📊 Prevailing Wage Rate Management
Prevailing wage rates aren't a single number — they're a matrix of base wage, fringe line items, trade classification, project type, geographic area, and effective date. Getting any of these wrong means either underpaying (compliance violation) or overpaying (cost overrun). This page covers how to find, enter, and manage PW rates correctly.
Where rates come from
Federal (Davis-Bacon)
| Field | Source |
|---|---|
| Website | SAM.gov → Wage Determinations |
| Organized by | State, county, construction type |
| Update frequency | Annual surveys; rates locked at bid opening or contract award |
| Format | Lists each classification with basic rate + fringe rate |
State prevailing wage
Each state with a PW law publishes its own rates:
| State | Rate source | Format |
|---|---|---|
| California | dir.ca.gov/oprl/DPreWageDetermination.htm | By craft, county, journey/apprentice |
| New York | labor.ny.gov/workerprotection/publicwork | By trade, county; includes "supplements" (fringes) |
| Illinois | Illinois DOL prevailing wage search | By county, trade; separate rates for each county |
| New Jersey | nj.gov/labor/wagehour/content/prevailing_wage_determinations.html | By craft and county |
| Massachusetts | mass.gov/prevailing-wage-schedules | By project; issued per project |
Project types matter
Federal wage determinations are issued for specific construction types. Using the wrong type is a common error.
| Project type | What it covers | Example projects |
|---|---|---|
| Building | Sheltered structures (offices, schools, hospitals, housing) | Office building, school addition, hospital wing |
| Heavy | Non-building construction (dams, bridges, water treatment) | Water treatment plant, dam, tunnel |
| Highway | Roads, streets, bridges, runways | Highway widening, airport runway, parking structure |
| Residential | Single-family homes and low-rise apartments (4 stories or less) | Tract housing, apartment complex |
A school renovation is "Building" construction, not "Heavy" — even if it includes site work. The project type on the wage determination must match. If you pull highway rates for a building project, every worker is potentially underpaid and every CPR is wrong.
Rate lookup process
For each trade on a prevailing wage project:
- Identify the project location (county and state)
- Determine the project type (building, heavy, highway, residential)
- Pull the wage determination from SAM.gov (federal) or the state agency
- Find your trade classification (e.g., "Carpenter," "Laborer — Group 2," "Operating Engineer — Group 1")
- Note both components: basic hourly rate + fringe rate
- Check the effective date — rates may have changed since bid time
- Determine lock-in: federal rates are typically locked at bid opening; state rules vary
Rate effective dates
| Jurisdiction | When rates lock in | Rate update obligation |
|---|---|---|
| Federal (Davis-Bacon) | At bid opening or contract award | Locked for duration of contract (usually) |
| California DIR | Per determination effective date | Must pay current rate — rates update during project |
| New York | At contract award | Annual updates during project |
| Most other states | Varies | Check state rules |
CBA rate vs. prevailing wage rate
When a project has both a union CBA and prevailing wage requirements, the higher rate applies for each component.
How to compare
| Component | CBA rate | PW rate | Pay |
|---|---|---|---|
| Base wage | $52.00 | $48.50 | $52.00 (CBA higher) |
| H&W fringe | $14.50 | $16.00 | $16.00 (PW higher) |
| Pension | $11.25 | $10.00 | $11.25 (CBA higher) |
| Vacation | $4.50 | $3.00 | $4.50 (CBA higher) |
| Training | $1.00 | $0.75 | $1.00 (CBA higher) |
| Total | $83.25 | $78.25 | $84.75 (component-by-component highest) |
The total is not simply the higher of the two totals — you compare each component separately and pay the higher of each. This can result in a blended total that exceeds both.
The correct priority when multiple rate sources apply:
- Check if PW or CBA rate is higher for each component
- Pay the higher of each
- Document which rate source governs each component
- If an employee-specific rate is set (rare), it overrides the lookup — use with caution
Fringe benefits and overtime
How fringes interact with overtime varies by jurisdiction and rate source. This is one of the most error-prone areas of construction payroll.
Federal prevailing wage (Davis-Bacon)
| Component | ST rate | OT rate (over 40 hrs/week) |
|---|---|---|
| Base wage | 1.0x | 1.5x |
| Fringes | 1.0x | 1.0x (no OT premium on fringes) |
Per 29 CFR 5.32 and DOL Fact Sheet 66E, the OT premium applies to the basic rate only. Fringes stay at straight time for all hours.
Example: Carpenter, $52.00 base + $31.25 fringe
| Hours | Base pay | Fringe cost | Total |
|---|---|---|---|
| 40 hrs ST | $52.00 x 40 = $2,080 | $31.25 x 40 = $1,250 | $3,330 |
| 8 hrs OT | $78.00 x 8 = $624 | $31.25 x 8 = $250 | $874 |
| Week total | $2,704 | $1,500 | $4,204 |
Union CBA fringe OT
Some CBAs require certain fringe contributions at overtime rates. This is trade-specific and local-specific.
Example: IBEW Local 48 (Portland, OR)
| Fringe component | ST rate | OT rule |
|---|---|---|
| H&W | $12.50 | Stays at ST |
| Pension | $8.75 | Paid at OT rate (1.5x) |
| NEAP (annuity) | $6.00 | Stays at ST |
| NECA-IBEW fund | $0.65 | Stays at ST |
You must read the CBA to know which fringes get OT and which don't. Don't assume all fringes stay at straight time — some locals require pension or annuity at OT rates.
California prevailing wage
California PW rules vary by determination. Some require OT on the total rate (base + fringe), others follow the federal base-only model. Always check the specific wage determination for the project.
Multi-state rate management
For contractors working across state lines:
| Challenge | Solution |
|---|---|
| Different PW rates per state | Set up rates at the project level, not company-wide |
| Different OT rules per state | Configure calculation mode per project |
| Rate updates mid-project | Track effective dates; update when required by jurisdiction |
| Multiple rate sources (CBA + PW) | Compare component-by-component; document which governs |
| Workers traveling between states | Apply the rate for the state where work is performed |
Related resources
- Prevailing Wage Guide — Davis-Bacon, state PW laws, compliance
- Fringe Benefits in Construction — Trust fund vs. cash, tax implications
- Certified Payroll (Federal) — WH-347 reporting requirements
- California DIR Compliance — CA-specific rate and reporting rules
- Prevailing Wage Calculator — Interactive calculation