Departments unveil PWA criteria in effort to combat inflation

Final Rule for Compliance with Prevailing Wage and Apprenticeship Requirements

Understanding the Final Rule for Prevailing Wage and Apprenticeship Compliance

Release of the Final Rule

On June 18, 2024, the Treasury and the IRS released the final rule for compliance with the prevailing wage and apprenticeship requirements (PWA requirements) pursuant to the inflation reduction act of 2022 (IRA). This final rule is set to be formally published on June 25, 2024. For more information, you can review the official document here.

Key Clarifications in the Final Rule

The final rule provides important affirmations and clarifications compared to the prior Notice of Proposed Rulemaking issued on August 30, 2023. Here is a summary of the key points:

  • Davis-Bacon Act Distinction: The PWA requirements align with the Davis-Bacon Act but do not mandate certified payroll.
  • Exemptions for Manufacturers: OEMs and suppliers are exempt unless involved in specific construction activities.
  • Prevailing Wage Determination: The applicable wage is determined at the time of contract execution.
  • Supplemental Determinations: Additional wage determinations can be requested from the DOL within 30 days.
  • Compliance Records: Specific records can help substantiate compliance with PWA requirements.
  • Good Faith Effort Exception: Guidelines for handling apprenticeship program responses and requests.
  • Intentional Disregard Avoidance: Tips to prevent non-compliance findings.

Reassurance for Renewable Energy Developers

The final rule provides reassurance to renewable energy developers and contractors by offering clarity on PWA compliance. However, it lacks industry-specific guidance and leaves many detailed questions unanswered.

For a more in-depth analysis, you can listen to this post.

Read More of this Story at – 2024-06-20 18:14:47

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