Texas Prevailing Wage Information
GENERAL INFORAMTION
Texas adopted a prevailing wage statute in 1933 that was titled Vernon’s Civil Statutes 5159a and then amended and re-codified in 1995 to Texas Government Code Chapter 2258 (Prevailing Wage Rates). Chapter 2258 was amended by HB 2625 in the 80th Legislative Session in 2007. The Legislature removed language that restricted political subdivisions in the state from adopting or using the Federal Davis/Bacon Wage Determinations, if the publication of that survey was over three (3) old. Effective September 1, 2007, all political subdivisions in the State of Texas may adopt the Federal Davis/Bacon Wage Determinations and subsequent modifications without having to spend taxpayer dollars to conduct new wage surveys. To date, Texas has a total of 255 counties and each political subdivision within these counties has a choice to adopt Davis-Bacon or Chapter 2258 regulations. Each subdivision that adopts Chapter 2258 is in charge of enforcing the regulation.
The cities that have adopted Davis/Bacon for their local political subdivisions are:
1) Austin
2) Baytown
3) Houston
4) Houston Airports
5) Lubbock
6) Pasadena
7) Texas City
8) Galveston County
9) Galveston County College of Mainland
10) Harris County
11) Harris County Hospital District
12) Metropolitan Transportation Authority of Harris County
13) Texas Facilities Commission
THRESHOLD
The Texas prevailing wage statute does not require a minimum monetary threshold amount that must be met for prevailing wages to apply to public works construction projects.
TIMING OF WAGE DETERMINATIONS & INCREASES
Texas does not publish annual prevailing wage determinations. The prevailing wage is determined by using a survey of wages paid for similar work in the locality, or by using the rate determined by the U.S. DOL to be the prevailing wage under the Davis/Bacon Act.
OVERTIME
Texas does not have different daily overtime laws per trade. An employee that works any hours in excess of forty hours per week or eight hours per day must receive overtime compensation at a rate of time and a half of the base rate.
WORKING ON THE WEEKENDS
Texas prevailing wage law does not maintain different rates for working on the weekend. Any hours worked in excess of forty hours per week are compensated at time and one-half.
WORKING ON LEGAL HOLIDAYS
Texas Prevailing Wage Law does not compensate employees for working on legal holidays.
SHIFT DIFFERENTIALS
Prevailing wage determinations used in any federal, state, county, school district, university system, or other public entity does not establish different rates based on the shift worked. However, Collective Bargaining Agreements that work on public projects do have different prevailing wages based on shift worked. In other words, the Texas state law only sets standards to the minimum rate each craft can be paid. The company that is awarded the contract can pay more if the CBA wage and fringes are higher (including shift work premiums if included in the CBA also).
FRINGE BENEFITS
Under Texas prevailing wage law, “prevailing wage” means a base hourly wage rate plus fringe benefits. Examples of “fringe benefits” include the following: 1) life insurance; 2) health insurance; 3) pension; 4) vacation; 5) holidays; 6) sick leave.
*Please Note—the following are not fringe benefits—use of a truck; Thanksgiving turkey; Christmas bonus; periodic bonus; or any benefit required by federal/state law (e.g., workers’ compensation, unemployment compensation, social security compensations).
TRAINING CONTRIBUTION
Texas prevailing wage law does not provide training contribution to contractors or subcontractors.
APPRENTICE REQUIREMENTS
According to Texas state law, to be an apprentice, the employee must be registered under a bona fide apprentice program.
TRAVEL & SUBSISTENCE
Travel time on a government-contract prevailing wage job must be paid at the prevailing wage rate associated with that particular job. Travel time on a job not covered by prevailing wage laws may be by agreement, (i.e., either at the regular hourly rate of pay, or at a different rate in which case the weighted-average method of computing overtime pay would be used for any overtime arising from such work).
CONTRACTOR LICENSING
The Texas Department of Licensing and Texas Board of Plumbing Examiners oversee that licensing requirements are met.
Only specialty contractors, including HVAC, fire sprinkler systems, plumbing, electricians, elevators and well drilling/pump installation specialists, need to be licensed in Texas. Home builders are not licensed, but are required to register with the state.
