Prevailing wage requirements apply to secondary work sites under specific conditions, as outlined by the U.S. Department of Labor. Here’s how these requirements generally apply:
Prevailing Wage at Secondary Sites
- Definition of Secondary Site: A secondary site is any location where a significant portion of a building or work is constructed, but not a factory that makes products available to the general public. The construction must be for specific use in a particular building or work and not for regular manufacturing operations.
- Dedication to the Project: The secondary site must be established specifically for a particular project or dedicated exclusively or nearly exclusively to that project for a significant period.
- Prevailing Wage Determination: The prevailing wage rates at secondary sites are based on the geographic area in which the site is located. Contractors and subcontractors must pay all laborers and mechanics at these sites no less than the locally prevailing wages and fringe benefits.
- Specific Application: The wage requirements cover significant portions of a building or work constructed at a secondary site, not just materials or prefabricated components that are interchangeable between projects.
Important Considerations
- Compliance and Penalties: Failure to comply with prevailing wage requirements can lead to penalties, including back pay to workers and fines to the IRS. Penalties are higher if the failure is deemed intentional.
- Scope of Application: Prevailing wages must be paid to workers on secondary sites when the work is part of a larger project that requires such rates, such as projects eligible for tax credits under the Inflation Reduction Act.
Overall, the prevailing wage requirement at secondary sites is strict, emphasizing specific use and dedication to the project. It ensures that workers at these sites receive fair compensation that matches local wage standards.
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