This post dives into the most commonly asked questions about prevailing wage laws for public construction projects in Texas. Contact us for any specific questions.
What is Prevailing Wage?
In Texas, prevailing wage rates set the minimum pay for construction workers on public projects, including fringe benefits like health insurance.
Basics of Prevailing Wage Rates in Texas
Texas established its prevailing wage law in 1933, later updated in 1995 to Texas Government Code Chapter 2258. In 2007, the law was amended, allowing local governments to adopt Federal Davis-Bacon Wage Determinations without conducting new wage surveys. Texas has 255 counties, and each can choose to follow Davis-Bacon or Chapter 2258. Wage determinations have been instituted in many Texas cities that have adopted Davis-Bacon include Austin, Houston, and Lubbock, among others.
The cities that have adopted Davis/Bacon for their local political s ubdivisions are:
- Austin
- Baytown
- Houston
- Houston Airports
- Lubbock
- Pasadena
- Texas City
- Galveston County
- Galveston County College of Mainland
- Harris County
- Harris County Hospital District
- Metropolitan Transportation Authority of Harris County
- Texas Facilities Commission
Threshold Requirement
None. There is no threshold requirement.
Overtime Determinations
Texas requires overtime pay at 1.5 times the base rate for hours worked over 40 in a week or 8 in a day.
What Can Be Considered Fringe Benefits?
“Prevailing wage” in Texas specifically includes base pay plus fringe benefits like life insurance, health insurance, pension, vacation, holidays, and sick leave.
Reporting Requirements
Contractors on federally funded projects must submit weekly certified payroll reports to the overseeing agency, ensuring compliance with the Davis-Bacon Act.
Forms and More Information
Texas Prevailing Wage Rates
https://sam.gov/wage-determination/TX20210253/0
Texas Prevailing Wage FAQ:
https://www.ccmilcp.com/texas.htmlÂ
Have any questions about prevailing wage laws? Let us know and one of our Certified Payroll Specialists 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.
