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Prevailing Wage Claims: What Employees and Employers Need to Know
Prevailing wage laws play an important role in public construction projects, helping balance fair compensation for workers while protecting the integrity of competitive bidding. These laws affect both employees and employers who engage in government-funded work.
Lampert Law Office, LLC represents individuals and businesses throughout Southwest Missouri in a variety of employment law matters, including prevailing wage disputes. With over a decade of experience in Springfield, the firm brings personal, practical service to every case.
Employment law issues, such as wage claims, can affect business operations, project timelines, and workers' ability to earn a living. Having a clear understanding of prevailing wage requirements can help reduce the risk of disputes and support fair working conditions on government contracts.
What Is a Prevailing Wage?
A prevailing wage is the minimum hourly wage, including benefits, that must be paid to workers on public works projects. This rate is set by government authorities and reflects wages typically paid to similar workers in a specific region.
Prevailing wage laws apply primarily to public construction projects, such as roadwork, bridges, and government buildings. These laws are intended to:
Protect worker compensation: Workers should receive fair wages that reflect the local standard for their trade.
Promote fair bidding: Contractors who comply with prevailing wage laws shouldn't be undercut by those who pay workers less.
Maintain quality: Fair wages often attract more skilled labor, contributing to the overall success and safety of public projects.
Each state may have different prevailing wage requirements. In Missouri, public bodies must follow state rules when bidding or awarding public works contracts over a certain amount.
When Prevailing Wage Claims Arise
Employment law violations involving prevailing wage claims often arise when contractors or subcontractors fail to follow the applicable wage rates. Disputes can also occur when there is confusion about job classifications or when deductions from paychecks are not allowed.
Common reasons for prevailing wage claims include:
Misclassification of work: A worker may perform tasks that belong to a higher-paying job classification but get paid at a lower rate.
Incomplete recordkeeping: Failing to keep accurate payroll records can lead to suspicion or proof of wage underpayment.
Failure to pay fringe benefits: If the prevailing wage includes health care or pension benefits and these aren't provided, a claim can result.
Delayed or missing payments: Workers may not be paid on time or at all, particularly when subcontractors are involved.
These issues can lead to financial harm for employees and legal penalties for employers. A misstep in wage compliance can also stall or even cancel a public contract.
How Workers Can Protect Their Rights
Employees working on public projects need to know their rights when it comes to prevailing wage laws. Contractors must post prevailing wage rates at the job site, but workers often don't know how to verify whether they're being paid correctly.
Here are the steps employees can take:
Request wage rate documentation: Ask the contractor for written information about the wage classification and rates applied to the project.
Track your hours and duties: Keep a personal log of daily work performed and hours spent. This can help confirm whether proper classifications are being used.
Review pay stubs carefully: Look for discrepancies in pay rate, deductions, or hours worked.
Report suspected violations: Workers have the right to file a complaint with the Missouri Department of Labor if they believe they were underpaid.
If a dispute arises, a lawyer experienced in employment law can help review records, explain state rules, and advocate for back wages.
What Employers Should Know
Employers on public works projects carry a legal responsibility to comply with all prevailing wage laws. Beyond meeting wage requirements, they must keep detailed records and make information available when requested by the state.
Contractors and subcontractors should take the following actions:
Confirm wage rates before starting: Use official resources to confirm wage rates and classifications for each job type on the project.
Train payroll staff: Anyone managing payroll should be familiar with Missouri's prevailing wage requirements.
Maintain accurate certified payroll: Submit certified payroll reports weekly, as required, and retain records for at least three years.
Clarify subcontractor responsibilities: Make sure all subcontractors understand and follow wage requirements.
Failing to comply can result in withheld payments, financial penalties, and disqualification from future bids. Employment law violations also harm the employer's reputation and relationship with government agencies.
State and Federal Prevailing Wage Laws
Both state and federal laws apply to prevailing wage claims. The Davis-Bacon Act governs federal contracts, while Missouri law applies to state and local public works projects.
Key differences include:
Threshold amounts: Missouri sets a lower dollar amount for public works contracts that trigger wage compliance.
Posting requirements: Missouri contractors must post prevailing wage rates clearly at each job site.
Complaint process: The Missouri Department of Labor handles state claims, while federal claims go through the U.S. Department of Labor.
Because laws can differ significantly, it’s important for businesses to work with someone who has handled both types of cases before.
