Please Explain The Prevailing Wage Law.

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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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