Prevailing Wage FAQs
The prevailing wage rate is the average pay. This includes hourly rates and benefits, for workers on specific projects in a given area. It makes sure of fair wages and prevents contractors from lowering bids by underpaying workers. Employers can find current rates through various sources, with the Department of Labor determining these standards. Below are FAQs about prevailing wages.
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How is the prevailing wage rate determined?
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The prevailing wage rate is the average hourly rate paid for public works projects to most workers in a particular job within a certain area. If there is no single rate for the majority, the prevailing rate is based on the greater number of workers.
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What constitutes a public works project?
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Public works projects are funded partially or wholly by taxpayers. In California, the projects can include repair work, installations, demolitions, alterations, or maintenance on projects that cost over $1000. There are different project requirements based on the project.
How does the prevailing wage affect contractors?
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The prevailing wage regulations keep public works contracts from going to bidders who pay lower wages than their competitors. The law helps to create an even playing field when bidding on public works projects. All the bidders must use the same hourly pay rates.
What are the wage determination types?
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The two main types of wage determinations are general and project determinations. General wage determinations are also known as area determinations. The Department of Industrial Relations issues general determinations twice yearly, in February and August.
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What is a special wage determination?
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A special wage determination can be requested when a general determination does not cover a specific type of worker, trade, or classification. The awarding body must request at least 45 days before advertising the bid.
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Do prevailing wage determinations expire?
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The prevailing wage is subject to change. The Department of Labor gives an expiration date for prevailing wage determination. The wage determinations remain in effect from the date of the advertisement and throughout the life of the project. Interested parties should find out the new rates after the expiration.
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What are predetermined changes?
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They are changes to the hourly wage rate, holiday pay rate, overtime, and other employer payments specified in the collective bargaining agreement during bidding. The changes are referenced in the general rate of daily wages.
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How Our Prevailing Wage Rate Service Can Help
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We empower employers with the tools, resources, and knowledge they need to remain labor-compliant. Prevailing Wisdom helps companies navigate the complexities surrounding the labor industry.
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We aim to make the process as simple, organized, and efficient as possible. Our team will offer advice and calculations on prevailing wages to avoid underpayments, misclassifications, and restitution.
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Why Choose Prevailing Wisdom?
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When you choose Prevailing Wisdom, you get a team of highly experienced consultants committed to empowering your business. We bring you expertise, speed, time efficiency, and superior customer support. With our consultative approach, we offer support, knowledge, and resources, to make sure you thrive in the current competitive environment.
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If you have any inquiries about our prevailing wage rate service, feel free to contact us today.
