The Connecticut General Assembly
OFFICE OF LEGISLATIVE RESEARCH



February 13, 1996 96-R-0357
TO:
FROM: Judith S. Lohman, Principal Analyst
RE: Prevailing Wage Laws in Other States
You asked for a survey of the provisions of prevailing wage laws in other states.
SUMMARY
Thirty-one states, including Connecticut, have laws requiring payment of the prevailing wage for at least some public works construction projects. In many cases, projects costing less than a threshold amount are exempt, but the thresholds are commonly set fairly low. Some states also limit the requirement to state contracts only and exempt municipal projects.
Eighteen states have no prevailing wage laws. They are: Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, South Carolina, South Dakota, Utah, Vermont, and Virginia.
The Oklahoma prevailing wage law was recently found to be unconstitutional by the State Supreme Court. The decision is being appealed.
Connecticut's exemptions of contracts costing less than $400,000 for new construction and $100,000 for repairs or alterations are among the highest of all states that have prevailing wage laws. In addition, Connecticut's penalties are relatively severe, with fines for willful violators set at between $2,500 and $5,000 plus a maximum three-year ban on state and local government contract work. Like several other states Connecticut also imposes criminal penalties, with the possibility of prison, on contractors who violate certain requirements under the law.
Unlike most other states, Connecticut law does not require the state Department of Labor to determine prevailing wage rates. Instead, it allows the department either to set state rates itself or use federal prevailing wage rates. In practice, the department has relied exclusively on federal rates since 1977.
STATE-BY-STATE SUMMARY
Prevailing wage laws in states other than Connecticut are summarized below. Each summary lists the types of projects covered, together with any cost thresholds for exempting projects; what the prevailing wage rate is, if that is specified in the law; and the penalty, if any, for violations of the law by contractors.
Alaska
Contracts Covered. Public construction contracts exceeding $2,000 requiring or involving employment of mechanics, laborers, or field surveyors.
Wage Rate. Wage paid for work of a similar nature in the region where the public work is to be done.
Penalty. Fine of from $100 to $1,000; 90 days imprisonment; or both.
Arkansas
Contracts Covered. Contracts for construction, alteration, and repair including painting and decorating of public buildings or public works. Excludes highway or bridge construction or maintenance work by incorporated towns, cities, counties, or the state highway and transportation department and any project where federal matching funds are not used in paying for construction. Excludes work done by drainage, improvement, or levee districts.
Wage Rate. Minimum wage rate prevailing in the county where work is performed.
Penalty. Fine of between $500 and $1,000, six months imprisonment; or both, plus up to 10% of the value of the contract or 10% of the wages due, whichever is greater.
California
Contracts Covered. (1) Contracts worth more than $1,000 for construction, repair, alteration, demolition, or maintenance work partly or wholly paid for by public funds; (2) work, other than operational work, done for irrigation, utility, reclamation, and improvement districts and other similar districts; (3) street, sewer, or other improvement work done under the supervision and direction, or by authority of, any officer of any public body of the state or any political subdivision or district; (4) carpet laying done under lease-maintenance contracts and paid for out of public funds;
(5) carpet laying in public buildings done under contracts paid for partly or wholly by public funds; and (6) public transportation demonstration projects.
Also covers construction contracts if:
1. the contract is between private parties;
2. the property covered is privately owned but when it is completed, more than 50% of the square footage will be leased to the state or a political subdivision for its use; and
3. either the lease agreement with the public entity was entered into before construction and the construction is performed according to the public entity's plans and specifications, or the agreement is entered into during or on completion of construction.
With respect to state agencies, including the University of California and California State University, the law also covers hauling refuse from a public works site to an outside disposal location.
Wage Rate. Not less than the prevailing per diem wages for work of similar character in the same locality. For state contracts, “locality” means the county where the work is performed. For political subdivisions, “locality” means each subdivision's borders.
Penalty. For violation with intent to defraud, ban on bidding on public works contracts for one to three years. For a second and subsequent willful violation that occurs within three years of a previous, separate, willful violation, up to a three-year ban.
