The Baltimore County Prevailing Wage and Local Hiring Law requires the prevailing wage be paid to workers on County-financed construction contracts that are valued at more than $300,000 and County-subsidized capital projects receiving assistance over $5,000,000, per Baltimore County Code Sections 10-2-506 and 10-2-507, as applicable. The County law is effective for contracts signed on or after July 1, 2021.
Prevailing wage is the wage rate paid by employers that is determined by a governmental authority, based upon a particular geographic area, for a given class of labor and type of project. A County-financed construction contract is a contract for construction work that is awarded by the County or where County funds are used to finance all or part of the cost of the contract.
The County law is modeled after the federal Davis-Bacon Act and is designed to ensure that construction workers employed under public works contracts are paid the going rate for their services. Bill 102-20 also prohibits the misclassification of workers into lower paying job categories; gives the County the ability to withhold payments if a violation of the law is found; and imposes reporting requirements to track compliance.
The County's Prevailing Wage Law assures construction workers appropriate wage rates and requires construction contractors awarded County contracts to pay their workers the amount specified by law. The law regulates the hours of labor, rates of pay, conditions of employment and obligations of employers.
For the workers, the prevailing wage represents the fairness and basic respect they deserve in return for the work they do. The law commits to employers who bid on construction contracts that they will not be underbid by employers who pay as little as they can to workers.
Wage Determinations
The County prevailing wage rates are established by the State Commissioner of Labor and Industry. Wage determinations establish the wage and fringe benefit rates for each classification of worker by county for one year. The law requires employees on County public works contracts to be paid overtime for hours in excess of eight hours in a single day, more than 40 hours in a work week, and for work performed on a Sunday or a legal holiday. Contractors found to be paying wages below the prevailing wage rate may be assessed appropriate sanctions of $20 per day for each worker paid less than the established rate.
Certified Payroll Statements
Contractors on County-funded construction projects covered by the Prevailing Wage Law are required to submit certified payroll statements for straight time and overtime work. Certified payrolls must be submitted to the Compliance Monitor within 14 days after the end of the payroll period. Liquidated damages for late submission of payrolls total $10 for each calendar day the records are late.
If the federal or state prevailing wage law applies to a construction project, the County law does not apply; however, those jurisdictions funding the project will apply.
The prevailing wage law does not apply to the following construction contracts:
- County-financed construction contracts of less than $300,000
- County-financed construction contracts that are subject to a Federal or State prevailing wage law
- Non-competitive contracts awarded under the County Code
- Contracts with a government entity
- Contracts where the contractor is expressly precluded from complying with the County's prevailing wage law by the terms of a federal or state law, contract or grant
- Joint or cooperative procurements under the County Code
- Emergency procurements under the County Code
Prevailing Wage Rates
The prevailing wage rate is the rate paid for comparable work in the private sector within the County. If a project is deemed to fall under the prevailing wage law, the prevailing wage rates apply to employees of the prime contractor and any and all subcontractors.
The County’s wage determinations are subject to the State of Maryland wage determination rates specified for Baltimore County for highway construction and/or building construction. For job classifications not listed, vendors will be required to request a rate determination with the Request for Additional Wage Rates from the Maryland Division of Labor and Industry. In the event of a conflict between the County prevailing wage and local hiring statutes, the statute shall control.
The State of Maryland Commissioner of Labor and Industry conducts an annual wage survey for all work classifications among construction contractors across the state. From this data, the state develops the prevailing wage to be paid for each work classification and project type for each county. Baltimore County utilizes the prevailing wage rates specified in the schedule generated as a result of this survey.
The law requires that the prevailing wage rates be posted in a prominent and easily accessible place at the worksite during the entire time work is being performed. It must be posted in English and any other language that is primarily spoken by the employees at the worksite.
Under the County law, overtime is paid in any one of three instances:
- Work more than eight hours in any single calendar day
- Work more than 40 hours in a work week
- Work on a Sunday or a legal holiday
All employees performing work on a construction project that falls under the County's prevailing wage law are entitled to the prevailing wage, regardless of union or non-union status.
