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Contracts & Legalaka: Davis-Baconaka: prevailing wage rate

Prevailing Wage

In Plain English

Government-mandated minimum wages contractors must pay on public construction projects, set to match local market rates.

Definition

Prevailing wage laws require contractors on public works projects to pay workers at least the wage rates and fringe benefits that prevail in the local area for each trade classification. Federal prevailing wages are set under the Davis-Bacon Act; most states have their own prevailing wage laws. Compliance requires certified payroll reporting and proper worker classification.

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