Learning/Regulations

State Prevailing Wage Laws

State Prevailing Wage Law

Synopsis of the Law:
The intent of State Prevailing Wage Laws is to require that contractors supply their workers on certain public projects with a reasonable hourly wage and benefit level. In keeping, construction and service workers within a particular region will receive similar rates on publicly funded projects. More than 32 states currently support and enforce prevailing wage laws, and are often referred to as Little-Davis-Bacon Acts. Determined by the locality of business, wage rates are set as a result of bargaining agreements or community calculations on the desired rate for a local prevailing wage.

Living Wage Law

Synopsis of the Law:
The concept of a “living wage” is growing in popularity with municipalities throughout the United States. To date, more than 70 cities and at least 39 states have implemented or are considering some form of living wage requirements. The dominant force of a living wage ordinance is to require contractors, who provide city services, to pay their employees a minimum wage as determined by the local authority. In many cities a fringe benefit is also required. These mandated wage and benefit requirements will vary from city to city and one must be cautious not to infer any uniformity. However, the ordinances of certain cities have been hailed as models for this movement. The growing momentum of the living wage furor may help proponents to extend their policies beyond municipal precincts to cover all employers, not just those with municipal contracts.