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

The minimum wage is the lowest legal wage that an employer must pay an employee for their work. It is set by the federal government and applies to all states. In Mississippi, the current minimum wage rate is $7.25 per hour, according to the United States Department of Labor. A prevailing wage is a wage rate set by the state that is established by a complex state-by-state survey of local wages and benefits for different types of employees doing similar work. It is typically higher than the minimum wage and is commonly used for special circumstances, such as government contracts. In Mississippi, the prevailing wage rate is currently $17.65 per hour. The primary difference between minimum wage and prevailing wage is the amount of money that an employer must pay to their employees. Minimum wage is the lowest legal wage that an employer can pay an employee for their work. On the other hand, prevailing wage is typically higher than the minimum wage and is used for certain special circumstances, such as government contracts.

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

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