Prevailing Wage Contract Thresholds Per State

Prevailing wage  laws are laws that require state contracted workers to be paid the same wages customarily paid to those in the private sector. 32 states have prevailing wage laws currently intact and four states have increased their contract values since 2006. One state, Wisconsin, has actually lowered its contract value since 2006. Every state has different thresholds that determine when their laws go into effect. There are 18 states, mostly in the South or Midwest, that don’t have prevailing wage laws. Nine of them because they’ve repealed their laws and eight of them that simply never had any such law. However, remember that the Davis Bacon Act applies to ALL states.

Check out the states Wage and Hour Division Here

States with prevailing wage contract thresholds generally apply their laws when the project’s contract value meets or exceeds a pre determined threshold amount. When projects fall below the threshold, they’re not required to pay the prevailing wage. Connecticut’s threshold for new construction is high at $400,000 and only Maryland’s is higher. Connecticut’s threshold for remodeling is $100,000. Indiana, Kentucky, Maryland and Vermont’s remodeling thresholds are higher but identical to their new construction thresholds. There are nine states that generally apply prevailing wage laws to all their public projects. They are: Illinois, Massachusetts, Michigan, Missouri, Nebraska, New York, Texas, Washington and West Virginia.

of the 18 non prevailing wage states, eight of them have never enacted any such law and nine of them have repealed their laws during the majority of the 1980s (1979-1988). New Hampshire is the only Northeastern state without a prevailing wage law. They repealed theirs in 1985. This was due to the prevailing rates skyrocketing the price of a school’s project and causing contractors to not bid on another project. Florida was the first state ever to repeal its prevailing wage law in 1979.

6 Ways the Affordable Care Act Could Cost Federal Contractors More

Six Ways the Affordable Care Act Could Cost Federal Contractors More

The impending health insurance reform leaves federal contractors facing major cost increases. President Obama signed the Patient Protection and Affordable Care Act (PPACA or Act) into law on March 23, 2010. Besides the politics surrounding the law, the Act raises cost and compliance implications for federal contractors significantly. Many federal contractors are unaware of theSix Ways the Affordable Care Act Could Cost Federal Contractor's More  impending changes and costs that are about to happen due to the Act. Enrollment in exchanges are set to begin October 2013 and key provisions of the Act become effective in January 2014 all following affirmation of the Supreme Court. It is certainly time for federal contractors to set their minds on how all this change could affect their bottom line. Following, are six ways the Act could increase costs for federal contractors and ways they can prepare for the impact said expenses will have.

1) The Act’s health care obligations include new requirements on individuals, employers and health plans, and restructures the private health insurance market, setting minimum standards for health insurance. It also provides financial assistance to some individuals. Before the October 2013 date and exchange enrollment, employers are required to provide formal notice to employees that the exchanges are available. Following this time, cost implications will be close behind and it’s important for federal contractors with slim margins and tight budget constraints to assess what it will take for them to comply.

2) Potential Cost impacts include play or pay penalties for employers. Employers need to either provide affordable health insurance that is valuable or pay a penalty. Therefore, they either “play” along with the set Act OR “pay” a penalty. Employers must be aware of their employees eligibility for tax credits and must carefully assess whether their firm is considered large. Because if their firm is considered large, they can be subject to monthly fees or penalties.

Six Ways the Affordable Care Act Could Cost Federal Contractor's More3)Traditionally full time employees are considered those who work 40 hours a week. The Act describes them as working 30 plus hours a week. The new definition of part time workers is a major change in the breakpoint for employee benefits coverage. This change could significantly alter federal contractors’ insurance costs and in turn generate increased overhead costs, ultimately affecting the employer’s competitive pricing strategies.

4) Another impact will be excess health benefits or “Cadillac” tax. The Act will also penalize high cost benefit plans. Many within the insurance industry refer to this as the Cadillac tax.

5) Contractors with Service Contract Act (SCA) employees face even more dramatic consequences under the Act than those above. Prevailing wage determinations dictate that SCA employers can offer SCA employees benefits as fringe dollars. Starting in January 2014, the Act eliminates this simple way for employers to comply with the SCA and establishes the more complicated regime under which large employers have to provide an “affordable plan meeting minimum value” for their employees or face big penalties.

6) Employers face potential costs under the exchange system. The exchanges are partly intended to keep health care costs down but they may also subject employers to additional business and administrative costs.

Real Pros Know the Value of Hiring Expertise!

Real Pros Know the Value of Hiring Expertise!

When it comes to landing government contracts for the first time, many small business owners feel a bit like Captain Kirk when he left earth for outer space, “going where no man has gone before.” The truth is, there are people who know the ins and outs of government contract compliance and smart people consult them before their names and reputation go on the dotted line.

