You may have heard of minimum wage laws, but did you know many states require businesses and other employers to pay prevailing wage requirements, too? Prevailing wages are one way the U.S. Department of Labor ensures people who work in similar areas are paid at consistent rates for government-related work. This can include painters, carpenters, construction workers, and those who work for a government agency.
Do you plan to hire labor for a project that will require prevailing wage rates? If so, it’s important to know the exact amounts that you will be required to compensate your employees. That amount can vary significantly depending on your locality, the type of workers you hire, and the laws that may apply.
In this post, we’ll walk you through prevailing wage basics: what they are, how they work, and best practices. Read from end to end for a full guide, or use the links below to jump straight to the answer to your question:
- What is prevailing wage?
- Prevailing wage vs. minimum wage
- Which states have prevailing wage laws?
- How is prevailing wage calculated?
- Why is it important to understand prevailing wage as a business owner?
- How does your business benefit from prevailing wage laws?
- Best practices for complying with prevailing wage at your business
- Key takeaways for prevailing wages