Reading Room Document

Memorandum of May 27,1981 requesting our opinion on several questions relating to the determination of wage rates under the Davis-Bacon and Service Contract Acts.

The document responds to a request for an opinion on wage rate determination under the Davis-Bacon and Service Contract Acts. It concludes that the Secretary of Labor must determine the "prevailing" wage based on an objective standard of predominance or currency in a given locality. It also states that the minimum wage rate required by law in contracts subject to the Acts must be at least the prevailing rate as determined by the Secretary. The questions presented for review include whether the Secretary can define the prevailing wage in terms of the average rate or the lowest rate paid in a given locality, and whether the contractual minimum wage can be lower than the prevailing rate.

June 12, 1981