Wisconsin Prevailing Wage Information
GENERAL INFORMATION
Wisconsin has three prevailing wage laws: 1) Wisconsin Statute (WS) § 66.0903 (covers projects/bids negotiated by a local government unit); 2) WS § 103.49 (covers projects bid by a state agency except highway and bridge projects); and 3) WS § 103.50 (covers state highway and bridge projects bid by the Department of Transportation). The Department of Workforce Development (DWD) enforces WS §103.49 and §66.0903. The Wisconsin Department of Transportation (DOT) enforces WS §103.50. The DOT can enforce payment of prevailing wages on all state highway and bridge projects.
The prevailing wage rate for any trade/occupation includes the hourly basic rate of pay plus fringe benefits. Employers may pay the total wage rate (on the wage determination) in one of the following ways:
1) all cash in lieu of any fringe benefits
2) OR a combination of cash and employer paid bone fide fringe benefits
Covered workers
A laborer, worker, mechanic, or truck driver who is employed to process, manufacture, pick up, or deliver materials or products from a commercial establishment that has a fixed place of business from which the establishment supplies processed or manufactured materials or products or from a facility that is not dedicated exclusively, or nearly so, to a project of public works is not entitled to receive the prevailing wage rate unless any of the following applies:
1) the laborer, worker, mechanic, or truck driver is employed to go to the source of mineral aggregate such as sand, gravel, or stone and deliver that mineral aggregate to the site of a project of public works by depositing the material directly in final place, from the transporting vehicle or through spreaders from the transporting vehicle.
2) the laborer, worker, mechanic, or truck driver is employed to go to the site of a project of public works, pick up excavated material or spoil from the site of the project, and transport that excavated material or spoil away from the site of the project.
THRESHOLD
Projects of public works with total estimated costs of completion that equal/exceed the following single/multiple-trade thresholds require a prevailing wage rate determination.
*Note—state highway and bridge projects have no threshold and are all covered by the law. Most work performed on the site of a project subject to any of these laws must normally be paid for at the proper prevailing wage rate.
TIMING
Prevailing wage rate determinations are issued on or before June 30 in a particular year and are effective for the remainder of the calendar year. Prevailing wage rate determinations issued after June 30 remain in effect for 180 days.
INCREASES
The DWD publishes yearly wage rates for all trades based on the annual prevailing wage survey. Additional increases appear as futures on the prevailing wage project determinations and/or if there is a recalculation during January and February that results in an increased wage rate. Please view, the “annual wage survey” under “Helpful Links” for additional information.
Prevailing wage rate determinations are never updated after being issued regardless of the duration of the project, change in local wage conditions or change in CBAs. Prevailing wage determinations may contain a future increase if determinable. When the future date is reached, employers must pay their future workers the future increase.
Changing prevailing wages after wage determinations are published
A state agency/local government unit may request an administrative review regarding any wage rate issued under WS § 66 or § 103.49. Requests may be made in writing and received by mail with a postmark date within thirty days from the date when the prevailing wage rate determination was issued. Moreover, all request must be made at least ten days before the date when the construction contract was awarded/negotiated. Each request must include wage rate information for the contested trade/occupation on at least three similar projects that were considered within the city, village, or town where the proposed project is located and which were included in the Department’s most recent annual survey. If the DOT considers any wage rate issued under WS § 103.50 incorrect, then it may appeal to the Governor, whose decision is final.
OVERTIME
Wisconsin prevailing wage law required that all hours worked on a project in excess of ten hours per day on Monday thru Friday or forty hours per week, must be paid at a rate of at least 1.5 times the hourly basic rate of pay. Work performed on the weekends must be compensated at a rate of 1.5 times the hourly basic rate of pay.
Moreover, daily overtime is not required on projects subject to federal Davis-Bacon Act. If a project is subject to both state and federal prevailing wage rate laws, daily overtime must be paid. Please view, the “Overtime” link listed under “Helpful Links” below for additional information.
