Maryland Prevailing Wage Information
GENERAL INFORMATION
The Maryland prevailing wage law regulates the hours of labor, rates of pay, conditions of employment, obligations of employers and duties of certain public officials under contracts and subcontracts for public works in Maryland. Please note that Montgomery County established its own prevailing wage law, which has been effective since 2009.
Annual Wage Rate Survey
The Prevailing Wage Unit is compiling a list of registered contractors, contractor's associations and labor organizations who will be notified electronically when to voluntarily participate in the annual Prevailing Wage Rate Survey. The Commissioner encourages all interested groups to voluntarily electronically submit data detailing wage rates paid to workers on various types of construction in all localities in Maryland. If you would like to be added to the list, please register online.
THRESHOLD
The Maryland prevailing wage law applies to a construction project valued at $250,000 or more if either of the following criteria are met: (1) the contracting public body is a unit of State government or an instrumentality of the State, and there is any State funding for the project; or (2) the contracting public body is a political subdivision, agency, person or entity (such as a county) and the State funds 50% or more of the project except for school construction where the contract value is $250,000 or greater with state funding of 25% or more.
TIMING
A wage determination issued for a project specifies the wage and fringe benefit rates for each classification of worker, determined to be prevailing in that locality for that type of construction. Wage determinations are issued for each locality in the State (23 counties and Baltimore City) and are in effect for one year from the date on which they become final.
Please See “Helpful Links” below to view current wage determinations.
INCREASES
Wage determinations are effective for one year from the date on which they become final. Generally, no increases may occur after wage determinations are final.
If the wage rate changes after the bid has been submitted or the employees have started work, the prevailing wage rate in effect at the time the work begins remains in effect until the project is complete.
OVERTIME
Maryland prevailing wage law requires employees on a public works contract to be paid overtime for the following:
1) hours in excess of 10 hours in a single day
2) hours worked in excess of forty hours in one week
3) all Sunday work
4) all holiday work
Overtime is paid at a rate of 1.5 times the prevailing wage rate and one times the benefit rate (e.g., if the regular prevailing wage rate is $15/hour and $8 in benefits, then overtime compensation is $30.50 ([$15*1.5] + [$8]).
WORKING ON WEEKENDS
Maryland prevailing wage law requires employees on a public works project to be paid overtime for working on Sundays.
WORKING ON LEGAL HOLIDAYS
Maryland prevailing wage law requires employees on a public works project to be paid overtime for working on legal holidays including but not limited to the following:
1) New Years Day (Jan 1)
2) Memorial Day (observed by either state or federal government)
3) Independence Day (July 4)
4) Labor Day (Sept 1)
5) Thanksgiving Day (forth Thursday in November)
6) Christmas Day ( Dec 25)
Please note, overtime payment for other legal holidays is not prohibited regardless of whether the employees are covered in a CBA.
FRINGE BENEFIT
According to Maryland prevailing wage law, fringe benefits are paid for each classification of worker. A company can take credit for the actual cost of providing their employees certain fringe benefits such as:
1) medical/hospitalization coverage
2) dental coverage
3) pension/retirement plan
4) paid time off (vacation/holidays/sick days)
5) life insurance
To calculate the cost per hour, divide the annual cost of the benefits by 2,080 hours for each employee.
TRAINING CONTRIBUTION
Training contribution is not included as a fringe benefit.
APPRENTICE REQUIREMENTS
Maryland Apprenticeship and Training is part of the Department of Labor, Licensing and Regulation's Division of Labor and Industry and is responsible for registering and regulating the state approved apprenticeship programs in Maryland. Please use the navigation menu at the top in order to find out more information about Apprenticeship in Maryland.
Overview
Registered apprenticeships are voluntary, industry-driven programs sponsored by employers, employer associations, and jointly by management and labor. Apprenticeships combine supervised, structured, on-the-job training and related technical instruction to teach apprentices the skills necessary to succeed in a specific occupation.
Registered Apprenticeship means the apprenticeship is registered with the State of Maryland. By completing the registration process, the program has to comply with the State and Federal regulations regarding apprenticeship. The main regulations concerning Registered Apprenticeship include: supervised on-the-job training with a ratio of one apprentice to one journeyperson (skilled craftperson), the on-the-job training meets the minimum 2,000 hours (per year if the apprenticeship is longer than 1 year) and related classroom instruction meets the minimum 144 hours (per year if the apprenticeship is longer than 1 year). To read the full regulations please visit the Regulations tab above.
The apprentice works full time and receives training from the sponsoring organization. Typically apprentices are hired at a percentage of a journeyperson’s salary. As the apprentice completes training section as and demonstrates skills mastery, the percentage of a journeyperson’s wage received increases until the apprentice makes journeyperson’s wages upon completing the program.
Apprenticeships are designed to meet the workforce needs of the sponsors. Because of a need for highly skilled workers many sponsors use apprenticeship as a method to train employees in the knowledge necessary to become a skilled worker. This also means the number of apprenticeships available are also dependent on the current training needs of the industry.
