Under the McNamara-O'Hara Service Contract Act, wage determinations are made based on:

Under the McNamara-O'Hara Service Contract Act, wage determinations are made based on:

• A. Negotiated union contracts only
• B. Prevailing wages in the local labor market
• C. Historical wage data from the past decade
• D. Wages determined by the company’s board

Answer: (B)

The McNamara-O'Hara Service Contract Act requires that wage determinations for service contracts be based on prevailing wages in the local labor market. This approach ensures that contractors pay their employees wages that are competitive and reflective of what similarly situated workers are making in the same geographic area. The prevailing wage rate is determined by analyzing wage data from various sources, including collective bargaining agreements, surveys, and local employment statistics, to guarantee that employees are compensated fairly according to regional standards. This focus on local prevailing wages helps to support fair labor standards and prevents employers from underbidding each other through lower wages, thereby maintaining a standard of living for workers in that sector. This aspect of the Act is particularly significant in public service contracts, as it ensures that federal contractors adhere to fair wage practices that align with local economic conditions.

The McNamara-O'Hara Service Contract Act requires that wage determinations for service contracts be based on prevailing wages in the local labor market. This approach ensures that contractors pay their employees wages that are competitive and reflective of what similarly situated workers are making in the same geographic area. The prevailing wage rate is determined by analyzing wage data from various sources, including collective bargaining agreements, surveys, and local employment statistics, to guarantee that employees are compensated fairly according to regional standards.

This focus on local prevailing wages helps to support fair labor standards and prevents employers from underbidding each other through lower wages, thereby maintaining a standard of living for workers in that sector. This aspect of the Act is particularly significant in public service contracts, as it ensures that federal contractors adhere to fair wage practices that align with local economic conditions.