Davis-Bacon Prevailing Wage Rates 2026: Complete Contractor Compliance Guide
Every federal construction contract exceeding $2,000 triggers Davis-Bacon prevailing wage requirements. That threshold has not changed since 1935, meaning virtually every federal construction project in the United States falls under this law. Contractors who fail to comply face contract termination, three-year debarment from all federal work, back wage liability, and liquidated damages of $29 per day per affected worker.
The Department of Labor finalized the most significant Davis-Bacon regulatory update in 40 years in 2024, fundamentally changing how prevailing wages are calculated and enforced. These changes are now fully in effect for 2026 projects, affecting wage determination methodology, fringe benefit calculations, apprenticeship standards, and enforcement mechanisms across every federal construction category.
This guide covers everything contractors need to understand about Davis-Bacon prevailing wage rates in 2026: how to find current wage determinations, what the 2024 rule changes mean for your bids, certified payroll requirements, fringe benefit calculations, and a complete compliance checklist that keeps your firm off the DOL debarment list.
In This Guide:
- What Is the Davis-Bacon Act
- 2024 Rule Changes Now in Effect for 2026
- How to Find Current Wage Rates
- Construction Types and Wage Determinations
- Sample Wage Rates by Trade and Metro Area
- Certified Payroll Requirements
- Fringe Benefit Calculations
- Apprenticeship Requirements
- Davis-Bacon Compliance Checklist
- Penalties and Enforcement
- State Prevailing Wage Laws vs. Federal
- Related Acts: 70+ Federal Statutes
- Bidding Tips for Davis-Bacon Projects
- FAQ
What Is the Davis-Bacon Act
The Davis-Bacon Act of 1931 (40 U.S.C. 3141-3148) requires contractors and subcontractors on federally funded or assisted construction projects exceeding $2,000 to pay laborers and mechanics no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Department of Labor's Wage and Hour Division (WHD) administers the Act by conducting wage surveys and publishing wage determinations for specific localities and construction types.
The $2,000 contract threshold applies to the total contract value, not individual task orders. Any federal construction contract or federally assisted project exceeding $2,000 triggers full Davis-Bacon compliance. This threshold has remained unchanged since the Act's original passage in 1931.
Davis-Bacon covers all laborers and mechanics performing work on the site of the project, including workers employed by contractors, subcontractors at every tier, and apprentices in registered programs. The term "laborer or mechanic" encompasses virtually every construction trade worker performing manual or physical work at the project site.
The Act operates through a straightforward mechanism: before a federal agency awards a construction contract, it obtains the applicable wage determination from the DOL. This wage determination is incorporated into the contract, binding the prime contractor and every subcontractor to pay at least the listed rates for each trade classification. Workers must receive these rates for every hour worked on the covered project.
Davis-Bacon does not apply to:
- Material suppliers who only deliver to the job site
- Architects, engineers, and other professional service providers
- Office and clerical staff not performing construction work
- Projects funded entirely with private money (unless a Related Act applies)
- Maintenance work on existing federal buildings (unless exceeding $2,500 under the Service Contract Act)
2024 Rule Changes Now in Effect for 2026
The DOL's 2024 final rule (effective October 23, 2023, with phased implementation through 2024-2025) represents the most significant Davis-Bacon regulatory overhaul in 40 years. These changes are now fully operational and directly affect every Davis-Bacon project bid and awarded in 2026.
Return to the 3-Step Wage Determination Process
The most impactful change: DOL restored the original three-step methodology for calculating prevailing wages that was abandoned in 1982.
Majority Rate (30%+ Threshold)
If a single wage rate is paid to a majority (more than 50%) of workers in a classification in the area, that rate is the prevailing wage. Under the old rule, this required 50%+1. The new rule lowers this to 30% if no single rate reaches the majority threshold.
30% Threshold Rate
If no rate reaches 50%, but a single rate is paid to at least 30% of workers in the classification, that rate becomes the prevailing wage. This step was eliminated in the 1982 rule change and is now restored.
