What is Prevailing Wage?
The prevailing wage rate was established to ensure that contractors have a level playing field when bidding on government projects and ensuring that construction workers are paid a fair wage when working on them. These hourly wages and fringe benefits are based on craft and location.
Basics of Prevailing Wage Rates in Missouri
The Missouri prevailing wage law applies to public works projects constructed by or on behalf of state or local governments. These projects must be valued over $75,000 or more for the prevailing wage rate to apply.
The Missouri Department of Labor requires a contractor to maintain certified payroll records. These records and an Affidavit of Compliance must be submitted before the final payment.
Changes in the Prevailing Wage Rate
A prevailing wage order was issued based on a survey of contractors working on projects valued above $75,000 and 1,000 hours worked. This wage order has been created for specific occupational titles in each county. See more information on how prevailing wages are determined.
Each year on July 1 this new wage order is released. It lists the prevailing wage rates for the next year in each county.
Contractors should refer to the date of the bid advertisement to determine what wage rates must be used for the project.
Public projects valued at $75,000 or less, are not subject to the prevailing wage law.
On projects that are valued at $10,000 or less there is not a requirement for a competitive bidding process.
Holiday pay is twice the total amount of wages and fringe benefits combined.