Officials Aim To Repeal Wage Scale

At A Glance

Prevailing Wage Scale

Purpose and Scope

(a) These rules and regulations are promulgated by the Arkansas Department of Labor pursuant to the authority granted by Ark. Code Ann. § 22-9-307 (1987). These rules and regulations are applicable under the minimum prevailing wage law, Ark. Code Ann. §§ 22-9-301 through -313 (1987), which provides that a wage of not less than the minimum prevailing hourly rate of wage for work of a similar character in the county in which the work is performed shall be paid to all workmen employed by or on behalf of any public body engaged in the construction of public works, exclusive of maintenance work.

(b) The purpose of these regulations is to set forth the procedure for making and applying prevailing wage determinations; to detail the obligations of contractors, subcontractors and public bodies; to set forth the procedures for the administration and enforcement of the minimum prevailing wage law; and to set forth the procedures or rules of practice for administrative proceedings under the minimum prevailing wage law.

(c) These regulations apply to the construction of all public works where the cost of all labor and material exceeds seventy-five thousand dollars ($75,000.00). (d) These regulations do not apply to:

(1) The construction of public works where the cost of all labor and material is seventy-five thousand dollars ($75,000.00), or less;

(2) Maintenance work performed by or on behalf of a public body;

(3) Any work done for or by any drainage, improvement, or levee district;

(4) Workers who are employed as part-time or full-time employees of any public body;

(5) Highway, road, street, or bridge construction and maintenance or related work contracted for or performed by incorporated towns, cities, counties, or the Arkansas State Highway and Transportation Department; and

(6) Any public school construction, unless federal matching funds are employed in paying for the construction.

Source: Arkansas Department Of Labor

— Benton County Judge Bob Clinard and state Rep. Dan Douglas, R-Bentonville, will promote legislation to abolish Arkansas’ prevailing wage scale. The scale sets pay rates for workers on government-funded construction projects.

Clinard recently told the Legislative Committee of the Benton County Quorum Court that Douglas, a former justice of the peace who was elected to the District 9 seat in the House, will introduce a bill to abolish the wage scale. Douglas said Friday he has a draft of the bill and is lining up co-sponsors in the state House of Representatives and state Senate. Douglas expects to introduce the bill by the end of next week.

“What it boils down to is striking everything that’s in the current code,” Douglas said. “It’s not adding anything, just taking out any reference to the prevailing wage scale.”

According to Douglas, Arkansas prevailing wage laws are similar to the Federal Davis-Bacon Act. In short, Arkansas prevailing wage laws require all construction of public works in the state in which the cost of material and labor exceeds $75,000 will abide by the Arkansas prevailing wage regulations. Road and school construction is exempt.

Douglas said the Arkansas Department of Labor, Prevailing Wage Division, sends out a survey form to all commercial contractors licensed in the state to report the wage scales paid to their respective trade professions. The results of the survey are then used to compile the minimum wage rate for every trade in the construction industry in a given county. Then when a city, county or state project is designed and sent to bid, the contractor has to bid the project using no less than the minimum established wage for each trade used on the project. In some cases the minimum established wage rate is lower than the rate normally paid by the contractor to his employees. In this case the contractor would continue to pay his employees their normal rate. In other cases, the established rate is higher than the contractor’s normal pay, and the employees are paid by the higher rate. Minimum rates must be posted on the job site, and certified payrolls and records must be kept and submitted to the state Department of Labor. Fines and penalties are applied to contractors who do not follow the compliance of the prevailing wage regulations. Audits are conducted by the state of the contractor’s records to insure compliance.

Clinard said the prevailing wage scale adds to the cost of Benton County projects and other government projects across the state.

On one of the county’s recent construction projects, Clinard said, a subcontractor’s bid was $41,000. Of that total bid, Clinard said he was told $6,000 was the cost of complying with the prevailing wage scale.

Clinard said he has seen estimates the prevailing wage scale has added $100 million to the cost of city, county and state construction projects in the last three years. He is asking every contractor and subcontractor who has done work for Benton County for information on any costs added to their projects to comply with the prevailing wage scale. He plans to take the information he receives to Little Rock to speak on behalf of the bill once it’s introduced and set for a hearing.

“It’s just an unnecessary law that’s driven by union contractors,” Clinard said. “And this is a right-to-work state.”

A spokesman for the Arkansas AFL-CIO disagreed with Clinard’s characterization of the law. David Stephens, vice president of the AFL-CIO in Little Rock, said the law is meant to protect workers and contractors.

“The whole reason for the prevailing wage scale is to keep out-of-town workers and contractors from coming in and low balling local companies for government contracts,” Stephens said. “These are public works jobs that are being done with area tax money.”

Stephens said the pay rates aren’t compiled by unions but by state government and are based on the rates being paid in a given area.

“These numbers aren’t just pulled out of a hat,” he said. “They are based on surveys that are turned in for that area.”

Stephens said the AFL-CIO monitors legislation that would affect working families and will oppose legislation to repeal the prevailing wage scale if any bills are filed. He said taxpayers should be concerned about cost being the only consideration in a government building project.

“If I’m a local taxpayer, I want a government project built by highly-skilled workers and contractors,” Stephens said. “I don’t want it done by someone who’s just brought in for a cheaper price. Then you end up with that type of product.”

At A Glance

Prevailing Wage Scale

Purpose and Scope

(a) These rules and regulations are promulgated by the Arkansas Department of Labor pursuant to the authority granted by Ark. Code Ann. § 22-9-307 (1987). These rules and regulations are applicable under the minimum prevailing wage law, Ark. Code Ann. §§ 22-9-301 through -313 (1987), which provides that a wage of not less than the minimum prevailing hourly rate of wage for work of a similar character in the county in which the work is performed shall be paid to all workmen employed by or on behalf of any public body engaged in the construction of public works, exclusive of maintenance work.

(b) The purpose of these regulations is to set forth the procedure for making and applying prevailing wage determinations; to detail the obligations of contractors, subcontractors and public bodies; to set forth the procedures for the administration and enforcement of the minimum prevailing wage law; and to set forth the procedures or rules of practice for administrative proceedings under the minimum prevailing wage law.

(c) These regulations apply to the construction of all public works where the cost of all labor and material exceeds seventy-five thousand dollars ($75,000.00). (d) These regulations do not apply to:

(1) The construction of public works where the cost of all labor and material is seventy-five thousand dollars ($75,000.00), or less;

(2) Maintenance work performed by or on behalf of a public body;

(3) Any work done for or by any drainage, improvement, or levee district;

(4) Workers who are employed as part-time or full-time employees of any public body;

(5) Highway, road, street, or bridge construction and maintenance or related work contracted for or performed by incorporated towns, cities, counties, or the Arkansas State Highway and Transportation Department; and

(6) Any public school construction, unless federal matching funds are employed in paying for the construction.

Source: Arkansas Department Of Labor

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