Licensed Individuals Online at Texas's Contractor Licensing Policy
REQUIRED AND OPTIONAL POSTERS
Workplace compliance posters required to be displayed can vary from one employer to another. Posters can be printed free of charge directly from links on this page or by following links to the U.S. Department of Labor.
All Texas employers must display posters containing information on the Texas Payday Law, the Workers' Compensation Program, the Uniformed Services Employment and Reemployment Rights Act, the Fair Labor Standards Act, the Employee Polygraph Protection Act, and the Occupational Safety and Health Act. Employers liable under the Texas Unemployment Compensation Act must display a poster that includes information about both unemployment compensation and the Texas Payday Law. Also, every employer with 15 or more employees, and smaller employers with federal grants and contracts, must post the notice entitled "Equal Employment Opportunity Is the Law," which contains information about the Equal Employment Opportunity/Americans with Disabilities Act laws.
Employers do not need to purchase required posters from private vendors. Government-issued compliance posters do not have to be laminated to satisfy an employer's regulatory obligation.
Employers needing additional information about which posters they need to display can call TWC's Labor Law unit at 800-832-9243 or 512-475-2670.
Guidelines for required posters:
1) Comprehensive information and links to required posters (all free of charge) are found at http://www.twc.state.tx.us/ui/lablaw/posters.html.
2) Posters should be displayed in such a way that each employee can readily see them (generally, the requirements have language such as "conspicuously placed" and "readily accessible" to employees). That would mean that employees who do not normally get to certain offices would not be served by posters displayed at those offices. The offices, or sub-offices, where those employees normally congregate would need to have the posters displayed for the benefit of the employees who are served by each such location.
3) Posters and other kinds of required notices do not have to be placed in individual locations that are only temporary worksites. Example: construction workers building homes in a subdivision would not need to have posters in each house, but rather only in a company jobsite trailer for the project.
4) In case of a co-employment situation, such as temporary employees assigned to client companies, the employees working at client sites are co-employed by the staffing firms and their clients under various state and federal employment laws. The notice statutes merely require the posters to be in the workplace. The enforcing agencies do not care who actually places the notices where the employees work, as long as the posters are up and visible to the employees. Thus, as long as the client companies have the applicable notices properly posted, their compliance with the notice requirements inures to the staffing firm's benefit. By the same token, if the clients do not have the notices posted, the staffing firm would be co-liable with them for non-compliance with the laws. Bottom line: the staffing firm needs to determine whether the appropriate notices are posted in the clients' locations, and if they are not posted, cooperate with its clients to get the posters displayed.
5) In a virtual office situation, where the company does not maintain a physical location where employees normally congregate, assemble, or show up for work-related purposes, post copies of the posters on the company's web site section restricted to staff and send an e-mail, "read receipt requested", to all affected employees listing and identifying the posters, complete with links to the posters on the web site, and reminding the employees that the posters are there for their benefit and that they should keep the e-mail archived so that they can easily find the links to the posters if needed.
REQUIRED POSTERS
Payday Law
All Texas employers subject to Texas Payday Law must display a poster prominently in the workplace. Texas employers that are not liable under the Texas Unemployment Compensation Act, but subject to the Texas Payday Law, must display the Texas Payday Poster. If you cannot retrieve the poster from the links below, please contact the TWC Labor Law unit at (800) 832-9243 or (512) 475-2670.
Texas Payday Law (English)
Texas Payday Law (Spanish)
Unemployment Compensation
Businesses whose employees are entitled to file for state unemployment benefits AND are covered by the Texas Payday Law should request the poster that combines both laws.
To request poster online using unemployment tax service
Contact local TWC tax office
Phone: (512) 463-2747
Fax: (512) 936-3205
*Note—when requesting by fax, please include you TWC account number, your mailing address, and the number of printed posters you need in English and Spanish.
