Montana Prevailing Wages laws & HR compliance analysis

Montana Prevailing Wages: What you need to know

A prevailing wage is a rate of pay determined by government authorities to be the norm in a particular geographic area for a given class of labor and type of project. Prevailing wage determinations are made using local data and are equivalent to union rates in most areas. Prevailing minimum wages, on the other hand, tend to track statutory minimum wages in a geographic area.
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To give organized labor a fair chance when bidding for government contracts, federal law requires all employers performing federal contracts to pay prevailing wages to their workers. This ensures that nonunion employers cannot gain an unfair bidding advantage by paying wages far below the union rate and passing the savings on to the government in the form of lower bids. Virtually all federal expenditures in the private sector are covered by prevailing wage provisions. The main statutes in this area are the Davis-BaconAct, governing federal construction contracts; the McNamara-O'Hara Service Contract Act, governing contracts to provide services to the federal government; and the Walsh-Healy Act, governing the manufacturing of goods for the government. There is additional information on federal prevailing wage law..
Montana does have a state prevailing wage law. The wage rates apply to public works contracts entered into for construction services (heavy, highway, and building) or nonconstruction services by the state, county, municipality, school district, or political subdivision in which the total cost of the contract involving public funds is $25,000 or more. The law requires that bidders on contracts pay a set rate of compensation, including employee benefits, and that at least 50 ...

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