Who sets the prevailing wage?

The US Department of Labor surveys local wages to determine the rate for each trade in a specific county.

Does prevailing wage apply to all construction?

No, it specifically applies to federally funded or assisted contracts over $2,000.

Can I pay cash benefits instead of fringe benefits?

Yes, you can pay the fringe benefit portion of the rate as cash wages on the employee's paycheck.

Compliance

What is Prevailing Wage?

Prevailing wage is the mandatory minimum hourly rate (plus benefits) set by the Department of Labor for skilled trades on public works projects. It prevents contractors from undercutting local wages to win government bids.

Davis-Bacon Compliance

1Identify the correct wage determination for the project location and trade.
2Track hours specifically for that project separate from private work.
3Submit certified payroll reports (Form WH-347) proving payment.

Strict Government Oversight

The Davis-Bacon Act puts heavy compliance burdens on contractors. Violations can lead to withheld payments, contract termination, and debarment.

Tracking for Public Works

ClockIt allows you to assign specific pay rates to projects, ensuring that when employees clock into a government job, they are automatically credited the prevailing wage.

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Frequently Asked Questions

Who sets the prevailing wage?: The US Department of Labor surveys local wages to determine the rate for each trade in a specific county.
Does prevailing wage apply to all construction?: No, it specifically applies to federally funded or assisted contracts over $2,000.
Can I pay cash benefits instead of fringe benefits?: Yes, you can pay the fringe benefit portion of the rate as cash wages on the employee's paycheck.

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