Below are some frequently asked questions about prevailing wage laws in Alabama. Contact us for any specific questions.

What is Prevailing Wage?
The prevailing wage rate was established to ensure that contractors have a level playing field when bidding on government projects and ensuring that construction workers are paid a fair wage when working on these projects. These hourly wages and fringe benefits are based on craft and location.
Basics of Prevailing Wage Rates in Alabama

Without local prevailing wage law, Alabama public works projects must comply with the federal Davis Bacon Act, so regulations are set by the Department of Labor. The prevailing wages are determined by the Secretary of Labor based on classifications and location. Once a project start date is determined the wages and fringe rates are locked in, these rates must be paid for the entire term of the contract.

Threshold Requirement
The Davis-Bacon Act (DBA) generally applies to contractors and subcontractors who are performing work on federal and federally-funded contracts worth at least $2,000 for construction, alterations (including painting and decorating), or repairs. Any mechanics and laborers who perform work on the site of DBA-covered contracts are required to receive the local area’s prevailing wage rates for their work.
Overtime Determinations
If workers work more than 40 hours a week, then overtime wages must be paid. Overtime is based on the determined prevailing wage.
Reporting Requirements

Projects regulated by the Davis Bacon require weekly certified payroll reports to be submitted. Subcontractors must submit their certified reports to the general contractor. The standard form to fill out for a certified report is the WH-347. You should always check with the contracting agency for specific requirements on the projects.

What can be considered Fringe Benefits?
On a job regulated by the Davis Bacon Act, workers must be paid a certain wage and a set amount must be contributed to fringe benefits. The government considers the following as fringe benefits to:

The costs for fringe benefits are incurred by the contractor/employer; they are not payroll deductions from employee pay.

Forms and More Information

Alabama prevailing wage determinations can be found here . Wage determinations are determined by the Department of Labor.

For the federal certified payroll reporting form(WH-347) click here.

For more information regarding the Davis Bacon Act and prevailing wage laws click here

Failure to comply with Prevailing Wage and Certified Payroll requirements can result in fines and penalties, which can cause your company to be banned from doing government contracts.

Have any questions about prevailing wage laws? Let us know and one our Certified Payroll Specialist will be in touch.

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.