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Guidance for Investor Owned Utility Project Contractors and Subcontractors - Prevailing Wage

Investor Owned Utility Project Contractors and Subcontractors (Public Utilities Article Section 5-305)

  1. What Work is Covered?

Covered work is defined in Section 5-305 of the Public Utilities Article (PUA).  Generally speaking, prevailing wage rates must be paid for work involving the construction, installation, demolition, restoration, or alteration of any underground gas or electric infrastructure of an investor owned utility, as well as any related traffic control activities.
During the 2024 legislative session, the General Assembly enacted Chapter 595, Laws of 2024 (SB 783). Chapter 595 made some changes that prospectively limited the scope of the law.  Those changes can be found in Section 4 of Chapter 595. A link to the 2024 chapter law can be found here: https://mgaleg.maryland.gov/2024RS/bills/sb/sb0783E.pdf The relevant language is on page 22 of Chapter 595.
As amended by Chapter 595, effective June 1, 2024, the law applies only to work performed under contracts entered into on or after March 1, 2024.

  1. What Projects are Covered?

The law applies to projects by an investor–owned gas company, electric company, or combination gas and electric company, involving the construction, reconstruction, installation, demolition, restoration, or alteration of any underground gas or electric infrastructure of the company, as well as any related traffic control activities.

  1. How Are Rates Obtained?

To obtain rates, the contractor or subcontractor should go to the Department’s prevailing wage portal and select the highway informational wage rates for the county in which the work is performed. View the portal.
At the dropdown menu, select “other” under “Type of Requestor”, select “Highway Rates” under “Type of Prevailing Wage,” and select the appropriate county under “Jurisdiction.”
If there is a job classification that is not listed on the website, a contractor or subcontractor may request additional rates by contacting the Department by email at dldliprevailingwage-dllr@maryland.gov.

  1. What Rates Must Be Paid?

The law requires that investor owned utility contractors ensure that all employees performing covered work are paid in compliance with the existing prevailing rates for such work that are set by the Commissioner.  These rates are set annually on December 1 and change each year. Contractors should therefore be aware that the rates they are required to pay for covered work may change each December 1, and are not fixed for the term of their contract.

  1. How are the prevailing wage rates established?

Once a year in the fall,  the Commissioner conducts a wage survey by soliciting payroll information from contractors, contractor associations, labor organizations and other interested parties. See here for more information about the survey.  The survey asks for wage data for all classifications in all counties, and that data is used to determine the rates. You do not have to be a prevailing wage contractor to participate in the survey.  Survey data may be submitted for work performed by all classifications, regardless of whether the work was performed in connection with a prevailing wage project.  Data submissions for underground utility projects should be submitted under the “Highway” category in the survey.  If you would like to participate in the survey or want additional information about the survey process, contact the Prevailing Wage Unit at dldliprevailingwage-labor@maryland.gov or 410-767-2342.

  1. Why should I participate in the survey?

The survey process relies upon information voluntarily submitted during the survey period. Higher levels of participation help to ensure accurate prevailing wage rates. Participation is crucial in the survey process. Please see here for additional information about the survey.  Please note that although you need not be a prevailing wage contractor to participate in the survey, you must register in our prevailing wage database to obtain notice of the survey and related communications, and to participate in the survey. Data submissions for underground utility projects should be submitted under the “Highway” category in the survey.   Please contact the Prevailing Wage Unit  to participate at dldliprevailingwage-labor@maryland.gov or 410-767-2342.

  1. Must a contractor or subcontractor performing work on a covered project submit certified payroll records under the law?

No. The utility projects covered by §5-305 of the PUA are not subject to the requirements of the Maryland Prevailing Wage Law (State Finance Article, Title 17, subtitle 2). Contractors do not have to submit certified payroll records to the Department. The law only directs the contractors to pay certain rates for covered work, and those rates are established by the processes set forth in the Prevailing Wage Law. The law did not bring the described utility projects within the scope of the Prevailing Wage Law.

  1. How will the provisions of the law be enforced?

The law provides for enforcement only under the Maryland Wage Payment and Collection Law, Title 3, Subtitle 5 of the Labor and Employment Article. The obligation to pay the prevailing rates under PUA §5-305 is not enforceable under the provisions of the Prevailing Wage Law.


For additional information, contact:
Division of Labor and Industry
Prevailing Wage for State Funded Construction Unit
10946 Golden W Drive Suite 160
Hunt Valley, MD 21031
410-767-2342
e-mail: dldliprevailingwage-labor@maryland.gov
Ayuda en Español: Jose Ruiz, 410-767-2370