Time and one-half
Time and one-half is calculated on the applicable hourly basic rate of pay listed on the prevailing wage rate determination or the workers normal rate of pay, whichever is higher. Fringe benefits are only required at the straight time rate. If a specific fringe benefit is required to be paid in any other manner, it will be footnoted on the prevailing wage rate determination. An employer may not use compensatory time or banked hours in lieu of paying overtime because it is violation for employers or employees to agree to pay/receive less compensation than required by Wisconsin’s prevailing wage rate laws.
WORKING ON THE WEEKENDS
According to the Wisconsin prevailing wage law, any work performed on the weekends must be compensated at a rate of 1.5 times the basic hourly rate of pay.
WORKING ON LEGAL HOLIDAYS
According to the Wisconsin prevailing wage law, any hours worked on the following six holidays must be compensated at 1.5 times the basic hourly rate of pay: 1) New Years; 2) Memorial Day; 3) July 4th; 4) Labor Day; 5) Thanksgiving; and 6) Christmas. All work performed on the following days requires payment of time and one-half:
SHIFT DIFFERENTIALS
For state highway prevailing wage rates, DWD is required to include wage rates for shift differentials based on the time of day or night when work is performed.
FRINGE BENEFITS
Fringe benefits include the following: 1) health insurance; 2) vacation; 3) holiday pay; 4) pension; and 5) retirement contributions paid by the employer.
The following are required by law and not considered fringe benefits: 1) social security; 2) unemployment insurance; 3) workers compensation; 4) payment for uniforms, lodging, meals, mileage; 5) use of a vehicle; and 6) riding time and waiting time.
TRAINING CONTRIBUTION
Training contribution may be compensated for as a bone fide fringe benefit.
APPRENTICE REQUIREMENTS
Apprentices must be individually registered in a bone fide apprenticeship program administered by the US DOL, a state agency recognized by the US DOL, or under Wisconsin’s apprenticeship law (WS Chapter 106). Moreover, apprentices must be approved through the Wisconsin Department of Workforce Development’s Bureau of Apprentice Standards. These requirements are not enforced by the prevailing wage office.
Anyone that’s not registered as an apprentice cannot be paid less than the prevailing wage rate applicable to the work actually performed. Apprentices are paid a percentage of the applicable journeyman’s hourly basic rate of pay and hourly fringe benefit contributions specified in the prevailing wage rate determination issued by a project. The correct percentage is stated in the apprentice’s contract or indenture.
Under the Wisconsin prevailing wage regulations, there is no prevailing wage rate law, administrative rule/regulation regarding the number of apprentices that an employer can use on a project subject to these laws. The appropriate Local Joint Apprenticeship Committee and the DWD’s Bureau of Apprenticeship Standards prescribes the ratio of apprentices to journeyman.
Please See, “Helpful Links” for additional information on apprentices.
TRAVEL & SUBSISTENCE
Travel
Travel time is not paid at the prevailing wage rate. This means workers are not entitled to payment for the time spent traveling from their home to a job or the employer’s place of business or the return trip home. However, under some circumstances, travel pay may be required for the time spent traveling from an employer’s place of business to a job. Moreover, time spent traveling during the workday on the employer’s business may also require payment of travel time. Additionally, prevailing wage rates are only required for work performed on the site of a project.
Subsistence
Subsistence pay such as lodging or per diem are excluded from fringe benefits because they are considered reimbursements or business expenses that an employer may choose to bear but are not purely for the worker’s benefit. Other costs (e.g., use of an employer’s vehicle) cannot be calculated on an hourly basis, and thus are also excluded.
CONTRACTOR LICENSING
The DWD does not require licensing of any trade or contractor. Most residential builders must have a state credential. Electricians, plumbers and some specialty trades must have a state credential.
To determine whether a worker has Wisconsin credentials, please contact the “Credentialing Unit” at (608) 261-8500 or view Wisconsin’s contractor licensing policy.
DUTIES OF CONTRACTORS/SUBCONTRACTORS
Electronic certified payroll record
The requirement that every contractor on a prevailing wage project submit to DWD monthly a certified record of employees who worked on the project and that DWD post these certified records on its Internet website is discontinued effective July 1, 2011. However, contractors who worked on prevailing wage projects during the period January 1, 2010 through June 30, 2011, must comply with the repealed law for work completed on projects during that period of time.