Occupations
A position must require at least 2,000 hours of training to be considered as an apprenticeable occupation. If an occupation is apprenticeable, an apprenticeship program will then be divided into on-the-job-training and related instruction.
On-the-job training must consist of at least 2,000 hours per year of the apprenticeship, the equivalent of working fulltime. On-the-job training for apprentices takes place at the work site under the direction of a highly skilled journeyperson(s). The related instruction component is the classroom training apprentices receive to supplement the on-the-job training and teach fundamental principles of the trade. Each apprenticeship must have at least 144 hours of related instruction per year of the apprenticeship.
Maryland encourages any organization with a training need meeting the above criteria to consider apprenticeship. No industry is unwelcome.
Certification
The minimum length of an apprenticeship is one year, however, most apprenticeship programs take 3-6 years to complete. Successful completion of a registered apprenticeship leads to a nationally recognized Certificate of Completion of Apprenticeship attesting to the individual’s attainment of skills and knowledge to be considered a journeyperson.
How to become an apprentice
Step 1: Research a Trade
The first step to becoming an apprentice is to research which occupation you would like to pursue. Please visit Find an Apprenticeship for a complete list of all occupations approved to have apprenticeship programs and descriptions of what type of work is required in each trade. Under this section you can also download a complete list of currently registered programs in Maryland.
Step 2: Apply
Once you have decided on a trade, contact program sponsors directly to inquire about their individual application requirements and hiring schedule. Submit your application(s) to the sponsor of your choice. Please be aware each sponsor has individual application requirements and program requirements, so be sure to research the program of your choice carefully.
Also note you may experience some delay in receiving a response to your application because some sponsoring programs may hold your application until an opening in the program is available. Ask the program of your choice when the apprenticeship program will start and when you would likely hear back from them gaining a realistic idea of their application process. Apprenticeships are also very competitive so it may take more than one application to be accepted. Because apprenticeships are industry driven, the hiring of apprentices is strictly done on a need basis by the individual sponsor; the state government can not place you in an apprenticeship program.
Step 3: Be Sure You Have Been Registered by Your Sponsor
Once you have been hired as an apprentice, an Apprentice Agreement will be completed by you and your employer. This agreement is filled with Maryland Apprenticeship and Training and the Federal Department of Labor. This agreement classifies you as a registered apprentice; if you do not think you have signed an agreement please ask your sponsor about the agreement to be sure it is completed.
To see what an Apprenticeship Agreement looks like please visit Publications. Upon completing the apprenticeship program you will receive a nationally recognized Certificate of Completion, allowing your skills to transfer anywhere in the country.
Top 5 Benefits
· Earn while you learn
· Apprenticeships are jobs, you will have a job when your training is complete
· Paid according to a progressive wage scale
· Sustainable career choice
· Able to transfer skills across companies and states
Apprentice sponsor
To sponsor a registered apprenticeship program you can start by contacting Maryland Apprenticeship and Training and speak with your area Field Representative. Your Field Representative can help you develop program standards, connect you with existing resources and programs you may wish to consider using, and help you prepare your written request to register, including all the necessary data and forms required.
Maryland Apprenticeship and Training would like to make the registration process as easy and smooth as possible for our sponsors. Much of the application process can be model based and your program can use existing program models to formulate a program meeting your training needs. Apprenticeships are designed and run by the sponsor so your program can be set up to meet your specific needs as long as it meets all regulations.
All apprenticeship standards requirements can be found under the Regulations tab in Maryland Apprenticeship and Training Law and Regulations Subtitle 12 Division of Labor and Industry, Chapter 43 Maryland Apprenticeship and Training, Section .05 Standards of an Apprenticeship Program. Some of the standards of an apprenticeship program include:
1) A written plan of the program including all terms and conditions
2) An Equal Opportunity pledge
3) The method of selecting apprentices
4) The requirements of the program
5) An organized syllabus of training, including approximate time allocations for each work process, and related instruction
6) Apprentice wage rates
7) Assurance of qualified training personnel and the ratio of apprentices to journeypersons
8) A method of tracking apprentice progress through the program
9) Safety Equipment Practices
Once your program is drafted, it will be reviewed by the Maryland Apprenticeship and Training Council. The council will then vote to approve your program. Upon being approved you will then complete the Employer Acceptance Agreement, found under Publications, to then register your program.
Once the program is registered you can hire apprentices to be trained through your program. Be sure to register your apprentices and submit an application for the Certificate of Completion when the apprentice completes the program.
Top 5 Benefits
1) Increases productivity
2) Ensures versatility of craft workers
3) Reduces turnover
4) Reduces cost of training
5) Addresses a sponsor’s need to remain competitive within an industry
Apprenticeship and training counsel
Maryland’s Apprenticeship and Training Law and Regulation establishes a twelve-member body called the Maryland Apprenticeship and Training Council (MATC). The Council formulates apprenticeship policies, registers standards and agreements, determines which skilled trades are apprenticeable, and formulates and adopts standards of apprenticeship that safeguard the welfare of all apprentices.
