Pennsylvania Prevailing Wages
Call (215) 273-3491 for Assistance
Most government-funded construction projects in Pennsylvania are subject to the Pennsylvania Prevailing Wage Act, which requires that employers on publicly funded projects in Pennsylvania pay their construction worker employees “prevailing wages” for each hour worked.
The hourly prevailing wage rate depends on the type of work performed. For example, there are different prevailing wage rates for electricians, operating engineers, pipefitters, laborers, painters, and every other construction trade found on a construction project. The prevailing rates are also based on the county where the work is performed.
These prevailing wage rates are typically much higher than the Pennsylvania minimum wage and are often based on the combined rate for both wages and fringe benefits found in union-negotiated contracts for the applicable trade.
For example, the prevailing wage rate for electrician work in the City of Philadelphia is a total of $111.15 per hour, which consists of $68.18 per hour in wages and $42.97 per hour in fringe benefits.
If you believe you may be owed unpaid prevailing wages, contact Goodley McCarthy LLC for a free consultation.
What is the Prevailing Wage Act?
The Prevailing Wage Act is a law that requires contractors and subcontractors to pay workers a minimum wage on public works projects. This wage is based on the prevailing wage rates in the geographic area where the work is being performed and the type of work being done. These rates are determined by the Pennsylvania Department of Labor & Industry (L&I).
The Act ensures that workers on public works projects receive wages that reflect the local standards for their type of work, promoting fairness and preventing underpayment.
Common Issues with Prevailing Wage Compliance
1. Misclassification of Workers
One of the most common issues in prevailing wage disputes is the misclassification of workers. Employers may mistakenly classify workers as exempt from prevailing wage laws or incorrectly categorize the type of work they are performing. This can lead to employees not receiving the proper wages or benefits they are entitled to under the law.
2. Underpayment of Prevailing Wages
If a contractor or subcontractor fails to pay the correct prevailing wage rates, they may be in violation of the law. Workers may find themselves underpaid for their work, which can lead to wage claims and lawsuits. In such cases, employees can seek compensation for the unpaid wages, interest, and potential penalties.
3. Fringe Benefits Violations
In addition to base wages, the Prevailing Wage Act often requires employers to provide fringe benefits such as health insurance, pension contributions, or paid time off. Failure to provide these benefits or to properly account for them in wage calculations can lead to legal disputes.
4. False Payroll Reporting
Contractors are required to submit accurate payroll reports detailing the hours worked and wages paid to employees. Submitting false payroll records to avoid paying the correct prevailing wages can result in severe penalties and legal action.
5. Retaliation Against Workers
Workers who report violations of prevailing wage laws may face retaliation from employers, such as wrongful termination or harassment. Retaliation against workers for asserting their rights under the Prevailing Wage Act is prohibited by law.
Why Choose Goodley McCarthy LLC for Prevailing Wage Disputes?
At Goodley McCarthy LLC, we bring a wealth of experience and legal knowledge to help employees, contractors, and businesses navigate prevailing wage laws in Pennsylvania. Our law firm is known for:
- Expert Legal Representation: We have in-depth knowledge of the Pennsylvania Prevailing Wage Act and can represent you effectively in disputes, whether you are an employee or employer.
- Comprehensive Services: From wage disputes and misclassification issues to representing clients in audits and investigations, we offer a full range of legal services.
- Tailored Legal Solutions: We understand that every case is unique. Our attorneys take a personalized approach to each case to provide the best possible outcome.
- Strong Advocacy: We are dedicated to advocating for your rights and making sure you are paid fairly for your labor or treated fairly in prevailing wage disputes.
How We Can Help You
- Wage Claims: If you believe you’ve been underpaid or misclassified, we can help you file a wage claim with the Pennsylvania Department of Labor & Industry (L&I) or take legal action to recover the wages you are owed.
- Investigation of Wage Violations: We will thoroughly investigate any potential violations of the Prevailing Wage Act and help you recover any unpaid wages or benefits.
- Protection Against Retaliation: If you face retaliation for asserting your rights, our team can help you take action to prevent further discrimination or wrongful termination.