Payroll record inspection by any person
Any person may request DWD to inspect the payroll records of any contractor working on a prevailing wage project. On receipt of such a request, the contractor must submit to DWD a certified record of its payroll records, other than personally identifiable information relating to an employee of the contractor, for no longer than a 4‐week period. DWD may request records from a contractor under this provision no more than once per calendar quarter for each project of public works on which the contractor is performing work. The department may not charge a requester a fee for obtaining that information. DWD must make these certified records available for public inspection.
PENALTIES
Underpayment of prevailing wage rates
If the DWD determines that a contractor/subcontractor failed to pay the correct prevailing wage rate, the DWD must order the contractor to pay the amount of unpaid wages and an additionally 100% of the amount of those unpaid wages as liquidated damages. There are other penalties that must be imposed by a court of law.
Any violation on a prevailing wage rate project can result in a fine of up to $200 per day, imprisonment for not more than six months, or both. Violations can also result in a forfeiture of $10 to $100 a day.
If a worker files an action on their own behalf in a court of competent jurisdiction and is successful in such action, they are entitled to an amount equal to their unpaid wages as liquidated damages and reasonable attorneys fees and costs.
Under certain circumstances, the DWD may recover up to an additional 50% of any unpaid wages found due. Normally, the additional compensation may only be recovered if an employer failed to complete a self-audit as instructed.
DEBARMENT
According to DWD 294-05, the period of debarment depends on the seriousness of the cause(s) of debarment. The debarment period may not exceed three years. Debarment can be imposed against an employer, including its responsible officers, directors, members, shareholders, or partners provided that such individual is vested with the management if the affairs of the individual or legal entity. Debarment begins on the date the department issues its notice of debarment or on the date of final disposition by a court of competent jurisdiction (whichever is later). The Wisconsin Department of Labor complies and maintains a list of all debarred contractors.
*Note—an employer cannot be debarred for any violation that occurred before July 1, 1987.
Causes for debarment
A contractor may be debarred for one or more of the following reasons:
HELPFUL LINKS
DWD 290—Contracts for construction of public works
DWD 293—Payment and performance assurance requirement
DWD 294—Debarment of public works contractors
Summary of WI prevailing wage law
Threshold requirements
Occupational classifications and work descriptions
Proper classification of workers
Consolidated list of debarred contractors
FAQ 2012
FAQ 2010
Wisconsin’s prevailing wage rate laws
Payment of straight-time and overtime
Final wage rate determinations
Public works project determinations
Initial/final determinations by county
Posters required (state, federal other state/federal agencies)
2014 Survey Booklet
FAQ regarding surveys
2014 survey employer mailing list
2014 surveys received list
Survey by job class
Withdraw civil rights complaint
Contractor/subcontractor affidavit of compliance with prevailing wage rate determinations
Contractor/subcontractor affidavit of compliance with prevailing wage rate determinations (electronic version)
Application for prevailing wage rate determination (online)
Prevailing wage rate determination application (print)
Disclosure of ownership
Local union wage and employment report
Prevailing wage complaint form
Prime contractor affidavit of compliance with prevailing wage rate determination
CONTACT INFORMATION
Julie Eckenwalder (Chief, Construction Wage Standards Section)
Equal Rights Division-Labor Standards Bureau
Department of Workforce Development
P.O. Box 8928
Madison, WI 53708-8928
Julie’s Phone: 608-266-3148
Phone: (608) 266-6861/(608) 264-8752 (ask for prevailing wage intake person)
Fax: (608) 267-4592
Julie’s E-mail: [email protected]
Email: ER Information
Wisconsin has three prevailing wage laws: 1) Wisconsin Statute (WS) § 66.0903 (covers projects/bids negotiated by a local government unit); 2) WS § 103.49 (covers projects bid by a state agency except highway and bridge projects); and 3) WS § 103.50 (covers state highway and bridge projects bid by the Department of Transportation). The Department of Workforce Development (DWD) enforces WS §103.49 and §66.0903. The Wisconsin Department of Transportation (DOT) enforces WS §103.50. The DOT can enforce payment of prevailing wages on all state highway and bridge projects.
