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Please Explain The Prevailing Wage Law.

The Department of Labor establishes and enforces the payment of wage rates for laborers and mechanics employed on state­funded construction projects.

Prevailing rates must be paid on new construction projects costing more than $100,000 and on alteration, repair, renovation, rehabilitation, demolition or reconstruction projects costing more than $15,000. For a project to be covered by the law, the State or any subdivision thereof must be a party to the publics works contract; and, the State must have appropriated any part of the funds.

The Department of Labor determines the classification of workers and the type of construction on state­funded construction projects. Wage rates are established by an annual survey conducted by the Department.

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