Prevailing Wage Got You Down?

Submitted by Michelle Dreier, Director of Member Engagement & Government Affairs

As the interest rates have reduced private investment in 2024, we have seen some of our members pivot to government work. Additionally, Inflation Reduction Act (IRA) dollars are starting to flow and many of these projects require prevailing wage and registered apprenticeship. As your clients are looking for their 30% tax break, you many be tapped to start participating in a prevailing wage project which is something you never considered previously. 

Prevailing wage is a minimum wage rate required on state or federal funded projects. It is now an incentive on IRA projects as well. For our members that are part of our registered apprenticeship program, ETN of MN, most know of my prevailing wage expertise. For those of you that may have used the Electrical Association in other ways, let me introduce myself. My name is Michelle Dreier and I came to the Electrical Association to help small businesses stay compliant, BEFORE they got in trouble. I brought with me 18 years of experience in compliance from Minnesota Department of Labor and Industry where I enforced Labor Standards and managed Prevailing Wage for the department.  

So, for your journeyworkers you must pay a combination of wages and benefits so total compensation equals the total wage rate on the wage determination. For your apprentices you will need to do the same, unless they are in a registered apprenticeship program. In that case, the formal apprenticeship agreement dictates the wages.  

Some members choose to administer their own registered apprenticeship programs and incorporate the Electrical Association’s curriculum into their standards as the required 144 hours of related technical instruction. Some members choose to join ETN of MN and have our qualified Electrical Association staff manage compliance. I can work in an advisory capacity as you determine this is a business need to help you make an informed decision.

Please reach out to discuss your unique situation: mdreier@electricalassociation.com