Prevailing wage

Correct Answer: Require subcontractors to revise employee wages to match prevailing rates.

The most appropriate course of action is to require subcontractors to revise employee wages to match prevailing rates. This ensures that all workers are fairly compensated in accordance with the law and maintains the project's compliance with federal wage regulations. By taking this step, the HR manager addresses the issue directly, rectifies the wage discrepancies, and upholds the organization's commitment to legal and ethical standards.

Correct Answer: Review the applicable Wage Determinations issued by the Department of Labor.

Reviewing the applicable Wage Determinations issued by the Department of Labor is the best approach because these determinations provide the legally required prevailing wage rates for federally funded construction projects. Consulting the company's standard payroll policies may not ensure compliance with federal wage standards. Using average local wage rates from industry surveys does not guarantee adherence to federally mandated wages. Referring solely to the contract's specified payment guidelines without external references can result in non-compliance with prevailing wage laws.

Correct Answer: Negotiate with the contractor to increase the wage to meet the prevailing wage requirement.

As the HR manager, you should negotiate with the contractor to increase their wage proposal to meet the prevailing wage requirement. This action ensures compliance with federal standards and promotes fair compensation for workers. Approving a lower wage would result in non-compliance and potential legal consequences. Reporting the contractor to labor authorities might be necessary if negotiations fail, and conducting an internal review is important but does not directly address the immediate need to ensure compliance.