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Prevailing Wage

Discussion in 'Business Fundamentals' started by Philbilly2, Feb 13, 2012.

  1. Philbilly2

    Philbilly2 PlowSite Veteran
    Messages: 3,797

    Do any of you guys that run municipal ralley routes have to deal with this.

    I have been seeing it on bid packets for schools and municipal work that you need to pay prevailing wage. How does that pertain to snow removal. Is there a snow removal prevailing wage? I have plowed for companys that have done school or municipal work, I have never heard mention of being paid prevailing wage.

    What is the deal?
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

  3. Philbilly2

    Philbilly2 PlowSite Veteran
    Messages: 3,797

    yeah, I found that info, now here is my question.

    If I pay a subcontractor $65 an hour, to run his own truck, does that cover his $35ish dollar an hour "truck driver wage"? I know you are going to say it does not matter because he is a subcontrator so he is not an employee so he gets 1099ed.

    If so, then do I just pay myself the $65 an hour and my guy his usual $20 an hour for running one of my trucks, If the person that is driving one of my trucks is not a W-2 employee and I just 1099 them as a subcontractor to drive my truck, am I getting around it?

    This is what I don't understand.
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    This in many threads, if he's using your stuff he's more then likely an employee.
  5. mulcahy mowing

    mulcahy mowing Senior Member
    Messages: 718

    Every state has different rules, call your state department of labor and check with them. In some states you have to pay the rate only if your contract is worth over a set dollar amount. They will have a nice size packet of information for you. I work Prevailing Wage at my 9-5 job all the time. it can be confusing even for the company I work for and we are 1,300 men strong. Keep up on it as the rate changes many times per year and if you dont catch onto it the unions will hang you. look at my sig line lol
  6. Oshkosh

    Oshkosh PlowSite.com Addict
    Messages: 1,655

  7. snocrete

    snocrete Banned
    Messages: 2,862


    Good luck Philbilly!
  8. Oshkosh

    Oshkosh PlowSite.com Addict
    Messages: 1,655

    When I was an owner operator on rated jobs I had to show that I paid myself the rate....
    I actually had a separate bank account so there wouldn't be any confusion per my accountant..
    You , your employees,subs can be audited anytime on rated jobs , it happens often as I was....
  9. dfdsuperduty

    dfdsuperduty Senior Member
    Messages: 597

    here is the next question do you go with an operators (local 150 at 50ish an hr) hourly pay rate or teamsters (30ish)
  10. mulcahy mowing

    mulcahy mowing Senior Member
    Messages: 718

    It depends on what equipment they are running, MA breaks it down by machine class. I may even have the sheet at work ill see if I can track it down, scan it in and post it.
  11. Philbilly2

    Philbilly2 PlowSite Veteran
    Messages: 3,797

    So I am supose to pay a guy that is driving my plow truck, using my insurance, my fuel $30 some dollars an hour??? I don't think so. That ain't happening.

    Ok so do you just fib the hours so instead of 3 hours at $20 an hour you change the certified payroll sheet to say that he only worked for 2 hours at $30?
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Maybe wrong but he has to pay his employees a the prevailing rate not hire union workers to do the job.
  13. Philbilly2

    Philbilly2 PlowSite Veteran
    Messages: 3,797

    Grand you are correct.

    In my area, it is more or less the on the check dollar - prevailing wage is within a dollar or so of our union wages. Difference is all the benifits packages.

    How about this question. Why are municipal employees that work for one of the citys that I want to plow in not in an organized union. One of the my buddys that drives a tandem dump to plow snow for the city, who works for the streets department, only getting $22.08 an hour?

    Why do I have to pay somone prevailing wage to run a pickup truck, but the municipality does not have to pay him prevailing wage to run a tandem?

    Lots of stuff that I do not understand here and I am hoping that someone has dealt with it to give me an idea of what I am getting into.
  14. BPS#1

    BPS#1 2000 Club Member
    Messages: 2,421

    Phil its the gooberment, they make the rules, they get to do what they want.

    I'm sure they spin it to claim they are being fiscally responsible with the tax payer money only paying the guy $22.
  15. Rotator911

    Rotator911 Junior Member
    Messages: 27

    If its like NY you have a fringe benefit that has too be payed on top of the prevailing.Albany rate for teamster is $25.87+$16.45=$42.32/hr
  16. peteo1

    peteo1 PlowSite.com Addict
    Messages: 1,660

    Last edited: Feb 14, 2012
  17. siteworkplus

    siteworkplus Senior Member
    from mass
    Messages: 514

  18. mulcahy mowing

    mulcahy mowing Senior Member
    Messages: 718


    Read that...not only do you have to pay them the $30 an hour you also have to have certified payroll with the city that writes the checks.

    I know nothing about IL but here in Boston if you don't pay the rate not only will you lose everything but 100 union workers will show up at your house picket you the next day.
  19. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Do they take a coffee break during this?
  20. cubanb343

    cubanb343 Senior Member
    from ERIE
    Messages: 637

    I'm pretty sure everyone deserves a break, whether union or not.. whether a prevailing wage job or not.