Prevailing wage

Hi, my husband was notified that after several years, the “pension” portion of his Prevailing Wage Rate is required to be contributed to the company’s 401k program. We have our own savings plan independent of his company and do not want to use them. The employer says there are no exceptions. So now 26% of his wages have been deducted for this reason. Is this legal? They will not allow him to lower the percentage of contribution either.

21 hours ago, Evelyn said:

Hi, my husband was notified that after several years, the “pension” portion of his Prevailing Wage Rate is required to be contributed to the company’s 401k program. We have our own savings plan independent of his company and do not want to use them. The employer says there are no exceptions. So now 26% of his wages have been deducted for this reason. Is this legal? They will not allow him to lower the percentage of contribution either.

Generally, no, there are no exceptions. It's an employer decision. (edited because it looked like I was answering the wrong thing. Thanks Larry)

Bill meant to say YES, it is legal.  It is indeed the employer's decision.  We routinely set up PW/Davis Bacon plans and specifically lower the cash wages because it also saves a ton of money for the employer, especially in workers comp costs, which then makes the employer more competitive on bidding which then makes it likely there will be more work for his employees.  The employee may not like that his W-2 part of the prevailing wage job has gone down, but his only remedy is to quit.  This is 100% under the control of the employer and, as much as you may not like it, the employee has zero say in the matter.

Legal and in the employer's control.  It is not the employee's money (in spite of what the author of this letter thinks).

18 hours ago, Larry Starr said:

Bill meant to say YES, it is legal.  It is indeed the employer's decision.  We routinely set up PW/Davis Bacon plans and specifically lower the cash wages because it also saves a ton of money for the employer, especially in workers comp costs, which then makes the employer more competitive on bidding which then makes it likely there will be more work for his employees.  The employee may not like that his W-2 part of the prevailing wage job has gone down, but his only remedy is to quit.  This is 100% under the control of the employer and, as much as you may not like it, the employee has zero say in the matter.

Thanks Larry. I edited to clarify that I was answering no exceptions.