Employers who contract with certain cities or counties must pay employees a higher-than-minimum-wage rate for all work conducted for the specific contract. Which wage type is this?

Employers who contract with certain cities or counties must pay employees a higher-than-minimum-wage rate for all work conducted for the specific contract. Which wage type is this?

• A. Wages
• B. Minimum Wage
• C. Living Wage
• D. Prevailing Wage

Answer: (C)

Living wage means paying workers a wage that meets basic living costs in the area, typically higher than the local minimum wage for contracts with city or county governments. This ensures employees who perform work on that contract can cover essentials like housing and food. The scenario fits living wage because it describes a contractual obligation with a government entity to pay more than the minimum for all work on that contract. Minimum wage is only the legal floor; wages is too generic; prevailing wage relates to specific public works wage determinations and job classifications, which isn’t what’s described here.

Living wage means paying workers a wage that meets basic living costs in the area, typically higher than the local minimum wage for contracts with city or county governments. This ensures employees who perform work on that contract can cover essentials like housing and food. The scenario fits living wage because it describes a contractual obligation with a government entity to pay more than the minimum for all work on that contract. Minimum wage is only the legal floor; wages is too generic; prevailing wage relates to specific public works wage determinations and job classifications, which isn’t what’s described here.