Standard Wage Rates for Certain Service Workers
How to Calculate Fringe Benefits (Statute 31-57f)
In order to meet their obligation under Statute
31-57f, employers are allowed to pay the fringe benefit portion of the
prevailing wage rate in cash, by incurring costs for bona fide fringe
benefits or by a combination of cash and benefits.
An employer can pay less than the required minimum
hourly wages as long as the hourly rate plus the fringe benefit provided
equals the total wage required.
In order to receive credit, the employer must provide
bona fide benefits and those common to the specific industry. No credit
can be taken for any benefit required by law (e.g. social security contributions
or workers compensations, etc.).
An employer may take credit for the annual cost of a
benefit by converting the costs to an hourly cash equivalent (annual cost of
fringe benefit divided by total number of hours worked in the year). If
the cost of a benefit varies per employee, the credit must be individually
Employees excluded from a benefit plan for whom the
employer makes no contribution or incurs no cost must be paid in cash or
furnished other bona fide fringe benefits equal in monetary value. If the
plan requires contributions to be made during eligibility waiting period, credit
may be taken. No credit is allowed for contributions for employees who by
definition are not eligible to participate in the plan.