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Prevailing Wage Rates on Public Construction-Related Work Projects

Accounting Support • Dec 15, 2020
The prevailing wage and fringe benefit rates are based on collective bargaining agreements for a particular trade. These Prevailing wage rates vary by county to
Prevailing Wage Rates on Public Construction-Related Work Projects -General Information

The New Jersey Prevailing Wage Act establishes a prevailing wage level for employees working on public projects. The prevailing wage act safeguards the general well-being and efficiency of workers. Furthermore, it protects employers from the effects of serious and unfair competition of different wage levels. According to this act, employers need to pay minimum pay rates to laborers, craftsmen, and apprentices working on public work projects. The employees will get paid based on prevailing wage rates that are established for a particular trade in a specific region. This act implies to projects that are wholly or partly funded by the government. The prevailing wage act requires an annual $300 registration fee. After completing two consecutive years, contractors can pay a $500 registration fee for two years. After registration, the contractor and/or subcontractors will get a certificate of compliance.

 What Is Public Contracts Work?

 Public work means any work done under contract and paid wholly or partly by the public body. It includes any project of construction, reconstruction, demolition, alteration, or repair work done on any property or premises. Those programs also include in the Prevailing Wage Act that is not funded by the public, but in the contract they were:

  1. Not less than 50% of the property is leased by a public body or has an agreement to do so. 
  2. The portion of the property to be leased by the public is more than 20000 square feet.

The Division of Wage and Hour Compliance Public Contracts Section implicates the payment of the prevailing wage through:

  1. The distribution of prevailing wage rates for each trade.
  2. Site inspection of public projects. 
  3. The implication of fine and penalty in case of non-compliance.
  4. The department of serious offenders from bidding and working on public projects for three years.

According to act and regulations, all the contractor or subcontractors working for public bodies are required to maintain the following records:

  1. The name, address, social security number, trade of every employee, and;
  2. Their complete work record includes their hourly rate of pay, their actual daily, overtime, weekly hours, itemised deductions, and the net amount paid to them. This record should also include:
    1. any fringe benefits paid on behalf of the employee; and
    2. Any fringe benefits paid to the employee in cash.

These records are kept preserved for two years from the date of payment.

Prevailing Wage Rate Determinations

The prevailing wage and fringe benefit rates are based on collective bargaining agreements for a particular trade. These Prevailing wage rates vary by county to county and by the type of work performed. The prevailing wage rates in the effect of the date of awarding the contract will be applicable. The predetermined rate increases listed on the contract must also be paid. All the contractors or subcontractors need to post the prevailing wage rates for each craft and classification to the worksite. A list of any rate changes must be sent at the site used by employers to pay workers wages.

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