Prevailing Wages Definition

Prevailing wages are the minimum wages that employers engaging in federally funded projects must pay their workers.

Prevailing Wages Extended Definition
Employers are required to pay workers a minimum base wage when working on projects involving federal funds. The prevailing wage rate and additional fringe benefits must be on similar lines to those paid for the same class of workers employed on similar projects in a particular geographical area.

The U.S. Dept. of Labor’s Wage and Hour Division (WHD) sets the prevailing wage rates that are required to be paid on federally funded projects. Prevailing wages are applicable to employers engaged in federal contracts subject to the Davis-Bacon and Related Acts. Typically, prevailing wages are more than the state or federal minimum wages.

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Last Updated By

Rachel Blakely-Gray | Apr 28, 2023