Prevailing Wage
The prevailing wage is the local "going rate" for work
on government-contracted projects, such as building, repairing or modernizing
public buildings. Prevailing wage determination includes fringe benefits.
The prevailing wage is a legislative effort
to ensure that private-sector employees
receive at least the same pay and benefits for
working on government projects as they would for working on non-government
projects, whether or not they are union-protected employees.
To put that another way, prevailing wage laws prevent contractors and
subcontractors from landing profitable government projects, by bidding
lower than their competitors at the expense of their employees.
Several states and the Federal government have differing prevailing wage
laws and related regulations.
Subsequently, the prevailing wage varies by location and project type,
and your occupation or job duties (worker classification) as well.
The prevailing wage rate may be as low as the minimum
wage per hour, but in no case may it be lower for employees who are
covered by the Fair Labor Standards Act (FLSA), or state or
municipal equivalents.
Similarly, overtime pay for work
hours exceeding 40 in a workweek may not be less than 1.5 times the
prevailing wage rate for employees who are covered by the FLSA, or state
or municipal equivalents.
Under the Federal prevailing wage laws linked below, contractors and subcontractors
must pay local prevailing wages to their employees who work under Federal
government contracts of certain dollar amounts.
The U.S. Department of Labor (DOL), Wage and Hour Division (WHD) enforces
the laws above and makes prevailing wage determinations for employees working
under Federal contracts. For state-contracted projects, a division of the
state labor department typically enforces prevailing wage laws and makes
prevailing wage determinations.
To determine the prevailing wage for each of the worker classifications
involved in a project, the DOL and related state labor departments use collective
bargaining agreements, surveys and statistical data.
To find out how much the prevailing wage rate is under a Federal contract,
look for a notice. The laws linked above require Federal contractors and
subcontractors to post a prevailing wage notice in a prominent location
at the work site or deliver such notice to affected employees.
The same likely goes under state or municipal government contracts, but
it depends on the varying laws. To research the prevailing wage in the
absence of a notice, start at the Web site of the relevant state
labor department. Look for "wage and hour" or related topics.
If you reasonably believe that your employer has cheated you out of the
prevailing wage under a Federal contract, then you may file a complaint
with the nearest
district office of the DOL's Wage and Hour Division. To file a complaint
under a state or municipal government contract, start by browsing the Web
site of the relevant state labor department for
related information; typically, the wage and hour or an equivalent division
handles wage complaints.
Consult a lawyer for legal advice regarding
the prevailing wage and related benefits.
To look for a job that pays or deals with the prevailing wage, start at
the Job
Search page; meanwhile, a few are listed to your right under Prevailing
Wage Jobs.
If you reasonably believe that your employer is defrauding
the Federal, state or municipal government on a contracted project, then,
under the Federal False Claims Act or
a local equivalent, you may file a qui-tam lawsuit
on behalf of the government and collect your fair share of the monetary
damages you win. Consult a lawyer about
filing a qui-tam lawsuit.
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