In the state of Alabama, the federal government’s Department of Labor determines the prevailing wage.  The DOL determines this rate based on the hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work. More specifically, the DOL bases those prevailing wage rates on workers who are located within the locality or nearest labor market area. In the event that there is no single rate paid to a majority, the single or modal rate being paid to the greater number of workers is the prevailing wage determination in Alabama.