Ask the Expert: Prevailing Wage & Health Insurance Deductions

How Employers Can Deduct Health Insurance Premiums From Prevailing Wage

When it comes to health insurance deductions from prevailing wages, there are specific rules that employers must follow. Prevailing wage is a minimum hourly rate set by the government for workers on federally funded construction projects.

Employers are allowed to deduct the cost of health insurance premiums from the fringe portion of an employee’s prevailing wage. The fringe portion is the difference between the prevailing wage and the base wage.

To calculate the fringe portion, employers must add up all of the required fringe benefits for the job, such as health insurance, retirement contributions, and paid time off. Then, they subtract the base wage from the total fringe benefits. The remaining amount is the fringe portion.

Employers can deduct up to the amount of the fringe portion from an employee’s hourly wage. However, they cannot deduct more than the actual cost of the health insurance premiums.

What to Do if Your Employer is Deducting Too Much

If you believe your employer is deducting too much from your prevailing wage for health insurance premiums, you can file a complaint with the U.S. Department of Labor’s Wage and Hour Division. The Wage and Hour Division will investigate your complaint and determine if your employer is violating the law.

Other Options for Health Insurance

If you are not satisfied with your employer’s health insurance plan or if you are not eligible for coverage under your employer’s plan, you may be able to purchase health insurance through the Health Insurance Marketplace. The Health Insurance Marketplace is a government-run website where you can compare and purchase health insurance plans from private insurers.

You may also be eligible for Medicaid or CHIP, which are government health insurance programs for low-income individuals and families.

Additional Resources

Here are some additional resources that you may find helpful:

[Wage and Hour Division](https://www.dol.gov/agencies/whd)
[Health Insurance Marketplace](https://www.healthcare.gov/)
[Medicaid](https://www.medicaid.gov/)
[CHIP](https://www.chipcoverage.gov/)

Disclaimer

I am not a lawyer, and this information should not be taken as legal advice. If you have any questions about your rights under the law, you should consult with an attorney.