XL EaglePrevailing wage (state) (State prevailing wage laws)
Prevailing wage (state) stands for State prevailing wage laws. Prevailing wage laws require contractors on public works projects to pay workers at least the rates set for each trade in the area where the work happens. The federal version is the Davis-Bacon Act, and many states have their own laws covering state and locally funded projects. Some states do not have one.
Public works generally means construction, alteration, repair, and sometimes maintenance paid with public money. Contractors on covered jobs usually must submit certified payroll reports and post wage notices on site.
Why it matters to a small contractor
If you bid a covered public job using your normal wage rates, you can lose money fast. Check the wage determination before pricing, include fringe benefits, and set up certified payroll so you are not scrambling after award.
Example
A painter bids a city fire station repaint. The bid documents list state prevailing wage rates for painters in that county, which are higher than the crew's usual pay. The painter prices to those rates and files weekly certified payroll.
Prevailing wage (state): common questions
Does prevailing wage apply to service contracts like janitorial?
It depends on the state. Some state laws cover only construction, while others reach certain building services. Read the solicitation and your state's law.
Who sets the rates?
Usually the state labor department sets them by trade and county. The bid documents typically include or reference the rates.
What is certified payroll?
A weekly report showing each worker, their trade, hours, and pay, signed as accurate. Agencies use it to confirm you paid the required rates.
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