The prevailing wage rate for any trade/occupation includes the hourly basic rate of pay plus fringe benefits. Employers may pay the total wage rate (on the wage determination) in one of the following ways:
1) all cash in lieu of any fringe benefits
2) OR a combination of cash and employer paid bone fide fringe benefits
Covered workers
A laborer, worker, mechanic, or truck driver who is employed to process, manufacture, pick up, or deliver materials or products from a commercial establishment that has a fixed place of business from which the establishment supplies processed or manufactured materials or products or from a facility that is not dedicated exclusively, or nearly so, to a project of public works is not entitled to receive the prevailing wage rate unless any of the following applies:
1) the laborer, worker, mechanic, or truck driver is employed to go to the source of mineral aggregate such as sand, gravel, or stone and deliver that mineral aggregate to the site of a project of public works by depositing the material directly in final place, from the transporting vehicle or through spreaders from the transporting vehicle.
2) the laborer, worker, mechanic, or truck driver is employed to go to the site of a project of public works, pick up excavated material or spoil from the site of the project, and transport that excavated material or spoil away from the site of the project.
THRESHOLD
Projects of public works with total estimated costs of completion that equal/exceed the following single/multiple-trade thresholds require a prevailing wage rate determination.
- Single-trade project of public works (single trade accounts for 85% or more of the total labor cost of the project) threshold is $48,000
- Multiple-trade project of public works (no single trade accounts for 85% or more of the total labor cost of the project) threshold is $100,000 unless a municipality falls under #3 below
- Multi-trade threshold of $234,000 applies to public works projects erected, constructed, repaired, remodeled, demolished by a private contractor for:
- City/college with a population of less than 2500
- OR a town
*Note—state highway and bridge projects have no threshold and are all covered by the law. Most work performed on the site of a project subject to any of these laws must normally be paid for at the proper prevailing wage rate.
TIMING
Prevailing wage rate determinations are issued on or before June 30 in a particular year and are effective for the remainder of the calendar year. Prevailing wage rate determinations issued after June 30 remain in effect for 180 days.
INCREASES
The DWD publishes yearly wage rates for all trades based on the annual prevailing wage survey. Additional increases appear as futures on the prevailing wage project determinations and/or if there is a recalculation during January and February that results in an increased wage rate. Please view, the “annual wage survey” under “Helpful Links” for additional information.
Prevailing wage rate determinations are never updated after being issued regardless of the duration of the project, change in local wage conditions or change in CBAs. Prevailing wage determinations may contain a future increase if determinable. When the future date is reached, employers must pay their future workers the future increase.
Changing prevailing wages after wage determinations are published
A state agency/local government unit may request an administrative review regarding any wage rate issued under WS § 66 or § 103.49. Requests may be made in writing and received by mail with a postmark date within thirty days from the date when the prevailing wage rate determination was issued. Moreover, all request must be made at least ten days before the date when the construction contract was awarded/negotiated. Each request must include wage rate information for the contested trade/occupation on at least three similar projects that were considered within the city, village, or town where the proposed project is located and which were included in the Department’s most recent annual survey. If the DOT considers any wage rate issued under WS § 103.50 incorrect, then it may appeal to the Governor, whose decision is final.
OVERTIME
Wisconsin prevailing wage law required that all hours worked on a project in excess of ten hours per day on Monday thru Friday or forty hours per week, must be paid at a rate of at least 1.5 times the hourly basic rate of pay. Work performed on the weekends must be compensated at a rate of 1.5 times the hourly basic rate of pay.
Moreover, daily overtime is not required on projects subject to federal Davis-Bacon Act. If a project is subject to both state and federal prevailing wage rate laws, daily overtime must be paid. Please view, the “Overtime” link listed under “Helpful Links” below for additional information.
Time and one-half
Time and one-half is calculated on the applicable hourly basic rate of pay listed on the prevailing wage rate determination or the workers normal rate of pay, whichever is higher. Fringe benefits are only required at the straight time rate. If a specific fringe benefit is required to be paid in any other manner, it will be footnoted on the prevailing wage rate determination. An employer may not use compensatory time or banked hours in lieu of paying overtime because it is violation for employers or employees to agree to pay/receive less compensation than required by Wisconsin’s prevailing wage rate laws.
