What is the difference between a minimum wage and a prevailing wage?
The difference between a minimum wage and a prevailing wage is one of regulation and purpose. Minimum wage is the amount of money an employer must pay an employee for each hour of work, as set by federal and state standards. In Louisiana, the minimum wage is currently set at $7.25 per hour. Prevailing wage is a wage requirement set by state and federal laws for certain groups of workers, such as those employed in public works projects. This wage is determined by the state Department of Labor and usually reflects the wages paid to workers in the specific geographic area and trade for a certain type of work. In Louisiana, prevailing wage rates are published by parish and specific types of public works, such as construction and repairs. The main difference between a minimum wage and a prevailing wage is that the former is a legal requirement while the latter is a rate of pay required for specific types of work. A minimum wage applies to all employers in a certain jurisdiction, while a prevailing wage applies to certain types of work and is negotiated by the state. Both minimum wages and prevailing wages help ensure fair compensation of workers, but minimum wages are required by law while prevailing wages are determined by market forces.
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