Fringe Benefits Fraud

Prevailing Wage Fringe Benefits

The Prevailing Wage Rate is made up by the combination two components: a worker’s basic rate plus a worker’s fringe benefits.

  •  Basic Rate is the money that must be paid to the employee by the employer.
  •  Fringe Benefits are the combination of the benefits provided by the employer to the employee. These benefits can include Health Care, Vacation, Pension and Training.

It is the employer’s choice whether to provide benefits or pay the worker the value of the benefits in cash. However if the worker is only being paid the basic rate and not receiving benefits or additional money in lieu of benefits they may be being paid less then the minimum required prevailing wage and have a claim against their employer for the non-payment of the proper prevailing wage.

The proper basic rate and the value of the fringe benefits (Employer Payments) are clearly spelled out by the California Department of Industrial Relations for each classification and can be found on the DIR website.

Fringe Benefits Fraud

It is common for employers to tell employees that they are receiving benefits but never actually deliver these benefits to the employee. Often pension funds are shorted or not paid, vacation is not provided, and the employer charges the employee for health care that should be provided as part of the Total Hourly compensation. If this is happening to you, you may be a victim of Benefit Fraud.

If an employer does not fully compensate workers for their fringe benefits as defined by California in the prevailing wage determinations, the employer is in violation of prevailing wage law.

Contact Donahoo & Associates, PC today for a free evaluation of how you are being paid and rest easy that you have a firm that can fight for your rights and recover your unpaid prevailing wages that were rightfully earned.