Delaware
Contracts Covered. Contracts for new construction worth more than $100,000 and contracts for alteration or repair (including painting and decorating) worth more than $15,000 to which state or a subdivision is a party and for which state funds are appropriated.
Wage Rate. The prevailing minimum for similar work based on the average actual wages paid to a majority of laborers and mechanics employed on similar construction work in the same county.
Penalty. Fine of $500 to $2,000. Three-year ban from working on public works projects.
Hawaii
Contracts Covered. Contracts exceeding $2,000 for construction, alteration, repair, painting or decorating any public work to which a governmental contracting agency is a party.
Wage Rate. Not less than the rate paid under the federal Davis-Bacon Act (the federal prevailing wage law).
Penalty. For a first offense, a fine of $1,000. For a knowing second violation within two years of a first, whether on the same or a later contract, a fine of up to 10% of the total contract amount. For a third violation within two years of the first, a three-year suspension from public works jobs.
Illinois
Contracts Covered. All contracts for work on fixed works constructed for public use by a public body that involve laborers, workers, or mechanics.
Wage Rate. The prevailing hourly rate, including fringe benefits, for work of a similar character in the same locality. “Locality” means the county where the work is performed. If the county has an insufficient number of skilled workers, the locality may be expanded to include any other county nearest the work site from which skilled workers may be obtained. The secretary of the Department of Transportation may expand the locality to include two or more adjacent counties from which workers may be available for the work.
Penalty. Two-year ban from public works jobs. It is also a class B misdemeanor to fail to keep proper payroll records or allow an inspection of those records.
Indiana
Contracts Covered. Contracts for or on behalf of the state, its political subdivisions or any municipal corporation for construction of any public work.
Wage Rate. Not less than prevailing scale for each class of workers in the immediate locality. For highway projects, not less that the hourly rate paid by the state highway department for common labor.
Penalty. Violation is a class B misdemeanor and, for a second offense, there is an additional penalty of forfeiture of the contract and all further payment.
Kentucky
Contracts Covered. Construction, reconstruction, improvement, enlargement, alteration, or repair of any public works costing more than an indexed amount. The base threshold for exempt contracts was $250,000 in 1982 and the threshold is adjusted each year to correspond to the annual change in the Consumer Price Index. The law covers contracts let by the state, any of its political subdivisions or departments, or by any institution supported wholly or partly by public funds. Construction conducted by city, county, urban-county governments, or school districts is covered only if it is more than 50% financed with state funds.
Wage Rate. The basic hourly rate paid to a majority of workers employed in each class in the county where the public work is to be performed. If there is not a majority paid the same rate, the average wage rate must be used. The prevailing rate must include fringe benefits. If there are insufficient numbers of workers of a particular trade in the county, the locality used for setting wages is the nearest one from which sufficient workers may be obtained. For transportation projects, the commissioner of transportation may designate any number of counties or the entire state as the locality, but he may not designate an area smaller than a county.
Penalty. A fine of up $100 to $1,000 for each offense. For flagrant and repeated violations, ban from public works jobs for two years.
Maine
Contracts Covered. All state construction projects worth $10,000 or more.
Wage Rate. Hourly wage paid to the median number of workers employed in the same trade or occupation in the second and third week of September. No wage may be established for a trade or occupation having less than 10 workers employed during that time.
Penalty. Fine of between $50 and $250.
Maryland
Contracts Covered. Contracts worth more than $500,000 for building, reconstruction, improvement, enlargement, painting and decorating, alteration, maintenance, or repair of any structures or works for public use that are at least 50% financed by state funds. Covers the state and its instrumentalities. Covers public elementary and secondary school construction only when state funds pay for at least 75% of the cost of construction.
Wage Rate. Hourly rate, including fringe benefits, paid to 50% or more of the workers in the same class in the locality where the work is to be performed. If there are less than 50% paid at the same rate, the prevailing rate is the wage paid to the greater number as long as that number constitutes at least 40% of those employed. If the 40% threshold is not achieved, the prevailing rate is the weighted average rate.
