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How prevailing wage overtime actually works

A wage determination gives you two numbers for each classification: a basic hourly rate and a fringe benefit rate. Together they form the required package. The basic rate is the only number that gets multiplied for overtime. The fringe rate is owed on every hour worked at straight time, whether it goes into a health plan, a pension, an apprenticeship fund, or the paycheck itself.

Two rules then sit on top of each other. The FLSA requires 1.5x after 40 hours for non-exempt workers everywhere, and CWHSSA requires the same on most federally assisted construction contracts over $100,000 — with liquidated damages attached. State prevailing wage laws (often called little Davis-Bacon acts) can require more, especially daily overtime in California and Nevada.

The three errors that cost contractors the most

• Multiplying fringes on overtime. It inflates payroll and, oddly, still fails an audit because the certified payroll no longer reconciles to the determination.
• Misclassifying the trade. Paying a laborer rate for work in a higher classification is the number one back-wage finding on public works.
• Ignoring site-of-work travel and pre-shift time. Loading tools, mandatory yard meetings, and travel between job sites during the day are compensable hours that push crews past 40.

For non-public work, use the FLSA overtime calculator, and check your state rule in the state directory. This tool is general payroll information, not legal advice.