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Understanding General/Area Wage Determinations and Their Legal Implications
Definition & Meaning
General wage determinations, also known as area wage determinations, are rates set by the Wage and Hour Division of the U.S. Department of Labor. These rates represent the prevailing wages for specific types of construction work within a designated geographic area. The determinations are effective from the date they are published in the Federal Register or the date a contracting agency receives written notice, whichever comes first. Contracting agencies must use these published determinations for applicable construction projects without needing to consult the Department of Labor, though any questions regarding their use should be directed to the Department.
Table of content
Legal Use & context
General wage determinations are primarily used in the context of federal construction contracts. They ensure that workers are paid fairly according to the prevailing wage standards in their area. This term is relevant in labor law and contract law, particularly for projects funded by federal agencies. Users can manage related forms through resources like US Legal Forms, which provide templates for compliance with wage determination requirements.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A city plans to build a new community center. The contracting agency must refer to the general wage determination for construction work in that city to ensure workers are paid the prevailing rates.
Example 2: A contractor working on a federal highway project must adhere to the wage determinations applicable to that project, ensuring compliance with federal labor standards. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Wage Determination Source
Notes
California
State Department of Industrial Relations
May have additional local requirements.
Texas
Federal Wage Determinations
Generally follows federal guidelines.
New York
State Department of Labor
Local wage rates may apply.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Description
Key Differences
Prevailing Wage
The average wage paid to workers in a specific area.
General wage determinations are specific to federal contracts, while prevailing wage can apply more broadly.
Living Wage
A wage that meets the basic cost of living in a given area.
Living wage laws may set higher standards than prevailing wages.
Common misunderstandings
What to do if this term applies to you
If you are involved in a construction project that may be subject to general wage determinations, ensure you are familiar with the applicable wage rates. You can access US Legal Forms for templates that help you comply with these requirements. If your situation is complex, consider seeking professional legal assistance to navigate the specifics.
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