What do you need to know about prevailing wage?
Prevailing wage determination includes fringe benefits. The prevailing wage is a legislative effort to ensure that private-sector employees receive at least the same pay and benefits for working on government projects as they would for working on non-government projects, whether or not they are union-protected employees.
How much overtime can you get with prevailing wage?
Similarly, overtime pay for work hours exceeding 40 in a workweek may not be less than 1.5 times the prevailing wage rate for employees who are covered by the FLSA, or state or municipal equivalents.
Can a contractor pay less than the prevailing wage?
Federal regulations also allow a contractor to pay less than the specified hourly pay component as long as the value of the fringe benefit component is high enough to produce a combined total equal to the required wage. In this instance, however, the worker must be paid at least their regular contractual hourly rate.
How to calculate prevailing wage for a restaurant?
To get the prevailing wage, Marcy can do a simple average, she sums up the wage rates and divides by the number of establishments. So: To get a more accurate number, Marcy also does a weighted average, which weights the wage rates by the number of busboys each restaurant has.
How does prevailing wage work?
prevailing wage. Trade and public work wages paid to the majority of workers in a specific area. The prevailing wage is usually an hourly wage and determines overtime pay as well as benefits for laborers in that field.
What is the prevailing wage in Illinois?
Prevailing wages in Illinois are regulated by the Illinois Prevailing Wages Act. It’s purpose is to ensure “a wage of no less than the general prevailing hourly rate as paid for work of a similar character in the locality in which the work is performed, shall be paid to all laborers,…
How do prevailing wage laws work in construction?
Thus, the “prevailing wage” acts as a sort of minimum wage for the construction workers that are working on public projects within a particular geographical area, and it prevents the use of cheap, non-local labor to undercut local workers . May 29 2019