Oregon Prevailing Wage Information
GENERAL INFORMATION
Oregon passed its prevailing wage rate (PWR) law, sometimes referred to as the "Little Davis-Bacon Act," in 1959. As the nickname implies, the Act is modeled after the federal "Davis-Bacon" prevailing wage laws. Today, Oregon continues to update and refine its PWR law to reflect changes in the industry and to make it more like its federal counterpart.
Oregon's lawmakers designed PWR law (ORS 279C.800 et seq.) to ensure that contractors compete on their ability to perform work competently and efficiently while maintaining community established compensation standards, to encourage the training and education of workers in industry skill standards and to encourage employers to use the funds required by the PWR law for fringe benefits for the actual purchase of such benefits. ORS 279C.805.
The Bureau of Labor and Industries (BOLI) is responsible for administering and enforcing the PWR law and for educating contractors, subcontractors, and public agencies about its requirements.
THRESHOLD
According to Oregon prevailing wage law, the threshold requirement for payment of prevailing wages on public works projects is $50,000.
TIMING OF WAGE DETERMINATIONS
In January and July of each year, the Oregon Bureau of Labor and Industries (BOLI) publishes the prevailing wage rates that are required to be paid to workers on non-residential public works projects in the state of Oregon.
Access Oregon's Prevailing Wage Rates
INCREASES
In Oregon, the prevailing wage rates are established using the information from a construction industry survey Using the survey information, BOLI publishes new rate books on January 1st and July 1st each year, but the rates don't always change from book to book for every classification. It will depend on the survey responses. Additionally, amendments are published on April 1st and October 1st each year. These are generally for rate changes to just a few classifications.
OVERTIME
Under ORS 279C.540, contractors and subcontractors must pay overtime wages. Workers must be paid at least time and one-half the hourly rate of pay, excluding fringe benefits, for all hours worked at the following times:
1) On Saturdays;
2) On the following legal holidays:
a. Each Sunday
b. New Year's Day on January 1
c. Memorial Day on the last Monday in May
d. Independence Day on July 4
e. Labor Day on the first Monday in September
f. Thanksgiving Day on the fourth Thursday in November
g. Christmas Day on December 25
3) Over 40 hours in a week; and either
4) Over eight (8) hours in a day OR Over 10 hours in a day provided the employer has established a work schedule of four consecutive days (Monday through Thursday or Tuesday through Friday) pursuant to OAR 839-025-0034 and the employer operates in accordance with this established work schedule.
Worker performs one or more classifications
Where a worker performs work in one or more classifications that provide for one or more hourly rates of pay the worker must be paid, in addition to the straight time hourly earnings for all hours worked, a sum determined by multiplying one half the weighted average of the hourly rates by the number of overtime hours worked pursuant to subsection (a) of this rule.
Calculation of overtime rate
The overtime rate is 1.5 times the hourly base rate, plus the hourly fringe rate. Although the fringe rate does not have to be paid at time and one half, it must be paid for all hours worked, including overtime hours. Overtime should be paid using the following equation:
If hourly zone pay is due, that amount is added to the base rate, and the following equation should be used:
If an employee earns more than one base rate of pay for the day/week, then the daily/weekly overtime owed, in addition to the regular straight time wages, is based on a weighted average of the hourly base rates earned. OAR 839-025-0050(2)(b).
4/10 Schedule
According to Oregon law, if an employee works an established schedule of four ten-hour days on a prevailing wage rate covered project, overtime may not be due until after ten hours per day. To have an established “four-ten” schedule, the four days of work must be consecutive and must fall within Monday and Friday. Therefore, an employee could work a four-ten schedule of either Monday through Thursday or Tuesday through Friday. ORS 279C.540; OAR 839-025-0050
The consecutive four days chosen for an established four-ten schedule may not be changed on a week-by-week basis. If an established four-ten schedule is not followed because of weather, scheduling, or for any other reason, overtime will be owed for all hours worked over eight per day that week. An employer may change an established work schedule, but only if the change is intended to be permanent and is not designed to evade the PWR overtime requirements. OAR 839-025-0034
Overtime payment for off-site work
Ordinarily an employer is only required to pay a worker at the prevailing rate of wage for work performed on the “site of work” as defined by law. Nevertheless, the daily, weekend or holiday overtime requirements of ORS 279C.540 is specific to any labor employed by the state or a county, school district, municipality, municipal corporation or subdivision thereof through a contractor – not just public works. If off-site work is being done in fulfillment of a contract between a contractor and a public agency, the daily, weekend or holiday overtime requirements apply.
