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Prevailing wage vs. minimum wage
Two different floors - who they cover and how they're set
Prevailing wage and minimum wage are different floors. The minimum wage is one rate that applies to nearly every worker in a jurisdiction; a prevailing wage applies only on covered public projects and is set per job classification and locality - and for skilled trades it is almost always several times higher.
| Minimum wage | Prevailing wage | |
|---|---|---|
| Applies to | Nearly all employees | Workers on covered public projects only |
| Rate structure | One rate (sometimes tiered) | Separate rate per trade, county, and construction type |
| Set by | Statute (federal $7.25 since 2009; many states higher) | DOL wage determinations / state schedules, from local pay evidence |
| Includes benefits? | No | Yes - base rate plus a fringe-benefit amount |
| Typical level | Single-digit to low-double-digit $/hr | Market rate for skilled trades - often $40–$80+/hr with fringe in high-wage areas |
The two floors stack: on a covered project the worker gets the higher applicable rate, which in practice is the prevailing wage. The federal minimum wage is set by the Fair Labor Standards Act (DOL minimum wage); prevailing wages come from the Davis-Bacon Act and state prevailing-wage laws.