Workers Compensation
Texas Department of Insurance provides Workers’ Compensation Employer Forms and Notices: http://www.tdi.texas.gov/forms/form20employer.html
Workers’ Compensation Posters (English and Spanish):
Notice 5 English
Notice 5 Spanish
Notice 6 English
Notice 6 Spanish
Employer’s Notice of Ombudsman Program:
All employers participating in the workers’ compensation system must post notice of the Office of Injured Employees Counsel (OIEC) Ombudsman Counsel. This notice must be posted in the HR Office (if the employer has one) AND in the workplace where each employee is likely to see the notice on a regular basis
English
Spanish
Required Workers Compensation Coverage (Notice 8)
Government entities have posting requirements for building/construction projects
English
Spanish
Earned Income Tax Credit
Texas employers must notify their employees of the federal Earned Income Tax Credit (EITC) no later than March 1 of each year. The IRS provides EITC materials including posters
EITC
EITC materials
Optional Posters
Equal Employment Opportunity
Information on Equal Employment Opportunity laws in Texas as regulated by the TWC’s Civil Rights Division.
Link to EEO poster
Child labor laws in Texas
Poster states Child Labor laws in Texas as regulated by the TWC’s Civil Rights Division.
Child Labor Law in Texas Poster (English)
Child Labor Law in Texas Poster (Spanish)
Federal Required Posters
The U.S. Department of Labor (DOL) publishes information for employers on federally required workplace posters and other notices. See Workplace Poster Requirements for Small Businesses and Other Employers for details.
Some of the statutes and regulations enforced by agencies within the Department of Labor require that posters or notices be posted in the workplace. DOL provides electronic copies of the required posters and some of the posters are available in languages other than English.
To obtain posters or for more information about poster requirements or other compliance assistance matters, you may contact the U.S. Department of Labor at 866-4-USA-DOL (866-487-2365).
Posters for Public Employers
Public employers, including Workforce Solutions Offices, may be required to display additional posters.
1) You Have the Right to Not Remain Silent
The Texas law known as the Whistleblower Act prohibits retaliation against public employees who report official wrongdoing. A state or local governmental entity must inform its employees of their rights under this chapter by posting the notice in a prominent location in the workplace.
2) Texas Hazard Communication Act
The Texas Hazard Communication Act requires public employers to provide employees with specific information on the hazards of chemicals to which employees may be exposed in the workplace.
3) Job Service Complaint System
The U.S. Department of Labor Employment and Training Administration (ETA) requires state workforce agencies, including Texas Workforce Solutions offices, to display an ETA-approved Job Service Complaint System poster.
PENALTIES
Failure to pay correct prevailing wages
A contractor or subcontractor who violates Chapter 2258 of the Texas Government Code must pay to the City, $60 per each worker employed for each calendar day or part of the day that the worker is paid less than the wage rates.
Failure to maintain correct payrolls
The contractor will be penalized $60.00 a day for each employee who is underpaid per Texas Government Code 2258-023 for all contracts except Federally Funded Contract if he or she fails to maintain correct certified payrolls.
Criminal Offenses
A contractor or subcontractor of a public work or an agent or representative of the contractor or subcontractor that violates Section 2258.058(b) commits a criminal offense. A criminal offense under this section is punishable by: 1) a fine that does not excess $500; or 2) confinement in jail for a term that does not exceed six months; or 3) both a fine and confinement. 2258.058(c).
DEBARMENT
Under Chapter 2258, no debarment provision is established. Moreover, there is no official website that lists debarred employees.
HELPFUL LINKS
TX Prevailing Wage Law (Chapter 2258)
TX statute of contracting and delivering procedures for construction projects in TX including public-private partnerships (Chapter 2267)
Prevailing Wage Issues
Wage deduction authorization agreement
Article
(DOL publishes final rule on the identity protection on certified payroll reports on Davis/Bacon projects--This new rule published in the Federal Register on 12/19/08 becomes effective on 1/18/09 on all future WD-347 certified payroll reports. Under this new rule, the employer only has to submit only the name and the last 4 digits of the social security number of each employee on the WD-347 certified payroll reports)
CONTACT INFORMATION
Michael W. Cunningham
Executive Director & Secretary/Treasurer
Texas Building & Construction Trades Council
1204 San Antonio St., Suite 300-G
Austin, TX 78701-2171
Phone: (512) 472-4111
Fax: (512) 469-9993
Email: [email protected]
Webpage: www.texasbuildingtrades.org
Texas adopted a prevailing wage statute in 1933 that was titled Vernon’s Civil Statutes 5159a and then amended and re-codified in 1995 to Texas Government Code Chapter 2258 (Prevailing Wage Rates). Chapter 2258 was amended by HB 2625 in the 80th Legislative Session in 2007. The Legislature removed language that restricted political subdivisions in the state from adopting or using the Federal Davis/Bacon Wage Determinations, if the publication of that survey was over three (3) old. Effective September 1, 2007, all political subdivisions in the State of Texas may adopt the Federal Davis/Bacon Wage Determinations and subsequent modifications without having to spend taxpayer dollars to conduct new wage surveys. To date, Texas has a total of 255 counties and each political subdivision within these counties has a choice to adopt Davis-Bacon or Chapter 2258 regulations. Each subdivision that adopts Chapter 2258 is in charge of enforcing the regulation.
