On July 1st, 2019, the final Annual Wage Order (Wage Order 26) will be published and all parts of the Missouri Prevailing Wage Law (HB1729) will be fully implemented. This new wage order will apply to government projects that are valued at $75,000 or more. This wage order can result in major changes to prevailing wage rates and project costs for contractors since the calculation criteria is different.

As part of the new law, the following changes have already been implemented since August 2018:

  • Projects estimated to cost $10,000 or less will no longer need to go through a competitive bidding process
  • Contractors can only employ one apprentice for every journeyman
  • Rate of pay for an apprentice will be 50% less than a the journeyman rate
  • Work on holidays will be paid at twice the pay rate, including fringe benefits
  • Overtime hours will be paid at a rate of time and half, including fringe benefits

As a stipulation of the new law, Wage Order 26 will only include projects that satisfy the following requirements to calculate prevailing wage rates:

  • The estimated cost of the project is $75,000 or more
  • 1,000 hours or more are reported in the county where the project is, in a classification during the previous year

The Missouri Department of Labor will calculate the prevailing wage rate by taking a weighted average of the total wage and fringe benefits paid out for all journeyman hours.

For projects that don’t satisfy the 1,000-hour requirement, but are estimated to cost $75,000 or more, there will be a requirement to adhere to the Public Works Contracting Minimum Wage (PWCMW). The PWCMW is equal to 120% of the average county wage.

To access the most up to date prevailing wage determination visit the Missouri Department of Labor Wage Order Lookup.

At eBacon, we make sure our clients and our services are always up to date on the latest prevailing wage and reporting laws. Reach out to us today for a free consultation to see how you can stay compliant and save money.

The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.