Short Answer: A Wage Determination (WD) is a set of prevailing wages, benefits, and rules set by the U.S. Department of Labor for specific jobs in a local area.
Full Answer: A Wage Determination (WD) is issued by the U.S. Department of Labor (DOL) under the Davis-Bacon Act and the Service Contract Act (SCA) to ensure that workers on federal contracts receive fair wages and benefits based on local standards. It specifies:
Wage determinations prevent contractors from underpaying workers on federally funded projects. They must be included in contract solicitations and agreements. Employers must also comply with the prevailing wages specified for the contract’s location and labor category.
General Federal Standard: Required under the Davis-Bacon Act for construction contracts and the Service Contract Act for service contracts with the federal government.
Link to a legislative resource from trusted sources: U.S. Department of Labor - Wage Determinations
Full Answer: A Wage Determination (WD) is issued by the U.S. Department of Labor (DOL) under the Davis-Bacon Act and the Service Contract Act (SCA) to ensure that workers on federal contracts receive fair wages and benefits based on local standards. It specifies:
- Minimum hourly wage rates for each labor category.
- Fringe benefits such as health insurance, retirement, and paid leave.
- Work rules like overtime, shifts, and holiday pay.
Wage determinations prevent contractors from underpaying workers on federally funded projects. They must be included in contract solicitations and agreements. Employers must also comply with the prevailing wages specified for the contract’s location and labor category.
General Federal Standard: Required under the Davis-Bacon Act for construction contracts and the Service Contract Act for service contracts with the federal government.
Link to a legislative resource from trusted sources: U.S. Department of Labor - Wage Determinations