The cities that have adopted Davis/Bacon for their local political subdivisions are:
1) Austin
2) Baytown
3) Houston
4) Houston Airports
5) Lubbock
6) Pasadena
7) Texas City
8) Galveston County
9) Galveston County College of Mainland
10) Harris County
11) Harris County Hospital District
12) Metropolitan Transportation Authority of Harris County
13) Texas Facilities Commission
THRESHOLD
The Texas prevailing wage statute does not require a minimum monetary threshold amount that must be met for prevailing wages to apply to public works construction projects.
TIMING OF WAGE DETERMINATIONS & INCREASES
Texas does not publish annual prevailing wage determinations. The prevailing wage is determined by using a survey of wages paid for similar work in the locality, or by using the rate determined by the U.S. DOL to be the prevailing wage under the Davis/Bacon Act.
OVERTIME
Texas does not have different daily overtime laws per trade. An employee that works any hours in excess of forty hours per week or eight hours per day must receive overtime compensation at a rate of time and a half of the base rate.
WORKING ON THE WEEKENDS
Texas prevailing wage law does not maintain different rates for working on the weekend. Any hours worked in excess of forty hours per week are compensated at time and one-half.
WORKING ON LEGAL HOLIDAYS
Texas Prevailing Wage Law does not compensate employees for working on legal holidays.
SHIFT DIFFERENTIALS
Prevailing wage determinations used in any federal, state, county, school district, university system, or other public entity does not establish different rates based on the shift worked. However, Collective Bargaining Agreements that work on public projects do have different prevailing wages based on shift worked. In other words, the Texas state law only sets standards to the minimum rate each craft can be paid. The company that is awarded the contract can pay more if the CBA wage and fringes are higher (including shift work premiums if included in the CBA also).
FRINGE BENEFITS
Under Texas prevailing wage law, “prevailing wage” means a base hourly wage rate plus fringe benefits. Examples of “fringe benefits” include the following: 1) life insurance; 2) health insurance; 3) pension; 4) vacation; 5) holidays; 6) sick leave.
*Please Note—the following are not fringe benefits—use of a truck; Thanksgiving turkey; Christmas bonus; periodic bonus; or any benefit required by federal/state law (e.g., workers’ compensation, unemployment compensation, social security compensations).
TRAINING CONTRIBUTION
Texas prevailing wage law does not provide training contribution to contractors or subcontractors.
APPRENTICE REQUIREMENTS
According to Texas state law, to be an apprentice, the employee must be registered under a bona fide apprentice program.
TRAVEL & SUBSISTENCE
Travel time on a government-contract prevailing wage job must be paid at the prevailing wage rate associated with that particular job. Travel time on a job not covered by prevailing wage laws may be by agreement, (i.e., either at the regular hourly rate of pay, or at a different rate in which case the weighted-average method of computing overtime pay would be used for any overtime arising from such work).
CONTRACTOR LICENSING
The Texas Department of Licensing and Texas Board of Plumbing Examiners oversee that licensing requirements are met.
Only specialty contractors, including HVAC, fire sprinkler systems, plumbing, electricians, elevators and well drilling/pump installation specialists, need to be licensed in Texas. Home builders are not licensed, but are required to register with the state.
- To check if a specialty contractor is licensed for HVAC, well drilling and pumping, or industrialized housing in Texas, call (512) 463-6599 or (800) 803-9202.
- To check if a plumber is licensed call (512) 458-2145.
