Build a competitive benefits program that helps you recruit skilled tradespeople, comply with prevailing wage requirements, and manage multi-employer trust obligations.
Construction & Trades
Employee Benefits for Construction and the Skilled Trades
Construction and skilled trades employers operate in a benefits environment shaped by forces that barely exist in other industries. Prevailing wage and Davis-Bacon requirements dictate minimum benefit contribution levels on government-funded projects. Multi-employer union trusts provide benefits for significant portions of the workforce but come with complex contribution obligations and withdrawal liability exposure. Field workforce logistics make benefits access and administration more challenging than in any office-based industry. And the ongoing skilled labor shortage means that a strong benefits package is often the difference between staffing your projects and watching them fall behind schedule. ALKEME brings specialized expertise in construction industry benefits, helping contractors, subcontractors, and trade employers build programs that satisfy regulatory requirements, manage union trust relationships, and provide meaningful benefits to a mobile, project-based workforce.
Prevailing Wage Compliance and Fringe Benefit Strategies
Employers performing work on federally funded projects subject to the Davis-Bacon Act or state prevailing wage laws must pay workers at rates that include both a base hourly wage and a fringe benefit component. The fringe benefit portion can be satisfied through bona fide benefit plan contributions, cash payments, or a combination of both. The strategic question is how to allocate the fringe component to maximize employee value while managing employer costs effectively.
ALKEME helps construction employers design fringe benefit programs that satisfy prevailing wage requirements while building genuine workforce loyalty. Rather than simply paying the fringe component as cash, which increases payroll tax liability for both employer and employee, we structure health insurance contributions, retirement plan allocations, and supplemental benefit offerings that provide greater total value at equivalent or lower total cost.
We also help you navigate the compliance requirements of prevailing wage benefits, including the annualization calculations required for Davis-Bacon fringe benefit credits, the documentation requirements for demonstrating that contributions are made to bona fide benefit plans, and the interaction between prevailing wage fringe obligations and your existing benefits program for non-prevailing-wage work.
Multi-Employer Trust Participation and Alternatives
Many construction employers participate in multi-employer health and welfare trusts established through collective bargaining agreements with trade unions. These trusts pool contributions from multiple signatory employers to provide benefits to union members, and they can offer coverage that would be difficult for individual employers to provide on their own. However, trust participation also creates significant financial obligations and risks.
Contribution rates to multi-employer trusts have increased substantially over the past decade, and employers who withdraw from underfunded trusts face withdrawal liability that can amount to hundreds of thousands or even millions of dollars. ALKEME helps construction employers evaluate the cost-effectiveness of their trust participation, understand their withdrawal liability exposure, and explore alternatives when trust costs exceed the value delivered.
For non-union construction employers or those seeking to supplement trust benefits, we design standalone benefits programs that are competitive with union trust offerings. This is particularly important for open-shop contractors competing for skilled workers who might otherwise choose union employment partly based on benefits considerations. We benchmark your program against the prevailing trust benefits in your trade and region to ensure competitive positioning.
Benefits Access for a Mobile Field Workforce
Construction workers do not sit at desks with computers and internet access. They work at job sites that change every few weeks or months, often in remote locations with limited access to healthcare facilities. They may work for multiple employers in a single year, creating eligibility and continuity challenges. And their work schedules are dictated by project timelines, weather, and seasonal demand rather than a standard calendar.
ALKEME designs benefits programs for construction workforces that account for these realities. We select health plan networks with strong urgent care and occupational health coverage in the geographic areas where your crews typically work, implement telehealth solutions that provide medical access from any job site, and design enrollment and communication processes that do not depend on employees having regular office or computer access.
We also help construction employers address the eligibility tracking challenges created by project-based employment patterns, seasonal layoffs, and the movement of skilled workers between employers. Our systems track hours and eligibility across irregular schedules, manage COBRA and state continuation requirements when employees are laid off between projects, and ensure seamless benefits transitions when workers return for subsequent projects.
What We Recommend for Construction and Trades Employers
- ●A fringe benefit allocation strategy for prevailing wage projects that maximizes employee value while satisfying Davis-Bacon and state requirements
- ●Multi-employer trust cost analysis with withdrawal liability assessment and alternative plan benchmarking for non-trust options
- ●A group health plan with broad network access, strong urgent care coverage, and integrated telehealth for job site access
- ●A 401(k) or SIMPLE IRA retirement plan with employer contributions structured to complement prevailing wage fringe allocations
- ●Supplemental accident and disability coverage tailored to the high-risk occupational exposures inherent in construction work
- ●Mobile-friendly enrollment and benefits communication tools that reach field employees who do not have regular office or computer access
Frequently Asked Questions
Recommended Coverage
Group Health Insurance
Employer-sponsored medical coverage
Retirement Plans
401(k), 403(b), and profit sharing plans
Disability Insurance
Short-term and long-term disability coverage
Life Insurance
Group term life and AD&D benefits
Voluntary Benefits
Accident, critical illness, and supplemental plans
Compliance & Admin
ACA, ERISA, COBRA, and Section 125 management
Top States for Construction & Trades
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