Final regulations released for prevailing wage and apprenticeship requirements

The final regulations are generally consistent with the proposed regulations published on Aug. 30, 2023. Some updates or reiterations are addressed in the final regulations, such as:

• Defining dates that impact the wage determination in effect and timing for requests to DOL for supplemental wage determinations and additional classifications
• Clarifying that the apprentice ratios and wages of the geographic area take precedence over apprenticeship program if the registered apprenticeship program is not located at the same geographic area as the facility
• Detailing the facts and circumstances that will determine taxpayer intentional disregard
• Exempting tribal members performing the work of laborer or mechanic from prevailing wage on projects owned fully or jointly by tribal entity
• Revising the cure period for underpayment of prevailing wage
• Excepting taxpayers from PW&A requirements for any activity prior to Jan. 29, 2023
• Updating the Good Faith Effort procedures for contractors that need to request qualified apprentices to meet the apprenticeship participation requirement
• Providing transition relief to the taxpayers who relied on prior guidance to determine when the activities of any laborer or mechanic became subject to the PW&A requirements by allowing correction payments and interest to be paid within 180 days of the publication date of the final regulations to avoid any penalties
• Detailing documentation recordkeeping and reporting requirements by adding additional items to the records sufficient to demonstrate compliance with the PW&A requirements
• Providing three options for taxpayers, contractors, and subcontractors to maintain redacted and/or unredacted personally identifiable information but clarifying that unredacted information should be provided to the IRS upon request