What is the difference between a minimum wage and a prevailing wage?

The difference between a minimum wage and a prevailing wage is important to understand when working in California. Minimum wage is the lowest wage an employer is allowed to pay an employee. The amount of minimum wage is set by the state and updated periodically. In California, the current minimum wage is $12 per hour for employers with 25 or fewer employees and $13 per hour for employers with more than 25 employees. On the other hand, a prevailing wage is the wage rate determined by the state for a specific job within a specific area. This wage rate is based on the wages and benefits of similarly employed workers in the same geographic area. The purpose of the prevailing wage is to ensure fair wages and working conditions for all employees. In California, the prevailing wage rate is established by the Department of Industrial Relations (DIR). It is calculated based on surveys of employers in the same geographic area. To summarize, the main difference between a minimum wage and a prevailing wage is that the minimum wage is set by the state and applies to all workers, while the prevailing wage is determined by the state and is specific to a geographic area and job type.

Related FAQs

What are the consequences of not paying employees the minimum wage?
Are employers allowed to pay different wages for the same job?
Are employers allowed to pay a lower rate for piecework?
What are the restrictions on working hours for minors?
What are the requirements for reporting wages to the government?
Are employers allowed to pay tipped employees less than minimum wage?
What rights do employees have under the Fair Labor Standards Act (FLSA)?
What type of records must employers keep in regards to wage and hour laws?
What is the difference between a minimum wage law and a living wage law?
What is considered an exempt employee?

What is the difference between a minimum wage and a prevailing wage?

Related FAQs

Related Blog Posts