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Fringe Benefits in the Prevailing Wage World
The purpose of this article is to increase the awareness of the requirements related to federally funded Davis Bacon construction projects. Established in 1974, Interstate Mechanical Corp. is a mechanical contractor located in Phoenix, Arizona that specializes in HVAC within commercial construction. In the past year, we were contracted to perform specialty welding on large piping at a power plant located west of Phoenix. This project was federally financed and therefore required us to pay the prevailing wage and fringe benefits to all laborers and mechanics as specified under the Davis Bacon Act. The Department of Labor, Wage & Hour Division (DOL) is a federal agency that enforces compliance with all provisions of the Davis Bacon Act. The DOL notified us that we were the subject of an investigation aimed to review compliance on this specific project. We were required to provide various records and allow for our current and former employees to be interviewed by federal invest...
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