Pay for Training With Prevailing Wage Fringes
Virtually any type of job related training, including apprentice training and safety training are considered bona fide benefits and therefore can be used to help meet the fringe benefit obligation of the Davis-Bacon Act or state prevailing wage laws.
Eligible expenses could include tuition to a college or training center, books, lab or other related fees, payments to an apprentice program, as well as on-site instructors. The primary constraint with funding these types of benefits, is that the training must be conducted by an independent third-party. The employer cannot reimburse itself for training its own workers.
Contractors that contribute the hourly fringe benefit rate to a trust like The DirectAdvisors Trust can easily fund training expenses on behalf of employees when needed. Our clients simply submit a requisition along with invoices for the training expenses and the trust pays the institutions directly or reimburses the employees.
If you have additional questions please do not hesitate to contact us or download our whitepapers – “Harnessing the Power of Supplemental Unemployment Benefit Plans” and “Working the Fringe.”
Please also view our short animated video, to see how constructing a bona fide fringe benefit plan, can move prevailing wage dollars out of payroll and reduce associated costs. Increase profits. Submit more competitive bids. Build employee loyalty.
How we can help
DirectAdvisors, established in 2001 and located in Albany, New York provides bona fide benefit plan consulting and third party administrative services to merit / merit shop (non-union) construction companies that are subject to the Davis-Bacon Act, Service Contract Act and state prevailing wage regulations. Our clients are located throughout the United States and range in size from 10 to 3,000 employees.
Last year, our construction company clients contributed tens of millions of dollars of prevailing wage fringe benefit contributions to The DirectAdvisors Trust (health & welfare benefits) and retirement plans managed by our team.
Our solutions are free from any conflict of interest as we do not sell any financial or insurance products. We work with existing agents, brokers and insurance companies.