Arizona Regulations R20-5-901

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§ R20-5-901 Definitions

A. "Apprentice" shall mean those workmen participating in an apprentice program, the standards of which have been established and approved by the Apprenticeship Advisory Council within the Department of Economic Security pursuant to A.R.S. 23-221 through 23-226.


B. "Average wage" shall mean the rate obtained by adding the hourly rates paid to all workers in the classification and dividing by the total number of such workers.


C. "Awarding agent" shall mean the state of Arizona or any political subdivision thereof, its officers or agents which award a contract for public work as described in A.R.S. 34-322(A).


D. "Basic hourly rate of pay" shall be that portion of the wage, not including fringe benefits, payable directly to the employee for hours worked.


E. "Commission" shall mean the Industrial Commission of Arizona.


F. "Cost of living adjustment factor" means cost of living increases in the hourly rate based upon United States government statistics, such as the consumer price index, which, according to the relevant collective bargaining agreement or independent contract of employment, are to be ascertained and added at certain times. If the relevant collective bargaining agreement or independent contract of employment includes a cost of living adjustment factor, increases computed under that factor shall be included in the prevailing wage as they take effect under the relevant collective bargaining agreement or independent contract of employment.


G. "Fringe benefits" shall mean those benefits paid by employers to employees, pursuant to the relevant collective bargaining agreement or independent contract of employment, in addition to the basic hourly rate of pay. These shall include payments for medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, for unemployment benefits, life insurance, disability and sickness insurance, or accident insurance, for vacation and holiday pay, or for any similar benefits which are provided for in a relevant collective bargaining agreement or independent contract of employment; provided, however, that any payments, such as Workmen's Compensation Insurance, which the contractor is required by law to pay, shall not be considered "fringe benefits", and provided, further, that any of the payments described above shall be considered fringe benefits only to the extent that they constitute a cost to the employer.


H. "Fund, plan or program" shall mean those various types of arrangements commonly used to provide fringe benefits through employer contributions.


I. "General prevailing rate" means:


1. The rate of wages paid in the locality in which the work is to be performed, to the majority of those employed in that classification in constructions in the locality projects similar to the undertaking.


2. In the event that there is not a majority paid at the same rate, then the rate paid to the greater number, provided such greater number constitutes 30% of those employed.


3. In the event that less than 30% of those so employed receive the same rate, then the average rate.


J. "Labor Department" shall mean the Labor Department of the Industrial Commission of Arizona.


K. "Locality" shall mean the county, city, township, district, or other political subdivision of the state on behalf of which the contract is awarded.


L. "Prevailing wage rate" shall mean that rate ascertained and kept on record by the Commission pursuant to A.R.S. 34-324 and shall include the basic hourly rate of pay, cost of living adjustments, if any, and fringe benefits.


M. "Public Works Act" or "The Act" shall refer to A.R.S. 34-321 through 34-326 (Article 2, Chapter 3, Title 34).


N. "Relevant collective bargaining agreement" shall mean the collective bargaining agreement negotiated for each particular craft or type of workman.


O. "Wage" shall mean the basic hourly rate of pay including fringe benefits (see R~20-5-914 ~).

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