Wage Determination(WD)
A determination of prevailing wage rates and fringe benefits for a specific locality, issued by the Department of Labor for covered contracts.
Overview
A Wage Determination (WD) is a schedule of minimum hourly wage rates and fringe benefit requirements issued by the Department of Labor for workers on federal contracts. Wage determinations apply under the Service Contract Act for service workers and the Davis-Bacon Act for construction workers, establishing floor compensation levels by locality and occupation.
Why It Matters in GovCon
Wage determinations directly affect contract pricing for service and construction contracts. Contractors must incorporate applicable WD rates into their cost proposals, and failure to pay prevailing wages can result in contract termination, debarment, and back-pay liability. WD rates vary significantly by location, making accurate locality identification essential.
Key Details
- SAM.gov/WD: Wage determinations are published electronically on SAM.gov (formerly the WDOL website).
- Service Contract Act: Applies to service contracts exceeding $2,500, covering occupations like janitors, guards, and IT support staff.
- Davis-Bacon Act: Applies to construction contracts exceeding $2,000, covering trades like electricians, carpenters, and laborers.
- Locality Specific: Rates are determined by county or metropolitan area, reflecting local labor market conditions.
- Incorporation: The applicable WD is incorporated into the contract and must be posted at the work site.
Related Terms
- Service Contract Act (SCA)
- Davis-Bacon Act
- Department of Labor (DOL)
- Fringe Benefits
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