Prevailing Wage & Apprenticeship (PWA)

Empact works with developers, contractors, and subcontractors to document compliance, identify and address issues, and ensure visibility for investors and other stakeholders

Empact delivers industry-leading PWA compliance

Empact leverages our NexusIQ™ AI platform, purpose-built for compliance and risk management, and our in-house experts, to efficiently identify and address issues

Affects on-site laborers & mechanics

Base rate + fringes (where we usually see a lot of issues)

Construction or alterations / repairs

Wages locked in when construction starts

Parties have 90 days to address issues, or they turn into penalties (with interest)

Cure payments can be made at any time, but are much higher if the IRS catches the issues

How we ensure compliance

Empact uncovers 1.6 issues per contractor per week

Our NexusIQ™ AI platform and our in-house compliance experts verify every work hour as they are reported; issues are immediately communicated to contractors and are monitored and managed in the platform

Prevailing Wage: all laborers on the project must be paid according to rates that match established job codes

At the beginning of the engagement, Empact conducts a crosswalk / labor classification, matching job titles to job codes, and ensures that proper documentation (e.g., signage indicating a whistleblower hotline) is provided
As payroll is issued by contractors, NexusIQ™ captures and analyzes paystubs and time cards against requirements
Generate Certified Payroll (WH-347) Documenting Compliance

Apprenticeships: contractors with four or more laborers must meet three tests to show that they properly engaged qualified apprentices through a registered apprenticeship program

Labor Hour Test: 12% of labor hours by apprentices if construction began in 2023, 15% after.
Ratio Requirement: Daily apprentice-to-journey worker ratios set by DOL or state.
Participation Requirement: Employers with four or more workers must have at least one apprentice.

Empact ensures compliance throughout the project lifecycle

Pre-Construction

Empact oversees the labor classification (crosswalk) and collects employee and apprentice documentation from the EPC and subcontractor

Construction

Empact collects payroll and supporting documents, analyzes each wage hour against requirements, and communicates issues to the responsible party. Empact reports on issues and resolutions to the project owner and other stakeholders, such as tax equity

Project is placed in service

Empact issues a certificate of compliance and detailed summary report in a format that meets the requirements of major accounting and law firms. Empact also provides a financial guarantee behind our findings – we will pay any penalties resulting from issues that we missed

Operations

Empact provides prevailing wage compliance for alteration and repair (A&R) activities during the recapture period (for investment tax credits) or the production term (for production tax credits), providing regular reports to owners and key stakeholders

Learn how we’ve covered millions of wage-hours

Empact’s team and technology efficiently identify and address issues for projects large and small. We’re excited to show you how we work.