Penalty. Restitution to employee for amount due. Payment of damages to the public body of $10 per day for each underpaid employee. For persistent and willful violators, ban from public works jobs for one year.
Massachusetts
Contracts Covered. All public works contracts, including additions and alterations. Also applies to such preliminary work as soil explorations, test borings, and demolition of structures incidental to site and right-of-way clearance. Also covers truck rental contracts.
Wage Rate.
1. For construction contacts, the minimum hourly rate paid to mechanics, apprentices, teamsters, chauffeurs, and laborers working on the job must be at least the same as the rate paid to laborers who work for the municipality where the construction is taking place. If the public works job extends over more than one municipality, the contract rate must equal the municipal pay in the town that pays most. If wage rates in any of the towns where the work is occurring have been set by union contracts in the private construction industry, the rate paid on the public works job must be at least the union rate. These provisions also apply to state and municipal employees employed in construction or alterations of public buildings when more than $1,000 is appropriated for the project.
2. For establishments renting trucks, automobiles, or other vehicles and equipment to the state or a county, city, or town, a rate, including fringe benefits, determined by the state labor commissioner.
Penalty. (1) Construction rates: Fine of $1,000 to $10,000 and (2) Truck rental: Fine of $100 to $500.
Michigan
Contracts Covered. New construction, alteration, repair, installation, painting, decorating, completion, demolition, conditioning, reconditioning, or improvement of public buildings, schools, works, bridges, highways, and roads that involve employment of construction mechanics and that are sponsored wholly or partly by the state. Does not cover jobs subject either to federal prevailing wage requirements or union contracts.
Wage Rate. Wages and fringe benefits prevailing in the locality where the work is to be performed as determined by the state labor department. Determination must be based on union contract rates on similar jobs in the same locality, or if there are none, on those in the nearest and most similar neighboring locality where there are union contracts.
Penalty. Violation is a misdemeanor.
Minnesota
Contracts Covered. State construction or repair work costing $2,500 or more if only one trade or occupation is required and costing $25,000 or more if more than one trade or occupation is required. Also covers highway contracts, including workers who deliver such materials as sand, gravel, or stone to be incorporated into the work; railroad contracts; and construction, repair, and remodeling projects for single businesses receiving $200,000 or more in state economic development assistance.
Wage Rate. For state construction and highway projects and projects receiving state economic development assistance, the prevailing hourly rates including fringe benefits as certified by the labor commissioner; for railroad contracts, wages at least equal to the wages the railroad pays its own workers for similar work but not less than twice the state minimum wage.
Penalty. (1) On state construction contracts and jobs receiving state economic development assistance, a fine of up to $700, imprisonment for up to 90 days, or both; (2) on highway contracts, if the employer violates the law, a fine of up to $300, up to 90 days imprisonment, or both; if an employee knowingly accepts less than the prevailing wage, a fine of up to $40, imprisonment for up to 30 days, or both.
Missouri
Contracts Covered. All contracts for construction, reconstruction, improvement, enlargement, alteration, painting and decorating, or major repairs of public works. Excludes repair of existing facilities when the size, type, or extent of the facility is not changed.
Wage Rate. Hourly wages, plus fringe benefits, prevailing in the county where the work is to be performed. If the number of workers available in the county is insufficient to complete the job, the locality may be expanded to two or more adjacent counties from which workers may be obtained.
Penalty. $10 per day for each worker paid less than the prevailing wage. For a willful violation, a fine of up to $500, up to six months imprisonment, or both.
Montana
Contracts Covered. Construction, remodeling, and maintenance exceeding $25,000 on all state, county, municipal and school works. Also covers heavy highway construction such as repair of roads, streets, highways, alleys, runways, trails, parking areas, and utility rights-of-way and contracts exceeding $25,000 that are wholly or partly financed by tax-exempt industrial revenue bonds.
Wage Rate. Prevailing wages, including fringe benefits, paid for similar work in the district where the work is performed. In each district, the prevailing wage is the weighted average rate paid for all hours worked on similar work in the district. When there is no similar work being performed in the district, the prevailing wage is the union rate in effect in the district for each type of worker needed to complete the contract. For heavy highway construction contracts, the prevailing wage is established statewide.
