Prevailing industry standard laws can build upon traditional minimum wage laws by stabilizing wages and benefits above bare minimums so that jobs can be sufficient to meet workers’ basic needs. The authors call this type of industry-specific wage law a prevailing industry standard.

1 But in several cases, prevailing wage-style laws have also been used to regulate private businesses that are not working on contracts or other government-funded or subsidized projects. Setting standards based on what some employers in the industry pay is widespread in government contracting, where prevailing wage laws are common. Under this approach, minimum compensation standards are set with reference to prevailing wage and benefit rates. There is one particular underutilized tool that states and cities should consider using as a complement to their universal minimum wage laws: the enactment of industry-specific, prevailing wage-style laws that apply to private sector employees. But in this era of extreme economic inequality and concentrated economic power, many states and cities want to do more to improve conditions for working people-and they have the authority to do so. These laws are essential, as they particularly help the most vulnerable workers and ensure that pay does not fall below certain thresholds. Nearly all states and many cities set minimum wages for private sector employees operating within their jurisdictions. See also: “ Prevailing Wages: Frequently Asked Questions” See also: “ A How-To Guide for Strengthening State and Local Prevailing Wage Laws: Raising Standards for Government-Funded Work”

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