How is the Public Works Contracting Minimum Wage (PWCMW) calculated?
As provided in Section 290.257.2 RSMo., the department will calculate the PWCMW by multiplying the average wage rate in each county by 120%.
Prevailing Wage
When will the new annual wage order containing the prevailing wage and the public works contracting minimum wage (PWCMW) rates be released?
As in years past, in making the annual wage determination, DOLIR will continue to accept reports of hours worked and other wage data from the previous calendar year (2018 in this case) as long as this information is submitted to the department by January 31, 2019.
Are all hours reported for occupational titles being consolidated into one occupational title be added together to set a rate?
Yes.
HB 1729 consolidates some occupational titles to be used in the calculation of the 2019 annual wage order. All calculations relating to computing hourly wages will need to conform to the newly revised list of occupational titles set forth in Sec. 290.257.6(1)(d) RSMo.
When determining the Prevailing Wage and PWCMW rates, are fringe benefits added to to the hourly rate?
Yes.
In calculating the Prevailing Wage rate, the department will continue to factor in fringe benefits as spelled out in Sec. 290.210 RSMo.
Are the mandatory rates for overtime and holidays based only upon the hourly rate or on the total hourly wage including fringe?
The overtime and holiday rates are based on the total amount of wages and fringe benefits combined. The rate of pay for overtime is one and a half times the amount of the prevailing hourly rate of wages or the public works contracting minimum wage (whichever is applicable). The rate for holidays is twice the applicable rate.
How does the new law impact the ratio of journeymen to "apprentice" and "entry-level" workers and their rate of pay?
Rate of pay – As of August 28, 2018 each apprentice and entry-level worker will be paid half of the rate of a journeyman (including fringe) working in their same occupational title classification in the county where the public project is located.
Example:(Basic + Fringe) X .50% = Wage for Entry Level/Apprentice Workers
($30 + $10) X .50% = $20 Wage for Entry Level/Apprentice Workers
What is the existing timeline for calculating the annual prevailing wage rate?
The timeline under the new law remains the same.
For example, contractor hours for the calendar year must be reported by no later than January 31 of the following year. The department will make an initial determination of prevailing wage rates by March 10 of each year and the final wage order will be issued no later than July 1 of each year.
If a public body were to split up a project into phases, each of them costing less than $75,000, would the prevailing wage apply?
Splitting a project up into smaller projects for the purpose of evading the requirement to pay a prevailing wage or a public works contracting minimum wage is not permitted.
If the estimated cost for a public works construction project is $75k or less, but cost overruns push the cost to $80k, should the public entity pay the prevailing wage or the public works contracting minimum wage for the project?
Section 290.230.5(1), exempts projects from the requirements of the new law where either the engineer's estimate or the bid accepted by the public body is less than $75,000 total. Only if a contract is subject to a change order (
Should a contractor report hours worked in the previous fiscal year or the previous calendar year?
Hours must be reported according to occupational title, locality and calendar year.