Monday, April 2, 2007

A Prevailing Wage Snippet

Most, if not all, States have laws requiring the payment of prevailing wages and supplemental benefits for those employed on State public work construction projects. One of the areas of confusion for contractors in the public work area concerns the payment of overtime wages and benefits. In New York, for example, Labor Law Sec. 220, et seq., states that all work performed on a public work project in excess of 8 hours in any one day, or more than five days in any workweek, constitutes overtime. This is far different from private sector construction projects where overtime is calculated generally based on work performed in excess of 40 hours in any workweek as set forth in the Federal Fair Labor Standards Act. Unfortunately, employers performing public work may not take these differences into account; this can result in underpayments to employees, together with attendant penalties, interest and, in some cases, debarment.

Each State may have different daily overtime minimums for public work, so it may be wise to consult with your local Department of Labor for appropriate information.

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