West Virginia State Prevailing Wage Law Changes

​Frequently Asked Questions and Answers for SB 361

 

DSC08994.JPGBelow is a list of frequently asked questions and answers that were prepared by the Contractors Association of West Virginia to serve as a reference point of information on SBA funded projects that will bid in the future. The bottom line is that the 2015 state prevailing wages will apply until July 1, and possibly September 30, when the new calculated rates go into effect. If federal dollars are utilized in projects, Davis-Bacon wage rates apply. The $500,000 threshold only applies to projects with no federal funds. For further information, contact WorkForce West Virginia or the Contractors Association of West Virginia.  

 
1. When does the new prevailing wage law go into effect?
April 13, 2015.
 
 
2. What is the West Virginia Code section for the new law?
West Virginia Code §21-5A-1, §21-5A-2, §21-5A-3, §21-5A-5, §21-5A-6, §21-5A-8, §21-5A-10, §21-5A-11, and §21-5A-12. (WV Code §21-5A) 
 
 
3. Does the change in the West Virginia state Prevailing Wage law affect the West Virginia Public bidding statute?
No. The state of West Virginia, every political subdivision thereof, every administrative entity including all municipalities and all county board must solicit competitive bids for every construction project exceeding $25,000.00 in total cost with a few exceptions such as emergency work. 
 
 
4. Does the new prevailing wage law apply to all publicly-bid construction projects?
Yes. 
 
 
5. Is there a prevailing wage requirement on publicly bid construction projects with a total project value of $500,000.00 or less?
There is no prevailing wage requirement on solely state funded construction projects of total value of $500,000.00 or less. (State and federal minimum wage laws still apply). However, projects that are paid for with federal money, either partially or fully, fall under the Federal Davis-Bacon Act. Therefore, on jobs with federal money whose project value is $2,000 or more, the higher of the federal prevailing wage rates or the state prevailing wage rates will apply. 
 
 
6. Where can I find the current prevailing wage rates?
The current prevailing wage rates, as well as several previous years of rates are posted on the West Virginia Secretary of State’s web page. The following is a web address for the posting: http://www.sos.wv.gov/administrative-law/wagerates/Pages/default.aspx 
 
 
7. Will the West Virginia Secretary of State continue to post the current prevailing wage rates?
Yes. 
 
 
8. Does the $500,000.00 threshold apply to the total cost of the project?
Yes. The total project cost, or in the case of a grant to a private entity, the total grant. A project that may have two or more contracts still requires prevailing wage rates if the total cost of the project is greater than $500,000 regardless of the cost of the individual contracts. 
 
 
9. When are the rules relating to the Prevailing Wage Act prior to the amendment from the 2015 legislative session repealed?
April 13, 2015. 
 
 
10. On April 13, 2015, when the rules are repealed, does this mean there is no prevailing wage rates until new rates are determined?
No. Current prevailing wage rates are in place by statute until new rates are established or September 30, 2015 whichever date is earlier. 
 
 
11. Who will be determining the prevailing wage rates under the new law?
Workforce West Virginia will ultimately decide on the methodology to be used to gather information for the prevailing wage rates. Workforce will work in conjunction with the West Virginia University Bureau of Business and Economic Research and the Center for Business and Economic Research at Marshall University to set the methodology procedure. 
 
 
12. Is there a cutoff date as to when the methodology must be set?
Yes. June 1, 2015. 
 
 
13. Is there a review process for the methodology procedure?
Yes. The legislative Joint Committee on Government and Finance will review the methodology being used to determine the prevailing wage rate and will give recommendations to the legislature of any statutory changes needed to clarify the method for determining prevailing wages. 
 
 
14. Will Workforce West Virginia collect the data necessary to set the prevailing wage?
Yes. 
 
 
15. Will information that I provide for purposes of calculation of the prevailing wage rate remain confidential?
Yes. 
 
 
16. Will Workforce West Virginia set the new prevailing wage rates?
Yes. 
 
 
17. When will the new prevailing wage rates be set?
July 1, 2015. However, if the prevailing wage rates are not set by July 1, 2015, the legislative Joint Committee on Government and Finance may extent the time period for when the prevailing wages are to be set until September 30, 2015. If the extension is given, the wage rates as of January 1, 2015 will remain in effect. 
 
 
18. What if the prevailing wage rates are not set by September 30, 2015?
There will be no prevailing wage rates after September 30, 2015 and until new prevailing wage rates are set. 
 
 
19. What state agency will be enforcing the prevailing wage laws?
The West Virginia Department of Labor. The WV DOL is responsible for all wage enforcement on prevailing wage and other areas of the code such as overtime, minimum wage, etc. The new law also gives WorkForce authority to review payroll documents. 
 
 
20. Does the new law apply to projects awarded before April 13, 2015?
No. 
 
 
21. If a project is awarded to a bidder whose bid is less than $500,000.00, and later a change order makes the project value over $500,000.00, will the entity awarded the bid be required to pay prevailing wage rates?
No. The $500,000.00 threshold applies to the total project value before the bid is awarded. 
 
 
22. Must a project of total value of $500,000.00 or less be publicly bid?
Yes, unless the total project value is less than $25,000.00.

 
Special Thanks to Mike Clowser of the Contractors Association of West Virginia for compiling this information.