Agenda - Council - 06/27/2017 - Laserfiche WebLink

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01/10/2017 D. Hourly Fringe Benefit Credit. An hourly Fringe Benefit credit toward the Total Prevailing Wage Rate must be determined separately for each Worker61 based on one or more of the following methods: 1. Monthly. Quarterly or Annual Computation Methods. A Contractor must compute its monthly, quarterly or annual cost62 of a particular Fringe Benefit and divide that amount by the estimated total number of hours worked (government and non -government) during the time frame used.63 Typical plans that require monthly, quarterly or annual computations include but are not limited to: health/medical insurance, disability insurance, life insurance, vacation, holiday, sick leave and defined benefit or contribution pension plans that do not provide for immediate participation and immediate or essentially immediate vesting. 2. Fringe Benefit Credit not Requiring Monthly, Ouarterly or Annual Computation Methods. A defined benefit or contribution pension plan that allows for a higher hourly rate of contribution for government work (prevailing wage) than non -government (non -prevailing wage) will be fully credited only if the plan provides for immediate participation and immediate or essentially immediate vesting.64 E. Wages In Lieu of Fringe Benefits. A Contractor that does not provide full Fringe Benefits must compensate a Worker the difference between the Total Prevailing Wage Rate and the rate actually paid for the appropriate labor classification(s).65 The compensation paid is considered wages and subject to tax liabilities. 1. Overtime. The cash equivalent (wages paid) made in lieu of Fringe Benefits is excluded from the overtime calculation requirement, unless the cash equivalent (wages paid) is part of the Worker's standard straight time wage.66 F. Administrative Costs Not Creditable. Administrative expenses incurred by a Contractor in connection with the administration of a Bona Fide Fringe Benefit plan are not creditable towards the Total Prevailing Wage Rate.67 G. Federal. State & Local Fringe Benefit Credit Prohibited. No credit is allowed for benefits required by federal, state or local law, such as: worker's compensation, unemployment compensation, and social security contributions.68 H. Transportation, Board and Lodging Costs Not Fringe Benefits. Payments for the cost of transportation, board and lodging are not Fringe Benefits. 9 A Contractor that sends a Worker away from home to perform work outside the Worker's normal commuting distance so that, as a practical matter, the Worker can return home on the weekend only, must incur the cost of transportation, meals and lodging.7° IX. OVERTIME A. Overtime after 8 Hours per Day or 40 Hours per Week. A Contractor must not permit or require a Worker to work longer than the prevailing hours of labor unless the Worker is paid for all hours in excess of the prevailing hours at a rate of at least 1.5 times the hourly basic rate of pay.71 The prevailing hours of labor is defined as not more than 8 hours per day and more than 40 hours per week.72 61 United States Department of Labor Field Operation Handbook, Section 15f11(c) 62 United States Department of Labor Field Operation Handbook, Section 15f12(a-d) 63 Refer to Appendix B ba United States Department of Labor Field Operation Handbook, Section 15f14(f)(1) bs United States Department of Labor Field Operation Handbook, Section 15f11(c) 2010 United States Department of Labor Field Operation Handbook, Section 15k06 67 United States Department of Labor Field Operation Handbook, Section 15f18 bs Minn. Stat. 177.42, Subdivision 6 69 Minn. Stat. 177.44, Subdivision 4(4); Minn. R. 5200.0900, Subpart 1; Minn. R. 5200.0700, Subpart 1. 70 2010 United States Department of Labor Field Operation Handbook, Section 15f19 71 Minn. Stat. 177.44, Subdivision 1 and Refer to Appendix D 72 Minn. Stat. 177.42, Subdivision 4 7-A