Penalties for Failing to Meet Prevailing Wage and Apprenticeship Requirements
Penalties for failing to meet prevailing wage and apprenticeship requirements can vary based on federal and state laws. Here is an overview of the penalties under different contexts:
1. Prevailing Wage Penalties
- Federal Level (Inflation Reduction Act):
- A penalty of $5,000 to the IRS for each laborer or mechanic not paid at the prevailing wage rate in the year. Additionally, the difference between what was paid and what should have been paid, plus interest, must be paid to the affected workers.
- Penalties may be waived if certain conditions are met, such as quick correction of limited errors or having a qualifying project labor agreement.
- Federal Level (Davis-Bacon Act):
- Penalties include fines, contract termination, and civil or criminal liability. Contractors violating the Act may face exclusion from federal contracts for three years.
- Employees have a private right of action to sue employers, potentially resulting in multiple damages and attorney fees.
- Ohio State Law:
- Violators are assessed 100% of the wages owed plus the original amount as a penalty.
- An employee-initiated suit allows for recovery of the wage difference plus a 25% penalty. The employer also pays a separate 75% penalty to the state.
- Intentional violations can result in contractors being barred from public contracts.
2. Apprenticeship Requirements
- Federal Level:
- Apprenticeship violations can incur a penalty of $50 multiplied by the hours not meeting requirements. This increases to $500 per hour if intentional disregard is found.
- Penalties may be waived if the Good Faith Effort Exception is met or a qualifying project labor agreement is in place.
In summary, penalties for non-compliance with prevailing wage and apprenticeship requirements are stringent and can involve financial penalties to both the employer and the government, as well as potential exclusion from future contracts.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-penalties-for-failing-to-meet-the-prevailing-wage-and-apprenticeship-requirements/
