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Learn more about Prevailing Wages
What are prevailing wages under the Davis-Bacon Act?
Prevailing wages, as defined by the Davis-Bacon Act, are the hourly wage rates, including fringe benefits, commonly paid to most laborers and mechanics in a specific geographic area for similar types of construction work. These rates are established by surveys conducted by the U.S. Department of Labor or state labor agencies and serve as the minimum wage rates that contractors and subcontractors must pay workers on federally funded or assisted construction projects.
How are prevailing wages determined under the Davis-Bacon Act?
Prevailing wages are determined by surveys of wages paid to laborers and mechanics in the locality of the construction project. The prevailing wage rates are based on the rates typically paid to workers in similar occupations within that area.
What factors are considered when determining prevailing wages under the Davis-Bacon Act?
Factors considered in determining prevailing wages include the type of construction work, geographic location, skill level required, and prevailing wage rates established by collective bargaining agreements, if applicable.
Who conducts the surveys to determine prevailing wages under the Davis-Bacon Act?
The surveys to determine prevailing wages are typically conducted by the U.S. Department of Labor's Wage and Hour Division or by state labor agencies in some cases.
How often are prevailing wage rates updated under the Davis-Bacon Act?
Prevailing wage rates are typically updated annually or periodically to reflect changes in local wage conditions and economic factors.
Are prevailing wage rates the same nationwide under the Davis-Bacon Act?
No, prevailing wage rates vary by geographic location and can differ significantly from one area to another based on local economic conditions and labor market factors.
Do prevailing wage rates include fringe benefits under the Davis-Bacon Act?
Yes, prevailing wage rates established under the Davis-Bacon Act often include fringe benefits such as health insurance, pension contributions, and vacation pay in addition to the hourly wage rate.
Can contractors or workers challenge the prevailing wage rates established under the Davis-Bacon Act?
Yes, contractors, workers, or other interested parties may request a review or challenge of prevailing wage determinations if they believe the rates are inaccurate or do not reflect local wage conditions.