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To conduct a survey, the employer must obtain wage information for each
job classification being performed by workers to be paid a special minimum
wage. The employer should prepare a detailed job description for each job being
surveyed to ensure that all parties fully understand what job is being
surveyed.
The employer should obtain wage data from comparable businesses in the
vicinity that primarily employ workers who do not have disabilities performing
the same work and utilizing similar methods and equipment as used by the worker
with a disability.
A comparable business is one that either employs a similar number
of employees or competes for contracts of a similar size and nature. The
appropriate size of the sample — the number of firms surveyed — will
depend on the number of firms doing similar work in the vicinity, but normally
should include no less than three. The prevailing wage information should be
solicited, preferably in writing, and the employer conducting the survey must record information regarding
each prevailing wage survey contact.
|
Weighted Average vs. Simple Average |
|
Employer |
No. of
Employees |
Wage Rate
Reported |
Gross Wages
(#EEs X Wage) |
|
|
|
|
|
XYZ, Inc. |
99 |
$5.85 |
$579.15 |
|
ABC, Inc. |
17 |
$5.95 |
$101.15 |
|
RST, Ltd. |
25 |
$6.20 |
$155.00 |
|
|
|
|
|
3 employers |
141 employees |
$18.00 |
$835.30 |
|
|
|
|
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|
|
|
|
Weighted Average: |
$835.30 / 141 employees = $5.92411 or $5.93* |
|
Straight Average: |
$18.00 / 3 employers = $6.00 |
| |
|
*Note that in this example the prevailing wage rate is $5.92411,
but the employer rounded it up to $5.93 per hour. If the employer rounded to
$5.92, he or she would be establishing a prevailing wage rate that is
less than the true prevailing wage rate (less by $0.0041 per hour). The
Wage and Hour Division will not normally question computations that are carried
out to the fifth decimal point and then rounded up to four decimal
places. The employer could, of course, round up (but not merely round off)
sooner. For example, .04974 should be rounded to .0498 or .05. |
I would like to:
FLSA Section 14(c) Advisor |
Wage and Hour Division
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