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Prevailing wage. In government contracting, a prevailing wage is defined as the hourly wage, usual benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area. This is usually the union wage.
A. The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate).
A. The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate).
According to the U.S. Department of Labor, an employee is entitled to the higher of the two minimum wages. Prevailing wage typically refers to the rate of pay that contractors and vendors must offer their employees when doing business with a government agency.
Under Davis-Bacon, the prevailing rate is the rate paid to at least 50% of workers in a construction occupation for a local area. If there is no single rate for at least 50% of workers in that occupation, then the prevailing wage is the average rate paid in the area for that occupation.
California's Prevailing Wage Law requires contractors to pay specific wage rates on public works projects. The rates are published by the State's Department of Industrial Relations (DIR).
State Prevailing Wage The BRA requires contractors and subcontractors to comply with the prevailing wage provision for federally funded contracts in excess of $2,000. In these states, contractors and subcontractors must pay the local prevailing wage rate for all state-funded construction contracts.
Prevailing wages must be paid to all workers employed on a public works project when the public works project is more than $1,000.
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