Weighted Average Rate
If no single rate reaches 30%, the DOL calculates a weighted average of all rates paid in the classification. This was the only method used under the 1982 rule, which often produced lower prevailing wage rates than the 3-step process.
Additional 2024 Rule Changes
Expanded Geographic Scope: When insufficient survey data exists for a county, DOL now uses data from surrounding counties, metropolitan statistical areas, or statewide data to establish prevailing rates. This produces more representative wage determinations in rural areas.
Anti-Retaliation Protections: The rule codifies protections for workers who report Davis-Bacon violations, file complaints, or cooperate with DOL investigations. Contractors face additional penalties for retaliating against workers exercising these rights.
Updated Definitions: The rule modernizes key definitions including "site of the work" to cover material storage areas, fabrication plants dedicated to the project, and adjacent or virtually adjacent properties used for construction activities.
Periodic Adjustments: DOL now updates wage determinations between full surveys using Bureau of Labor Statistics Employment Cost Index (ECI) data, keeping rates current between survey cycles.
How to Find Current Davis-Bacon Wage Rates
Current Davis-Bacon wage determinations are published on SAM.gov (System for Award Management), which replaced the legacy Wage Determinations OnLine (WDOL.gov) portal. Every contractor bidding federal work needs to understand how to navigate this system.
Step-by-Step: Finding Your Wage Determination
Navigate to SAM.gov Wage Determinations
Go to SAM.gov and select "Wage Determinations" from the navigation menu. No account is required to search wage determinations.
Select Your State and County
Wage determinations are county-specific. Select the state and county where the project is located. For projects spanning multiple counties, each county requires its own wage determination.
Choose the Construction Type
Select from four construction types: Building, Heavy, Highway, or Residential. Each type has separate wage rates reflecting different labor market conditions.
Review Trade Classifications and Rates
The wage determination lists every covered trade classification with the basic hourly rate and fringe benefit rate. Use these rates for your bid estimate and payroll compliance.
Reading a Wage Determination
Each wage determination includes:
- Wage Determination Number: A unique identifier (e.g., TX20260001) used in contract documents
- Modification Number: Tracks updates to the determination (Mod 0 is the original)
- Construction Type: Building, Heavy, Highway, or Residential
- County Coverage: The specific county or counties covered
- Trade Classifications: Each classification with basic hourly rate and fringe benefit rate
- Footnotes: Conditions, apprenticeship ratios, and special provisions
The contract wage determination controls. The wage determination incorporated into your contract at the time of award establishes the minimum rates for the project duration. Check for modifications issued between solicitation and award, as the contracting officer must incorporate the most current determination at contract execution.
Construction Types and Wage Determinations
Davis-Bacon separates construction into four distinct types, each with independent wage surveys and determinations. Misclassifying your project type leads to using incorrect wage rates and potential compliance violations.
| Construction Type | Description | Typical Projects | Key Trades | |---|---|---|---| | Building | Sheltered enclosures with walk-in access | Office buildings, schools, hospitals, courthouses | Carpenters, electricians, plumbers, HVAC, ironworkers | | Heavy | Projects not classified as building, highway, or residential | Dams, water treatment plants, utility lines, environmental remediation | Operating engineers, pipefitters, boilermakers, pile drivers | | Highway | Roads, streets, bridges, airport runways | Highway construction, bridge rehabilitation, interchange projects | Paving operators, structural ironworkers, cement masons | | Residential | Housing up to 4 stories | Single-family homes, apartments (4 stories or less), military housing | Carpenters, electricians, plumbers, roofers, painters |
The contracting officer determines which construction type applies based on the project's primary purpose. Mixed-use projects may require multiple wage determinations. For example, a federal campus project that includes both a building and site utility work may incorporate both building and heavy construction wage determinations, with workers classified under the determination matching the work they perform.
Sample Wage Rates by Trade and Metro Area
Davis-Bacon rates vary significantly by location and trade. The following tables show representative 2026 prevailing wage rates for common construction trades in major metropolitan areas. These are illustrative examples; always verify current rates on SAM.gov for your specific project location.
