# Prevailing wage question



## rino1494 (Jan 31, 2006)

I am bidding a prevailing wage job. I was told from a GC one time that you do not have to pay family prevailing wage. It is a small job that only my father and myself will be on. My father's business is a sole proprietorship and I am an employee. I know that he is exempt, but what about myself ??


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## Chris Johnson (Apr 19, 2007)

You should be fine, worse case scenario you become partners for this project.


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## griz (Nov 26, 2009)

Chris Johnson said:


> You should be fine, worse case scenario you become partners for this project.


Negative. You are not exempt from the wage laws as an employee.

If you are going to be a partner it will need to be legally set up.

You can ignore the rules & all will be fine until you get audited. It could get expensive if you're Dad is rpoviding a certified payroll to the GC.


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## rino1494 (Jan 31, 2006)

griz said:


> Negative. You are not exempt from the wage laws as an employee.
> 
> If you are going to be a partner it will need to be legally set up.
> 
> You can ignore the rules & all will be fine until you get audited. It could get expensive if you're Dad is rpoviding a certified payroll to the GC.


Am I correct that my dad is exempt ??

I was also told that salary employees are exempt, is this true ?


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## rino1494 (Jan 31, 2006)

Also, this is a demoliton job. We have a landfill bring in dump trailers and we load them up. Am I correct, that we do not have to pay them rate ??

Also, we have to hire a testing company to do compaction tests. I am assuming that they will be paid prevailing wages ?


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## Framer53 (Feb 23, 2008)

rino1494 said:


> Also, this is a demoliton job. We have a landfill bring in dump trailers and we load them up. Am I correct, that we do not have to pay them rate ??
> 
> Also, we have to hire a testing company to do compaction tests. I am assuming that they will be paid prevailing wages ?


I suggest a talk with PA dept of labor. I could give you NY answers but may not be correct for you.


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## HUI (Jan 21, 2011)

In Indiana salaried employees and owners are exempt from the wage rates. Subs would be required to pay the wage rate for their employees also. Someone delivering a dumpster for instance would not have to follow the wage rate.


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## peteo (Jan 8, 2011)

Rino, you do not have to pay the dumpster people rate. They will get paid whatever their trucking rate is. As far as salaried employees I am not sure but I dont think they get paid rate either but I would check with the labor board to be sure. If you are paid by the hour then you definitely have to be paid rate on whatever your title or job description is for that day/week. I would still get with the labor board just to be sure on how it all works because it gets a little confusing when you start to involve fringe benefits and overtime and all that.:blink:


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## Anti-wingnut (Mar 12, 2009)

And expect trouble if you get the job by under bidding the competitors, and make up for your lower price by not paying prevailing wage to your father.

If I lost a PW job to a family outfit, I would be crying holly hell, and making sure that they crossed every t and dotted every i


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## CatD8T (Apr 26, 2011)

Owners (i.e. your father) do not get rate. Your dad has to pay you rate. Family does not matter. 

Salary employees do not get rate as long as they do not perform a classified position, if they do then they have to get paid the rate. 

Dumpster guy does not get rate so long as he is just dropping and picking up dumpsters.

Testing guy will have to get paid rate.

PM me if you want more information on this.


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## rino1494 (Jan 31, 2006)

CatD8T said:


> Owners (i.e. your father) do not get rate. Your dad has to pay you rate. Family does not matter.
> 
> Salary employees do not get rate as long as they do not perform a classified position, if they do then they have to get paid the rate.
> 
> ...


Thank you. I picked up the bid documents yesterday and there is a section on prevailing wage. I have not read it yet. This is a new venture for us, bidding public work stuff. I am learning the bonding process on this project also.


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## HUI (Jan 21, 2011)

Have fun on the bonding process. For me I think a rectal exam is more enjoyable


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## dayexco (Mar 4, 2006)

HUI said:


> Have fun on the bonding process. For me I think a rectal exam is more enjoyable


and far less intrusive


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## Durn210 (Jan 2, 2009)

Be sure you don't assume anything, remember who makes up the Labor Dept. and they interpret the rules. Keep records of everything even time off for BM.


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## rino1494 (Jan 31, 2006)

What about fringe benefits. The company already pays for my health insurance. Does an operator get paid everything but the fringe benefits or what ?


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## CatD8T (Apr 26, 2011)

The company is allowed to use the fringe to pay some currently provided benefits, but not all. You can also take some of the fringe to put into a state approved pension plan. If you want to do this, you need to meet with someone who knows the ins & outs of the laws. Usually for companies of less than 10 employees, it is just as easy to pay out all fringe benefits, it will cost more to do the paperwork than it is to pay them out.


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