WORKING ON THE WEEKENDS
According to the Wisconsin prevailing wage law, any work performed on the weekends must be compensated at a rate of 1.5 times the basic hourly rate of pay.
WORKING ON LEGAL HOLIDAYS
According to the Wisconsin prevailing wage law, any hours worked on the following six holidays must be compensated at 1.5 times the basic hourly rate of pay: 1) New Years; 2) Memorial Day; 3) July 4th; 4) Labor Day; 5) Thanksgiving; and 6) Christmas. All work performed on the following days requires payment of time and one-half:
- the day before a holiday
- if New Years Day, July 4, or Christmas falls on a Saturday
- the day after a holiday
- OR if New Year’s Day, July 4, or Christmas falls on a Sunday
SHIFT DIFFERENTIALS
For state highway prevailing wage rates, DWD is required to include wage rates for shift differentials based on the time of day or night when work is performed.
FRINGE BENEFITS
Fringe benefits include the following: 1) health insurance; 2) vacation; 3) holiday pay; 4) pension; and 5) retirement contributions paid by the employer.
The following are required by law and not considered fringe benefits: 1) social security; 2) unemployment insurance; 3) workers compensation; 4) payment for uniforms, lodging, meals, mileage; 5) use of a vehicle; and 6) riding time and waiting time.
TRAINING CONTRIBUTION
Training contribution may be compensated for as a bone fide fringe benefit.
APPRENTICE REQUIREMENTS
Apprentices must be individually registered in a bone fide apprenticeship program administered by the US DOL, a state agency recognized by the US DOL, or under Wisconsin’s apprenticeship law (WS Chapter 106). Moreover, apprentices must be approved through the Wisconsin Department of Workforce Development’s Bureau of Apprentice Standards. These requirements are not enforced by the prevailing wage office.
Anyone that’s not registered as an apprentice cannot be paid less than the prevailing wage rate applicable to the work actually performed. Apprentices are paid a percentage of the applicable journeyman’s hourly basic rate of pay and hourly fringe benefit contributions specified in the prevailing wage rate determination issued by a project. The correct percentage is stated in the apprentice’s contract or indenture.
Under the Wisconsin prevailing wage regulations, there is no prevailing wage rate law, administrative rule/regulation regarding the number of apprentices that an employer can use on a project subject to these laws. The appropriate Local Joint Apprenticeship Committee and the DWD’s Bureau of Apprenticeship Standards prescribes the ratio of apprentices to journeyman.
Please See, “Helpful Links” for additional information on apprentices.
TRAVEL & SUBSISTENCE
Travel
Travel time is not paid at the prevailing wage rate. This means workers are not entitled to payment for the time spent traveling from their home to a job or the employer’s place of business or the return trip home. However, under some circumstances, travel pay may be required for the time spent traveling from an employer’s place of business to a job. Moreover, time spent traveling during the workday on the employer’s business may also require payment of travel time. Additionally, prevailing wage rates are only required for work performed on the site of a project.
Subsistence
Subsistence pay such as lodging or per diem are excluded from fringe benefits because they are considered reimbursements or business expenses that an employer may choose to bear but are not purely for the worker’s benefit. Other costs (e.g., use of an employer’s vehicle) cannot be calculated on an hourly basis, and thus are also excluded.
CONTRACTOR LICENSING
The DWD does not require licensing of any trade or contractor. Most residential builders must have a state credential. Electricians, plumbers and some specialty trades must have a state credential.
To determine whether a worker has Wisconsin credentials, please contact the “Credentialing Unit” at (608) 261-8500 or view Wisconsin’s contractor licensing policy.
DUTIES OF CONTRACTORS/SUBCONTRACTORS
Electronic certified payroll record
The requirement that every contractor on a prevailing wage project submit to DWD monthly a certified record of employees who worked on the project and that DWD post these certified records on its Internet website is discontinued effective July 1, 2011. However, contractors who worked on prevailing wage projects during the period January 1, 2010 through June 30, 2011, must comply with the repealed law for work completed on projects during that period of time.