Building Construction Wage Rates (Selected Metros)
| Trade Classification | New York City | Los Angeles | Chicago | Houston | |---|---|---|---|---| | Electrician | $78.42 + $52.18 fringe | $62.35 + $31.47 fringe | $55.80 + $38.92 fringe | $38.25 + $16.80 fringe | | Plumber/Pipefitter | $74.15 + $49.60 fringe | $58.90 + $28.35 fringe | $52.45 + $36.70 fringe | $36.50 + $15.20 fringe | | Carpenter | $62.30 + $44.85 fringe | $52.10 + $26.80 fringe | $48.75 + $34.15 fringe | $28.40 + $12.60 fringe | | Laborer (General) | $42.80 + $32.50 fringe | $38.15 + $19.70 fringe | $35.90 + $25.40 fringe | $18.75 + $8.90 fringe | | Ironworker (Structural) | $68.50 + $48.20 fringe | $55.40 + $29.10 fringe | $50.20 + $35.80 fringe | $32.60 + $14.50 fringe | | Operating Engineer | $65.20 + $45.30 fringe | $53.75 + $27.90 fringe | $54.30 + $37.10 fringe | $35.80 + $15.40 fringe |
Highway Construction Wage Rates (Selected Metros)
| Trade Classification | New York City | Los Angeles | Chicago | Houston | |---|---|---|---|---| | Paving Equipment Operator | $58.40 + $42.10 fringe | $48.60 + $24.80 fringe | $47.90 + $33.60 fringe | $30.15 + $13.20 fringe | | Cement Mason | $52.75 + $38.90 fringe | $44.20 + $22.50 fringe | $42.80 + $30.40 fringe | $24.60 + $11.40 fringe | | Truck Driver (Heavy) | $45.30 + $35.20 fringe | $38.90 + $20.10 fringe | $36.50 + $27.80 fringe | $22.40 + $10.60 fringe | | Laborer (Highway) | $40.20 + $30.80 fringe | $36.40 + $18.90 fringe | $34.10 + $24.20 fringe | $17.80 + $8.40 fringe |
The rates above are representative examples for illustration purposes. Actual Davis-Bacon rates change with each wage determination update. Always verify current rates on SAM.gov for your specific project county before preparing bid estimates. Using outdated rates in your bid leads to cost overruns or compliance violations.
The variance between metros is significant. An electrician in New York City earns a total compensation (wage plus fringe) of $130.60 per hour under Davis-Bacon, while the same classification in Houston totals $55.05 per hour. These differences directly impact bid pricing and competitiveness across geographic markets.
Certified Payroll Requirements (WH-347)
Certified payroll is the primary compliance mechanism under Davis-Bacon. Every contractor and subcontractor on a covered project must submit weekly certified payroll reports using Form WH-347 (or an equivalent format containing the same information).
What Goes on the WH-347
Each certified payroll report must include:
- Employee name, address, and last four digits of Social Security number
- Work classification matching the wage determination trade categories
- Hours worked each day of the weekly pay period, separating straight time and overtime
- Rate of pay (basic hourly rate and fringe benefit rate)
- Gross wages earned for the reporting period
- Deductions (taxes, benefits, garnishments)
- Net wages paid
- Signature and certification statement from a company officer or authorized representative
The certification statement on WH-347 is a federal declaration. The person signing certifies under penalty of perjury that the payroll is correct and complete, all workers received at least the prevailing wage, and all apprentices are registered in approved programs. False certification constitutes a federal crime under 18 U.S.C. 1001.
Submission Requirements
- Frequency: Weekly, for each week any covered work is performed
- Deadline: Submitted within seven days after the regular pay date for the payroll period
- Copies: Prime contractor must maintain copies of all subcontractor payrolls
- Retention: Payroll records must be retained for three years after project completion
- Availability: Records must be made available to DOL investigators upon request
Many federal agencies now accept or require electronic certified payroll submissions through systems like LCPtracker, Elation Systems, or agency-specific portals. The 2024 rule update allows electronic signatures on WH-347 forms, streamlining the submission process for contractors with multiple projects.
