Wisconsin Prevailing Wage Law in Effect; No Contractor Penalties Yet
In response to a lawsuit filed in Dane County, the Department of Workforce Development (DWD) has agreed to temporarily hold off penalizing contractors for not complying with Wisconsin’s new prevailing wage law. These legal proceedings do not change the fact that contractors are still expected to abide by the extensive reporting regulations.
Under the law effective January 1, 2010, monthly payroll reports must be electronically submitted for all public work performed in Wisconsin. The reporting requirements may differ for union and non-union contractors. Even though the DWD has suspended assessing penalties for those not filing reports pending the court’s review, the law is still technically in effect.
“The new prevailing wage rules cover all publicly funded construction projects performed in Wisconsin regardless of when the job was rewarded or the work began. Contractors with existing contracts may be taken off guard by these reporting changes,” explains Craig Olsen, a construction and real estate principal with LarsonAllen.
Background
Wis. Stat. sec. 66.0903(10)(am) requires contractors working on Wisconsin prevailing wage projects in 2010 to file payroll reports with the DWD starting February 7, 2010. The rules apply to public projects that will cost at least $25,000 and private projects receiving at least $1 million in public funding.
To comply with the statute, the DWD is requesting more than 50 pieces of data for each employee working on a project. The Associated Builders and Contractors (ABC) of Wisconsin and other industry organizations contend that the DWD is asking for information that exceeds the reporting requirements of the statute.
Access the Wisconsin DWD Web site for a summary of the law changes, answers to frequently asked questions, the Excel reporting spreadsheet, and templates for union and non-union contracts.
Next steps
The Dane County Circuit Court will review the statute and issue a ruling as to whether the DWD properly implemented it. Currently, the hearing is scheduled in May. Once the court has ruled, contractors will be expected to file reports from the beginning of 2010.
“Make sure you have plans in place now to capture and submit your payroll information,” urges Olsen.
For more information, contact a construction and real estate principal in your region.