Prevailing Wage Office
Prevailing Wage Requirements
The Davis-Bacon and Related Acts require all contractors and subcontractors performing work on federally-funded construction projects in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rate (as determined by the U.S. Department of Labor) for corresponding classes of laborers and mechanics employed on similar projects in the area.
City of Memphis Prevailing Wage Ordinance requires any firm, individual, partnership, corporation, contractor, or subcontractor at any tier who performs construction, alteration, improvements, repairs, maintenance, or demolition in excess of $50,000 of any city-owned or leased building or on any city-owned land, pursuant to a contract by or on behalf of the city, or for any agency of the city, or financed in whole or in part by the city to pay its employees working on those city projects not less than the appropriate prevailing wage as determined by the Tennessee Department of Labor for corresponding classes of laborers and mechanics employed on similar projects in the area.
Pursuant to current City of Memphis Ordinance and the Davis-Bacon and Related Acts the City of Memphis has the authority to monitor contractor’s compliance with local, state, and/or federal prevailing wage laws on publicly-funded construction projects in Memphis.
Prevailing Wage Complaints
Prevailing wage complaints related to labor standards are processed through the Prevailing Wage Office. If you worked on a City of Memphis construction project and do not believe you were paid the prevailing wage rate, please call 901-636-6311. Wage Complaints can also be submitted on TN Department of Labor and Workforce Development website and at the Department of Labor Wage & Hour Division website (Spanish version available here).
Every contractor and all subcontractors must:
- Classify all workers in conformity with the wage rate as determined by the U.S. Department of Labor. Refer to https://sam.gov for the most current classifications and wage rate determinations.
- Every contractor or subcontractor shall post and keep posted in a conspicuous place at the site of the construction work a copy of the prevailing wage rates and make these rates available to all covered workers employed on this project at all reasonable times. Fringe benefits, when listed by the U.S. Department of Labor, are included in City prevailing wage rates, and must be paid to laborers/mechanics on City funded projects.
- All contractors and subcontractors must pay overtime compensation of one and one-half times the basic rate of pay for all hours worked over 40 a week as required by any applicable Federal or State laws, rules or regulations.
- All contractors and subcontractors shall make only those deductions from wages authorized by law. Indicate the amount of FICA, Withholding Tax and if applicable, “Other” when a voluntary deduction is withheld. A voluntary deduction must be authorized in writing and signed by the employee. A short note from the employee is all that is needed and should accompany the first payroll that identifies the deduction.
- Contracts for the construction of, demolition, improvement, enlargement, alteration, or replacement of a City of Memphis public work or project shall not be deliberately divided into multiple contracts for the sole purpose of circumventing the Prevailing Wage Ordinance
- For the Prevailing Wage Office to operate more efficiently and communicate more effectively, it is the responsibility of the award recipient to notify the Prevailing Wage Office of the contract(s) they’ve been awarded and list any/all subcontractors expected to be utilized. Award recipients shall submit expected classifications of laborers/mechanics to ensure all worker classifications are assigned prevailing wages. If classifications are not listed, the Prevailing Wage Office will determine the wages to be used for such classifications.
- Payroll reports shall be submitted on a weekly basis to the Prevailing Wage Office utilizing the LCP tracker certified payroll reporting software. Each weekly certified payroll report must be submitted by the awarded recipient within 7 DAYS after the regular payment date period. It is the responsibility of the award recipient to review ALL payroll reports for proper compliance prior to submitting such reports to the Prevailing Wage Office. The recipient is responsible for the full compliance of all sub-contractors and will be held accountable for any payroll reporting and wage restitution. The contractor and subcontractor must complete a Statement of Compliance which states that the certified payrolls are correct and complete, and that the wage rates paid to the workers during the reporting period equal or exceed the prevailing wage rates included in the construction contract, and that the classifications used to conform with the work the employee performs. The Prime Contractor are responsible for submitting all certified payrolls including those of the subcontractor(s) used through the life of the construction project.
Prevailing Wage Documents
U.S. Department of Labor Wage & Hour Division
- Department of Labor Wage Determinations
- United States Department of Labor Mobile Applications
- Minimum Wage, Overtime Pay, Hours Worked, Recordkeeping, etc.
- Wage & Hour Division PowerPoint Presentation
- Instructions For Completing Payroll Form, WH-347
- WH-347 (PDF)
- Davis-Bacon Act Poster (English) (Spanish)
State of Tennessee
City of Memphis
LCP Tracker Pro