Council of State Governments: “Prevailing wage laws are laws created by state governments or local municipalities to set a rate of pay that is thought to be standard for a labor group contracted to do public-sector projects in that area. The standard rate of pay is oftentimes determined by analyzing local wage data and identifying the median or average rate of pay for a labor group or project. While prevailing wage laws are decided on a state-by-state basis for state and local contracts, the federal government is mandated to pay prevailing wages to its contracted workers by both the Davis-Bacon Act of 1931, which governs wages for construction and repair contracts regarding public buildings or projects, and the McNamara-O’Hara Service Contract Act of 1965, which governs contracts for services rendered to the federal government..”