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Prevailing Wage Explained
The Prevailing Wage Law mandates all contractors or developers who receive subsidies or work on public work projects pay the prevailing rate of hourly wages and fringe benefits as specified by the State Department of Industrial Relations for the area in which the project is located. The Prevailing Wage Law was designed to allow union contractors to compete with non-union contractors on competitively bid projects.

Davis Bacon (Federal)
The Davis Bacon Act requires contracts over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works contains a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract.

Under the provisions of the Act, contractors and subcontractors are to pay workers employed directly upon the site of the work no less than the locally prevailing wages and fringe benefits paid on projects of a similar character. The Davis-Bacon Act directs the Secretary of Labor to determine such local prevailing wage rates.

State of California
The Prevailing Wage Law mandates all contractors or developers who receive subsidies or work on public work projects pay the prevailing rate of hourly wages and fringe benefits as specified by the California Department of Industrial Relations for the area in which the project is located. The Prevailing Wage Law was designed to allow union contractors to compete with non-union contractors on competitively bid projects.

Projects consisting of single-family homes and apartments up to and including four stories are subject to payment of prevailing wages when paid for in whole or in part out of public funds, including federally funded or assisted residential projects controlled or carried out by an awarding body.

 


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