WORKING ON WEEKENDS
Regardless of the work schedule an employer establishes on a PWR covered project, workers must be paid overtime for all hours worked on Saturdays and Sundays. If one of the legal holidays falls on a Saturday or Sunday, the preceding Friday or following Monday becomes the recognized holiday and all hours worked on that day on a PWR covered project must be paid at an overtime rate. ORS 279C.540; OAR 839-025-0050
WORKING ON LEGAL HOLIDAYS
Overtime must be paid for working on six legal holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day), and for hours worked over 40 in a week. If one of the legal holidays falls on a Saturday or Sunday, the preceding Friday or following Monday becomes the recognized holiday and all hours worked on that day on a PWR covered project must be paid at an overtime rate. ORS 279C.540; OAR 839-025-0050
SHIFT DIFFERENTIALS
Oregon prevailing wage law does not mandate payment of different wage for working different trades depending on the shift worked throughout a day.
FRINGE BENEFITS
Each prevailing wage rate is made up of an hourly base rate plus an hourly fringe rate. Employers may pay the hourly fringe benefit portion of the wage directly to the workers as wages, and/or may claim credit for “bona fide” fringe benefits they provide to their employees. Oregon’s PWR law and the federal Davis-Bacon Act are similar regarding fringe benefits. The employer’s contribution must be made for the benefit of the employee, must not be required by law, and must be made on a regular and at least quarterly basis. ORS 279C.800(1); OAR 839-025-0004(8) OAR 839-025-0043
Bona fide employee fringe benefit
The fringe benefit plan must meet all of the following requirements:
1) Contributions must be made regularly and at least on a quarterly basis
2) Contributions made for prevailing wage work may not be used to fund the plan or program for periods of non-prevailing wage rate work.
3) Contributions must not be required by law (such as taxes, workers’ compensation, etc.)
4) Contributions must be irrevocable and for the employee’s benefit.
Plans that provide for delayed vesting or have eligibility requirements are “bona fide” if they meet the other requirements. Safety training, drug testing, state industry council contributions, trade promotion funds, equipment costs, travel pay, per diem payments and workers’ compensation insurance do not qualify as fringe benefits. ORS 279C.800(1); OAR 839-025-0004(8).
Examples of “bona fide” fringe benefits include:
1) Health and welfare plans
2) Vacation plans
3) Pension plans, in some cases
4) Apprenticeship training
Employers may take a credit for such benefits as vacation, sick and holiday pay IF the plan meets several requirements:
1) The plan must actually provide a benefit to the employees
2) The benefit must represent a commitment that can be legally enforced
3) The benefit must be carried out under a financially responsible plan or program
4) The plan or program providing the benefit must be communicated in writing to the employees
5) The benefit plan or program is not required by law
TRAINING CONTRIBUTION
Oregon prevailing wage laws do not require employers to have apprentices and trainees. If a contractor has a bone fide apprentice, it's possible that the requirements of the apprenticeship program are such that the employer must pay for some costs associated with that program.
APPRENTICE REQUIREMENTS
Bona fide apprentices and trainees may be paid a percentage of the hourly base prevailing wage rate according to the term in which the apprentice or trainee is working in the program. To be a bona fide apprentice or trainee:
1) The apprentice or trainee must be registered with either BOLI’s Apprenticeship and Training Division or the Federal Bureau of Apprenticeship and Training;
2) The apprentice or trainee must be performing work within his or her trade;
3) The apprentice or trainee must be working in the current ratio to the number of journey workers on the project as specified in the program standards; and
4) The employer must be a registered training agent.