Federal, State and Local Requirements
In the event the state or federal prevailing wage law applies, the requirements of Maryland state law or federal law shall apply, provided however that local hiring requirements may still also concurrently apply.
If the state prevailing wage applies, additional requirements as set forth in COMAR and state statute will be applicable including, but not limited to, notices to independent contractor and withholding of last payments for contracts until a certification and attestation is received by the County evidencing that all employees and contractors have been paid in accordance with state prevailing wage requirements.
Contractor and Subcontractor Compliance
If there is a preconstruction conference held before the start of construction, the County's vendor charged with ensuring compliance will fully explain what is required to comply with the prevailing wage law. For other construction contracts subject to the prevailing wage law that do not require such conferences, please email the Prevailing Wage Program Administrator at prevailingwage@baltimorecountymd.gov.
Affidavit
It is the responsibility of each contractor and bidder submitting a quote or solicitation to Baltimore County to read, certify and attest to the County that they have read and agree to be bound by the prevailing wage and local hiring requirements of the County, including these guidelines. An affidavit must be provided attesting to the same in such form and substance as required by the County upon demand as an incorporated requirement to any contract or agreement.
Certified Payroll Records
Contractors and subcontractors must submit certified payroll records with the required information within 14 days after the end of each payroll period. If payroll records are submitted late the County will assess liquated damages of $10 per calendar day that the records are late.
Certified payroll records must contain accurate information detailing the following:
- Job:
- Name
- Location
- Contractor or subcontractor:
- Name
- Address
- Phone number
- Each employee's:
- Name
- Current address
- Specific work classification
- Daily straight and overtime hours
- Total straight time
- Total overtime hours
- Total straight time and overtime hours for the payroll period
- Rate of pay
- Fringe benefits by type (i.e. health insurance) and amount
- Gross wages
Payroll records must be submitted through a web-based system using software utilized by the County's compliance vendor, PRISM.
The PRISM Compliance Reporting Portal is a paperless, online system for entering payroll information. Rather than submitting paper Prevailing Wage Payroll forms, contractors and subcontractors enter all payroll and related information online. The contractor or subcontractor needs a computer and an internet connection. Public computers are available at County public libraries.
Training is available through self-guided online tutorials available when a contractor logs in to the system. An overview of the PRISM Compliance Portal is also available once logged in.
Contractors and subcontractors must keep payroll records no less than 5 years after the work is completed.
Complaints and Violations
The Director of Economic and Workforce Development or a designee may perform random or regular audits and investigate any complaint of a violation of the prevailing wage law.
Complaints can be made against contractors and subcontractors for the following alleged violations:
- Incorrect amount or no payment received for:
- Straight time
- Overtime
- Sunday or holiday
- Improper classification
- If a contractor or subcontractor underpays a worker, this is known as a misclassification. The contractor or subcontractor must pay the affected employee the full amount of wages due under the prevailing wage law. If a contractor or subcontractor misclassifies a worker, the County will assess liquidated damages of $20 per day for each day the worker is not paid the proper prevailing wage for his or her work classification.
- Retaliation
- An employer cannot terminate a worker for filing a complaint. The law specifically states that a contractor or subcontractor must not discharge or otherwise retaliate against an employee for asserting any right under the law or for filing a complaint of a violation. In the event that a contractor discharges or otherwise retaliates against an employee for asserting any rights under the law or for filing a complaint of a violation, the aggrieved employee may file a complaint.
- Local hiring requirement violation
File a Complaint
To file a complaint, complete the Prevailing Wage Law Complaint Form. The complaint form must be completed, signed and emailed to the Prevailing Wage Administrator at prevailingwage@baltimorecountymd.gov. The County only pursues claims that have been substantiated.
Documents and Resources
- Prevailing Wage Law for Baltimore County
- Local Hiring Law for Baltimore County
- Maryland Prevailing Wage Informational Rate
- Prevailing Wage and Local Hiring Contract Requirements and Policies
- Prevailing Wage and Local Hiring Affidavit
- Prevailing Wage Law Complaint Form
Contact
For questions or concerns, call 410-887-8000, or email us at prevailingwage@baltimorecountymd.gov.