Contact Prevailing Wage
Phone: (401) 462-8580, option #7
Fax (401) 462-8528
The prevailing wage rates to be applied are those that are effective as of the date of the awarding of the contract to the general contractor. Contractors working on RI Prevailing Wage projects must also adjust employees’ hourly rates (if applicable) every July 1st in accordance with any updated Davis Bacon Wage Determination rates.
If the fringe benefits are anticipated to be paid from general assets of the contractor (ex. holidays, sick and vacation days, profit sharing, etc.), the contractor must set aside, in an escrow account, the amount of money the contractor plans to claim as a fringe benefit credit for the prevailing wage project. For example, if a contractor wants to claim credit for 10 paid holidays per year, the contractor must calculate the amount that will be paid (10 holidays x 8 hours x $10/hour = $800) and place those funds in an escrow account. In the event that an employee leaves the company before the end of the calendar year and prior to the completion of the project, any remaining escrowed funds must be paid to the employee.
The allowable hourly credit must be determined separately and documented for each employee since the credit is based on figures that will usually vary for each individual, depending on their benefit contribution amount, type of benefits, hours worked, etc. In addition, only the employer’s contribution toward a benefit may be used to calculate the allowable hourly credit.
DISCLAIMER: FAQs are presented for informational purposes only. They do not carry the full force and effect of the law.
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