The applicable pay rate percentage to be paid to an apprentice is based on the program standards in which the apprentice is registered. OAR 839-025-0004(1), (28) and (29); OAR 839-025-0035(9) and (10); OAR 839-025-0060; OAR 839-025-0065
TRAVEL AND SUBSISTENCE
Oregon prevailing wage laws do not requirement payment for subsistence.
Travel Time Laws
CONTRACTOR LICENSING
The prevailing wage law doesn't have any licensing requirements for contractors. Any person that is required to pay prevailing wages on a public project must file a public works bond with the CCB even if the employer doesn't have a CCB license.
If you're paid for any construction activity, you need to register with the Oregon Construction Contractors Board. To check if a contractor holds a license in Oregon, call (503) 378-4621.
Search for an Electrician or Plumber in Oregon
List of Licensed Asbestos Abatement Contractors
Oregon's Contractor Licensing Policy
To check if a contractor is licensed
DUTIES OF CONTRACTORS
Certified Payroll Reports
Every contractor and subcontractor on a covered project must file certified payroll records (WH-38) with the public agency associated with the project. Contractors and subcontractors must complete a certified payroll statement for each week a worker is employed on a public works project. These certified payroll statements must be submitted once a month, by the fifth business day of the following month, to the public agency. ORS 279C.845; OAR 839-025-0010
Every contractor and subcontractor on a covered project must file certified payroll records (WH-38) with the public agency associated with the project. Contractors and subcontractors must complete a certified payroll statement for each week a worker is employed on a public works project. These certified payroll statements must be submitted once a month, by the fifth business day of the following month, to the public agency. ORS 279C.845; OAR 839-025-0010
Failure to file certified payrolls
The PWR law requires prime contractors to withhold 25 percent of any amount earned by a first-tier subcontractor if the subcontractor does not turn in its certified payroll reports each month. Once the certified payroll reports have been submitted, the prime contractor must pay the 25 percent withheld within 14 days. ORS 279C.845(8); OAR 839-025-0010(6) Contractors should also be sure to review the certified payroll reports and oversee the job site to confirm that subcontractors are properly classifying and paying their workers.
Retaining records
All contractors and subcontractors who work on public works projects must maintain records showing that the appropriate prevailing rate of wage and overtime rate has been paid to all workers. These records must be kept for a minimum of three years from the completion of work on public works project. OAR 839-025-0025
Examples of records that must be maintained are:
1) Certified payroll reports
2) Name and address of each employee
3) Work classifications of each employee
4) The rates of wages and fringe benefits paid to each employee
5) Daily and weekly hours worked by each employee
6) Total daily and weekly compensation paid to each employee
7) All withholdings and deductions taken from each employee’s pay
8) Any and all payroll records pertaining to the employees working on the public works project
9) All apprenticeship and training agreements
Employees working multiple classifications
In this case, the contractor or subcontractor must carefully track how much time is spent doing each type of work. Contractors and subcontractors must pay employees the applicable prevailing rate for the hours they spend in each work classification. If the contractor’s records do not clearly show the time spent in each classification, the contractor must pay the worker at the highest classification rate for all hours worked.
