Missouri Prevailing Wage

In August 2018, the state of Missouri made changes to the state Prevailing Wage Law. Since this time there have been many questions from contractors and employees about the new mandates. The following are some of the more prevalent topics taken from the Missouri Department of Labor Prevailing Wage FAQs that are related to the mandate changes to help provide additional clarification.

Prevailing Wage Rate

• The Annual Wage Order lists the prevailing wage rates on public construction projects in each county. Annual Wage Orders may be altered once per year, at the discretion of Department of Labor and Industrial Relations (DOLIR).  
• The Missouri Prevailing Wage Law requires that all workers working on public works projects, valued at more than $75,000, by or on-behalf of state and local public bodies be paid the proper prevailing wage rate. 
• The Prevailing Hourly Rate includes any applicable fringe benefit amounts for each occupational title.
• Prevailing wage rates are determined by actual hours worked, for a particular occupational title (classification/trade) in each individual county throughout the state.

Fringe Benefits

• In calculating the Prevailing Wage rate, DOLIR factors in fringe benefits. 
• Fringe Benefits include: Medical Insurance, Retirement, Apprentice Training Costs, Vacation & Holiday Pay as spelled out in Sec. 290.210 RSMo  

• The legislation maintains the status quo as it relates to the reporting of fringe benefits paid by a particular contractor.  Each individual contractor is free to track and report all amounts they spend on workers’ fringe benefits and hourly wages as before.

• Pay for travel, mileage, meals or other expenses are not fringe benefits.

Use of Apprentices and Entry-Level Workers

• The new law mandates no more than a 1:1 ratio of journeymen to apprentices/entry-level workers based on their chosen occupational title for a particular project.
• In the Code of State Regulations (See 8 CSR 30-3.030), The Department of Labor and Industrial Relations Defines Apprentices and Entry Level as:

2(A) “federally-registered apprentices” –Workers participating in programs administered by the United States Department of Labor and subject to their specific requirements (See 29 U.S.C. section 50 and 29 C.F.R. 29) and workers participating in programs administered by the United States Department of Transportation and subject to their specific requirements. 

2(B) “Entry-level workers”—Any worker who is not a journeyman and who is not otherwise enrolled in a federally-registered apprenticeship program but is participating in an on-the-job training program provided by the contractor for whom they perform work on a public construction project.

• Apprentices and entry-level workers are paid half of the rate of a journeyman (including fringe) working in their same occupational title classification in the county where the public project is located

Overtime

• Overtime and holiday rates are based on the total amount of wages and fringe benefits combined.  
• The rate of pay for overtime is one and a half times the amount of the prevailing hourly rate of wages.
• The rate for holidays is twice the applicable rate. 
• Overtime work includes work that exceeds ten hours in one day and work in excess of forty hours in one calendar week.

About the Author

Courtney Corcoran is the Midwest Regional Director for Fringe Benefit Group, Inc. which offers bona fide benefit solutions for prevailing wage contractors through The Contractors Plan, an ABC Strategic Partner. With over 30 years of expertise in helping our clients meet the stringent requirements of local, state and federal prevailing wage laws, the benefits offered through The Contractors Plan help ABC members compete for, win, and stay compliant on prevailing wage jobs. Courtney can be reached at 773.750.0554 or ccorcoran@fbg.com.