This term is used in s.
DWD 290.015 (3)
. Two examples of items which do not represent bona fide fringe benefits are industry or contract administration funds.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0903 (1) (a)
, Stats., provides that "area" means "the county in which a proposed project of public works that is subject to this section is located or, if the department determines that there is insufficient wage data in that county, "area" means those counties that are contiguous to that county or, if the department determines that there is insufficient wage data in those counties, "area" means those counties that are contiguous to those counties or, if the department determines that there is insufficient wage data in those counties, "area" means the entire state or, if the department is requested to review a determination under sub. (3) (br), "area" means the city, village or town in which a proposed project of public works that is subject to this section is located." The same definition is provided in s.
66.0904
(1) (a), Stats., except that the cross-reference relating to the review of a determination is to s.
66.0904
(4) (e), Stats. The same definition is provided in s.
103.49 (1) (a)
, Stats., except that the cross-reference relating to the review of a determination is to s.
103.49 (3) (c)
, Stats. The same definition is provided in s.
103.50 (1) (a)
, Stats., except that there is no cross-reference relating to the review of a determination.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
Sections
66.0903 (1) (am)
and
66.0904
(1) (am), Stats., both provide that "bona fide economic benefit" has the meaning given in s.
103.49 (1) (am)
, Stats. Section
103.49 (1) (am)
, Stats., provides that "bona fide economic benefit" means "an economic benefit for which an employer makes irrevocable contributions to a trust or fund created under
29 USC 186
(c) or to any other bona fide plan, trust, program or fund no less often than quarterly or, if an employer makes annual contributions to such a bona fide plan, trust, program or fund, for which the employer irrevocably escrows moneys at least quarterly based on the employer's expected annual contribution."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
In an Opinion of the Attorney General issued on November 12, 2009, OAG-5-09, the Attorney General states that, effective January 1, 2010, state prevailing wage rates must be paid to the employees of a local governmental unit that enters into an agreement to perform services for another local governmental unit on a project of public works. Under this rule, the same requirement also applies to any agreement for services entered into before January 1, 2010, and to any work that is claimed to be done pursuant to the joint exercise of powers or duties under s.
66.0301 (2)
, Stats., before or after January 1, 2010, when the circumstances show that the work comes under the definition of work done by a "contractor" or "employer."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0904
(1) (c), Stats., provides that "direct financial assistance" means moneys, in the form of a grant or other agreement or included as part of a contract, cooperative agreement, or any other arrangement, including a redevelopment agreement under s.
66.1333 (5)
, economic development agreement, contract under s.
66.1105 (3)
, or assistance provided under s.
66.1109
, that a local governmental unit directly provides or otherwise directly makes available to assist in the erection, construction, repair, remodeling, demolition, of a private facility. "Direct financial assistance" does not include any of the following:
Microsoft Windows NT 6.1.7601 Service Pack 1
1. A public works contract, a supply procurement contract, a contract of insurance or guaranty, a collective bargaining agreement, or any other contract under which moneys are not directly provided or otherwise directly made available for that assistance.
Microsoft Windows NT 6.1.7601 Service Pack 1
2. Any moneys allocated by the city of Milwaukee for the purchase of public access easements that are located entirely in the Milwaukee Riverwalk Site Plan Review Overlay District established by the city of Milwaukee, as amended to June 1, 2009, or for the construction of dockwalls, walkways, plazas, parks, private roadways open to the public, or similar improvements, or for any other public infrastructure improvements, that are located entirely in that district, if the work on those improvements is subject to s.
66.0903
, Stats., or is exempted from that section under s.
66.0903
(6), Stats.
Microsoft Windows NT 6.1.7601 Service Pack 1
Sections. 66.0903 (6) and 66.0904, Stats., were repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
In an Opinion of the Attorney General issued on November 12, 2009, OAG-5-09, the Attorney General states that, effective January 1, 2010, state prevailing wage rates must be paid to the employees of a local governmental unit that enters into an agreement to perform services for another local governmental unit on a project of public works. Under this rule, the same requirement also applies to any agreement for services entered into before January 1, 2010, and to any work that is claimed to be done pursuant to the joint exercise of powers or duties under s.
66.0301 (2)
, Stats., before or after January 1, 2010, when the circumstances show that the work comes under the definition of work done by a "contractor" or "employer."
Microsoft Windows NT 6.1.7601 Service Pack 1
Specific economic benefits. (Interpretation)
Microsoft Windows NT 6.1.7601 Service Pack 1
(a) The term "other bona fide economic benefit" is the so-called "open end" provision. This was included so that new economic benefits may be recognized by the department as they become prevailing. A particular economic benefit need not be recognized beyond a particular area in order for the department to find that it is prevailing in that area.
