Prevailing Wage Overtime
Table of Contents
The prevailing wage rate for any trade or occupation includes the hourly basic rate of pay plus fringe benefits. Employers can pay the total wage rate specified on the prevailing wage rate determination in two ways: All cash in lieu of any fringe benefits or a combination of cash and employer paid bonafide fringe benefits.
Fringe benefits include health insurance, vacation and holiday pay, pension and retirement contributions paid by the employer. Social security, unemployment insurance and workers compensation are required by law and are not considered fringe benefits. Payment for uniforms, lodging, meals, mileage, use of a vehicle, riding time and waiting time are not fringe benefits.
Wisconsin's prevailing wage rate laws presently require that workers MUST receive at least time and one-half for all work performed on the project in excess of 10 hours a day and 40 hours per week, on Monday through Friday. Time and one-half must be paid for any work performed on Saturday, Sunday, and six major holidays including New Years Day, Memorial Day, July 4th, Labor Day, Thanksgiving and Christmas.
Time and one-half is only calculated on the applicable hourly basic rate of pay indicated on the prevailing wage rate determination or the worker's normal rate of pay, whichever is higher. Fringe benefits are only required to be paid at the straight time rate. If a specific fringe benefit is required to be paid in any other manner, it will be footnoted on the prevailing wage rate determination. An employer cannot use compensatory time or banked hours in lieu of paying overtime. It is a violation of the law for an employers or an employee to agree to pay or receive less compensation than required by Wisconsin's prevailing wage rate laws.