March 2010

Labor Department Determines 2010 Prevailing Wage Rates

The Missouri Labor Department’s Division of Labor Standards (DLS) has released the prevailing wage rates for use on public works construction projects in Missouri for 2010.

Annual Wage Order No. 17 contains prevailing wage rates for the 26 different occupational titles in each county and the city of St. Louis. The prevailing wage is the minimum rate that must be paid to workers on public works construction projects in Missouri. Missouri law defines public works as “all fixed works constructed for public use or benefit or paid for wholly or in part out of public funds”.

"Prevailing wage promotes and protects economic stability in the construction industry in our state,” says Department Director Larry Rebman. “Now more than ever, Missouri tax dollars should support the local workers. Our state’s economy will suffer if we allow low wage, unskilled, out-of-state workers to take Missouri public works jobs and spend our tax dollars in their communities.”  

The DLS is responsible for gathering wage information from public and private commercial construction projects statewide on an ongoing basis from contractors, labor organizations and public entities. The largest number of hours reported at a given wage rate for the occupational title in the county becomes the prevailing wage rate. The DLS already has begun collecting wage information for Annual Wage Order No. 18 and will continue to collect information throughout the year.

Each year on or before March 10th, the DLS files the Annual Wage Order with the Secretary of State with a 30 day objection period. If there are no objections, the prevailing wage rates established by the DLS will become final on April 10, 2010.  If objections are filed, the rates will not be final until all objections are resolved by the Labor and Industrial Relations Commission.

From March 2009 to March 2010, the DLS received 432 prevailing wage complaints and found 127 violations. Contractors that do not pay the required prevailing wage rates to their workers are subject to fines of $100 per day per unpaid worker. Cases in which the DLS determines contractors have willfully violated the prevailing wage law are referred to the local prosecuting attorney who may then file criminal charges against the contractor for up to $500 per violation, six months in jail, or both. In addition, when contractors are convicted or have pled guilty to violating the prevailing wage law, the DLS will file notice with the Secretary of State to debar the contractor from working on any public works project.

To view Annual Wage Order No. 17 or for additional information, please visit www.labor.mo.gov/dls/prevailingwage/awo.asp. Employees on public works projects who are not receiving prevailing wage rates should file a complaint by filling out the complaint form, www.labor.mo.gov/dls/forms/PW-6-AI.pdf or calling 573-751-3403.