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On a prevailing wage project, a carpenter's regular rate is $28/hour, but the prevailing wage is $35/hour with $8/hour in benefits. What must the contractor pay if the carpenter already receives $6/hour in benefits?

Correct Answer

D) $35/hour wages + $2/hour additional benefits

The contractor must pay the prevailing wage rate ($35/hour) plus make up the benefit shortfall ($8 required - $6 existing = $2/hour additional).

Answer Options
A
$35/hour wages + $8/hour benefits
B
$37/hour wages + $6/hour benefits
C
$33/hour wages + $8/hour benefits
D
$35/hour wages + $2/hour additional benefits

Why This Is the Correct Answer

Under prevailing wage law, contractors must pay the full prevailing wage rate ($35/hour) regardless of the worker's regular rate. For benefits, contractors must ensure workers receive the required benefit amount ($8/hour total). Since the carpenter already receives $6/hour in benefits, the contractor only needs to provide an additional $2/hour to meet the $8/hour requirement. This maintains compliance while avoiding overpayment.

Why the Other Options Are Wrong

Option A: $35/hour wages + $8/hour benefits

This option incorrectly assumes the contractor must pay the full $8/hour in benefits on top of the prevailing wage, ignoring that the carpenter already receives $6/hour in benefits. This would result in the worker receiving $14/hour total in benefits ($6 existing + $8 additional), which exceeds the required $8/hour and represents unnecessary overpayment.

Option B: $37/hour wages + $6/hour benefits

This option incorrectly adds $2/hour to the prevailing wage rate, creating a wage of $37/hour. Prevailing wage rates are fixed amounts that cannot be modified. The $35/hour wage rate is mandatory and cannot be increased to $37/hour. The benefit calculation is also wrong as it maintains existing benefits rather than ensuring total compliance.

Option C: $33/hour wages + $8/hour benefits

This option incorrectly reduces the wage rate to $33/hour, which violates prevailing wage law. The prevailing wage rate of $35/hour is the minimum required wage and cannot be reduced under any circumstances. Even though the benefit amount is correct at $8/hour, paying below the prevailing wage rate makes this option non-compliant.

Memory Technique

Remember 'WAGE + GAP': Pay the full prevailing WAGE rate, then fill only the benefit GAP between what's required and what's already provided.

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