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If you also set up pay rates that are higher than DBA prevailing wage rates within a federal class code, but separated by position code, you can still use the rate class feature to set up rates by position, and the prevailing feature to set up the prevailing wage. The system simply takes the higher pay rate. Either way, rate classes are required to take advantage of the prevailing wage and fringe features, whether union or non-union.
Calculation Flow: Pay Rate
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With Cash Fringe
The following diagram shows how the system calculates the pay rate involving prevailing wage and fringe amounts. Pay rate includes any cash fringe that may be due to the employee.
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Cash fringe = (prevailing wage - employee fringe)
EXAMPLE 2:
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Prevailing Wage Is Greater
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Than Employee Standard Wage; Employee Fringe Is Greater
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Than Prevailing Fringe, by a Greater Difference
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Than the Wage Difference
In this example, the prevailing wage for bricklayers is greater than the employee's standard rate for bricklayers. However, the employee's fringe benefits are higher than prevailing. Because the difference in fringe is greater than the difference in wage (in the example below, $5.21 - $4.21 = $1.00), the employee does not get the prevailing wage, there is no cash fringe, and the wage rate is reduced from $32.71 to $31.71. The total package for the employee is $38.25, which is equal to the prevailing total package.
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Cash fringe = (prevailing fringe - employee fringe)- (employee wage - prevailing wage)
EXAMPLE 4:
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Employee Standard Wage and Fringe Are Higher
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Than Prevailing Wage and Fringe, Respectively
In this example, the bricklayer's standard wage and fringe are higher than the prevailing wage and fringe, respectively. Therefore, the total package for the employee is higher than the prevailing package, and no adjustments are necessary.
| Wage | Fringe | Cash fringe | Total package | |
|---|---|---|---|---|
Prevailing | 25.75 | 5.00 | 30.75 | |
Employee Standard | 28.75 | 8.00 | 36.75 | |
Result: | 28.75 | 8.00 | none | 36.75 |
EXAMPLE 5:
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Employee Standard Wage Is Lower
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Than Prevailing Wage, but the Employee Fringe Is Higher
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Than the Prevailing Fringe
In this example, the prevailing wage is $1.00 higher than the employee standard wage, and the employee fringe is $1.00 higher than the prevailing fringe. Therefore, the employee will not get the prevailing wage of $34.00 but instead, the standard rate of $33.00 (34-1). There is no cash fringe and the total package is $39.00.
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