Working in a different state? You might be required to pay your laborers prevailing wage!
Check out more about the laws for prevailing wage in each state.
“Prevailing wage laws require that wages for construction workers on public works projects be calculated to reflect local wages for similar jobs. The federal Davis-Bacon Act requires that prevailing wages be paid on federally funded public works projects. The federal law sets a minimum threshold of $2,000, meaning if a public works contract is for an amount in excess of $2,000, then prevailing wages must be paid. States must abide by the Davis-Bacon Act when federal funds are involved in public works projects within the state. The prevailing wage law covers only construction workers in specific types of occupations and does not apply to all workers on public works projects. The prevailing wage for the covered occupations is determined by the U.S. Department of Labor through surveys of wages paid in those occupations in surrounding areas, so that the wages reflect the local economy. The prevailing wage is not established by either the state or federal government, but instead by these surveys, which are to include both union and nonunion labor. A state with a higher construction wage in general will therefore have a higher prevailing wage. The surveys are conducted on a regular basis to respond to changing local economies.”
Some states have also implemented their own versions of prevailing wages; however, many also simply follow the federal prevailing wage statutes.
The other thirty states have created their own versions of prevailing wages based of off the federal prevailing wage standards, but they have set their own threshold amounts for a contract to be covered under prevailing wage. The amount can differ based on the type of construction being done. A brief and concise version of these thresholds is listed below:
- Alaska: $25,000
- Arkansas: $75,000
- California: Minimum threshold: $1,000 / $25,000 for construction work / $15,000 for alteration, demolition, repair, or maintenance work
- Connecticut: $400,000 for new construction / $100,000 for remodeling
- Delaware: $100,000 for new construction / $15,000 for alteration, repair, renovation, rehabilitation, demolition, or reconstruction
- Hawaii: $2,000
- Illinois: None
- Indiana: None / Indiana repealed its Common Construction Wage Statute in 2015. Prevailing wages that applied to contracts for construction greater than $350,000 awarded before July 1, 2015 are still enforceable.
- Kentucky: $250,000
- Maine: $50,000
- Maryland: $500,000
- Massachusetts: None
- Michigan: None
- Minnesota: $25,000 where more than one trade is involved / $2,500 where a single trade is involved
- Missouri: None
- Montana: $25,000
- Nebraska: None
- Nevada: $250,000
- New Jersey: $2,000 / $15,444 / $50,000 aggregate cost for maintenance and repair
- New Mexico: $60,000
- New York: None
- Ohio: $200,000 for new construction / $60,000 for remodeling
- Oregon: $50,000
- Pennsylvania: $25,000
- Rhode Island: $1,000
- Tennessee: $50,000
- Texas: None
- Vermont: $100,000
- Washington: A separate law applicable only to State college/university construction provides for a $25,000 threshold amount.
- West Virginia: None
- Wisconsin: $100,000 where a multiple-trade project of public works is involved / $48,000 where a single trade project of public works is involved / None for local governmental units
- Wyoming: $25,000
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