PENALTIES
If a contractor or subcontractor does not fulfill obligations under the PWR law, there are a number of possible consequences:
Unpaid Prevailing Wages
Any contractor or subcontractor failing to pay prevailing wages as required is liable for the amount of underpayment. ORS 279C.855(1); OAR 839-025-0080(1)
Liquidated Damages
Contractors and subcontractors may also be liable for liquidated damages equal to the amount of unpaid wages. For example, if a contractor or subcontractor underpaid an employee by $1,500, the contractor, subcontractor or surety thereof is responsible for the unpaid wages plus an equal amount in liquidated damages for a total of $3,000. The liquidated damages are twice the amount of unpaid overtime wages if payroll records have been falsified. ORS 279C.855(1), ORS 279C.540(9), OAR 839-025-0080(2) and (3)
Prime Contractor Liability for the Violations of a Subcontractor
If a subcontractor fails to pay prevailing wages, any employee may file a claim against the prime contractor’s bond. The prime contractor may be responsible for any underpayment of the subcontractor’s employees. ORS 279C.855(2)
Civil Penalties
BOLI may impose civil penalties against contractors and subcontractors for any violation of the prevailing wage statutes or administrative rules, even if there was no underpayment of wages. Such violations include failing to respond to a wage survey, failing to file a public works bond with the CCB, failing to post required information at the job site or failing to file certified payroll reports. BOLI may impose penalties up to $5,000 per violation. If violations are ongoing, each day counts as a separate violation. ORS 279C.865; OAR 839-025-0500 et seq.
BOLI considers many factors when imposing civil penalties, including:
1) Previous or repeated violations.
2) The severity of the violations.
3) The amount of underpayment of wages, if any.
4) Whether the contractor or subcontractor knew, or should have known, about the violations.
5) How difficult it would have been for the contractor or subcontractor to comply.
6) The contractor’s/subcontractor’s response to the violations.
It is important for contractors and subcontractors to cooperate with investigations and correct any violations as quickly as possible to reduce any civil penalties that the bureau may impose.
Warning Letters
BOLI may send warning letters to contractors and subcontractors who have violated the PWR law. BOLI imposes significantly higher penalties against contractors and subcontractors who commit violations after receiving a warning letter, up to and including assessing maximum civil penalties and debarment.
DEBARMENT
For willfully violating the PWR law, BOLI may debar a contractor or subcontractor from receiving public contracts (except for federal contracts) in Oregon for up to three years. The bureau may also personally debar the officers of a debarred corporation or limited liability company. BOLI may debar a subcontractor, even if the violation was not willful, if the subcontractor did not pay prevailing wages to workers and the prime contractor had to pay them. BOLI maintains a list of debarred contractors, referred to as the “List of Ineligibles.” This list is included in each published rate book and is available on the BOLI website. ORS 279C.860; OAR 839-025-0085; OAR 839-025-0090
HELPFUL LINKS
Oregon Revised Statutes—Chapter 279C (public works)
Administrative rules
2015 Prevailing Wage Rate Book
2014 PWR Law Handbook
Prevailing Wage Unit webpage
Prevailing wages—FAQ
Prevailing wage rates
How to determine the correct rate of pay
Definitions of covered occupations
Process of revisions of occupational definitions
PWR Complaint Form (ENGLISH)
PWR Complaint Form (SPANISH)
Wage Claim Form (ENGLISH)
Wage Claim Form (SPANISH)
How to request a coverage determination
2015 Coverage Determinations
List of Debarred Contractors
Occupational wage surveys
Prevailing wage advisory committee
Calculating benefit contributions
CONTACT INFORMATION
State of Oregon, Wage and Hour Division
Prevailing Wage Rate Unit
800 NE Oregon St., Suite 1045
Portland, OR 97232
Phone: (917) 673-0761
Fax: (971) 673-0769
Email: [email protected]
Susan K. Wooley
State of Oregon, Wage and Hour Division
PWR Technical Assistance Coordinator
800 NE Oregon Street, Suite 1045
Portland, OR 97232
Phone: 971-673-0853
Fax: 971-673-2372
Susan K. Wooley's Email
Regional offices:
Eugene
1400 Executive Pkwy, Suite 200
Eugene, OR 97401
Salem
3865 Wolverine Ave. NE
Building E, Suite 1
Salem, OR 97305-1268
Apprenticeship Division ONLY:
Bend
1645 NE Forbes Rd., Suite 106
Bend, OR 97701
Medford
119 N. Oakdale Ave.
Medford, OR 97501
Oregon passed its prevailing wage rate (PWR) law, sometimes referred to as the "Little Davis-Bacon Act," in 1959. As the nickname implies, the Act is modeled after the federal "Davis-Bacon" prevailing wage laws. Today, Oregon continues to update and refine its PWR law to reflect changes in the industry and to make it more like its federal counterpart.
Oregon's lawmakers designed PWR law (ORS 279C.800 et seq.) to ensure that contractors compete on their ability to perform work competently and efficiently while maintaining community established compensation standards, to encourage the training and education of workers in industry skill standards and to encourage employers to use the funds required by the PWR law for fringe benefits for the actual purchase of such benefits. ORS 279C.805.
The Bureau of Labor and Industries (BOLI) is responsible for administering and enforcing the PWR law and for educating contractors, subcontractors, and public agencies about its requirements.
THRESHOLD
According to Oregon prevailing wage law, the threshold requirement for payment of prevailing wages on public works projects is $50,000.
TIMING OF WAGE DETERMINATIONS
In January and July of each year, the Oregon Bureau of Labor and Industries (BOLI) publishes the prevailing wage rates that are required to be paid to workers on non-residential public works projects in the state of Oregon.
Access Oregon's Prevailing Wage Rates
INCREASES
In Oregon, the prevailing wage rates are established using the information from a construction industry survey Using the survey information, BOLI publishes new rate books on January 1st and July 1st each year, but the rates don't always change from book to book for every classification. It will depend on the survey responses. Additionally, amendments are published on April 1st and October 1st each year. These are generally for rate changes to just a few classifications.
OVERTIME
Under ORS 279C.540, contractors and subcontractors must pay overtime wages. Workers must be paid at least time and one-half the hourly rate of pay, excluding fringe benefits, for all hours worked at the following times:
1) On Saturdays;
2) On the following legal holidays:
a. Each Sunday
b. New Year's Day on January 1
c. Memorial Day on the last Monday in May
d. Independence Day on July 4
e. Labor Day on the first Monday in September
f. Thanksgiving Day on the fourth Thursday in November
g. Christmas Day on December 25
3) Over 40 hours in a week; and either
4) Over eight (8) hours in a day OR Over 10 hours in a day provided the employer has established a work schedule of four consecutive days (Monday through Thursday or Tuesday through Friday) pursuant to OAR 839-025-0034 and the employer operates in accordance with this established work schedule.
Worker performs one or more classifications
Where a worker performs work in one or more classifications that provide for one or more hourly rates of pay the worker must be paid, in addition to the straight time hourly earnings for all hours worked, a sum determined by multiplying one half the weighted average of the hourly rates by the number of overtime hours worked pursuant to subsection (a) of this rule.
Calculation of overtime rate
The overtime rate is 1.5 times the hourly base rate, plus the hourly fringe rate. Although the fringe rate does not have to be paid at time and one half, it must be paid for all hours worked, including overtime hours. Overtime should be paid using the following equation:
- (hourly base rate x 1.5) + hourly fringe rate
If hourly zone pay is due, that amount is added to the base rate, and the following equation should be used:
- ((hourly base rate + hourly zone pay) x 1.5) + hourly fringe rate
If an employee earns more than one base rate of pay for the day/week, then the daily/weekly overtime owed, in addition to the regular straight time wages, is based on a weighted average of the hourly base rates earned. OAR 839-025-0050(2)(b).