Why? All government contractors must prove that their contract workers receive comparable wages to salaried workers before the contracts can be validated. The rules are dictated by Davis-Bacon laws that attempt to safe guard prevailing wages for workers.  It is a bit complicated, but with some solid coaching, you will be landing those lucrative government contracts in no time!Fringe Benefits for companies

Fringe Consulting doesn’t deal with Area 51 and space aliens, they deal with employee fringe benefit programs that not only keep you compliant with federal regulations, it can actually provide your contract laborers with a better return on their retirement using programs are tax-deferred or sheltered.

What does that mean to you? As a small business owner you already know how expensive it is to hold on to quality workers when the jobs thin out. With a contract labor force, “you can make hay while the sun shines” then rest easy during those inconvenient lulls that even the best businesses must endure.

Fringe Consulting specializes in helping businesses create competitive and attractive benefits packages that can help your best laborers stay loyal to you! That gives your work force a competitive edge over fly by night firms that have to rebuild a labor force every time they land a new contract. The stronger your team, the safer your bottom line.

Businesses that use Fringe Consulting see their services as an insurance policy against costly litigation that arises from ignorance of the law on an ever changing landscape. The pros at Fringe Consulting stay up to date on the law and that means you can stay up to date on the things that keep your business making money when others lose their shirts.

Think of it this way, some people content themselves to save a few bucks on the tools they depend on most only to spend more time and money fixing problems later. When you work with Fringe Consulting, you get a proven product and the peace of mind that comes from knowing that you won’t have to deal with red tape when you should be getting your job done!

No matter how you look at it, using a team like Fringe Consulting keeps you doing what you do best because they always do their best to keep you compliant with government regulations. That means you have more time to spend building successful bids that keep your teams moving when others are sending their workers home.

Sound good? Give these guys a call. They know their business and that means you can spend more time doing what you know, working hard and earning a good living! Call Fringe Consulting today!

These topics might also interest you:

Get that Competitive Edge when Bidding Contractor Jobs

Hour Banking for Prevailing Wage Contractors

Employing Fringe Benefits

Get that Competitive Edge when Bidding Contractor Jobs

Get that Competitive Edge when Bidding Contractor Jobs

Build Your Business by Landing Government Contracts

As a contractor, you need to “make hay while the sun shines!”  In this market, that means being more competitive when bidding public construction projects. Every year, Davis Bacon and Service Contract Act projects are put out to public bid, but for you to win and turn a profit, you need to know the ins and outs of the rules and regulations that apply to these “one of a kind” projects. Sound complicated?Get that Competitive Edge when Bidding Contractor Jobs

It doesn’t have to be!

Fringe Consulting specializes in helping businesses like yours land profitable contracts while safely navigating the obstacles along the way. How? Our experience in creating Davis-Bacon Act compliant benefits packages ensures that you meet government regulations, provide your workers with competitive benefits packages and ensure that you are not overpaying!

Many contractors pay their workers additional cash wages and still pay a portion of their health insurance premiums. A better approach is to pay insurance premiums using fringe funds. This provides your workers with the same benefits but lets you keep more of your hard earned money! It is a no-brainer because it eliminates your payroll burden on funds you pay out for healthcare.

You could try to get this right yourself, but why? Fringe Consulting can lower your payroll taxes, workers comp and general liability insurance and improve your compliance to all prevailing wage laws those government contracts require. That means you stay compliant and still have a chance turn a profit when the job is done!

Fringe Consulting provides you with quality pension plans, fringe benefit options, prevailing wage consulting and employee benefits for either short-term or long-term contracts. When you offer fringe benefits in lieu of cash wages, you save money for both employer and workers by reducing tax exposure to all. We offer a complete range of fringe benefits, pension plans and trust programs.

What are you waiting for? Call Fringe Consulting today and lets discuss a better fringe benefits strategy to help you win more bids!

 

Seasonal Workforce Solutions for Prevailing Wage Contractors

 Schedules can Interrupt the Workforce

Prevailing wage contractors often are challenged with managing a workforce that experiences interrupted work schedules.  Some trades experience this more often including heavy highway, roofing, utility, masonry, excavators, boring and many more contractor specialties.

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Employing Fringe Benefits

Employee Fringe Benefits

Get the Bargaining Power of a Large Trust for Fringe Employee Benefits

Because our product is held in trust, we’re able to offer your company the benefit of being part of a larger group of contractors, which significantly lowers rates and minimizes risk and liability – particularly for smaller companies. We customize employee fringe benefits for prevailing wage contractors, enabling them to offer union-like coverage.
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