The Bremerton Housing Authority is required to pay wage rates specified by the project's funding. Because wage rates and fringe benefits can be difficult to understand, examples are provided below for a laborer under the Non-Routine Maintenance Wage Rate Determination. These options apply to all labor classifications for HUD routine and non-routine maintenance wage rates, Davis-Bacon wage rates, and state prevailing wage rates.
Information for Examples Below:
Required Laborer (Non-Routine) Wage Rate as of October 1, 2015 - $15.44 per hour
Required Laborer (Non-Routine) Fringe Benefit as of October 1, 2015 - $4.68 per hour
Minimum Wage Rate and Fringe Benefit that must be paid in some combination - $20.12 per hour ($15.44 per hour + $4.68 per hour)
The employee must receive the minimum wage rate in wage. So the employee must receive at least $15.44 for every hour of work performed.
The cost of all benefits provided to the employee needs to be converted to an hourly cost in order to determine whether the employer is currently paying $4.68 or more in benefits. Fringe benefits include: vacation (including paid holidays, personal days); health and welfare (sick pay, health and/or life insurance); pension (retirement/annuity plans); and apprenticeship/training programs. Only employer contributions may be counted toward this figure. Employer payments which are mandated by Federal, state or local law (e.g., Social Security, State disability or unemployment insurance) are not considered fringe benefits.
After converting the cost of fringe benefits for the employee to an hourly rate, the company has determined that it provides fringe benefits to the employee of $4.68 or more per hour. The company is only required to pay the employee $15.44 per hour in wages. The company may pay more than that amount, but that is the minimum amount the employee must receive for each hour worked in that classification.
After converting the cost of fringe benefits for the employee to an hourly rate, the company has determined that it provides fringe benefits to the employee of only $2.00 per hour. Because this amount is lower than the $4.68 required by HUD, the remaining $2.68 per hour must be paid in addition to the minimum wage rate. The company is therefore required to pay the employee $18.12 ($15.44 + $2.68) per hour in wage and fringe. The company may pay more than that amount, but that is the minimum amount the employee must receive for each hour worked in that classification.
The company pays no fringe benefits to its employees. It will need to pay the full amounts of both the wage rate and fringe benefit amount to the employee for each hour worked. The employee must receive $20.12 ($15.44 + $4.68) per hour. The company may pay more than that amount, but that is the minimum amount that the employee must receive for each hour worked in that classification.
Employee works in more than one job classification:
If an employee performs work in two (or more) job classifications, that employee must be paid the wage rate for the appropriate job classification for however many hours are worked in that classification. If that person works as a laborer for three hours and a plumber for five hours, that employee needs to receive the laborer's wage and fringe benefit amount for three hours and the plumber's wage and fringe benefit amount for five hours.
If a company is owned by a sole proprietor or partnership, HUD wage rates and fringe benefit amounts to do not apply to the owner(s) of the company. Those rates do apply to any employees that the company has.