Microsoft Windows NT 6.1.7601 Service Pack 1
(b) To insure against considering or giving credit to any and all economic benefits, some of which might be illusory or not genuine, the qualification required by the department is that the economic benefits must be bona fide. No difficulty is anticipated in determining whether a particular economic benefit is bona fide in the ordinary case where benefits are those common in the construction industry and which are established under a usual fund, plan or program. The following are typical conventional economic benefits: medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, or accident insurance, vacation and holiday pay, defrayal of costs of apprenticeship or other similar programs, or other bona fide economic benefits, but only where the employer is not required by other federal, state, or local law to provide any of the benefits. Employers may take credit for contributions made under such conventional plans without requesting the approval of the department.
Microsoft Windows NT 6.1.7601 Service Pack 1
(c) Economic benefits which an employer is required to pay pursuant to other federal, state, or local law are excluded. No credit shall be taken for the payments made for these economic benefits. For example, payments for worker's compensation insurance under either a compulsory or elective state statute are not payments for economic benefits under s.
66.0903
or
103.49
, Stats. The omission in the above-mentioned statutes of any express reference to these payments, which are common in the construction industry, suggests that these payments shall not be regarded as an economic benefit.
Microsoft Windows NT 6.1.7601 Service Pack 1
Although contributions made to a trustee or third person pursuant to a benefit plan must be irrevocably made, this does not prevent return to the employer of sums which were paid in excess of the contributions actually called for by the plan, as where such excess payments result from error or from the necessity of making payments to cover the estimated cost of contributions at a time when the exact amount of the necessary contributions under the plan is not yet ascertained. For example, a benefit plan may provide for definite insurance benefits for employees in the event of the happening of a specified contingency such as death, sickness, accident, etc., and may provide that the cost of such definite benefits, either in full or any balance in excess of specified employee contributions, will be borne by the employer. In such case the return by the insurance company to the employer of sums paid in excess of the amount required to provide the benefits which, under the plan, are to be provided through contributions by the employer, will not be deemed a recapture or diversion by the employer of contribution made pursuant to the plan.
Microsoft Windows NT 6.1.7601 Service Pack 1
The phrase "fund, plan, or program" is intended merely to recognize the various types of arrangements commonly used to provide economic benefits through employer contributions. In interpreting this phrase, the department will be guided by the experience of the United States department of labor and United States treasury department in administering the Employee Retirement Income Security Act of 1974, of the U.S. department of labor in administering other related programs, and of the Wisconsin state insurance commissioner in administering employee welfare funds under
ch. 641
, Stats.
Microsoft Windows NT 6.1.7601 Service Pack 1
Chapter 641, Stats., was repealed by
2003 Wis. Act 261
.
Microsoft Windows NT 6.1.7601 Service Pack 1
These provisions are intended to permit the consideration of economic benefits that meet the requirements and are provided from the general assets of an employer.
Microsoft Windows NT 6.1.7601 Service Pack 1
As in the case of fringe benefit contributions made to a fund, plan, or program, an unfunded plan or program must be "bona fide" and not a mere simulation or sham to avoid compliance with s.
66.0903
or
103.49
, Stats. In evaluating the per hour cost of the fringe benefit contribution for employers that "self-insure" all or a portion of their employees' health insurance, the department may use guidance from the discussion on determining the applicable premium for self-insured plans under the Consolidated Omnibus Reconciliation Act (COBRA) in the
Employer's Handbook: Mandated Health Benefits
, Thompson Publishing Group, 1725 K Street, N.W., Suite 200, Washington, D.C. 20006.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0903 (1) (dr)
, Stats., provides that "minor service or maintenance work" means "a project of public works that is limited to minor crack filling, chip or slurry sealing, or other minor pavement patching, not including overlays, that has a projected life span of no longer than 5 years; the depositing of gravel on an existing gravel road applied solely to maintain the road; road shoulder maintenance; cleaning of drainage or sewer ditches or structures; or any other limited, minor work on public facilities or equipment that is routinely performed to prevent breakdown or deterioration."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
103.49 (1) (bj)
, Stats., provides that "minor service or maintenance work" means "a project of public works that is limited to minor crack filling, chip or slurry sealing, or other minor pavement patching, not including overlays, that has a projected life span of no longer than 5 years cleaning of drainage or sewer ditches or structures; or any other limited, minor work on public facilities or equipment that is routinely performed to prevent breakdown or deterioration."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0904
(1) (fm), Stats., provides that "minor service or maintenance work" means "a publicly funded private construction project that is limited to minor crack filling, chip or slurry sealing, or other minor pavement patching, not including overlays, that has a projected life span of no longer than 5 years; the depositing of gravel on an existing gravel road applied solely to maintain the road; road shoulder maintenance; cleaning of drainage or sewer ditches or structures; or any other limited, minor work on private facilities or equipment that is routinely performed to prevent breakdown or deterioration."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0903 (1) (g)
, Stats., provides: "1. Except as provided in subd. 2., "prevailing wage rate" for any trade or occupation engaged in the erection, construction, remodeling, repairing or demolition of any project of public works in any area means the hourly basic rate of pay, plus the hourly contribution for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly, for a majority of the hours worked in the trade or occupation on projects in the area.
