Analysis #1.1 verifies that the "basic hourly rate" has been paid to the worker.  This is checked by simply dividing the gross amount of wages paid by the hours of work reported .  If the amount is less than the State prevailing wage determination's "Basic Hourly Rate" amount, then there has been an underpayment and violation of the law.

It is important that the gross amount for "this project" include only the wages paid on the check and not include any non-taxed fringe contributions.  Should both the on-check wages and the contributions be combined on the report, it defeats the purpose of the report and renders this Analysis 1.1 as well as Analysis #2 and #3 useless.  The gross wages should never be combined with the total contributions when an amount is reported in field #7 "Gross Amount Earned".

OVERTIME NOTE:  The equation above will not work correctly in an overtime pay situation. When overtime is included, the analysis must be customized.  Typically overtime rates are either time-and-a-half or double-time.  Depending on the situation the overtime hours must be counted and converted into straight-time hours in accordance with the overtime ratio.  (i.e. 1 hour overtime = 1.5 hours straight time).  Once the conversion has been done the analysis as illustrated should work.  Extra care must be taken in overtime situations to avoid erroneous analysis.