Arkansas Prevailing Wage Information
The threshold requirement for the Arkansas’s prevailing wage regulations to apply is that the cost of labor and materials for public contracts must exceed $75,000. AR Stat. Sec. 22-9-301 et seq. However, the following qualify as exemptions from this requirement: 1) public school construction; 2) work done for/by any drainage, improvement, levee district; and 3) highway, road, street, or bridge construction and maintenance or related work contracted for or performed by incorporated towns, cities, counties, or the Arkansas Highway Department.
TIMING OF DETERMINATIONS & INCREASES
Arkansas conducts an annual survey to determine prevailing wage rates for the various crafts. This is divided into 17 different groups of counties and wage rates may vary between counties for similar crafts.
Wage determinations are published annually on or about July 1 and are effective until superseded by new determination. The Arkansas Department of Labor gives at least 20 days notice of its intent to certify new wage determinations AND the notice shall be:
(1) mailed to all persons who shall have requested advance notice of wage determinations;
(2) AND published for a period of three consecutive days in a newspaper of general daily circulation throughout the state.
Arkansas’s prevailing wage law does not have a daily overtime rate for prevailing wage trade classification. Overtime is accrued with an employee exceeds forty hours of work in a normal workweek.
WORKING ON WEEKENDS
Arkansas’s prevailing wage law does not have different rates for hours worked on the weekend, nights, or any legal holidays.
WORKING ON LEGAL HOLIDAYS
Arkansas’s prevailing wage regulations do not provide separate wages to contractors for working on legal holidays. Payment on legal holidays is determined by the employer. If the employer gives the employee a holiday or vacation, then the employer may take a credit toward the fringe benefit portion of the prevailing wage. There is no mandated holiday schedule.
According to Arkansas prevailing wage regulations, employees do not receive different wages for being employed at different shifts (e.g., graveyard).
Pursuant to Arkansas prevailing wage regulation Section 010.14-201, prevailing wages includes the basic hourly rate of pay plus fringe benefits. Fringe benefits include the following:
1) the rate of contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to a fund, plan, or program
2) AND the rate of costs to the contractor or subcontractor which may be reasonably anticipated in providing benefits to laborers and mechanics pursuant to an enforceable commitment to carry out a financially responsible plan/program which was communicated in writing to the laborers and mechanics affected, for:
a) medical or hospital care
e) compensation for injuries or illness resulting from occupational activity
f) insurance to provide (e.g., unemployment benefits, life insurance, disability and sickness insurance, or accident insurance)
g) for vacation and holiday pay
h) for defraying costs of apprenticeship or other similar programs
i) OR for other bona fide fringe benefits, but only where the contractor or subcontractor is not required by other federal, state, or local law to
provide any of such benefits.
Contributions may be made by the employer with credit toward the fringe benefit portion of the prevailing wage rate. Arkansas prevailing wage regulations allow for lower rates for any apprentice enrolled in a BAT certified apprentice school (e.g., first year apprentice will be paid seventy percent of the prevailing wage rate for his craft).
In Arkansas, the primary requirements for employment of apprentices are that employers are required to: 1) track all education for apprentices; 2) provide a certified copy of enrollment in a certified program; and 3) provide the current percentage of completion.
An apprentice can be paid less than the prevailing wage rate if he or she is enrolled in a BAT approved apprentice school for the craft he or she is performing. If the apprentice is not enrolled in a BAT approved school, then he is paid the full journeyman rate. Please See, Regulation 010.14-208 Apprentices (Regulation 010.14-208) for details.
Under Regulation 010.14-208, an apprentice may work at less than the predetermined rate for the work he or she performed when this individual is employed under and individually registered in a bona fide apprenticeship program with the U.S. DOL, Employment and Training Administration, Bureau of Apprenticeship and Training, OR with a state apprenticeship agency recognized by the Bureau, OR if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Bureau of Apprenticeship and Training OR a state apprenticeship agency (where appropriate) to be eligible for probationary employment as an apprentice.
