Unlocking the Potential of the Broadband Equity, Access and Deployment Program (BEAD)

Author: Jeff Simison

New Broadband Infrastructure Funding Brings Prevailing Wage Requirements

The recently announced Broadband Equity, Access and Deployment Program (BEAD) being administered under the Bipartisan Infrastructure Law aims to dramatically expand broadband access across the country. This over $42 billion federal investment hopes to bring high speed internet to Americans through funding partnerships, specifically emphasizing areas that have slow or no internet access.

Before contractors get too excited about new business, they need to pay attention to prevailing wage requirements tied to the funding. While administrative hassles may be frustrating, following compensation rules means the ability to tap into these highly funded infrastructure projects.

Background on the Davis-Bacon Act

The Davis-Bacon Act is a labor law requiring payment of local prevailing wages on federally funded construction projects. By setting standards for fair compensation, the government aims to promote local economic stability and prevent artificial wage deflation.

The law applies to contractors and subcontractors performing construction, alteration, or repair work in excess of $2,000 on projects that receive federal funding. This includes infrastructure projects in transportation, energy, telecom, and more. The Department of Labor (DOL) issues prevailing wage determinations by job classification for each county based on surveys of local contractors.

Summary of Davis-Bacon Requirements Under BEAD

For broadband projects funded by BEAD funding, there will need to be adherence to Davis-Bacon standards.

In practice, the core requirements include:

• Paying construction workers at least the DOL-determined prevailing wage rates for their specific job classification in their county
• Submitting weekly certified payroll reports using WH-347 forms
• Prominently displaying a DOL Davis-Bacon poster about wage rights at all job sites
• Meeting overtime pay requirements for contracts over $100K
• Maintaining payroll records for 3 years post-project completion

In additions to these federal standards, contractors must also abide by any higher state wage minimums. For example, if a state's "Mini Davis-Bacon" law requires $15 per hour for a particular occupation but the federal rate is only $12, they must pay the higher $15 state minimum.

Consequences of Non-Compliance

Failing to properly comply with the prevailing wage rules under Davis-Bacon and Related Acts and can trigger serious repercussions. This may include:

• Suspension of funding disbursements or even termination of the grant
• Mandatory payment of back wages to underpaid workers
• Exclusion from bidding on future federal contracts for up to 3 years

In worst cases, falsification of records or kickback schemes could result in civil or criminal prosecution.

Given these penalties, it is critical that lead fund receivers, subrecipients, contractors and subcontractors all understand the compensation standards and reporting requirements involved.

What Contractors Should Do to Prepare

Construction industry contractors and subcontractors wanting to participate in the broadband buildout should take steps now to prepare for compliance obligations. This includes:

• Understanding federal and state prevailing wage rules in detail
• Creating processes for job classification and certified payroll tracking
• Training project managers on weekly reporting procedures
• Posting wage notifications prominently at all work sites
• Planning budgets based on local DOL wage determinations

Though integrating these processes takes real commitment, it is the cost of fairly winning public contracts under BEAD. Companies that embrace the requirements position themselves to enable internet infrastructure expansions while also lifting local wages.

Get Expert Help Streamlining Compliance

Ensuring consistent prevailing wage compliance across multiple work sites and subcontractors is extremely challenging. But non-compliance threatens profitability and future competitiveness for builders. This is where outside experts can help.

Certified Payroll Reporting specializes in making Davis-Bacon administration seamless for contractors. Our web-based compliance software centralizes job data and automates certified payroll filing, taking the hassle out of federal reporting rules. Custom oversight keeps your records audit-ready while reducing risks.

Contact Certified Payroll Reporting today to learn more about our end-to-end compliance services tailored to companies in broadband construction and beyond. Our experts stand ready to discuss how we can protect your stimulus projects from wage errors while maximizing access to future public infrastructure opportunities.

Get prevailing wage compliance right from day one so that you can deliver best-in-class digital infrastructure for the country while also lifting your workforce and profits.