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I have a claim by Pennsylvania DOL that the prevailing wage statutes provide for automatic wage increases.


The jobs were bid in 2009 and the rate schedule indicated rate for 09 and 10. We've paid in accordance with the 09 rates.
 

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How about an intro.:thumbsup:

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Are you a Contractor or employee?
 

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We are a medium size commercial excavating firm.
Is the DOL correct in the statment that automatic wage increases apply?
 

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Yes, they coulod be.
Check with them & how it applies.
We call it DLR out here, Dept. of Labor Relations.
The folks are generally easy to deal with.
 

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We are a medium size commercial excavating firm.
Is the DOL correct in the statment that automatic wage increases apply?
They may be correct, but if you have the bid that states as you say, you have a good argument. I suspect there may have been something in the small print you may have missed.
 

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If they determine that a wage increase is needed, then it will be increased. But it is not necessarily automatic, it just depends on the determination sometimes the wages stay the same and do not increase, etc.

Go to link below and you can look at the deteminations for each project and year in PA.

http://www.portal.state.pa.us/porta...5_0_43/public/Pages/Search.aspx?ID=&PageType=



But this is something you should have stayed on top of. And just because it was bid one year does not mean you don't have to meet the next years wage increase. You have to plan for this in your bids especially if you know a project is going to span over a determination period, and it looks like most of the determinations change mid year.
 

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Discussion Starter #7
The statements below are their reasoning. I have a problem with the 2nd paragraph - "string together". No where does it state specifically that the increased wage is to paid.


The awarding agency applies for rates to be issued. The Secretary issues rates for each specific project. If thr rates that are issued include effective pay date
raises, they must be paid upon the effective date. If however, effective pay date raises are not issued for a craft, then no raise is required. Those contractors signatory to a Collective Bargaining Agreement may have to honor their private contract in such an instance but any non-signatory contractor does not. Check the rates for the project. The carpenters effective pay date raises were not known to L&I at the time so you will not see an effective pay date raise for the Carpenter. Carpenters on the job are union but are not being paid their current rate because the contractor is not in violation of the PWL.

The underlined phrases in the next three paragraphs string together the requirement. At this point, do not issue back pay till after we meet but you might want to begin, at the start of the next pay period, to pay the rate. This is unintentional on your part.

§ 9.102. Definitions.
General prevailing minimum wage rates, prevailing wage rates, minimum wage rates and wage rates - Rates as determined by the Secretary, as payable in the locality in which the public work is to be performed, for the respective crafts and classifications, including the amount of contributions for employe benefits as required by the act.

§ 9.103. Required provisions.
The specifications for every contract for a public work as defined herein shall contain at least the following conditions, provisions and requirements:
(1) The general prevailing minimum wage rates including contributions for employee benefits as determined by the Secretary which shall be paid to the workmen employed in the performance of the contract. The contract shall specifically provide that the contractor shall pay at least the wage rates as determined in the decision of the Secretary of Labor and Industry and shall comply with the conditions of the act approved August 15, 1961, and the regulations issued thereto, to assure the full and proper payment of the rates

(7) The contract shall provide that the contractor and each subcontractor shall post for the entire period of construction the wage determination decisions of the Secretary, including the effective date of changes thereof, in a prominent and easily accessible place or places at the site of the work and at the places used by them to pay workmen their wages. The posted notice of wage rates shall contain the following information:
 
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