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.
How is prevailing wage determined?
The prevailing wage rate is defined as the average wage paid to similarly employed workers in a specific occupation in the area of intended employment. The requirement to pay prevailing wages as a minimum is true of most employment based visa programs involving the Department of Labor.
Who gets paid prevailing wage?
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).
Why is prevailing wage required?
The Prevailing Wage Act governs the wages that a contractor or subcontractor is required to pay to all laborers, workers and mechanics who perform work on public works projects.
Does prevailing wage include benefits?
Employers are not required to provide usual or fringe benefits, and if they do not, the total prevailing wage rate must be paid as an hourly wage. Do not include pension or retirement benefits that are employee paid through payroll deductions.
Do salaried employees get paid prevailing wage rates?
The DBRA 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.
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