Last week we learned of a prevailing wage bona fide benefit plan administrator who has run into trouble with the U.S. Department of Labor.
During 2014 our clients contributed over $15 million in prevailing wage fringe benefit supplements to our bona fide health & welfare and retirement programs resulting in an estimated $3.75 million in savings.
Currently, 32 states have prevailing wage type laws and regulations affecting companies that contract directly with the state or local governments for construction or service type contracts.
In many of our past blog entries as well as our last white paper – Working The Fringe, we have discussed the annualization of fringe benefit supplements in New York and outlined some legitimate strategies for compliance and lessening its economic impact.
As the leaves turn to fall colors it will soon be time for contractors to start planning for 2016.
As we dive head first into summer, the construction season is well underway. Not only is your team busy in the field, I’m sure that your office staff is fully engaged in keeping the administrative wheels rolling as well.
As the snow is melting, I’m sure all of the seasonal contractors are gearing up to get back to work!
We write and speak extensively to contractors about providing “bona fide” benefits to employees. Someone recently asked me what “bona fide” means. I guess sometimes we get ahead of ourselves and neglect to cover the basics!
One of the biggest objections we face from merit shop contractors when introducing the idea of a bona fide prevailing wage benefit plan is that workers will quit or try to unionize once they no longer receive their fringe supplements in their paychecks.
All merit shop construction companies working on projects for federal, state or municipal governments have to make decisions on how to satisfy the fringe supplement portion of the prevailing wage law.
As I’m sure you are aware, the Affordable Care Act (ACA) is rolling full steam ahead in 2015.
As I drove to the office this morning the temperature on my dashboard read -6 degrees. Most of our clients, at least the ones who work outside, are shut down for the next few months.