As many of you are aware, the applicability of prevailing wage on federal-aid projects as it relates to truck drivers has become an area of focus for both MDOT and US DOL. In an attempt to gain a better understanding of the federal rules that pertain to truck drivers, MITA requested a meeting with MDOT, FHWA, US DOL, APAM, and MCA. The following is a summary of this meeting and when federal Davis-Bacon Wage rates apply to truck drivers.
During recent ARRA compliance investigations, MDOT and the US DOL have responded to employee complaints regarding Truck Driver Davis-Bacon Act wage compliance and stressed to the construction industry that not all truck drivers are exempt from payment of prevailing wage.
DBRA applicability for Truck Drivers is separated into two basic categories.
- Trucking within the limits of the “site of work”
- Material Supplier
Trucking within the limits of the “site of work”
MDOT and US DOL interpret the federal regulations as follows; Davis-Bacon and Related Acts (DBRA) cover all truck driving that occurs within the “site of work” while performing contract work. An example is moving material from one location within the site of work to another location within the site of work. Any time spent performing this operation would be covered by DBRA.
In simplistic terms “site of work” is defined from the project POB to POE. However, a more detailed definition is as follows:
“Site of Work” is defined as the physical place or places where the building or work called for in the contract will remain, and any other site where a significant portion of the building or work is constructed, provided that such site is established specifically for the performance of the contract or project. Site of work also includes a dedicated batch plant and/or borrow pit provided they are dedicated exclusively, or nearly so, to the contract or project, and are adjacent or virtually adjacent to the site of work.
Material Supplier
According to federal regulations, drivers of a contractor or subcontractor traveling between a Davis-Bacon job and a commercial supply facility are not subject to DBRA while they are off the “site of work”. However, once the truck driver enters the “site of work” the clock starts and drivers are subject to the “de minimis” criteria.
“De minimis” is defined as working less than 20% of the workweek within the project “site of work”. If a material supplier truck drivers spends less than 20% of their workweek within the “site of work” then they are not subject to DBRA. However, if that driver’s time exceeds 20% of their workweek then all time spent within the limits of the “site of work” is covered by DBRA. Time spent outside of the “site of work” is not covered.
Each project is treated independently and time spent on multiple federal-aid projects subject to the DBRA is not cumulative.
MDOT and US DOL summarized their position by stating that contractors need to make sure to keep track of the time material supplier truck drivers spend within the project “site of work” and to be able to document the time within the site of work. If this time falls below the “de minimis” threshold then they are not subject to DBRA. However, if their time exceeds the “de minimis” threshold then all time spend with the project limits are subject to the DBRA.
Remember, according to FHWA form 1273 and 29 CFR (Code of Federal Regulations), the prime contractor is held responsible for the compliance of their subcontractors and suppliers. Therefore, compliance will need to be documented by a contractor to refute any documented complaints.
If you have any questions or comments, please contact Glenn Bukoski or Doug Needham at the MITA office at 517-347-8336 or by email at glennbukoski@mi-ita.com or douglasneedham@mi-ita.com.
