Prevailing wages

- A “wage determination” is the listing of wage rates and fringe benefit rates for each classification of laborers and mechanics which the Wage and Hour Division has determined to be prevailing in a given area for a particular type of construction.
- The wage determination must be posted at all times by the contractor and its subcontractors at the site of the work.
Under the provisions of Acts such as the Davis-Bacon Act, the Walsh-Healey Public Contracts Act, and the McNamara-O’Hara Service Contract Act, contractors or their 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.
A “wage determination” is the listing of wage rates and fringe benefit rates for each classification of laborers and mechanics which the Administrator of the Wage and Hour Division has determined to be prevailing in a given area for a particular type of construction (e.g., building, heavy, highway, or residential).
The Wage and Hour Division issues two types of wage determinations:
- General determinations, also known as area determinations, and
- Project determinations.
A general wage determination reflects those rates determined by the Wage and Hour Division to be prevailing in a specific geographic area for the type of construction described.
A project wage determination is issued at the specific request of a contracting agency (using a Standard Form (SF) 308); is applicable to the named project only; and expires 180 calendar days from the date of issuance unless an extension of the expiration date is requested by the agency and approved by the Wage and Hour Division.
The wage determination (including any additional classifications and wage rates conformed) and a Davis-Bacon poster (WH-1321) must be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen.