Prevailing wage
The hourly wage and benefit rate set by the U.S. Department of Labor for federally funded construction work in a given locality.
Prevailing wage is the hourly wage and benefit rate set by the U.S. Department of Labor (or, for state-funded projects, by the state labor department) for federally funded construction work in a given locality. The wage is determined by survey of comparable private-sector construction in the same county and trade, published in DOL "wage determinations" by project type (building, residential, highway, heavy), and updated periodically.
Federal Davis-Bacon prevailing wage applies to direct federal construction contracts over $2,000. The Service Contract Act applies prevailing wage to federal service contracts over $2,500. Several federal grant programs (HUD, transit, environmental remediation) extend Davis-Bacon-style requirements to state and local projects funded with federal money.
Prevailing wage requires payment at the prevailing rate plus the prevailing fringe benefit (which can be cash or "bona fide" benefit plan contributions), plus overtime at 1.5× the prevailing base rate (not the cash-equivalent rate). The certified-payroll filing on Form WH-347 documents compliance.