4/10 Schedule
According to Oregon law, if an employee works an established schedule of four ten-hour days on a prevailing wage rate covered project, overtime may not be due until after ten hours per day. To have an established “four-ten” schedule, the four days of work must be consecutive and must fall within Monday and Friday. Therefore, an employee could work a four-ten schedule of either Monday through Thursday or Tuesday through Friday. ORS 279C.540; OAR 839-025-0050
The consecutive four days chosen for an established four-ten schedule may not be changed on a week-by-week basis. If an established four-ten schedule is not followed because of weather, scheduling, or for any other reason, overtime will be owed for all hours worked over eight per day that week. An employer may change an established work schedule, but only if the change is intended to be permanent and is not designed to evade the PWR overtime requirements. OAR 839-025-0034
Overtime payment for off-site work
Ordinarily an employer is only required to pay a worker at the prevailing rate of wage for work performed on the “site of work” as defined by law. Nevertheless, the daily, weekend or holiday overtime requirements of ORS 279C.540 is specific to any labor employed by the state or a county, school district, municipality, municipal corporation or subdivision thereof through a contractor – not just public works. If off-site work is being done in fulfillment of a contract between a contractor and a public agency, the daily, weekend or holiday overtime requirements apply.
WORKING ON WEEKENDS
Regardless of the work schedule an employer establishes on a PWR covered project, workers must be paid overtime for all hours worked on Saturdays and Sundays. If one of the legal holidays falls on a Saturday or Sunday, the preceding Friday or following Monday becomes the recognized holiday and all hours worked on that day on a PWR covered project must be paid at an overtime rate. ORS 279C.540; OAR 839-025-0050
WORKING ON LEGAL HOLIDAYS
Overtime must be paid for working on six legal holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day), and for hours worked over 40 in a week. If one of the legal holidays falls on a Saturday or Sunday, the preceding Friday or following Monday becomes the recognized holiday and all hours worked on that day on a PWR covered project must be paid at an overtime rate. ORS 279C.540; OAR 839-025-0050
SHIFT DIFFERENTIALS
Oregon prevailing wage law does not mandate payment of different wage for working different trades depending on the shift worked throughout a day.
FRINGE BENEFITS
Each prevailing wage rate is made up of an hourly base rate plus an hourly fringe rate. Employers may pay the hourly fringe benefit portion of the wage directly to the workers as wages, and/or may claim credit for “bona fide” fringe benefits they provide to their employees. Oregon’s PWR law and the federal Davis-Bacon Act are similar regarding fringe benefits. The employer’s contribution must be made for the benefit of the employee, must not be required by law, and must be made on a regular and at least quarterly basis. ORS 279C.800(1); OAR 839-025-0004(8) OAR 839-025-0043
Bona fide employee fringe benefit
The fringe benefit plan must meet all of the following requirements:
1) Contributions must be made regularly and at least on a quarterly basis
2) Contributions made for prevailing wage work may not be used to fund the plan or program for periods of non-prevailing wage rate work.
3) Contributions must not be required by law (such as taxes, workers’ compensation, etc.)
4) Contributions must be irrevocable and for the employee’s benefit.
Plans that provide for delayed vesting or have eligibility requirements are “bona fide” if they meet the other requirements. Safety training, drug testing, state industry council contributions, trade promotion funds, equipment costs, travel pay, per diem payments and workers’ compensation insurance do not qualify as fringe benefits. ORS 279C.800(1); OAR 839-025-0004(8).
Examples of “bona fide” fringe benefits include:
1) Health and welfare plans
2) Vacation plans
3) Pension plans, in some cases
4) Apprenticeship training
Employers may take a credit for such benefits as vacation, sick and holiday pay IF the plan meets several requirements:
1) The plan must actually provide a benefit to the employees
2) The benefit must represent a commitment that can be legally enforced
3) The benefit must be carried out under a financially responsible plan or program
4) The plan or program providing the benefit must be communicated in writing to the employees
5) The benefit plan or program is not required by law
TRAINING CONTRIBUTION
Oregon prevailing wage laws do not require employers to have apprentices and trainees. If a contractor has a bone fide apprentice, it's possible that the requirements of the apprenticeship program are such that the employer must pay for some costs associated with that program.
APPRENTICE REQUIREMENTS
Bona fide apprentices and trainees may be paid a percentage of the hourly base prevailing wage rate according to the term in which the apprentice or trainee is working in the program. To be a bona fide apprentice or trainee:
1) The apprentice or trainee must be registered with either BOLI’s Apprenticeship and Training Division or the Federal Bureau of Apprenticeship and Training;
2) The apprentice or trainee must be performing work within his or her trade;
3) The apprentice or trainee must be working in the current ratio to the number of journey workers on the project as specified in the program standards; and
4) The employer must be a registered training agent.