- Apprentice is paid by the percentage of his or her progress in a BAT approved apprentice school. The percentage is applied to the basic hourly rate (e.g., $20 x 55% = $11). Prevailing wage determinations include a fringe benefit that must be paid to apprentice according to the agreement the school has with BAT (if no agreement, the apprentice must be paid full amount of fringes—(e.g., ($20 * 55%) + 4.25 = $15.25)). The fringe benefit amount is not pro-rated (this means the percentage amount applies only to the basic hourly rate
- Apprentices enrolled in a BAT approved apprentice school
- Apprentices may be paid less than the prevailing wage rate if the apprentice is enrolled in a BAT approved apprenticeship school for the craft they are performing.
- Apprentices not enrolled in a BAT approved apprentice school
- If the apprentice is not enrolled in a BAT approved school, then he or she should be paid the full journeyman rate for the work performed. See Regulation 010.14-208 Apprentices for more detailed information
Ratio of apprentices to journeyman
The allowable ratio of apprentices to journeyman on the job site in any craft classification cannot be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, this is not registered or otherwise employed as stated above, cannot be paid less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable journeyman wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at no less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination.
Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification.
In the event the Bureau of Apprenticeship and Training, or a state apprenticeship agency recognized by the Bureau, withdraws approval of an apprenticeship program, the contractor will may not use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
If the prevailing wage determination includes a fringe benefit amount, it must be paid to the apprentice in accordance with the apprenticeship agreement the school has with BAT. However, if the school does not have an agreement that specifically deals with fringe benefits, then the apprentice should be paid the full amount of fringes (e.g., (20.00 x 55%) + 4.25 = $15.25). The fringe benefit amount is not prorated. The apprentice percentage applies only to the basic hourly rate.
Record-keeping of apprentices
For each apprentice, the contractor or subcontractor must have a copy of the apprentice certification issued by the U.S. Department of Labor, Bureau of Apprenticeship and Training.
TRAVEL & SUBSISTENCE
Arkansas prevailing wage law does not require payment for travel and subsistence for trade classifications.
All contractors are required to be licensed by the Arkansas Contractors Licensing Board. Specifically, electrical, plumbing, and HVAC workers must be licensed by the state of Arkansas.
To obtain a license, contractor must submit the following to the Board:
(a) an application on a form approved by the board;
(b) proof that the applicant is a licensed master electrician or employs a licensed master electrician; AND
(c) if the applicant is not a master electrician, a statement from the master electrician, under oath, disclosing the master electrician’s affiliation
with any other electrician electrical contractor and verifying that the master electrician is employed as the superintendent or manager of the
The following requirements must be met to obtain a master electrician license:
(a) a degree in electrical engineering PLUS one year of experience
(b) OR 6 years experience in the construction industry (both residential and commercial) INCLUDING 2 years experience as a licensed
(c) OR any combination of training and experience as the board may approve, (e.g., formal electrical apprenticeship programs specifically
approved by the board, on-the-job training specifically approved by the board, or a combination of training and construction experience that
is determined by the board to be equivalent to that as specified in (a) or (b))
Journeyman Electrician: The following requirements must be met to obtain a journeyman electrician license:
(a) four (4) years (8,000 hours) electrical work experience approved by the board:
(b) a four year combination of training and experience as the board may approve, such as formal apprenticeship programs approved by the
board, on-the-job training specifically approved by the board, public or private electrical training programs, (eg., those conducted by the
armed forces, colleges or vocational-technical schools, specifically approved by the board) OR a combination of training and electrical
experience that is determined by the board to be equivalent
(c) OR a “Notice of Apprenticeship Committee Action – Released for Test” form from their training program if applicable and approved by the
Department of Workface Education. The applicant may take the examination after completion of four years training and submission of the
approved Released for Test form.
(d) Maintenance experience in electrical work may be considered provided: (1) the applicant has completed a BAT-approved construction
sponsored apprenticeship program: and (2) electrical work must be: (A) performed under the direct supervision of an engineer, licensed
master electrician, or licensed journeyman electrician: and (B) verified and documented in detail; and (3) experience must either: (A) four (4)
years (8,000 hours) of verified electrical construction experience; or (B) six (6) years (10,000 hours) of electrical maintenance experience
with two (2) of those years consisting of electrical construction experience.
