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What triggers prevailing 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).
What makes a job prevailing wage?
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. Prevailing wage may also include other payments such as apprenticeship and industry promotion.
What is prevailing wage and how does it work?
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).
How is prevailing wage calculated?
The prevailing wage rate is defined by the US Department of Labor as the average or standard wage paid to similarly-employed workers in a specific occupation in the areas of intended employment. In other words, it's what an average experienced worker in a region gets paid for doing the type of work they do.
What is the difference between prevailing wage and minimum wage?
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.
Does an employer have to pay prevailing wage?
Prevailing wage laws are federal and state laws that require contractors and subcontractors on public jobs must pay the majority of their workers no less than the local, prevailing wage rate.
What happens if you don't pay prevailing wages?
Any contractors or subcontractors who willfully fail to pay the prevailing wage also risk termination from government contracts and exclusion from future contracts for up to three years, among other consequences. But the other wage laws, for the most part, don't have any effect on federal contracts, John says.
Who is exempt from prevailing wage?
Section 13(a)(1) of the FLEA exempts employees employed in a bona fide executive, administrative, or professional capacity from the minimum wage and overtime requirements of that law.
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