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Prevailing Wage is defined as the hourly wage, usual benefits and overtime, paid in the largest city in each county, to the majority of workers, laborers, and mechanics. Prevailing wages are established, by the Department of Labor & Industries, for each trade and occupation employed in the performance of public work.
One of the key components to the development of the modern Prevailing Wage was the Davis-Bacon Act of 1931, a federal law which mandated that all laborers, contractors and subcontractors be paid a Prevailing Wage for all public works projects in excess of $2,000.