Federal rates are calculated based on regulations established by the Department of Labor. According to Code of Federal Regulations, "The prevailing wage shall be the wage paid to the majority (more than 50 percent) of the laborers or mechanics in the classification on similar projects in the area during the period in question. If the same wage is not paid to a majority of those employed in the classification, the prevailing wage shall be the average of the wages paid, weighted by the total employed in the classification.". State level rates are calculated using various methods including an average of all wage rates paid, the mode, or based on collectively bargained rates.