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2018 Prevailing Wage Changes

2018 Prevailing Wage Changes

August 2018 Prevailing Wage Changes

The following changes will take place August 28: 

  • Public works projects valued $75,000 and under are not subject to the Prevailing Wage Law and projects valued at $10,000 and below are not subject to a competitive bidding process.
    • No project may be split up into smaller projects valued at less than $75,000 for the purpose of evading the requirement to pay a prevailing wage or public works contracting minimum wage. 
  • Hours worked on holidays will be paid at twice the normal rate, including fringe benefits. Overtime hours will be paid at time and a half of the normal rate, including fringe benefits. 
  • Contractors may employ one "apprentice" or "entry-level" worker for each journeyman hired and pay them 50% of the pay, including fringe benefits, of a journeyman in their same occupational title. 
  • The Missouri Department of Labor and Industrial Relations may investigate violations of the law on its own or review complaints submitted by the following: 
    • A public body against a contractor or subcontractor for the project; 
    • Any contractor, if the complaint is against his or her subcontractor; 
    • Any subcontractor, if the complaint is against his or her contractor; 
    • Any worker alleging a violation of his or her rights under the Prevailing Wage Law. 

 

Future Implementations & Dates

Other important provisions of the new law will not be fully implemented until the release of the next Annual Wage Order in 2019. These include:

Submit Contractor's Wage Survey

  • The Department of Labor will only use the hours reported by contractors on non-resident projects in calculating the annual wage order in 2019. This includes both public and private, and whether or not the projects were subject to a collective bargaining agreement. You can find more information on how the prevailing wage is calculated here
  • A new "Public Works Contracting Minimum Wage" of 120% of the average county wage will be used instead of a prevailing wage in counties where fewer than 1,000 hours are reported for a particular occupational title. 
  • An initial Annual Wage Order containing the prevailing wage and the public works contracting minimum wage will be released by March 10, 2019 with a final wage order released by July 1, 2019. Until the final wage order is released, Annual Wage Order 25 will continue to control on projects valued at over $75,000. 

Changes to Occupational Titles & Categories

HB 1729 consolidates the list of occupational categories, reducing the number down to 20 such titles. Individuals submitting information may continue to use old occupational titles and the system will automatically sort this information into the correct titles as set forth by statute.

Prevailing wage information submitted to the Division of Labor Standards may be entered online.  Those submitting rate information via the online system will receive a copy of their submissions by email.  The statute allows for paper submissions.  Paper forms may be submitted but they will need to be typed. Handwritten submissions will not be accepted. Anyone submitting false information to the Missouri Division of Labor Standards may be subject to criminal prosecution pursuant to state law (sections 290.340, 570.090, 575.040, 575.050 or 575.060 RSMo.).