Common Certified Payroll Errors
These errors trigger DOL investigations and contracting officer inquiries:
- Misclassification of workers: Listing a skilled electrician as a general laborer to pay a lower rate
- Splitting classifications: Recording a worker as performing two lower-paid classifications to avoid paying the correct prevailing rate
- Omitting fringe benefits: Failing to account for the full fringe benefit obligation
- Incomplete records: Missing hours, incorrect dates, or unsigned certification statements
- Late submissions: Failing to submit payrolls weekly as required
Fringe Benefit Calculations
Davis-Bacon wage determinations list two components for each trade classification: the basic hourly rate and the fringe benefit rate. Contractors must satisfy both requirements, and the method of providing fringe benefits affects your compliance approach and bid pricing.
Three Ways to Meet Fringe Benefit Requirements
Option 1: Pay fringe benefits to bona fide benefit plans. Fund health insurance, pension plans, vacation funds, apprenticeship training funds, and other approved benefit programs. The cost of these contributions counts toward the fringe benefit obligation.
Option 2: Pay fringe benefits as additional cash wages. Add the fringe benefit amount directly to the worker's hourly cash wage. This is the simplest approach but increases the worker's taxable income.
Option 3: Combination approach. Pay a portion through benefit plans and the remainder as additional cash wages. Most contractors use this method, funding standard benefits (health insurance, 401k) and paying any shortfall as cash.
Calculating the Fringe Benefit Credit
To determine your fringe benefit credit per hour:
- Total your annual employer costs for approved benefits (health insurance premiums, pension contributions, vacation pay, training fund contributions)
- Divide by the number of hours worked annually (typically 2,080 for full-time)
- Compare the result to the required fringe benefit rate in the wage determination
- If the calculated credit is less than the required rate, pay the difference as additional cash wages
Example: The wage determination requires $32.50 in fringe benefits per hour for electricians. Your firm provides health insurance costing $12.80/hour, pension contributions of $8.50/hour, and vacation pay of $4.20/hour, totaling $25.50/hour. You must pay the remaining $7.00/hour as additional cash wages to meet the full $32.50 requirement.
Apprenticeship Requirements Under Davis-Bacon
The 2024 rule update strengthened apprenticeship requirements under Davis-Bacon, and the Infrastructure Investment and Jobs Act (IIJA) projects carry additional apprenticeship mandates that contractors must satisfy.
Registered Apprenticeship Programs
Davis-Bacon recognizes only apprentices enrolled in programs registered with the DOL's Office of Apprenticeship or a state apprenticeship agency. Unregistered "helpers," "trainees," or "apprentices" in non-approved programs must be paid the full journeyman rate for their trade classification.
Apprentice Wage Rates
Apprentices in registered programs receive a percentage of the journeyman prevailing wage based on their program's approved wage schedule. A first-year electrical apprentice in a program specifying 50% of journeyman rate on a project in Chicago would earn 50% of $55.80 ($27.90/hour) plus applicable fringe benefits.
Apprentice-to-Journeyman Ratios
Contractors cannot employ more apprentices than the ratio allowed by their registered apprenticeship program. Common ratios include 1 apprentice per 3 journeymen (1:3) or 1 apprentice per 5 journeymen (1:5). Exceeding the allowed ratio requires paying excess apprentices the full journeyman rate.
IIJA Apprenticeship Requirements
Projects funded through the Infrastructure Investment and Jobs Act carry additional requirements: a minimum percentage of labor hours (typically 10-15%) must be performed by registered apprentices, with annual escalation provisions. These requirements layer on top of standard Davis-Bacon provisions and carry separate enforcement mechanisms.
Davis-Bacon Compliance Checklist
Use this checklist for every Davis-Bacon project from bid preparation through project closeout.
Pre-Bid: Identify the Wage Determination
Locate the wage determination number in the solicitation. Verify it matches the project location and construction type. Download and review all trade classifications and rates. Factor prevailing wage rates into your bid estimate for every trade you and your subcontractors will employ.
Pre-Award: Verify Current Rates
Check SAM.gov for modifications to the wage determination issued between solicitation and award. Notify the contracting officer of any modifications. Ensure your bid pricing accounts for the most current rates.