- To check if a contractor is licensed for fire sprinkler systems call (512) 305-7933.
Licensed Individuals Online at Texas's Contractor Licensing Policy
REQUIRED AND OPTIONAL POSTERS
Workplace compliance posters required to be displayed can vary from one employer to another. Posters can be printed free of charge directly from links on this page or by following links to the U.S. Department of Labor.
All Texas employers must display posters containing information on the Texas Payday Law, the Workers' Compensation Program, the Uniformed Services Employment and Reemployment Rights Act, the Fair Labor Standards Act, the Employee Polygraph Protection Act, and the Occupational Safety and Health Act. Employers liable under the Texas Unemployment Compensation Act must display a poster that includes information about both unemployment compensation and the Texas Payday Law. Also, every employer with 15 or more employees, and smaller employers with federal grants and contracts, must post the notice entitled "Equal Employment Opportunity Is the Law," which contains information about the Equal Employment Opportunity/Americans with Disabilities Act laws.
Employers do not need to purchase required posters from private vendors. Government-issued compliance posters do not have to be laminated to satisfy an employer's regulatory obligation.
Employers needing additional information about which posters they need to display can call TWC's Labor Law unit at 800-832-9243 or 512-475-2670.
Guidelines for required posters:
1) Comprehensive information and links to required posters (all free of charge) are found at http://www.twc.state.tx.us/ui/lablaw/posters.html.
2) Posters should be displayed in such a way that each employee can readily see them (generally, the requirements have language such as "conspicuously placed" and "readily accessible" to employees). That would mean that employees who do not normally get to certain offices would not be served by posters displayed at those offices. The offices, or sub-offices, where those employees normally congregate would need to have the posters displayed for the benefit of the employees who are served by each such location.
3) Posters and other kinds of required notices do not have to be placed in individual locations that are only temporary worksites. Example: construction workers building homes in a subdivision would not need to have posters in each house, but rather only in a company jobsite trailer for the project.
4) In case of a co-employment situation, such as temporary employees assigned to client companies, the employees working at client sites are co-employed by the staffing firms and their clients under various state and federal employment laws. The notice statutes merely require the posters to be in the workplace. The enforcing agencies do not care who actually places the notices where the employees work, as long as the posters are up and visible to the employees. Thus, as long as the client companies have the applicable notices properly posted, their compliance with the notice requirements inures to the staffing firm's benefit. By the same token, if the clients do not have the notices posted, the staffing firm would be co-liable with them for non-compliance with the laws. Bottom line: the staffing firm needs to determine whether the appropriate notices are posted in the clients' locations, and if they are not posted, cooperate with its clients to get the posters displayed.
5) In a virtual office situation, where the company does not maintain a physical location where employees normally congregate, assemble, or show up for work-related purposes, post copies of the posters on the company's web site section restricted to staff and send an e-mail, "read receipt requested", to all affected employees listing and identifying the posters, complete with links to the posters on the web site, and reminding the employees that the posters are there for their benefit and that they should keep the e-mail archived so that they can easily find the links to the posters if needed.
REQUIRED POSTERS
Payday Law
All Texas employers subject to Texas Payday Law must display a poster prominently in the workplace. Texas employers that are not liable under the Texas Unemployment Compensation Act, but subject to the Texas Payday Law, must display the Texas Payday Poster. If you cannot retrieve the poster from the links below, please contact the TWC Labor Law unit at (800) 832-9243 or (512) 475-2670.
Texas Payday Law (English)
Texas Payday Law (Spanish)
Unemployment Compensation
Businesses whose employees are entitled to file for state unemployment benefits AND are covered by the Texas Payday Law should request the poster that combines both laws.
To request poster online using unemployment tax service
Contact local TWC tax office
Phone: (512) 463-2747
Fax: (512) 936-3205
*Note—when requesting by fax, please include you TWC account number, your mailing address, and the number of printed posters you need in English and Spanish.
