Prevailing Wage Jobs – Fringe Benefits Question

4 thoughts on “Prevailing Wage Jobs – Fringe Benefits Question

  • Hi,
    Actually that is a very good question 🙂

    Usually employees do not have an “opt out” – it would be a total payroll nightmare to keep it all straight. Usually when a company that is not a Union Shop decided to contribute the fringe benefit portion of prevailing wage to one or more bona-fide plans it is a management decision for all employees who work on these types of projects.

    Some of the bona-fide plans that I’ve dealt with provide employers with literature and a sample letter to send to employees in order to notify them of their decision to put the fringe $ into plans on your behalf.

    There might (and I stress MIGHT) be something written in the State prevailing wage laws – but I’m afraid that I wouldn’t know that.

  • J. Blow

    This article is full of great information, thanks. I have a further question; Does the employee have a choice? What if I already have a 401 and contribute on a regular basis? I’ve had it for over 20 years. Don’t want or need another, would much rather have my prevailing wages in my pocket. Is there an opt out? I was never given a choice nor did I sign anything agreeing to a 401k. In my eyes my employer is in violation.

  • Hi Joy
    Who pays health insurance is totally up to the company (Health Insurance is not mandatory for prevailing wage jobs). Many companies (even if they don’t work on prevailing wage jobs) decide to offer or sponsor a company health insurance plan – some companies pay the entire premium, other companies will pay for coverage for JUST the employee and then through a payroll deduction the employee covers his family. Health insurance plan premiums have a huge price difference depending on type of coverage, amount of deductible, number of dependents, etc. Most companies outline the health insurance coverage in an employee handbook. Have your husband talk to his employer.

    Sorry I can’t be of more help – but just to let you know, I pay right around $875.00 a month for a 2 person plan that has a $4,500.00 per person deductible. The cost of insurance is totally outrageous!

  • joy

    I have a similar question. My new husband is working a prevailing wage job. His company is taking $900+ out of his pay check for Kaiser health insurance, which I think is way too high. I can walk in off the street and purchase Kaiser insurance for $400+. Who is suppose to pay for health insurance in a prevailing wage job situation – The employer or employee?

    Thank you

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