Prevailing Wage Requirements
Prevailing Wage Law requires that contractors (both primes & subcontractors) pay their employees performing work at a prevailing wage rate (hourly rate + fringe if applicable) that is established by the Maryland Department of Labor (DOL). Contractors shall pay employees a rate equal to or greater than the prevailing wage rate in effect.
Prevailing wage applies for work performed on County capital contracts valued over $250,000, or capital contracts to which the County contributes funding valued over $5,000,000.
The Maryland Department of Labor (MD DLLR) determines the prevailing wage rates and fringes annually for certain job classifications in a locality (County). Each fall, the Maryland DOL solicits payroll information from contractors, contractor associations, labor organizations, and other interested parties, seeking data detailing wage rates paid in various classifications in all counties. The rates are determined by considering this information. The wage determination is effective for one year from the date it is issued. However, the prevailing wage rate at the time the work begins remains in effect until the contract is complete.
A Wage Determination is a document that lists the wage and fringe benefit rates for each job classification identified by the Maryland Department of Labor as prevailing in a given locality. Each Project Manual includes a Wage Determination, listing the prevailing wage and fringe benefit rates for each job classification in the contract, specific to a given locality, in this case, Anne Arundel County. Prevailing wage rates are issued separately for building and highway contracts on a county-by-county basis.
If a Wage Determination issued does not contain all the job classifications of work that the contractor believes will be performed on the contract, the contractor should contact the Anne Arundel County Prevailing Wage Unit Team before commencing work.
Prevailing Wage and Local Hiring Team:
Email: prevailing-wage-and-local-hiring-team@aacounty.org
Phone: (410) 222-1344
The prevailing wage rate in effect at the time work begins shall remain in effect until the contract is completed.
If a contract is subject to prevailing wage law, the prevailing wage rates apply to employees of both the prime and all subcontractors. This includes all workers, regardless of union or non-union status. Anyone performing work on a prevailing wage contract is entitled to prevailing wage rates.
Some job categories that are not subject to prevailing wage include administrative and management positions. In addition, a contractor who is strictly a supplier of materials and performs no work on the contract is not subject to the prevailing wage law. Similarly, a trucker who hauls materials or supplies to and from a work site is not subject to the Prevailing Wage law. However, if the trucker moves materials around or performs other work on the job site, they are covered by the prevailing wage law.
The prime contractor is responsible for prominently posting the Wage Determination at the jobsite(s) where employees can easily access it. It must remain posted for the duration of the contract.
An Apprentice must be registered in a program of a Council or Bureau of Apprenticeship and Training of the United States Department of Labor, or an approved equivalent in the state of Maryland. The Apprentice must meet the following criteria:
- Be at least 16 years old;
Have signed an agreement with the employer that includes a statement of the following;
- Trade, craft, or occupation that the individual is learning;
- The beginning and ending dates of the apprenticeship;- The apprentice-to-journeyperson ratio must be 1:1 when performing work on the contract.
- As the apprenticeship progresses, these changes must be communicated and updated to ensure the correct phase is recorded.
Prior to an apprentice performing work on a contract, the contractor is required to submit a copy of the apprentice agreement, the phase of the program they are in, and the hourly wage rate and fringe benefits to be paid. This information is required for review and approval by Anne Arundel County’s Prevailing Wage section.
Anne Arundel County - Apprentice Information Form PW-02
Anne Arundel County uses LCPTracker (Labor Compliance Program), through which contractors, both prime and subcontractors, submit their certified payrolls on an assigned contract. Once a contractor has started work on a contract, certified payrolls must be submitted within 14 calendar days of the end of the payroll period.
Payroll records must be maintained for no less than five (5) years after the work is completed.
Please keep in mind that overtime requirements vary depending on the county in which you are working, as well as on state and federally funded contracts. Anne Arundel County’s requirements for prevailing wage contracts are as follows:
Employees must be paid overtime for work performed under the following conditions:
- In excess of eight (8) hours in a day;
- In excess of 40 hours per week;
- For work performed on a Sunday; and
- For work performed on the following holidays: (New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving, and Christmas Day).
If a contractor (prime or sub) underpays a worker, they are required to pay the worker the full wages owed according to the prevailing wage. Failure to do so will result in non-compliance with the prevailing wage law.
A complaint can be filed by filling out and submitting the Prevailing Wage Complaint form:
Anne Arundel Prevailing Wage Law Complaint Form
Or by getting in touch with the Anne Arundel County Prevailing Wage Team:
Email: prevailing-wage-and-local-hiring-team@aacounty.org
Phone: (410) 222-1344
Onsite contractor employee interviews involve employees being asked about their specific wages and fringe benefits. Therefore, we encourage employees to bring copies of their pay stubs, in either electronic or paper form.
A language interpreter will be provided when needed.
Local Hiring Requirements
Prime contractors shall make best efforts to fill at least 51% of new job vacancies required for this contract with Anne Arundel County residents. Local Hiring applies to contractors who have a capital improvement contract with the County valued at more than $1,000,000, or who have a contract for a capital contract to which the County contributes funding with a value over $5,000,000.
Only a prime contractor is required to submit a Quarterly Local Hiring Report; hence they are the only ones subject to this requirement.
The Local Hiring Report is required to be submitted quarterly through our Labor Compliance Program (LCPTracker) or as requested. The Local Hiring Report should be submitted no later than five (5) calendar days after the end of the reporting period.
The Local Hiring Report must be submitted throughout the contract, regardless of whether the contractor has interviewed or hired new employees.
The report includes the following:
a.) Number of new hires needed for the contract during the reporting period;
b.) Total number of Anne Arundel County residents hired during the reporting period;
c.) Total number of all employees hired during the reporting period; d.) A description of best efforts made to fill open positions for the contract with Anne Arundel County residents; and
e.) For all new hires during the reporting period, including the following information:
- Name
- Last 4 digits of Social Security Number
- Job Classification
- Hire date
- Address
- Referral Source
In addition to other hiring platforms, Anne Arundel County has compiled local hiring employment resources to help connect you with residents seeking job opportunities.
Anne Arundel County Local Hiring Employment Resources