Prevailing wage laws are designed to ensure that workers on government-funded projects are paid fairly and in accordance with established wage rates for their trade and geographic area. Unfortunately, many employers disregard these requirements, leaving employees underpaid for their work. For workers who are denied the proper prevailing wage, the law provides remedies — but pursuing those remedies often requires the guidance of experienced wage and hour attorneys.
This article will explain what prevailing wage is, why violations occur, and how workers can seek unpaid prevailing wage settlements with the help of skilled legal representation.
What Is Prevailing Wage?
Prevailing wage is a legally mandated minimum wage rate for workers employed on public works or government-funded construction projects. These rates are typically set by state or federal law and are based on the wages and benefits commonly paid to workers in a specific trade within a defined geographic area.
For example, if a carpenter is working on a federally funded building project, the Davis-Bacon Act may require that the worker be paid the “prevailing” hourly rate set for carpenters in that region. Similarly, many states have their own prevailing wage laws covering state-funded projects.
In addition to hourly pay, prevailing wage often includes requirements for fringe benefits such as health insurance, pension contributions, or vacation pay.
Common Prevailing Wage Violations
Despite clear legal obligations, employers frequently engage in practices that deprive workers of their rightful pay. Some common violations include:
- Misclassification of workers: Assigning employees to a lower-paying classification than the actual work performed. For instance, classifying an electrician as a general laborer to pay less.
- Failure to pay overtime: Even when prevailing wage rates are applied, employers sometimes fail to pay the required time-and-a-half for hours worked over 40 in a week.
- Improper deductions or kickbacks: Some employers illegally deduct expenses, charge for tools, or require employees to “kick back” part of their wages.
- Failure to pay fringe benefits: Employers may avoid providing required benefits or fail to pay the cash equivalent if benefits are not offered.
- Off-the-books practices: Paying workers in cash or not recording all hours worked, which results in underpayment and lack of proper documentation.
These violations not only deprive workers of fair pay but also give unscrupulous employers an unfair competitive advantage over law-abiding contractors.
The Impact on Workers
When prevailing wage violations occur, workers often lose significant income they are legally entitled to. The financial strain can be especially devastating for laborers who rely on steady construction work to support their families. Missing overtime pay, denied benefits, or misclassified wages can add up to thousands of dollars in lost compensation.
Beyond the immediate loss, violations also undermine workplace fairness. They send the message that workers’ rights can be ignored in pursuit of cutting costs. Standing up against these practices helps protect not only individual employees but also the broader workforce.
Legal Remedies for Unpaid Prevailing Wages
Workers who have been denied prevailing wages have the right to pursue unpaid wage claims and settlements. Depending on the circumstances, claims may be brought under federal law, state prevailing wage statutes, or both. Remedies may include:
- Recovery of unpaid prevailing wages owed.
- Payment of overtime at the correct prevailing rate.
- Compensation for denied fringe benefits or their cash equivalent.
- Interest on unpaid wages.
- In some cases, additional penalties against the employer.
Navigating the litigation process can be complex. It often requires careful review of payroll records, certified payroll submissions, contracts, and classification determinations. Employers may attempt to justify or conceal violations, making it difficult for workers to recover what they are owed without legal assistance.
The Role of an Experienced Wage Lawyer
An attorney who focuses on unpaid wage and prevailing wage cases can be a powerful advocate for workers. Experienced lawyers know how to investigate employer practices, collect evidence, and file lactionswith the appropriate government agencies or in court. They can also negotiate settlements that ensure workers recover the substantial compensation..
By hiring a lawyer, employees level the playing field. Employers typically have legal teams of their own, and workers deserve representation that will fight just as hard for their rights.
Taking Action
If you believe your employer has failed to pay you the prevailing wage, overtime, tips, commissions, or other forms of lawful compensation, it is critical to take action. onsult with a lawyer experienced in wage and hour law to evaluate your case.
Unpaid prevailing wage claims not only help you recover the compensation you deserve but also help enforce labor standards across the industry. Every successful claim strengthens protections for workers and discourages employers from engaging in unlawful practices.
If you have questions about unpaid prevailing wages or other wage violations, contact an attorney who represents workers in wage and hour disputes. The sooner you act, the sooner you can work toward recovering the compensation you rightfully earned.
If your employer has taken adverse action against you because you are the caregiver to a minor child or other person in your household, contact MSR for a consultation.
Attorney advertising. The information contained in this article is provided for informational purposes only and does not constitute legal advice or create an attorney-client relationship.