As per definition, prevailing wage rate is the “average wage paid to similarly employed workers in a specific occupation in the area of intended employment”. You've probably heard of minimum wage laws, but did you know that many states also require businesses and other employers to pay prevailing wage?
Prevailing wages are one way the United States. The Department of Labor ensures that people working in similar areas are paid consistently for government-related work. This can include painters, carpenters, construction workers, and government employees.
As a contractor, when you plan to hire labor for a certain project that require prevailing wage rates. It is important to know the basics of the Davis-Bacon Act laws and the exact amount that you will have to compensate for your employees. This amount can vary greatly depending on your location, the type of workers you hire, and any applicable laws.
So how is wage rate calculated?
The prevailing pay rate is the basic hourly rate paid to the majority of workers in a given occupation on public works projects. This data is gathered from the local area and the surrounding labor market region, assuming that the majority of workers are paid at a specific rate.
If a majority of workers are not paid at a certain rate, the modal rate—the most common rate—is used. When a modal or majority wage cannot be determined, a special prevailing wage determination may be used instead.
The Wage and Hour Division of the U.S. Department of Labor provides a simplified calculator wherein you can easily input details and automatically compute the workers’ prevailing wage rates.
The calculators aid in determining the special minimum wages that may be paid to workers with disabilities by employers who have received a certificate from the Department of Labor for the work being performed. These calculators, on the other hand, provide no assistance in determining whether the criteria for section 14(c) coverage are met and may not be an appropriate tool for determining section 14(c) wages in every possible workplace situation. These calculators offer a service that is constantly evolving.
For more details, you can check and navigate how to use the calculator on the DOL’s official website or visit this link
https://www.dol.gov/agencies/whd/workers-with-disabilities/section-14c/calculators/StraightAverage
