Prevailing Wage

Definition

Prevailing Wage is a government-established minimum local wage rate for public projects.

Purpose

Prevailing Wage ensures that workers on government-funded construction projects receive fair wages that reflect the local labor market, helping to maintain equitable compensation and prevent wage undercutting.

Examples of Use

• Infrastructure Projects: Ensuring fair wages for workers building roads, bridges, and public buildings.
• Public Housing: Applying prevailing wage standards to the construction of government-funded housing projects.
• School Construction: Enforcing wage rates on projects funded by public education budgets.

Related Terms

• Prevailing Wage Law: The legislation that mandates prevailing wage rates for public projects.
• Prevailing Wage Rates: Specific wage levels set by government agencies for various job classifications.
• Davis-Bacon Act: A federal law requiring the payment of prevailing wages on public works projects.

Notes

• Enforcement: Government agencies monitor and enforce compliance with prevailing wage regulations to ensure fair labor practices.
• Impact: Helps to stabilize local wage standards and support the livelihood of construction workers.