLAYED:
- FEDERAL-AID PROJECTS:
- Resident Engineer's Office
- 1. "Discrimination In Employment is Prohibited by Law in Missouri" (MCHR9)
- 2. "Notice" Title 18, United States Code, Section 1020 - FHWA Form 1022
- Project Site
- 1. "Equal Employment Opportunity is the Law"
- 2. "Igualdad de Oportunidad en el Empleo es La Ley" (Spanish Version of Item 1)
- 3. "Notice" Title 18, United States Code, Section 1020 (FHWA Form 1022)
- 4. "Wage Rate Information" Federal-Aid Highway Project. Post with Federal Wage Rates. (FHWA Form 1495)
- 5. "Informacion Sobre Escalas De Salarios Proyecto De La Carretera De Ayuda Federal". (Spanish Version of Item 4) (FHWA Form 1495A)
- 6. Packet Containing State Wage Rates that apply to the project.
- 7. "Discrimination In Employment is prohibited by law in Missouri." (MCHR9) (Spanish version)
- 8. "Company EEO Operating Policy" To include name, address and telephone number of company's EEO Officer.
- 9. Job Safety & Health Protection 0 OSHA 3165 (English) and OSHA 3167 (Spanish)
- 10. Environment Permits (if applicable)
- 11. Your Rights – Federal Minimum Wage WH 1088 (English & Spanish)
- 12. Notice to Employee Polygraph Protection Act (English & Spanish) – WH-1462
- 13. Notice to Employees (Davis Bacon) WH-1321
- 14. Notice to Workers with Disabilities Paid at Special Minimum Wages WH-1284
- 15. Your Rights Under Family and Medical Leave Act of 1993 – WH-1420
- 16. ARRA - Know Your Rights Under the Recovery Act (for ARRA projects only)
- 17. Stormwater Permit Sign
- 18. Letter Appointing EEO Officer
- STATE PROJECTS:
- Resident Engineer's Office
- 1. "Discrimination In Employment is Prohibited by Law in Missouri" (MCHR9)
- Project Site
- 1. "Discrimination In Employment is Prohibited by Law in Missouri" (MCHR9) (Spanish version)
- 2. Packet Containing State Wage Rates that apply to the project
- 3. Discrimination in Public Accommodation
- 4. Worker’s Compensation Law (Spanish version)
- 5. Unemployment Benefit Law (Spanish version)
- 6. Stormwater Permit Sign
110.3 Prevailing Wages and Records (Guidance for Sec 110.3)
Sec 110 indicates the detail that is reqiured of the contractor payroll.
Providing weekly payroll information is required on all projects except those that do not contain Wage Rate Determinations by Federal and Missouri law. The prime contractor and each subcontractor are required to submit one certified copy of labor payrolls for each week that work is in progress. If work is temporarily suspended, the last payroll should be appropriately marked to note that it would be the last payroll until work is resumed.
The prime contractor must submit a certified copy of each weekly payroll within 7 days of the payment date of the payroll. The certification may be attached to the payroll or may be on the payroll itself. The prime contractor will be considered responsible for submittal of payrolls and certifications for all subcontractors on the project. The certification must be a properly signed original. Electronic submittal of certified payrolls is not permitted. The prime contractor should be advised that failure to submit these payrolls within the 7-day period will result in delay in submittal of the engineer's payment estimates for those projects involved. The resident engineer shall keep a log of all payrolls received, the date received, and the time period covered. A copy of the complete log will be turned in as part of the project’s final plans.
Every payroll submitted to the RE office should be checked. The following steps should be included in all payroll checks to insure proper labor compliance:
- 1) Check that the employee's full name and other personal information are entered on each payroll. Effective January 18, 2009, the contractor is no longer allowed to include Social Security numbers on certified payrolls for projects let after January 18, 2009. Per guidance from the Department of Labor, addresses can be placed on certified payrolls. For projects that are only state-funded projects, addresses will be required to be placed on certified payrolls. For federal-aid projects, placing addresses on the payrolls will be optional. In lieu of the Social Security number, the contractor must assign the employee an identification number and place that identification number on the certified payroll. This identification number can be the last four digits of the employee's Social Security number. For those projects that were let prior to January 18, 2009 the contractor MUST still provide Social Security numbers and addresses on certified payrolls.
- 2) Check payroll for correct employee classification.
- 3) Check payroll for correct hourly wage and, where applicable, correct overtime hourly rate.
- 4) Check daily and weekly hours worked in each classification including actual overtime hours worked (not adjusted hours).