Payroll record inspection by any person
Any person may request DWD to inspect the payroll records of any contractor working on a prevailing wage project. On receipt of such a request, the contractor must submit to DWD a certified record of its payroll records, other than personally identifiable information relating to an employee of the contractor, for no longer than a 4‐week period. DWD may request records from a contractor under this provision no more than once per calendar quarter for each project of public works on which the contractor is performing work. The department may not charge a requester a fee for obtaining that information. DWD must make these certified records available for public inspection.
PENALTIES
Underpayment of prevailing wage rates
If the DWD determines that a contractor/subcontractor failed to pay the correct prevailing wage rate, the DWD must order the contractor to pay the amount of unpaid wages and an additionally 100% of the amount of those unpaid wages as liquidated damages. There are other penalties that must be imposed by a court of law.
Any violation on a prevailing wage rate project can result in a fine of up to $200 per day, imprisonment for not more than six months, or both. Violations can also result in a forfeiture of $10 to $100 a day.
If a worker files an action on their own behalf in a court of competent jurisdiction and is successful in such action, they are entitled to an amount equal to their unpaid wages as liquidated damages and reasonable attorneys fees and costs.
Under certain circumstances, the DWD may recover up to an additional 50% of any unpaid wages found due. Normally, the additional compensation may only be recovered if an employer failed to complete a self-audit as instructed.
DEBARMENT
According to DWD 294-05, the period of debarment depends on the seriousness of the cause(s) of debarment. The debarment period may not exceed three years. Debarment can be imposed against an employer, including its responsible officers, directors, members, shareholders, or partners provided that such individual is vested with the management if the affairs of the individual or legal entity. Debarment begins on the date the department issues its notice of debarment or on the date of final disposition by a court of competent jurisdiction (whichever is later). The Wisconsin Department of Labor complies and maintains a list of all debarred contractors.
*Note—an employer cannot be debarred for any violation that occurred before July 1, 1987.
Causes for debarment
A contractor may be debarred for one or more of the following reasons:
- Failing to pay an employee the proper prevailing wage rate
- Failing to pay an employee at least 1.5 times the proper hourly basic rate of pay for all hours worked in excess of the basic prevailing hours of labor determined for a public works project
- Inducing any employee to give up, waive or return any part of the proper prevailing wage rate determined for a public works project
- Falsifying, deliberately destroying, or failing to keep required payroll records on a public works project
HELPFUL LINKS
DWD 290—Contracts for construction of public works
DWD 293—Payment and performance assurance requirement
DWD 294—Debarment of public works contractors
Summary of WI prevailing wage law
Threshold requirements
Occupational classifications and work descriptions
Proper classification of workers
Consolidated list of debarred contractors
FAQ 2012
FAQ 2010
Wisconsin’s prevailing wage rate laws
Payment of straight-time and overtime
Final wage rate determinations
Public works project determinations
Initial/final determinations by county
Posters required (state, federal other state/federal agencies)
2014 Survey Booklet
FAQ regarding surveys
2014 survey employer mailing list
2014 surveys received list
Survey by job class
Withdraw civil rights complaint
Contractor/subcontractor affidavit of compliance with prevailing wage rate determinations
Contractor/subcontractor affidavit of compliance with prevailing wage rate determinations (electronic version)
Application for prevailing wage rate determination (online)
Prevailing wage rate determination application (print)
Disclosure of ownership
Local union wage and employment report
Prevailing wage complaint form
Prime contractor affidavit of compliance with prevailing wage rate determination
CONTACT INFORMATION
Julie Eckenwalder (Chief, Construction Wage Standards Section)
Equal Rights Division-Labor Standards Bureau
Department of Workforce Development
P.O. Box 8928
Madison, WI 53708-8928
Julie’s Phone: 608-266-3148
Phone: (608) 266-6861/(608) 264-8752 (ask for prevailing wage intake person)
Fax: (608) 267-4592
Julie’s E-mail: [email protected]
Email: ER Information