Penalty. A fine of $25 per day for each underpaid employee to be paid to the employee. In addition, the contractor must pay the state a fine equal to 20% of the delinquent wages, plus fringe benefits, attorney's and audit fees, and court costs.
Nebraska
Contracts Covered. All state contracts, provided use of the prevailing wage does not increase the state's cost of merchandise, materials, supplies, or services.
Wage Rate. Equal to wages paid by at least 50% of the contractors in the same business or field. For highway construction, the wage scale paid by at least 50% of contractors engaged in highway work for the state unless that scale would unnecessarily increase the cost of highway work.
Penalty. Fine of $25 to $200.
Nevada
Contracts Covered. New construction, repair, and reconstruction work costing $100,000 or more financed partly or wholly by public money.
Wage Rate. Hourly or daily rate prevailing in the county where the work is performed.
Penalty. Misdemeanor. In addition, a violator must pay the difference between the prevailing wage required and the amount actually paid. The state may also impose a fine not to exceed its costs in investigating and prosecuting the violator.
New Jersey
Contracts Covered. Construction, reconstruction, demolition, alteration, repair, or maintenance work costing more than $2,000 paid for wholly or partly by the state, any political subdivision, any authority created by the legislature, or any of their agents or instrumentalities.
Wage Rate. Wage and fringe benefits prevailing in locality where work is performed, as determined by the labor commissioner.
Penalty. Fine of $100 to $1,000, 10 to 90 days imprisonment, or both. In addition or instead of these fines, administrative penalties set by the state labor commissioner of up to $250 for the first violation and $500 for each subsequent violation. Ban from public works jobs for three years.
New Mexico
Contracts Covered. Contracts worth more than $20,000 for construction, repair, alteration, or demolition of public buildings, works, or roads.
Wage Rate. Prevailing wages of those employed in similar projects in the state or locality as determined by the labor commissioner.
Penalty. $10 per day for each underpaid employee. For willful violation, a three-year ban from public works jobs.
New York
Contracts Covered. Construction, reconstruction, maintenance, or repair of public works and contracts exceeding $1,500 that require use of building service employees, such as guards, doormen, building maintenance workers, groundskeepers, elevator operators, window cleaners, and garbage collectors.
Wage Rate. Rates prescribed in union contracts, provided contracts apply to at least 30% of the workers in the same trade or occupation in the locality where the work is performed. If less than 30% are covered, average wages for each occupation or trade paid in the locality in the last 12 months. Localities are areas defined in current union contracts. For building service employees, the prevailing wages for various classes of building service employees in the state, town, or appropriate other civil division or area of the state.
Penalty. First offense, a fine of $500, 30 days imprisonment, or both; second offense, $1,000 fine and forfeiture of contract.
Ohio
Contracts Covered. State or local new construction contracts costing more than $50,000 and contracts for reconstruction, improvement, enlargement, alteration, repair, painting or decorating costing more than $15,000. These amounts must be adjusted biennially by the labor commissioner for inflation. When newly constructed facilities are rented or leased by public authorities within six months after completion, all work performed to suit the facility for occupancy by the public authority is covered. The law excludes any project that is at least 75% located on private land or 75% paid for by private property owners.
Wage Rate. Prevailing rate, including fringe benefits, payable in same trade or occupation in same locality under union contracts. If there is no such contract in the locality, then the rate is the union rate in the nearest locality where there are union contracts.
Penalty. Fine of $25 to $500.
Oklahoma
The Oklahoma prevailing wage law was ruled unconstitutional by the Oklahoma Supreme Court on October 10, 1995 (Oklahoma City v. Oklahoma, Okla. Sup. Ct. 21WH Cases 2nd 1615).
Contracts Covered. Construction, reconstruction, improvement, enlargement, alteration, painting and decorating, or major repairs costing $600,000 or more. Does not apply to road construction.
