Illinois Issues Sweeping Annualization Requirements for Prevailing Wage Fringes
On January 1, 2014, an amendment to the Illinois Prevailing Wage Act known as Public Act 098-0482 came into effect. In this amendment, terms associated with “prevailing rate of wages” have been subtly redefined with substantial implications. The difference between the original and updated definition is the addition of a single word. Illinois now defines the “prevailing rate of wages” as:
“the hourly cash wages plus annualized fringe benefits for …apprenticeship programs…, health and welfare, insurance, vacations, and pensions paid…”.
The ramification of this new definition to include the annualization of all fringe benefits cannot be understated.
That’s a Good Question
Q. I'm a construction contractor in Kentucky. One of my new projects is an Ohio Prevailing Wage project. I've worked several Federal Davis-Bacon and Kentucky state prevailing wage projects in the past. Is compliance with Ohio PW the same as with my other PW projects?
A. No. While Kentucky and Ohio both have their own state prevailing wage laws, the two states have distinct differences. Kentucky has daily overtime laws and requires the weighted average calculation of overtime rates. In Ohio, employees are required to sign Prevailing Wage Notifications before work commences, overtime premiums are based on the basic hourly rate, and worker class rates can change mid-project.
Founded by Bill Thompson in 1959, TECO Mechanical Contractor Inc.
is based in Lexington, Kentucky. Originally named Thompson Engineering Company, TECO later became Thompson-Bowling Engineering before becoming TECO Mechanical in the 1980's. TECO's work history includes various types of industrial buildings, hospitals, schools, offices, and many specialty projects. Notable projects include the Rupp Arena circular fountain, the University of Kentucky softball and soccer complexes, and design/build additions at Cardinal Hill Hospital. In 2011, Bill branched off the service portion of TECO and founded All Trades Services.
Congratulations, Bill, on 55 years in business. We can only imagine the changes and challenges you’ve seen. We appreciate you and the rest of TECO Mechanical for their business and support.