How it works
- The hourly package is the basic rate plus the fringe in the wage determination.
- Benefits you already pay into bona fide plans count toward the fringe. Any fringe not covered by benefits must be paid in cash on the paycheck.
- Overtime is 1.5 times the basic rate, not the fringe. The fringe is added at straight time.
Benefit credit is figured per hour here for simplicity; annualizing rules can apply to some plans, so check with your payroll provider. Full explanation: prevailing wage guide · Davis-Bacon wages · how to read a wage determination.
Questions
How do you calculate prevailing wage?
Take the basic hourly rate and fringe benefit from the wage determination. Pay at least the basic rate, and meet the fringe through benefit plan contributions, cash, or both.
How is overtime calculated on prevailing wage jobs?
Time-and-a-half of the basic hourly rate for hours over 40 in a workweek (where overtime rules apply), plus the fringe at straight time.
Can fringe benefits be paid in cash?
Yes. Any part of the fringe not provided through bona fide benefits can be paid as extra cash wages.