Workers Compensation
Texas Department of Insurance provides Workers’ Compensation Employer Forms and Notices: http://www.tdi.texas.gov/forms/form20employer.html
Workers’ Compensation Posters (English and Spanish):
Notice 5 English
Notice 5 Spanish
Notice 6 English
Notice 6 Spanish
Employer’s Notice of Ombudsman Program:
All employers participating in the workers’ compensation system must post notice of the Office of Injured Employees Counsel (OIEC) Ombudsman Counsel. This notice must be posted in the HR Office (if the employer has one) AND in the workplace where each employee is likely to see the notice on a regular basis
English
Spanish
Required Workers Compensation Coverage (Notice 8)
Government entities have posting requirements for building/construction projects
English
Spanish
Earned Income Tax Credit
Texas employers must notify their employees of the federal Earned Income Tax Credit (EITC) no later than March 1 of each year. The IRS provides EITC materials including posters
EITC
EITC materials
Optional Posters
Equal Employment Opportunity
Information on Equal Employment Opportunity laws in Texas as regulated by the TWC’s Civil Rights Division.
Link to EEO poster
Child labor laws in Texas
Poster states Child Labor laws in Texas as regulated by the TWC’s Civil Rights Division.
Child Labor Law in Texas Poster (English)
Child Labor Law in Texas Poster (Spanish)
Federal Required Posters
The U.S. Department of Labor (DOL) publishes information for employers on federally required workplace posters and other notices. See Workplace Poster Requirements for Small Businesses and Other Employers for details.
Some of the statutes and regulations enforced by agencies within the Department of Labor require that posters or notices be posted in the workplace. DOL provides electronic copies of the required posters and some of the posters are available in languages other than English.
To obtain posters or for more information about poster requirements or other compliance assistance matters, you may contact the U.S. Department of Labor at 866-4-USA-DOL (866-487-2365).
Posters for Public Employers
Public employers, including Workforce Solutions Offices, may be required to display additional posters.
1) You Have the Right to Not Remain Silent
The Texas law known as the Whistleblower Act prohibits retaliation against public employees who report official wrongdoing. A state or local governmental entity must inform its employees of their rights under this chapter by posting the notice in a prominent location in the workplace.
2) Texas Hazard Communication Act
The Texas Hazard Communication Act requires public employers to provide employees with specific information on the hazards of chemicals to which employees may be exposed in the workplace.
3) Job Service Complaint System
The U.S. Department of Labor Employment and Training Administration (ETA) requires state workforce agencies, including Texas Workforce Solutions offices, to display an ETA-approved Job Service Complaint System poster.
PENALTIES
Failure to pay correct prevailing wages
A contractor or subcontractor who violates Chapter 2258 of the Texas Government Code must pay to the City, $60 per each worker employed for each calendar day or part of the day that the worker is paid less than the wage rates.
Failure to maintain correct payrolls
The contractor will be penalized $60.00 a day for each employee who is underpaid per Texas Government Code 2258-023 for all contracts except Federally Funded Contract if he or she fails to maintain correct certified payrolls.
Criminal Offenses
A contractor or subcontractor of a public work or an agent or representative of the contractor or subcontractor that violates Section 2258.058(b) commits a criminal offense. A criminal offense under this section is punishable by: 1) a fine that does not excess $500; or 2) confinement in jail for a term that does not exceed six months; or 3) both a fine and confinement. 2258.058(c).
DEBARMENT
Under Chapter 2258, no debarment provision is established. Moreover, there is no official website that lists debarred employees.
HELPFUL LINKS
TX Prevailing Wage Law (Chapter 2258)
TX statute of contracting and delivering procedures for construction projects in TX including public-private partnerships (Chapter 2267)
Prevailing Wage Issues
Wage deduction authorization agreement
Article
(DOL publishes final rule on the identity protection on certified payroll reports on Davis/Bacon projects--This new rule published in the Federal Register on 12/19/08 becomes effective on 1/18/09 on all future WD-347 certified payroll reports. Under this new rule, the employer only has to submit only the name and the last 4 digits of the social security number of each employee on the WD-347 certified payroll reports)
CONTACT INFORMATION
Michael W. Cunningham
Executive Director & Secretary/Treasurer
Texas Building & Construction Trades Council
1204 San Antonio St., Suite 300-G
Austin, TX 78701-2171
Phone: (512) 472-4111
Fax: (512) 469-9993
Email: [email protected]
Webpage: www.texasbuildingtrades.org