Prevailing Wage Law
The Prevailing Wage Law ensures that workers on public construction projects are paid a wage rate set by the government based on the standard rates for the same work in the specific geographical area.
Example #1
For instance, if the prevailing wage for a construction worker in a particular city is $25 per hour, then any construction workers employed on public projects in that city must be paid at least $25 per hour.
Misuse
One misuse of Prevailing Wage Law could involve contractors underpaying workers on public projects by misclassifying them to pay lower wages, which not only harms the workers but also distorts fair competition among contractors.
Benefits
Ensuring that workers receive fair wages through the Prevailing Wage Law protects against exploitation and maintains a level playing field for contractors bidding on public projects.
Conclusion
By enforcing the Prevailing Wage Law, workers are safeguarded against underpayment and contractors compete fairly on public projects, aligning with CAP's mission of promoting fairness and transparency in the marketplace.
Related Terms
Fair Labor Standards Act (FLSA)Independent ContractorWorker's Compensation