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

The minimum wage is the lowest amount of money an employee can legally be paid for their work. In Virginia, the current minimum wage is $7.25 per hour. It applies to all workers regardless of their occupation or the size of the business they work for. A prevailing wage is a slightly higher rate than the minimum wage and is based on what is common or "prevailing" in the local labor market. In particular, it applies to employees who work on government projects or publicly funded construction projects. The amount of the prevailing wage depends on the locality, job classification, and experience level of the worker. In Virginia, the Department of Labor and Industry sets the prevailing wage rate. It is often higher than the minimum wage, but not always. It is also subject to change, depending on the prevailing wages in a specific area. The main difference between minimum wage and prevailing wage is in how they are determined. Minimum wage is set by law, and applies to all workers in the state. It is not related to the local labor market or local wages. Prevailing wage, on the other hand, is based on the wages in the local labor market, and is subject to change over time. It only applies to certain types of workers on certain projects.

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

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