How the calculation works
A Davis-Bacon or state wage determination lists two numbers for each trade: a basic hourly rate and a fringe benefit rate. You owe at least both, for every hour worked.
- Straight-time pay = straight-time hours × the base rate you pay.
- Overtime pay = overtime hours × 1.5 × the base rate you pay (never less than 1.5 × the required base). On federal contracts covered by the Contract Work Hours and Safety Standards Act (generally those over $100,000), hours over 40 in a workweek are overtime. The fringe is not multiplied.
- Fringe is owed on all hours, straight time and overtime. Pay it to bona fide plans (health, pension, training), in cash on the check, or a mix. Cash fringe is part of gross pay; plan contributions are not.
- The rate check: base paid + fringe to plans + fringe in cash must be at least the required base + required fringe, and the base paid must be at least the required base.
Worked example
An electrician's determination says $52.40 base and $31.20 fringe. This week they worked 40 straight-time hours and 4 overtime hours, and you pay the full fringe into the union plans.
| Line | Working | Amount |
|---|---|---|
| Straight time | 40 × $52.40 | $2,096.00 |
| Overtime | 4 × ($52.40 × 1.5 = $78.60) | $314.40 |
| Gross pay | $2,410.40 | |
| Paid to plans | 44 × $31.20 | $1,372.80 |
If you paid the fringe in cash instead, the $1,372.80 would be added to the paycheck and gross pay would be $3,783.20. Overtime stays at $78.60 an hour either way.
Put it on the WH-347
The weekly certified payroll shows the same numbers per worker: hours by day, rate paid, fringe and gross. The free WH-347 builder runs these checks for the whole crew and fills the official PDF. For how fringe credit works across plans, see fringe benefits on prevailing wage jobs.