Are employers able to take fringe benefit credit against the DBA prevailing wage requirements?
Wages under the DBA include both the cash wages and “bona fide” fringe benefits that are provided to laborers and mechanics. A covered employer may discharge its prevailing wage obligation for the payment of both straight time wages and fringe benefits by (1) paying both in cash, (2) making payments or incurring costs for “bona fide” fringe benefits, or, (3) by a combination thereof. Examples of fringe benefits include health insurance, pension contributions, and paid time off. The use of a company truck or employer required payments into Social Security or worker’s compensation insurance are not examples of fringe benefits. Employers can take credit for their bona fide fringe benefit costs towards meeting the applicable prevailing wage rate.
