The prevailing wage is the average wage paid to workers in similar jobs in your area. This ensures fair pay for construction workers on public projects.

Here’s a quick guide for contractors and subcontractors involved in Oregon public works projects:

Public Works Bond:

• Required: Most contractors and subcontractors need a $30,000 public works bond from the CCB (covers all projects during its term).
• Exemption: Certified disadvantaged, minority, women, service-disabled veteran, or emerging small business enterprises get a 4-year exemption in their first certification period.

Prevailing Wages:

• Rates: Determined at bid solicitation advertising.
• Payment: Workers must be paid prevailing wage rates throughout the project.
• Non-residential projects: Higher of state or federal prevailing wage rates apply (if subject to both laws).
• Apprentices/Trainees: Can receive a percentage of prevailing wage.
• Supervisors/Managers: Prevailing wage applies if manual labor exceeds 20% of their workweek.

Bonding Threshold:

• Projects under $100,000: Contractors/subcontractors can choose not to file a bond.
• Threshold based on total project cost: Even if an individual contract is less than $100,000, a bond may be required if the total project cost exceeds it.

Note: References to Oregon Revised Statutes – (ORS 279C.836(8), ORS 279C.810(2)(a))

In January and July of each year, the Oregon Bureau of Labor and Industries (BOLI) publishes the prevailing wage rates that are required to be paid to workers on non-residential public works projects in the state of Oregon.

Access Oregon’s Prevailing Wage Rates here.

There is no specific threshold requirement for prevailing wage rates. Major renovations are only considered public works if over $50,000. Any project that uses $750,000 of public funds is a public work regardless of the contracting entity.

Calculating overtime for prevailing wage in Oregon involves these key points:

• Premium Pay Included: Overtime calculations consider hourly shift differentials, hazard pay, or zone pay.
• Formula: ((hourly base rate + premium pay) x 1.5) + hourly fringe rate.
• Multiple Base Rates: For employees with different hourly rates, overtime is based on a weighted average of earned base rates (OAR 839-025-0050(2)(b)).
• Travel/Shop Time: Compensable travel or shop time related to the public contract counts towards daily overtime.
• Collective Bargaining Agreements: If they have different overtime provisions, they take precedence.
• Public University Overtime: Specific public universities (ORS 352.002) follow a 40-hour workweek for overtime, excluding local and community colleges (ORS 352.138).

Here’s what contractors need to know about claiming fringe benefit credits for Oregon prevailing wage:

Qualifying Benefits:

• Employer-provided: Benefits must be for the employee’s advantage, not legally required.
• Regular contributions: Payments must be made consistently.
• Delayed vesting/eligibility okay: Plans can have vesting or eligibility requirements as long as they meet other criteria.

Non-Qualifying Items:

• Safety training
• Drug testing
• Industry council contributions
• Equipment costs
• Travel pay & per diem
• Worker’s compensation insurance
• Legally mandated paid sick leave

Reporting Fringe Benefits:

• List them separately per employee in certified payroll reports.
• Specify plan name and hourly credit for each benefit.

Examples of Qualifying Benefits:

• Health and welfare plans
• Vacation plans
• Some pension plans
• Apprenticeship training

Each contractor and subcontractor working on a covered project is required to submit certified payroll records (WH-38) to the associated public agency. 

Reporting Requirements:

• Form: Certified Payroll Records (WH-38)
• Submission: To the associated public agency
• Frequency: Weekly for each worker employed on the project
• Deadline: Monthly, by the 5th business day of the following month

How to Fill Out Certified Payroll Report Form WH-38:
https://www.ebacon.com/certified-payroll/how-to-fill-out-certified-payroll-report-form-wh-38/

Oregon Prevailing Wage FAQ:
https://www.oregon.gov/boli/employers/pages/prevailing-wage.aspx