- 5) All deductions are listed and net wage shown. U.S. Department of Labor Form WH-347 may be used (more information on deductions outlined below). Specific detailed deductions may be confidential for individual employees. The payroll certification may indicate the types of deductions included in the payroll, and any special circumstances for approved deductions, without identifying them on an individual employee basis. If an employee has a complaint regarding deductions the contractor shall address the complaint immediately and if questions remain, the complaint should be forwarded to the Missouri Department of Labor.
- 6) To assure that payrolls are arithmetically correct, approximately 10% of the extensions on the first 3 payrolls should be checked. The contractor is to be advised of any violations noted on the labor payroll. All errors are to be corrected by a supplementary payroll.
- 7) All checking in the project office should be in red pencil, initialed by the checker.
- 8) No attempt should be made to calculate withholding tax, old age benefits, etc., as this is beyond the scope of our work.
- 9) Final payrolls should be marked "Final" or "Last Payroll".
Deductions
All deductions should be clearly identified. Only approved deductions should be used in wage rate calculations. The most common standard approved deductions from the Code of Federal Regulations are shown in the following list.
- State or federal taxes
- Voluntary insurance, pension, and/or retirement plans
- Child support and other payments ordered by a court (but not payments to the employer)
- Prepaid wages
- Payments to charitable organizations
- Union dues when agreed to by the union (fines are not allowable)
Non-standard deductions can be approved by the Division of Labor on yearly basis. The contractor must provide documentation along with the payroll when any approved non-standard deductions are in use.
Owner-Operator
An owner operator is when a contractor rents a piece of equipment and the operator comes with the rental equipment. A prime contractor can use owner-operators on MoDOT projects according to the Division of Labor. There are certain restrictions that would apply. Only the owner can operate the piece of equipment on site. The owner cannot have other employees on the job. The owner would not be subject to prevailing wage rates and therefore no wage rate interviews will need to be taken. Since this is a rental the prime contractor's insurance would cover the work performed by the owner-operator. The project office should obtain a copy of the contract between the prime contractor and owner-operator. This is to assure that it is a legitimate arrangement and not an attempt to circumvent prevailing wage rate laws.
Equipment Rental with Operator and Purchase Ordered Work
A prime contractor using rental equipment that is provided with an operator, via purchase ordered work or other financial arrangement, must include the operators on the certified payroll of the contractor. All related documentation must be provided by the contrator to substantiate this arrangment. The operators are subject to wage rate interviews and are to be paid prevailing wage on prevailing wage contracts. This is to ensure a legitimate arrangement is being used, not an attempt to circumvent prevailing wage rate laws.
Foreman-Supervisor
The foreman-supervisor is always listed on the payrolls. A foreman-supervisor who performs 20% OR LESS of the day with the tools of the trade is exempt from wage rate requirements.
Foreman-supervisors who perform MORE THAN 20% of the day with the tools of the trade are subject to wage rate requirements. If the listed wage rate for foreman is the same as the rate for the corresponding worker skill, the hours do not need to be segregated as separate classifications on the payroll. When the wage rates are different between forman and worker skills, the hours should be split appropriately between the classifications.
Trainee
Trainees should be listed on the payrolls. The correct classification should be used for the work performed with the trainee designation (e.g., Concrete Finisher/Trainee).
110.3.1 Wage Interviews
The resident engineer or delegated representative are to conduct wage rate interviews as part of WRCC. The wage rate interview checks for compliance with wage rate laws as well as Equal Emplyment Opportunity (EEO) laws.
Wage interviews shall be conducted at the rate shown on the following table:
| Job Type | Interview Frequency |
|---|---|
| Interstate | Once Per Week |
| Federal Aid Primary or Federal Aid Urban Project | Once Per Two Weeks |
| Supplementary and 100% State Financed | Once Per Four Weeks |
| WRCC should be spread out throughout a project’s timeline. When required, a mininum of one WRCC should be performed on each project. | |
At least one interview should be performed during each compliance check. Additional interviews should be performed when the risk of non-compliance is higher. Some examples of when additional interviews should be taken are when a contractor has a past wage rate violation history, when there is high crew turnover, when work observed doesn’t match the payrolls, when errors are found on the payrolls, etc.
On smaller jobs it may be possible to interview every employee over time. There is no need to interview an individual a second time unless additional interviews are justified (see above). Once everyone on a job has been interviewed, a note can be used for documentation and wage interviews can cease until new employees are present on the job.