Five members of the Council represent employee organizations (one of which shall be an employee), five represent employers, and two are appointed from the general public. Three additional members serve on the Council in a non-voting, consultant capacity
Minutes of public meetings of the Maryland Apprenticeship and Training Council
2015 Meeting Schedule
Contact Information regarding apprenticeship in Maryland:
Maryland Apprenticeship and Training Program
Division of Labor and Industry
1100 North Eutaw Street - Room 606
Baltimore, MD 21201
Phone: (410) 767-2246
Fax: (410) 767-2220
E-mail: [email protected]
TRAVEL AND SUBSISTENCE
Items such as use of company vehicles/cell phones, lodging reimbursement, or company-provided tools can’t be credited towards prevailing wage.
Statutory deductions (e.g., unemployment insurance, income tax, ect.), Workers Compensation Insurance, or the portion of any fringe benefit that is deducted from the employees pay, may not be credited towards the prevailing wage.
Truckers that are hired by a material supplier (e.g., asphalt plant, quarry, etc.) to deliver materials to and pick up materials from a public works project are subject to prevailing wage when picking up and hauling materials from the jobsite BUT not while delivering to the jobsite.
CONTRACTOR LICENSING
General construction contractors do not need a license to work in Maryland. A license is required for the following:
1) Electrical
2) Plumbing
3) HVACR contracting
4) Work on home improvement
To check if any of the above contractors are licensed to do work in Maryland, visit Maryland’s contractor licensing policy for more detailed information.
Moreover, any person or business organization must obtain a construction license from the appropriate Clerk of Circuit Court on an annual basis. For more information on obtaining a construction license, please contact the appropriate Clerk of Circuit Court in the county where the work will be performed or the Maryland Business Licenses Online at: https://egov.maryland.gov/easy
The Division of Occupational Professional Licensing is in charge of granting contractor licenses. Please find the contact information listed below:
Department of Labor, Licensing and Regulation
Division of Occupational Professional Licensing
500 North Calvert Street, 3rd Floor
Baltimore, Maryland 21202
Email: [email protected]
DUTIES OF CONTRACTORS/SUBCONTRACTORS
Certified payroll statements
Contractors on State funded construction projects covered by the Prevailing Wage Law are required to electronically submit certified payroll statements indicating proper worker classification and wage for both straight time and overtime work. Certified payrolls must be electronically submitted to the Commissioner of Labor and Industry within 14 days after the end of the payroll period. Penalties for late submission of payrolls total $10 for each calendar day the records are late.
PENALTIES
The penalties for violating Maryland prevailing wage law is:
1) $10 per calendar day for late payroll submission, which means more than 14 days have elapsed after close of payroll period;
2) $20 per worker per day for a wage underpayment (including an overtime underpayment or worker misclassification); and
*Please note, the maximum allowable ratio is one journeyman to one apprentice. All apprentices must be registered with the Maryland Apprenticeship and Training Program without exception
3) $50 per day for not posting prevailing wage rates
If workers believe that they have not been paid correctly, they should contact the Maryland Division of Labor and Industry, Prevailing Wage Unit at: (410) 767-2342 or (410) 767-2365.
Worker Misclassification
“Workplace fraud” is a serious problem involving employers in the construction (including all aspects of home improvement) or landscaping industries who fail to properly classify workers as "employees." This fraudulent practice denies workers critical workplace protections guaranteed to employees, allows unscrupulous employers to undercut competitors who play by the rules, and deprives taxpayers of critical dollars. Please See the cites listed below for additional information:
Code of Maryland Regulations (COMAR)
Executive Order 01.01.2009.09: http://www.dllr.state.md.us/workplace/wpfexecorder.pdf
Contact Information
Worker Classification Protection Unit
Division of Labor and Industry
1100 North Eutaw Street, Room 607
Baltimore, Maryland 21201
Phone: (410) 767-9885
Email: [email protected]
DEBARMENT
The Commissioner files a debarment list with the Maryland Secretary of State. Any contractor or subcontractor whose name appears on this list is prohibited from entering into a contract for construction of a public work directly or indirectly for two years from the day on which the list is filed. Moreover, any public body may not award a contract for construction of a public work to someone who is prohibited from entering into a contract.
HELPFUL LINKS
State of Maryland wesbite
FAQ Compliance
FAQ Apprenticeship
Instructions for the contractor
General contractor and subcontractor registration for Maryland state prevailing wage projects
Living wage for state service contracts
Worker classification protection unit
Employment standards service
House Bill 727
CONTACT INFORMATION
Prevailing Wage Unit
Maryland Division of Labor and Industry
1100 North Eutaw Street, Room 607
Baltimore, Maryland 21201
(410) 767-2342
Fax: (410) 333-7303
E-Mail Address: [email protected]