Microsoft Windows NT 6.1.7601 Service Pack 1
2. If there is no rate at which a majority of the hours worked in the trade or occupation on projects in the area is paid, "prevailing wage rate" for any trade or occupation engaged in the erection, construction, remodeling, repairing or demolition of any project of public works in any area means the average hourly basic rate of pay, weighted by the number of hours worked, plus the average hourly contribution, weighted by the number of hours worked, for health insurance benefits, vacation benefits, pension benefits and any other bona fide economic benefit, paid directly or indirectly for all hours worked at the hourly basic rate of pay of the highest-paid 51% of hours worked in that trade or occupation on projects in that area." Sections
103.49 (1) (d)
and
103.50 (1) (d)
, Stats., contain the same definition. Section
66.0904
(1) (h), Stats., contains the same definition except that it refers to a "publicly funded private construction project" instead of a "project of public works."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0903 (2)
, Stats., provides: "Subject to sub. (5), this section applies to any project of public works erected, constructed, repaired, remodeled, demolished for a local governmental unit, including all of the following:
Microsoft Windows NT 6.1.7601 Service Pack 1
(a) A highway, street, bridge, building, or other infrastructure project.
Microsoft Windows NT 6.1.7601 Service Pack 1
(b) A project erected, constructed, repaired, remodeled, demolished by one local governmental unit for another local governmental unit under a contract under s.
66.0301 (2)
,
83.03
,
83.035
, or
86.31 (2) (b)
or under any other statute specifically authorizing cooperation between local governmental units.
Microsoft Windows NT 6.1.7601 Service Pack 1
(c) A project in which the completed facility is leased, purchased, lease purchased, or otherwise acquired by, or dedicated to, a local governmental unit in lieu of the local governmental unit contracting for the erection, construction, repair, remodeling, demolition of the facility.
Microsoft Windows NT 6.1.7601 Service Pack 1
(d) A road, street, bridge, sanitary sewer, or water main project in which the completed road, street, bridge, sanitary sewer, or water main is acquired by, or dedicated to, a local governmental unit, including under s.
236.13 (2)
, for ownership or maintenance by the local governmental unit."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
103.49 (1m)
, Stats., provides: "Subject to sub. (3g), this section applies to any project of public works erected, constructed, repaired, remodeled, demolished for the state or a state agency, other than a highway, street, or bridge construction or maintenance project, including all of the following:
Microsoft Windows NT 6.1.7601 Service Pack 1
(a) A project erected, constructed, repaired, remodeled, demolished by one state agency for another state agency under any contract or under any statute specifically authorizing cooperation between state agencies.
Microsoft Windows NT 6.1.7601 Service Pack 1
(b) A project in which the completed facility is leased, purchased, lease purchased, or otherwise acquired by, or dedicated to, the state in lieu of the state or a state agency contracting for the erection, construction, repair, remodeling, demolition of the facility.
Microsoft Windows NT 6.1.7601 Service Pack 1
(c) A "sanitary sewer" or water main project in which the completed sanitary sewer or water main is acquired by, or dedicated to, the state for ownership or maintenance by the state."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section
66.0904
(1) (i), Stats., provides that "publicly funded private construction project" means: "a construction project in which the developer, investor, or owner of the project receives direct financial assistance from a local governmental unit for the erection, construction, repair, remodeling, demolition, including any alteration, painting, decorating, or grading, of a private facility, including land, a building, or other infrastructure. `Publicly funded private construction project' does not include a project of public works or a housing project involving the erection, construction, repair, remodeling, demolition of any of the following:
Microsoft Windows NT 6.1.7601 Service Pack 1
1. An residential property, if the project is supported by affordable housing grants, home improvement grants, or grants from a local housing trust fund.
Microsoft Windows NT 6.1.7601 Service Pack 1
2. A residential property containing 4 dwelling units or less.
Microsoft Windows NT 6.1.7601 Service Pack 1
3. A residential property that contains retail, office, or commercial components, if the project is intended to increase the supply of affordable housing in a community."
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1
Each of the statutes cited provides that "supply and installation contract" means "a contract under which the material is installed by the supplier, the material is installed by means of simple fasteners or connectors such as screws or nuts and bolts and no other work is performed on the site, and the total labor cost to install the material does not exceed 20 percent of the total cost of the contract."
Microsoft Windows NT 6.1.7601 Service Pack 1
A "Dictionary of Occupational Classifications and Work Descriptions for Use on All Public Works Projects in the State of Wisconsin" may be viewed and downloaded at the DWD web site at
http://dwd.wisconsin.gov/er/prevailing_wage_rate/Dictionary/dictionary_main.htm
.
Microsoft Windows NT 6.1.7601 Service Pack 1
Section 66.0904, Stats., was repealed by
2011 Wis. Act 32
.
Microsoft Windows NT 6.1.7601 Service Pack 1