Wage Rate. Prevailing hourly rate, including fringe benefits, for similar work in the county where the work is performed as determined under the federal Davis-Bacon law. If there is no federal rate, the labor commissioner must set the prevailing rate.
Penalty. Ban from public works jobs for two years.
Oregon
Contracts Covered. Construction, reconstruction, renovation, or painting of public works costing more than $10,000 by any public agency.
Wage Rate. Hourly wage, including fringe benefits, paid to a majority of workers employed in the same trade or occupation on similar projects in the locality where the work is performed. If a majority is not being paid the same rate, then the prevailing wage is the average wage of all such workers in the locality.
Penalty. Double the total amount of the unpaid wages.
Pennsylvania
Contracts Covered. Construction, reconstruction, demolition, alteration, or repair costing more than $25,000 paid for wholly or partly by any public body.
Wage Rate. Determined by the labor secretary.
Penalty. For an intentional violation, ban on public works jobs for three years, plus damages in the amount of the underpayment.
Rhode Island
Contracts Covered. Grading, clearing, demolition, improvement, completion, repair, alteration, or construction of any public road, bridge, or public building or any heavy construction or public works projects costing more than $1,000.
Wage Rate. Hourly rate, plus fringe benefits, paid in the appropriate political subdivision of the state to corresponding types of employees on similar projects, as determined by the labor commissioner.
Penalty. $100 per day of noncompliance. In addition, the next lowest qualified bidder on the contract may sue the violator for damages arising from its not receiving the contract.
Tennessee
Contracts Covered. State projects worth more than $50,000 for erection, remodeling, repairing, demolition, or adding to any building and any other type of building construction for which state funds are appropriated. Also covers all highway and bridge construction or repair contracts regardless of the amount.
Wage Rate. Prevailing wage for the same work in the same district, as determined by the labor commissioner.
Penalty. Suit by employee or labor commissioner. Forfeiture of contract.
Texas
Contracts Covered. All public works.
Wage Rate. Daily rates for similar work in the same locality.
Penalty. $60 per employee per day.
Washington
Contracts Covered. Construction, alteration, repair, or improvement, other than ordinary maintenance, paid for by the state or a municipality and all public building service contracts.
Wage Rate. Hourly rate paid to a majority of workers in the same trade in the same locality. If a majority is not paid the same rate, then the average rate applies. Handicapped workers may be paid at a lower rate but not less than 75% of the state minimum wage.
Penalty. First offense, failure to file required statement or record, fine of $500; second or subsequent violation within a five-year period, ban from public works jobs for one year. For nonpayment of the prevailing wage, the ban extends for two years.
West Virginia
Contracts Covered. Construction, reconstruction, enlargement, improvement, or repair of any public structures or works constructed by a state or political subdivision.
Wage Rate. Wage paid to workers in the same trade or occupation in the county where the work is performed.
Penalty. Fine of between $50 to $250.
Wisconsin
Contracts Covered. Construction, remodeling, or repair of public buildings or works costing $2,500 or more if only one trade is involved or costing $25,000 or more if more than one trade is involved.
Wage Rate. Hourly wage, including fringe benefits, paid to a majority of workers in the same trade or occupation in the same area where the work is performed. If a majority are not paid one rate, the prevailing rate is the wage paid to the largest number of workers in the trade or occupation. Prevailing rate for laborers on highway contracts is the wage, plus fringe benefits, paid to the largest number of workers in the same occupation in the area, but not less than a reasonable and living wage, as determined by the labor department. If a project extends to more than one area, only one standard applies to the entire project.
Penalty. For violations on public building projects, a fine of up to $200, up to six months imprisonment, or both; for highway project violations, a fine of $50 to $200, up to 18 months imprisonment, or both; and for employees who knowingly accept less than the prevailing wage, a fine of up to $20, 30 days imprisonment, or both.
Wyoming
Covered Contracts. Construction, reconstruction, enlargement, alteration or repair of public improvements costing $25,000 or more.
Wage Rate. Locally prevailing hourly rate paid to construction workers.
Penalty. Fine of up to $500, up to six months imprisonment, or both.
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