Labor Department Starts to Issue Weatherization
Prevailing-Wage Guidance
As the national economy struggles to start a rebound, one
logjam in the Recovery Act spending pipeline is starting to
break open: confusion around the stimulus package's requirement
for contractors to pay "prevailing wages" to their employees,
as called for in the federal Davis-Bacon Act.
The prevailing wage requirement applies, for example, to the
$5 billion of spending poured into state low-income
weatherization programs — a big opportunity for home
improvement contractors. But up until now, "weatherization
worker" is not one of the labor categories included in official
Department of Labor (DOL) listings for prevailing wage rates.
And in low-income weatherization, one worker might do glazing
work, plastering work, insulating, or carpentry, all in one
morning. In theory, this could require the boss to track the
precise hours allocated to each type of task, and pay four
different "prevailing wages" for one day's labor — a
paperwork nightmare.
To address that issue, the Department of Labor set out early
this year to collect data on wage rates for real employees in
the world of weatherization, and establish a new range of
allowable wage scales for "weatherization workers," county by
county, for the entire USA. The DOL has just released its
official scale for the first three states: the Atlantic Coast
states of
Maine,
New Hampshire, and
New Jersey.
A quick look indicates that the wage scales are not likely
to shock anyone as excessive. In Maine, for instance, an
all-purpose "weatherization worker" doing minor repairs,
insulation, weather-stripping, and light-bulb installation
would be entitled to a base wage of $12.50 to about $16.00 in
most counties, plus benefits ranging from $0.85 to $4.82.
Specialized skilled workers would make more, however, with an
HVAC duct mechanic earning hourly pay of $19.31 plus benefits
of $12.61.
As more state wage rates are released, the uncertainty over
how much contractors must pay will recede. However, the
tracking and reporting requirements still pose a learning curve
for small employers who are unfamiliar with government
contracting work. For official information on the stimulus
weatherization program and the Davis-Bacon rules that apply,
start at this
Department of Energy website.