How Claims Are Investigated
When a prevailing wage claim is filed, the relevant labor department begins an investigation. The process includes reviewing payroll records, interviewing workers, and comparing duties with reported classifications.
Typical steps in a claim investigation include:
Initial complaint is filed: An employee or whistleblower submits a claim to the Department of Labor.
Request for records: The department asks the employer for certified payroll records and other documentation.
Worker interviews: Investigators may interview current or former employees about their hours and tasks.
Findings issued: If underpayment is found, the employer may be ordered to pay back wages and penalties.
Investigations can be time-consuming and disruptive. Employers who prepare ahead of time reduce the risk of prolonged legal issues.
Damages and Penalties
When an employment law violation occurs, the consequences for an employer can go beyond simply paying owed wages. Both state and federal authorities may impose additional penalties to discourage further violations.
Consequences may include:
Back pay: Reimbursement to affected employees for unpaid wages and benefits.
Interest and fines: Additional payments are assessed to penalize late or incomplete payments.
Suspension from bidding: Public agencies may bar noncompliant employers from future contracts.
Public records disclosure: Violations can become part of the public record, affecting a firm’s credibility.
Workers harmed by a wage violation may also pursue civil action with legal support. The right legal approach depends on the details of the project and the contract.
Challenges With Subcontractors
Prevailing wage disputes often involve multiple contractors. While the general contractor holds the contract with the public agency, they may hire subcontractors who perform significant portions of the work.
If a subcontractor fails to follow wage laws, the general contractor can still be held responsible. Missouri law allows the public body to withhold payments until wage issues are resolved, which can put the entire project at risk.
To avoid this, contractors should:
Include wage compliance in subcontracts: Contracts should clearly state prevailing wage obligations.
Monitor subcontractor payroll: Regularly request certified payroll records from subcontractors.
Work with legal counsel: Employment law guidance helps reduce exposure to risks and supports contract compliance.
This proactive approach strengthens accountability and can prevent misunderstandings down the line.
Prevailing Wage Claims and Employment Law
Prevailing wage violations are just one part of broader employment law concerns. Workers on public projects are still protected by federal and state rules involving discrimination, wrongful termination, and retaliation.
Employees who raise wage concerns are often protected under whistleblower laws. Firing or demoting someone for reporting wage issues could trigger a separate legal claim. Additionally, OSHA violations or safety complaints can overlap with wage matters if a worker is penalized for raising multiple issues.
Employers should maintain a culture of open communication and compliance. Failing to address employment law issues promptly can lead to greater financial exposure and harm to workplace morale.
Preventative Steps to Reduce Risk
Taking proactive steps can help both workers and employers avoid prevailing wage disputes. Awareness, documentation, and early communication are key to staying ahead of potential problems.
For employers:
Audit payroll records regularly: Verifying records helps identify wage issues early.
Train supervisors and HR staff: Ongoing training helps everyone stay informed on employment law changes.
Consult with a lawyer: Review public project contracts with a professional familiar with wage requirements.
For employees:
Keep personal copies of pay stubs and hours worked: Accurate records are important if a dispute arises.
Speak up early: Bringing concerns to a supervisor or filing a complaint early can resolve issues before they escalate.
When everyone on a project understands their obligations, the risk of employment law violations decreases significantly.
How Legal Counsel Helps
An experienced employment law firm provides clarity, advocacy, and practical support in prevailing wage cases. Whether representing a worker seeking back pay or a business responding to a claim, legal counsel can guide the process.
Services may include:
Reviewing job classifications: Clarifying whether workers were paid at the proper rate.
Assessing risk: Identifying exposure to potential penalties or litigation.
Preparing for audits or hearings: Helping clients respond to government inquiries or formal claims.
Negotiating resolutions: Working to settle disputes through repayment plans or revised contracts.
Lampert Law Office, LLC takes a collaborative and personal approach with each client. By prioritizing communication and long-term outcomes, the firm builds trusted relationships while resolving wage disputes.
Reach Out to an Employment Lawyer
Whether you’re an employee unsure about your paycheck or a business bidding on a public works project, prevailing wage rules matter. Lampert Law Office, LLC supports clients throughout Southwest Missouri, including Springfield, Greene County, Christian County, Joplin, Branson, Carthage, Neosho, Monett, Ozark, Republic, Lamar, and Ridgedale. Contact Lampert Law Office, LLC today to discuss your employment law needs.