Contact Our Pennsylvania Prevailing Wage Lawyers
At Goodley McCarthy LLC, our prevailing wage lawyers in Pennsylvania are here to provide expert legal counsel for employees, contractors, and subcontractors dealing with prevailing wage disputes. Whether you're an employee who believes you're being underpaid or a contractor seeking to understand your obligations under the law, we can guide you through every step of the process.
If you believe you may be owed unpaid prevailing wages, contact Goodley McCarthy LLC for a free consultation.
Common Questions on Prevailing Wage Disputes in Pennsylvania
What are the penalties for violating prevailing wage laws in Pennsylvania?
Penalties for violating the Prevailing Wage Act can include fines, criminal charges, and the requirement to pay back wages and benefits owed to employees. Contractors may also face suspension from future government contracts, which can significantly impact their business.
How long do I have to file a prevailing wage claim in Pennsylvania?
Under the Pennsylvania Prevailing Wage Act, you must file a claim for unpaid wages within three years of the alleged violation. It’s important to act quickly, as there may be limitations on your ability to recover wages after a certain period.
Can a contractor reduce wages to offset fringe benefits?
No, fringe benefits such as health insurance or pension contributions cannot be substituted for base wages. The base wages and fringe benefits must be paid in addition to each other to comply with the Prevailing Wage Act.
What should I do if I am retaliated against for filing a prevailing wage claim?
If you experience retaliation for filing a prevailing wage claim, such as wrongful termination or harassment, you should contact an attorney immediately. Retaliation is prohibited under the law, and you have the right to seek legal recourse.
Prevailing Wage Frequently Asked Questions
Have questions? We are here to help. Still have questions or can't find the answer you need? Give us a call at 215-273-3491 today!
-
How do I know if I’m owed prevailing wages? What types of projects typically require prevailing wages?
You are likely owed prevailing wages if you perform any type of construction work on a government-funded project. This includes federal, state and local or county governments.
Examples of government-funded projects that are subject to prevailing wage laws include:
- Public schools and universities
- Court houses
- Police and fire stations
- Highway, road, bridge, and tunnel improvement projects
- Public transit construction or improvement projects
- Sewer and water line replacement projects
- Government offices and other municipal buildings
- And more
-
Do I have to be in a union to receive prevailing wages?
No. Employers on publicly-funded construction projects must pay their construction workers prevailing wages, regardless of whether they are in a union.
-
If my employer does not provide any fringe benefits does my employer still need to pay me?
Yes, but prevailing wage laws do not require your employer to provide fringe benefits such as healthcare and pension benefits. If your employer provides no benefits, then your employer must pay the fringe benefit portion of the prevailing wage rate directly into your paycheck as wages. Or, if your employer only provides some benefits, but the benefit cost to the employer is less than the fringe benefit portion of the applicable prevailing wage rate. Your employer must pay the difference directly into your paycheck as wages.
-
I only performed clean-up work or flagging work for a government-funded site. Am I owed prevailing wages?
Yes, probably. General laborers who perform set-up or clean-up work on a public construction site are typically owed prevailing wages. Safety or road flaggers are also typically owed prevailing wages on public projects.
-
If the company I work for classifies me as an independent contractor, am I owed prevailing wages if I work on a public project?
Yes, probably. Independent contractor misclassification is a common problem in the construction industry. You should be paid prevailing wages, regardless of whether your employer classifies you as a W-2 employee or 1099 independent contractor.
-
What if I performed electrical work on a public project, but my employer classified and paid me as a laborer?
Trade misclassification and underpayment of prevailing wages is a common problem on publicly funded projects. Although “laborer” is a classification with its own prevailing wage rates, laborer rates are often on the lower end of the prevailing wage scale. Consequently, companies often misclassify and pay workers who perform higher-paid trade work (e.g. electricians, pipefitters) as laborers to avoid paying the higher prevailing wage rates. If you believe you have been misclassified and underpaid prevailing wages on a publicly funded project, you may be able to bring a lawsuit for the unpaid prevailing wages.