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Prevailing Wages Law & Legal Definition

Prevailing wages is a term used in a legislative effort to provide organized labor a fair chance to 

bid for government contracts. Federal law requires all employers engaged in the performance of 

federal contracts to pay "prevailing" wages to their workers. This ensures that nonunion 

employers cannot gain an unfair bidding advantage by paying wages far below the union rate and 

passing the savings on to the government in lower bids. A prevailing wage is a rate of pay

determined by the U.S. Department of Labor based upon the particular geographic area for a 

given class of labor and type of project. The Davis-Bacon Act, the McNamara-O'Hara Service 

Contract Act, and the Walsh-Healy Act are the primary laws governing federally funded 

construction projects in the private sector.

The Davis-Bacon Act requires that all contractors and subcontractors performing on federal 

contracts (and contractors or subcontractors performing on federally assisted contracts under the 

related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing 

wage rates and fringe benefits (as determined by the Secretary of Labor) for corresponding 

classes of laborers and mechanics employed on similar projects in the area.The Wage and Hour 

Division of the U.S. Department of Labor determines prevailing wage rates to be paid on 

federally funded or assisted construction projects. It is the responsibility of the federal agency

that funds or financially assists Davis-Bacon covered construction projects to ensure that the 

proper Davis-Bacon wage determination(s) is/are applied to such construction contracts.

Related Terms

Terms with 'Prevailing' or 'Wages'

Assignment of Wages 

Attachment of Wages

Award of Costs to Prevailing Party

Cash Wages

Federal Wages

Garnishment of Wages

Lost Wages
Payment-in-kind Wages

Prevailing Market Rate for an Attorney

Prevailing Party

Definition List

Prevailing Wage (Immigration)

Prevailing Rate Employee

Prevailing Party

Prevailing Market Rate for an Attorney

Prevail

» Prevailing Wages

Prevarication

Prevention and Treatment

Prevention Doctrine

Prevention of Significant Deterioration (PSD)

Preventive Care

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