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

The difference between a minimum wage and a prevailing wage is that one is determined by the state and the other by the market. A minimum wage is a rate of pay, determined by the state, that an employer must pay each employee for all hours worked. In North Carolina, the state legislature has set the minimum wage rate for most non-exempt workers at $7.25 per hour. This rate is the same as the federal minimum wage rate. A prevailing wage, on the other hand, is not determined by the state. Rather, it is set by the market and reflects the rate that employers are typically paying in the area for a particular type of work. For example, if employers in a certain area are paying an average of $15 an hour for construction laborers, then $15 an hour would be the prevailing wage in that area for this type of work. It is important to note that while the prevailing wage is typically higher than the minimum wage in most areas, this is not always the case. For instance, if the prevailing wage rate is set below the minimum wage, then employers must pay the higher of the two rates--in this case, the minimum wage. In North Carolina, labor laws require employers to pay the higher of either the current minimum wage or the prevailing wage when the prevailing wage is actively established. This law helps to ensure that employees in North Carolina receive fair and competitive wages.

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

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