The applicable pay rate percentage to be paid to an apprentice is based on the program standards in which the apprentice is registered. OAR 839-025-0004(1), (28) and (29); OAR 839-025-0035(9) and (10); OAR 839-025-0060; OAR 839-025-0065
TRAVEL AND SUBSISTENCE
Oregon prevailing wage laws do not requirement payment for subsistence.
Travel Time Laws
CONTRACTOR LICENSING
The prevailing wage law doesn't have any licensing requirements for contractors. Any person that is required to pay prevailing wages on a public project must file a public works bond with the CCB even if the employer doesn't have a CCB license.
If you're paid for any construction activity, you need to register with the Oregon Construction Contractors Board. To check if a contractor holds a license in Oregon, call (503) 378-4621.
Search for an Electrician or Plumber in Oregon
List of Licensed Asbestos Abatement Contractors
Oregon's Contractor Licensing Policy
To check if a contractor is licensed
DUTIES OF CONTRACTORS
Certified Payroll Reports
Every contractor and subcontractor on a covered project must file certified payroll records (WH-38) with the public agency associated with the project. Contractors and subcontractors must complete a certified payroll statement for each week a worker is employed on a public works project. These certified payroll statements must be submitted once a month, by the fifth business day of the following month, to the public agency. ORS 279C.845; OAR 839-025-0010
Every contractor and subcontractor on a covered project must file certified payroll records (WH-38) with the public agency associated with the project. Contractors and subcontractors must complete a certified payroll statement for each week a worker is employed on a public works project. These certified payroll statements must be submitted once a month, by the fifth business day of the following month, to the public agency. ORS 279C.845; OAR 839-025-0010
Failure to file certified payrolls
The PWR law requires prime contractors to withhold 25 percent of any amount earned by a first-tier subcontractor if the subcontractor does not turn in its certified payroll reports each month. Once the certified payroll reports have been submitted, the prime contractor must pay the 25 percent withheld within 14 days. ORS 279C.845(8); OAR 839-025-0010(6) Contractors should also be sure to review the certified payroll reports and oversee the job site to confirm that subcontractors are properly classifying and paying their workers.
Retaining records
All contractors and subcontractors who work on public works projects must maintain records showing that the appropriate prevailing rate of wage and overtime rate has been paid to all workers. These records must be kept for a minimum of three years from the completion of work on public works project. OAR 839-025-0025
Examples of records that must be maintained are:
1) Certified payroll reports
2) Name and address of each employee
3) Work classifications of each employee
4) The rates of wages and fringe benefits paid to each employee
5) Daily and weekly hours worked by each employee
6) Total daily and weekly compensation paid to each employee
7) All withholdings and deductions taken from each employee’s pay
8) Any and all payroll records pertaining to the employees working on the public works project
9) All apprenticeship and training agreements
Employees working multiple classifications
In this case, the contractor or subcontractor must carefully track how much time is spent doing each type of work. Contractors and subcontractors must pay employees the applicable prevailing rate for the hours they spend in each work classification. If the contractor’s records do not clearly show the time spent in each classification, the contractor must pay the worker at the highest classification rate for all hours worked.
