Certified Payroll Professional Practice Exam

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Prepare for the Certified Payroll Professional Exam. Master concepts with flashcards and multiple-choice questions, each offering hints and explanations. Get exam ready now!

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What must contractors and subcontractors pay laborers working on public buildings or works according to the Davis-Bacon and related acts?

Prevailing wages
Minimum wage
Maximum wage
No specific wage requirement

The correct answer is: Prevailing wages

Contractors and subcontractors working on public buildings or public works projects are required to pay laborers prevailing wages according to the Davis-Bacon and related acts. These prevailing wages are established by the Department of Labor based on the wages commonly paid for similar work in the specific locality where the project is located. This ensures that workers are paid fairly for their labor and helps prevent the undercutting of wages to secure contracts. Therefore, option A is the correct answer.