Labor Perspective From The Public Construction Watchdog Group - The New York Foundation For Fair Contracting: Prevailing Wage Supplemental Benefits, ‘What Are They Anyway?’
WNYLaborToday.com Editor’s Note: The New York Foundation For Fair Contracting (NYFFC) is dedicated to recovering stolen wages and holding cheating contractors accountable. Any tips, concerns or questions are greatly appreciated and can be sent to NYFFC Director Matt Kent at 716-261-7071 or via e-mail at mkent@nyfaircontracting.org.
Workers on a Public Workers Construction Project are required to receive Prevailing Wage.
Prevailing Wage or Prevailing Rate is actually made up of two numbers - an hourly wage rate and an Hourly Supplemental Benefit Rate.
In New York State, the law requires that all Workers on a Public Construction Project receive the full posted wage rate.
If the hourly base wage rate is $30 an hour, Workers must receive $30 an hour wage.
Although the hourly base wage can never be lower than the posted base wage, contractors have options for how to pay the Hourly Supplemental Benefit Rate.
Union Contractors pay the full fringe amount into bona fide benefit plans.
Access to top tier benefits is one the huge advantages of being a Union Member.
Non-Union or Open Shop Contractors may pay the required benefit or fringe amount in one of three ways: (1) Pay the Worker the full benefit rate as cash; (2) Split the benefit rate by paying part as an additional cash wage and part into a bona fide benefit plan; or (3) Pay the full benefit amount into a bona fide benefit plan for that Worker.
However, a contractor who chooses to pay Prevailing Wage Fringe Benefits, one rule is clear: The Worker must receive the full Prevailing Wage Rate for every hour worked on a Prevailing Wage Project.
Not paying the full Prevailing Wage amount, including the full benefit amount, for every hour worked on a Prevailing Wage Project can be a tricky way for dishonest contractors to cheat Workers, cheat taxpayers and cheat fair contractors.
Why is it tricky?
It is much harder to discover benefit underpayments than wage underpayments.
If you worked for an Open Shop Contractor before joining your Building Trades Union or if you have friends or family who currently work for Open Shop Contractors that perform Prevailing Wage work, the New York Foundation For Fair Contracting (NYFFC) is interested in speaking with you.
Contact us at either infor@nyfaircontracting.org or visit www.nyfaircontractring.org for more.
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