Prevailing Wage in Ohio: A Guide to Rules, Requirements, Rates, and More for 2025

Certified Payroll Components

Employer Information

Include the company name, address, and indicate if it is a subcontractor (list the general or prime contractor if applicable).

Project Details

Provide the project name, location (including county), contracting public authority’s name and address, and project number (if available).

Reporting Period

Note the week ending date, payroll number, and total pages of the report.

Employee Information

Record each employee’s name, address, and Social Security number. Include corporate officers, partners, or salaried employees performing physical labor. Sole proprietors must report their hours but are not required to pay themselves the prevailing wage.

Work Classifications

Specify the work classification for each employee (e.g., “Backhoe Operator” or “Asphalt Laborer”). For apprentices, include year/level and percent of the journeyman’s rate. Separate line entries should be made for employees working multiple classifications.

Hours Worked

Log daily hours worked for the reporting period, distinguishing between straight time (ST) and overtime (OT). Overtime must be paid at time and a half after 40 hours.

Base and Fringe Rates

Include the base hourly rate paid, noting any fringe benefits. Fringe benefits may be:

• Paid in cash and added to the base rate.
• Split between cash and approved plans.
• Paid directly into approved plans as per the wage schedule.

Project Totals

Calculate total hours and gross wages earned for the project. Ensure the project gross equals the hours worked multiplied by the base rate.

Fringe Benefits

Document fringe benefit payments, indicating if they are paid in cash, to approved plans, or as a combination. Calculate fringe benefit hourly credits when contributions are not made hourly by dividing the annual amount by the lesser of 2080 or documented hours worked.

All Jobs Totals

Record total hours worked and total gross wages earned during the pay period across all jobs, including non-prevailing wage jobs.

Navigating Prevailing Wage Requirements in OH

Know Your Rights as a Worker

Understanding Your Rights
Many workers are not fully aware of their rights under prevailing wage laws, which may lead to them unknowingly accepting lower wages than mandated by law.

Voicing Concerns
Fear of retaliation may discourage workers from raising issues related to wage discrepancies or non-compliance.

Solutions for Workers

Education
Workers should be encouraged to participate in training sessions on prevailing wage laws. Educating workers about their rights empowers them to assert their entitlements and ensures they are paid fairly for their work.

Open Communication Channels
Employers should establish clear, safe communication channels for workers to report concerns about wages or non-compliance. Open dialogue fosters trust and ensures issues are addressed quickly and effectively.

Know What to Do as an Employer

Challenges for Employers
Employers in Ohio’s construction industry often face several hurdles in ensuring compliance with prevailing wage laws. Understanding these challenges and implementing effective solutions is crucial for maintaining compliance and fostering a positive work environment.

1. Complexity of Laws: Prevailing wage laws can be complex, with detailed rules and fluctuating wage rates that may vary by location. Misunderstanding these laws can result in non-compliance, penalties, and legal trouble.
2. Accurate Classification and Wage Determination: Properly classifying workers and determining the appropriate prevailing wages for various job categories can be difficult, especially when local wage variations and rate fluctuations are involved.
3. Recordkeeping: Maintaining accurate and thorough records for all employees on public projects is a time-consuming but essential task. Failing to track hours, wage rates, and classifications can jeopardize compliance.
4. Staying Updated: Wage rates and prevailing wage laws change periodically. Employers must stay informed to ensure they remain in compliance with the most current regulations.

Solutions for Employers

1. Education and Training: Invest in training for HR and payroll teams to ensure they understand prevailing wage laws. Offering regular workshops and updates can equip your team to handle the complexities of these laws effectively.
2. Utilize Technology: Implement technology solutions such as payroll software designed for prevailing wage management. Tools like Workyard can help streamline worker classification, wage calculation, and record-keeping, reducing human error and improving compliance.
3. Professional Consultation: Consult with legal experts or labor law consultants who specialize in prevailing wage compliance. They can provide clarity on specific regulations and help ensure your business remains compliant with all requirements.
4. Stay Proactive: Regularly review wage determinations and changes in laws. Subscribe to industry newsletters or join associations that offer updates on prevailing wage developments to stay ahead of regulatory changes.

Common Prevailing Wage Mistakes for Employers in Ohio

• Failure to Notify Contractors: Public authorities may neglect to inform contractors that prevailing wage requirements apply to public improvement projects, resulting in confusion and potential noncompliance.
• Incorrect Classification of Workers: Employers may misclassify employees under the wrong work classifications, leading to improper wage payments and violations of prevailing wage laws.
• Failure to Comply with Prevailing Wage Thresholds: Contractors or public authorities sometimes overlook the monetary thresholds that determine whether prevailing wage laws apply to a project. This can result in unintentional violations.
• Incomplete Payroll Records: Contractors often fail to submit accurate and complete certified payroll records to the public authority, hindering compliance verification.
• Failure to Post Wage Schedules: Contractors may neglect to post the prevailing wage schedule at the project site, as required by Ohio law, leaving workers unaware of their entitled wages.
• Late or Missing Affidavits: Contractors and subcontractors may fail to file the required affidavits of compliance with prevailing wage laws after project completion, risking project payment delays.
• Poor Fringe Benefit Documentation: Mismanagement or lack of documentation for fringe benefits can result in compliance issues, as these benefits factor into total prevailing wage calculations.

Prevailing Wage Solutions for Employers in Ohio

• Verify Wage Classifications: Regularly review worker classifications to ensure they align with the work being performed and comply with the prevailing wage schedule.
• Understand Thresholds: Confirm that the project meets or exceeds the monetary thresholds requiring prevailing wage compliance.
• Post Wage Schedules: Display the prevailing wage schedule at the job site to ensure transparency for all workers involved.
• Maintain Accurate Payroll Records: Submit complete and accurate certified payroll reports to the public authority on a regular basis to document compliance.
• Ensure Timely Filing of Affidavits: File all required affidavits of compliance promptly after project completion to avoid payment delays or legal issues.
• Audit Fringe Benefits: Keep detailed records of fringe benefit contributions and ensure they align with prevailing wage requirements.
• Leverage Technology: Use compliance software to manage payroll, classifications, and reporting efficiently, reducing the risk of errors or missed deadlines.