Requires contractor to pay employees prevailing wages based on Department of Labor wage determinations.
Applicability: Required for service contracts over $2,500.
Key Requirements
Pay employees prevailing wages determined by DOL for contract location/occupation
Fringe benefits (health, retirement) must meet or exceed DOL requirements
Maintain payroll records documenting wage compliance
Notify employees of their rights under the Act
Common Issues & Pitfalls
Underpaying employees because you think prevailing wage is optional
Not understanding fringe benefits must be separate from base wage
Failing to update wage rates when DOL issues new determinations
Misclassifying employees as exempt or independent contractors
Contractor Guidance for Your Bid
Prevailing wage is NOT optional—it is law. Get DOL wage determination for your location/job before bidding. Factor full fringe costs into pricing. Underpaying = massive liability + debarment. Maintain detailed payroll records.