In Arkansas, the penalty for submitting false payroll or wage information is a fine of some amount between $50 and $1,000 for each violation. Each day of violation is a separate offense. Moreover, civil penalties may not exceed ten percent of contract/subcontract OR ten percent of unpaid wages due employees (greater sum used). Specifically, AK 010.14-223 (a) and (b) state:
(a) Any officer, agent, or representative of any public body who knowingly violates, or omits to comply with the provisions of Ark. Code Ann. § 22-9-301, et seq., and any contractor or subcontractor, or agent or representative thereof, doing public works who neglects to keep an accurate record of the names, addresses, social security number, occupation or work classification, hours worked and actual wages paid to each worker employed by him in connection with the public works, or who refuses to allow access to the records at any reasonable hour to any person authorized to inspect the records by the Department, or who knowingly submits to the department false payroll or wage information, shall be subject to a civil penalty of not less than fifty dollars ($50.00) and not more than one thousand dollars ($1,000.00) for each violation. Each day the violation continues shall with respect to each employee constitute a separate offense. In no event shall the civil penalty exceed ten percent (10%) of the contract or subcontract or ten percent (10%) of any unpaid wages due employees, whichever sum is greater.
(b) Any workman who knowingly submits to the department a false claim for unpaid wages under the provisions of this subchapter shall be subject to a civil penalty of not less than fifty dollars ($50.00) and not more than one thousand dollars ($1,000.00).
The Arkansas Department of Labor maintains a list (quarterly) of various contractors that are ineligible to bid on the public works contracts. AK Reg. 22-9-314.
Under AK Reg. 22-9-314(a)(1), any contractor/subcontractor that violates the prevailing wage law is ineligible to bid on or be awarded any public works contract OR to perform any construction work in any manner for any public body for 2 years from the date of the final administrative determination.
Under AK Reg. 22-9-314(a)(2), any firm, partnership, corporation/other entity where the ineligible contractor has a financial interest/supervises or directs work, he or she is ineligible to bid on/be awarded any public works contract/perform any construction work in any manner for any public body for two years after the date of such determination. Moreover, under subsection (b) of this regulation, any contractor/subcontractor may complete any work in progress or contract awarded prior to the ineligibility date.
The Arkansas DOL compiles a quarterly list including:
(A) The names of all contractors which, by a final administrative determination, have been found to be in noncompliance with the provisions of this subchapter after January 1, 1996, and within the previous two years as of the date of such list;
(B) AND the dates on which the latest violations of such contractors occurred.
The Department may mail the list to any public body in this state that can award public works contracts upon request. The public body has a duty to hold the contractor ineligible to bid on/ be awarded any public works contract OR to perform any construction work in any manner for the public body.
Any contractor or subcontractor that submits a bid, is awarded a contract, or begins performance of construction while ineligible, may have its state contractor’s license suspended for a period of time as set by the State Contractors Licensing Board.
A public body is in default if an ineligible contractor OR an ineligible subcontractor is awarded a public works contract.
A public body may require the bonding company/general contractor to furnish a replacement contractor at no additional cost to the public body.
The bonding company/general contractor must be expeditious in maintaining the original schedule for completion of the contract. No more than thirty days should lapse between notice and furnishing a replacement contractor/subcontractor satisfactory to the public body.
Prevailing wage claim form
Prevailing wage claim instructions (read before file)
Minimum wage/OT Complaint Form
Arkansas prevailing wage FAQ
Arkansas prevailing wage regulations
Online survey instructions
To request prevailing wage determinations, please visit:
CONTACT INFORMATION FOR PW INFORMATION:
Labor Standards Administrator
10421 West Markham Street
Little Rock, AR 72205
Electronic mail: email@example.com
Prevailing wage specialist: Lorna Smith: (501) 682-4536