Interviews should be noted in SiteManager. See your SiteManager Policy & Procedure Document. The interviewer should determine employee's name, employer's name, classification of employee, actual wage paid, and posted wage. All wage rate interviews shall be recorded on the Wage Interview form. All questions on the form should be asked during the interview – as mentioned above wage rate interviews monitor compliance with wage laws as well as EEO regulations. Care should be taken to secure any written record of wage interviews since the employee’s Social Security number is included.
110.3.2 Errors, Ommisions and Non-Compliance
When there is any condition or evidence that suggests that the labor laws are not being fully complied with, the resident engineer shall investigate until satisfied of lawful compliance. Investigations shall be limited in nature and cases beyond our investigative ability should be referred to the Divison of Labor. Poor compliance efforts by the contractor should be noted on the Contractor Performance Evaluation.
When payrolls are not submitted within 7 days and/or contain errors, the resident engineer should notify the contractor and encourage them to improve. Payrolls containing errors should be corrected and resubmitted in a timely manner. When payrolls are routinely late and there is no effort to improve on the contractors part, the resident engineer should withold payment until the next regular estimate date after compliance is attained.
When a wage rate is believed to be below the contractual lawful minimum, the Division of Labor should be notified. The Divison of Labor will open a complaint case at the request of MoDOT, the employee, the union, or other third party. The Divison of Labor will perform an investigation and then close the complaint either as a violation or non-violation. The resident engineer should ensure a copy of all correspondance from the Divison of Labor is kept in the contract files.
110.3.3 Semi-Annual Labor Report
The district construction engineer is to submit a semi-annual report to the main office containing the following information:
- a. Number of contractors/subcontractors against whom complaints were received.
- b. Number of investigations completed.
- c. Number of contractors/subcontractors found in violation.
- d. Amount of wage restitution found due under:
- (1) Davis-Bacon and related acts.
- (2) Work Hours Act of 1962 (The Davis-Bacon Act encompasses prevailing wage rate violations, whereas the Contract Work Hours Act encompasses daily and weekly overtime violations).
- e. Number of employees due wage restitution under Davis-Bacon and related acts and/or Work Hours Act of 1962.
- f. Amount of liquidated damages assessed under Work Hours Act of 1962.
Due dates for the Semi-Annual Labor report are:
| Reporting Period | Due Date |
|---|---|
| October 1 to March 31 | April 4 |
| April 1 to September 30 | October 5 |
The above report is due not later than April 4 for the period from October 1 to March 31, and not later than October 5 for the period from April 1 to September 30. This report should include all information gathered on Federal Aid Projects.
110.4 Work Performed in Adjoining States (Guidance for Sec 110.4)
Sec 110 provides information on contracts that involve work in Missouri and in an adjoining state.
110.5 Other Requirements
110.5.1 Open Records Policy (Sunshine Act)
The Missouri Open Records Law (Sunshine Act) requires governmental agencies to conduct business in a manner open and accessible to all citizens and make their records available to the public. The vast majority of our records may be shared with the public upon request. Some information, however, should not be released. When responding to requests for information, the procedures outlined in the Sunshine Act Policy should be followed. The district construction engineer and each resident engineer have been provided a copy of this policy to assist in responding to requests for information. If the request requires the removal of records from the office, personnel must be available at all times to accompany the records to insure that they are not lost or destroyed.
110.5.2 Equal Employment Opportunity
All federal-aid contracts contain specific requirements related to equal opportunities in employment for all persons or contain requirements of a Hometown Plan with the same objectives. These requirements are as much a contractual obligation as any other part of the standard specifications.
A Resource Manual for Equal Opportunity Contract Compliance issued to all project offices contains detailed information concerning E.E.O. matters.
The resident engineer has a responsibility to ensure that the contractor and any nonexempt subcontractors are complying with the specific EEO requirements. To assist the resident engineer in this area, Construction & Materials prepared questionnaires, Resident Engineer EEO Checklist, to be used for checking the various aspects of the EEO Compliance portion of the Federal-Aid contract. Detailed instructions are contained in the E.E.O. Contract Compliance Resource Manual. A statement of compliance must be completed by all contractors on the project, excluding suppliers and vendors.
From time to time, contractors and subcontractors may be subjected to a detailed compliance review. This may be conducted by the Federal Highway Administration or by External Civil Rights Administration. On occasion, this may be done by both representatives. The district may also be requested to conduct such reviews as needed. The reviews will take place at the jobsite and include interviewing the contractor’s workforce.
