The Massachusetts Prevailing Wage Law requires employers to pay employees “prevailing wages” for work on public works projects, like schools and libraries.  The prevailing wage rate is an hourly rate of pay that is usually higher than an employee’s regular hourly rate.  For example, a carpenter working on a school construction project in Boston is usually due a prevailing wage rate of over $90 per hour.

For workers in Massachusetts, the Massachusetts Prevailing Wage Law remains a strict liability statute. Unlike other employment claims that may hinge on intent or willfulness, prevailing wage violations are binary: either the correct rate was paid for every hour worked, or it was not.

Under the Prevailing Wage Law, M.G.L. c. 149, § 27, and Overtime Law, M.G.L. c. 151, § 1B, unpaid prevailing wage and overtime are subject to mandatory treble damages and attorneys’ fees.

The following points outline the standards as of 2026, highlighting the specific calculation errors that most frequently lead to recoverable damages.

1 – Failing To Pay The Correct Rate

A common issue we see is employers who simply fail to pay employees working on public works projects the prevailing wage rate and instead just pay them their normal hourly rate.  If you perform work on a public project – like a school, library, police station, or town hall – and you are receiving the same hourly rate you normally receive, there is a good chance your employer is not paying you the prevailing wage. The difference between your normal rate and the prevailing wage rate can be significant.

2 – The “Actual Cost” Rule for Benefits

A common source of underpayment of prevailing wages involves the improper deduction of fringe benefits. The prevailing wage rate is a composite of a “cash” component and a “benefits” component.

Employers are permitted to satisfy the total rate through a combination of cash wages and contributions to bona fide benefit plans (health, pension, etc.). However, the statute limits the deduction to the employer’s actual cost.

• The Calculation: Total Prevailing Rate – Actual Benefit Cost = Cash Wage Due.

If a project rate is $75.00/hour:

• An employer paying $5.00/hour in verified health premiums must pay a cash wage of $70.00/hour.
• An employer providing no benefits must pay the full $75.00/hour in cash.

We have seen employers deduct a flat “market rate” or a standardized union equivalent (e.g., crediting $25.00/hour for benefits) when the actual cost of their plan is significantly lower. The difference between the credit taken and the actual cost is considered unpaid wages.

3 – Overtime Calculation Anomalies

Overtime compliance on public works differs from standard private sector calculations. Under Massachusetts law, overtime is calculated at 1.5 times the cash rate the employer is obligated to pay, not necessarily the total prevailing wage figure.

This creates a variable overtime rate depending on the benefits package. Using the $75.00 example above:

• If the employer pays no benefits, the cash rate is $75.00. The overtime rate is $112.50/hour ($75.00 x 1.5).
• If the employer pays $5.00 in benefits, the cash rate is $70.00. The overtime rate is $105.00/hour ($70.00 x 1.5).

Payroll systems that apply a standard multiplier to a base rate without adjusting for the specific cash/benefit mix often underpay overtime. These discrepancies are systematic and accumulate rapidly over the course of a project. These claims can often be brought as class actions.

Similarly, if you work overtime in a week in which you receive both regular hourly pay and prevailing wage payments, your employer is required to calculate your overtime based on a blended rate of the two.  If instead your employer uses only your regular hourly rate to calculate overtime wages, that will result in an underpayment of overtime wages and a violation of the Overtime Law.

4 – Emergency Work and Small Jobs

Sometimes public entities contract for emergency work to be completed, like patching a roof after a storm. Or a public entity may have a small job that needs to be completed – like replacing a faucet. It is important to know that there are no emergency waivers for prevailing wage applicability or an exemption for “small” jobs. In fact, awarding authorities are often issued “Incidental Rate Sheets” (typically valid for 6 to 12 months) specifically to cover unanticipated work and/or small jobs.

If a worker performs construction or repair work on a public facility, they are owed the prevailing rate, regardless of whether the job was bid out or performed on an emergency basis. The lack of a posted rate sheet does not absolve the employer of liability.

5 – Apprentice Misclassification

Sometimes employers employ “apprentices” on public works projects – these are individuals who receive on-the-job training for a particular trade. The differential between the apprentice rate and the non-apprentice (sometimes called “journeyman”) rate is significant, often exceeding $30 or $40 per hour. To legally pay a worker the lower apprentice rate, the individual must be actively registered with the Massachusetts Division of Apprentice Standards (DAS).

Possessing an apprentice card from another state or being enrolled in a private training program is insufficient. If the worker is not registered with the Massachusetts DAS for the specific trade, they are legally classified as a journeyman and entitled to the higher rate.

In these instances, the damages are calculated as the difference between the apprentice rate paid and the full journeyman rate owed for all hours worked.

Statutory Remedies

Violations of the prevailing wage law are enforced through M.G.L. c. 149, § 27 and the Massachusetts Wage Act, M.G.L. c. 149, § 150.

Because the statute imposes strict liability, the employer’s intent is not a factor in determining damages. A plaintiff who establishes underpayment is entitled to:

• Mandatory Treble Damages: The unpaid wage amount is tripled automatically.
• Attorneys’ Fees and Costs: The statute mandates fee shifting for successful plaintiffs.

If you have performed work a public facility and are concerned that your employer has not paid you the prevailing wage rate for your work, contact us for a free case evaluation.