PENALTIES
If a contractor or subcontractor does not fulfill obligations under the PWR law, there are a number of possible consequences:
Unpaid Prevailing Wages
Any contractor or subcontractor failing to pay prevailing wages as required is liable for the amount of underpayment. ORS 279C.855(1); OAR 839-025-0080(1)
Liquidated Damages
Contractors and subcontractors may also be liable for liquidated damages equal to the amount of unpaid wages. For example, if a contractor or subcontractor underpaid an employee by $1,500, the contractor, subcontractor or surety thereof is responsible for the unpaid wages plus an equal amount in liquidated damages for a total of $3,000. The liquidated damages are twice the amount of unpaid overtime wages if payroll records have been falsified. ORS 279C.855(1), ORS 279C.540(9), OAR 839-025-0080(2) and (3)
Prime Contractor Liability for the Violations of a Subcontractor
If a subcontractor fails to pay prevailing wages, any employee may file a claim against the prime contractor’s bond. The prime contractor may be responsible for any underpayment of the subcontractor’s employees. ORS 279C.855(2)
Civil Penalties
BOLI may impose civil penalties against contractors and subcontractors for any violation of the prevailing wage statutes or administrative rules, even if there was no underpayment of wages. Such violations include failing to respond to a wage survey, failing to file a public works bond with the CCB, failing to post required information at the job site or failing to file certified payroll reports. BOLI may impose penalties up to $5,000 per violation. If violations are ongoing, each day counts as a separate violation. ORS 279C.865; OAR 839-025-0500 et seq.
BOLI considers many factors when imposing civil penalties, including:
1) Previous or repeated violations.
2) The severity of the violations.
3) The amount of underpayment of wages, if any.
4) Whether the contractor or subcontractor knew, or should have known, about the violations.
5) How difficult it would have been for the contractor or subcontractor to comply.
6) The contractor’s/subcontractor’s response to the violations.
It is important for contractors and subcontractors to cooperate with investigations and correct any violations as quickly as possible to reduce any civil penalties that the bureau may impose.
Warning Letters
BOLI may send warning letters to contractors and subcontractors who have violated the PWR law. BOLI imposes significantly higher penalties against contractors and subcontractors who commit violations after receiving a warning letter, up to and including assessing maximum civil penalties and debarment.
DEBARMENT
For willfully violating the PWR law, BOLI may debar a contractor or subcontractor from receiving public contracts (except for federal contracts) in Oregon for up to three years. The bureau may also personally debar the officers of a debarred corporation or limited liability company. BOLI may debar a subcontractor, even if the violation was not willful, if the subcontractor did not pay prevailing wages to workers and the prime contractor had to pay them. BOLI maintains a list of debarred contractors, referred to as the “List of Ineligibles.” This list is included in each published rate book and is available on the BOLI website. ORS 279C.860; OAR 839-025-0085; OAR 839-025-0090
HELPFUL LINKS
Oregon Revised Statutes—Chapter 279C (public works)
Administrative rules
2015 Prevailing Wage Rate Book
2014 PWR Law Handbook
Prevailing Wage Unit webpage
Prevailing wages—FAQ
Prevailing wage rates
How to determine the correct rate of pay
Definitions of covered occupations
Process of revisions of occupational definitions
PWR Complaint Form (ENGLISH)
PWR Complaint Form (SPANISH)
Wage Claim Form (ENGLISH)
Wage Claim Form (SPANISH)
How to request a coverage determination
2015 Coverage Determinations
List of Debarred Contractors
Occupational wage surveys
Prevailing wage advisory committee
Calculating benefit contributions
CONTACT INFORMATION
State of Oregon, Wage and Hour Division
Prevailing Wage Rate Unit
800 NE Oregon St., Suite 1045
Portland, OR 97232
Phone: (917) 673-0761
Fax: (971) 673-0769
Email: [email protected]
Susan K. Wooley
State of Oregon, Wage and Hour Division
PWR Technical Assistance Coordinator
800 NE Oregon Street, Suite 1045
Portland, OR 97232
Phone: 971-673-0853
Fax: 971-673-2372
Susan K. Wooley's Email
Regional offices:
Eugene
1400 Executive Pkwy, Suite 200
Eugene, OR 97401
Salem
3865 Wolverine Ave. NE
Building E, Suite 1
Salem, OR 97305-1268
Apprenticeship Division ONLY:
Bend
1645 NE Forbes Rd., Suite 106
Bend, OR 97701
Medford
119 N. Oakdale Ave.
Medford, OR 97501
