DOL Wages and Fringe vs. Local Municipality Wages and Fringe

Started by Nanette · May 15, 2024 · 4 replies

  1. N

    Nanette

    May 15, 2024 · 2y ago

    Original post

    If a state, city, county (local municipality) wages, prevailing in the locality, are higher than the DOL wage determination, is there supporting regulatory guidance that states "whichever is higher" on a federal service contract within the higher prevailing locality?

  2. C

    C Culham

    May 16, 2024 · 2y ago

    19 hours ago, Nanette said:

    If a state, city, county (local municipality) wages, prevailing in the locality, are higher than the DOL wage determination, is there supporting regulatory guidance that states "whichever is higher" on a federal service contract within the higher prevailing locality?

    I am having a little difficulty with your use of "prevailing".  Even so I think I understand your question so let me try this response.

    It is my understanding that the general rule is that the higher minimum wage is to be paid.    So by example if USDOL wage under Fair Labor Standards Act (FLSA) and/or Service Contract Labor Standards (SCLS) is applicable to the contract and is higher than the state/city/county minimum the USDOL wage is what is to be paid.  But if the state minimum is higher then the state wage is to be paid.  The same then follows for city/county.

    My understanding is based 29 USC 218 along with other USC's that link FLSA and SCA. 

    As a contractor is responsible for complying with wage laws I would offer that the best avenue for a contractor is to confirm my understanding with experts with either the USDOL or a counsel that deals with wage laws.

  3. f

    formerfed

    May 16, 2024 · 2y ago

    Coincidence in that someone just forwarded this to me.  It’s a CBCA decision where a contractors rea requests was denied.  The contractor sought recovery of costs when local wage minimum requirements exceed the DOL determination  Decision

  4. j

    joel hoffman

    May 16, 2024 · 2y ago

    45 minutes ago, formerfed said:

    Coincidence in that someone just forwarded this to me.  It’s a CBCA decision where a contractors rea requests was denied.  The contractor sought recovery of costs when local wage minimum requirements exceed the DOL determination  Decision

    We often encountered situations in construction contracting where local trade labor rates were higher than those listed in the Davis-Bacon wage rate determination. It would be the contractors’ responsibility to offer/pay what was necessary to attract and retain the numbers of skilled tradespersons to complete the contract work.

  5. R

    Retreadfed

    May 16, 2024 · 2y ago

    22 hours ago, Nanette said:

    If a state, city, county (local municipality) wages, prevailing in the locality, are higher than the DOL wage determination, is there supporting regulatory guidance that states "whichever is higher" on a federal service contract within the higher prevailing locality?

    Are you asking which is the contractor required to pay, or what is the government required to pay the contractor?

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