WHAT'S NEW?
Travel and Subsistence Not Counted Toward Meeting Standard
Prevailing Wage Rates and Fringe Benefits
Payments for subsistence or travel on Davis Bacon projects is not required. But, if the employer pays or reimburses the worker for travel and subsistence, this payment CANNOT count toward meeting the Davis Bacon wage or fringe rate. See Section 15(f)19 of the Davis Bacon Field Operation Handbook.
Let me share an example:
Recently I saw a contractor claiming $2.35 as “Rate in Lieu of Fringes” as being paid on the check in addition to the basic wage rate. The contractor also claimed $2.87 cents for fringe benefit that included vacation. When I was looking at the pay stubs I saw that $2 per hour was designated as travel pay and 35 cents for vacation was placed on the check, taxed and then deposited with the other fringe benefits into a trust fund. That $2 an hour travel pay does not count toward meeting the Davis Bacon wage and fringe benefit rates. Also, I could only count the $.35 cents for vacation once. It is easy enough to confuse this and count the vacation as being paid on the paycheck and then count it a second time as it is included with the items listed on the fringe benefit statement.
Many states also mandate travel and subsistence pay for workers traveling a distance to a jobsite. These travel and subsistence amounts are in addition to the prevailing wages and benefits published in the wage determination. In some states, failure to pay for travel and subsistence is considered a wage violation.