Contract Award: Flow Down Requirements
Include Davis-Bacon clauses in every subcontract at every tier. Distribute the applicable wage determination to all subcontractors. Require subcontractors to submit certified payrolls to you weekly. Document the flow-down in writing.
Project Start: Post Wage Determination On-Site
Post the wage determination and the DOL "Employee Rights" poster (WH-1321) in a prominent, accessible location at the job site. Workers must be able to see current prevailing wage rates for all classifications. Maintain postings for the project duration.
Weekly: Submit Certified Payrolls
Submit WH-347 certified payroll reports weekly for every week construction work is performed. Collect and review subcontractor payrolls before forwarding to the contracting officer. Flag discrepancies immediately and correct within the same pay period when possible.
Ongoing: Conduct Worker Interviews
Federal agencies conduct periodic worker interviews to verify payroll accuracy. Prepare your workforce by ensuring all workers know their correct trade classification and can confirm their pay rates. Cooperate fully with DOL investigations.
Ongoing: Monitor Classification Accuracy
Verify that workers are classified according to the work they actually perform, not their job title or general role. A worker performing electrical work must be classified and paid as an electrician, regardless of their employer's trade designation.
Project Closeout: Final Payroll and Records Retention
Submit final certified payrolls for the last week of construction. Verify all back wage issues are resolved before final payment. Retain all payroll records, wage determinations, and compliance documentation for three years after project completion.
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Start Free TrialPenalties and Enforcement
Davis-Bacon enforcement carries consequences that can end a contractor's ability to perform federal work. The DOL's Wage and Hour Division investigates complaints, conducts audits, and coordinates with contracting officers and the Office of the Solicitor to enforce compliance.
Administrative Penalties
Contract Payment Withholding: The contracting officer can withhold sufficient funds from contract payments to cover back wages owed to workers. This withholding occurs before any formal proceeding and directly impacts cash flow.
Contractor Debarment: The DOL can debar contractors from all federal contracts and federally assisted projects for three years. Debarment applies to the company and its responsible officers. A debarred contractor cannot bid on, receive, or perform any federal construction work during the debarment period. The debarment list is public and accessible on SAM.gov.
Liquidated Damages: Contractors owe $29 per day per worker for each day of Davis-Bacon underpayment. This amount is adjusted periodically for inflation. On a project with 50 workers, a 30-day violation period generates $43,500 in liquidated damages in addition to back wages.
Criminal Penalties
False Statements: Filing false certified payroll reports violates 18 U.S.C. 1001 (false statements to the federal government), carrying penalties of up to five years imprisonment and $250,000 in fines per false statement. Each weekly certified payroll containing false information constitutes a separate offense.
Willful Violations: Intentional underpayment of prevailing wages can result in criminal prosecution under the Davis-Bacon Act and related fraud statutes. DOL refers egregious cases to the Department of Justice for prosecution.
Davis-Bacon debarment extends to all federal work, not just the agency where the violation occurred. A debarment triggered by a DOL investigation on an Army Corps project bars you from VA, GSA, DOT, and all other federal agency work for three years. The debarment also extends to Related Acts projects, blocking federally assisted state and local work.
Enforcement Trends
DOL enforcement has intensified since the 2024 rule update. The Wage and Hour Division increased construction industry investigators, expanded its complaint intake capacity, and enhanced coordination with state labor agencies. Cross-debarment provisions now apply to state prevailing wage violations that demonstrate a pattern of non-compliance.
State Prevailing Wage Laws vs. Federal Davis-Bacon
Thirty-two states and the District of Columbia maintain their own prevailing wage laws (often called "Little Davis-Bacon Acts") that apply to state-funded and state-assisted construction projects. Understanding the interaction between federal and state requirements is essential for contractors working across jurisdictions.
| Factor | Federal Davis-Bacon | State Prevailing Wage (Typical) | |---|---|---| | Threshold | $2,000 contract value | Varies: $0 to $500,000+ depending on state | | Wage Source | DOL wage surveys on SAM.gov | State labor department surveys or adopt federal rates | | Payroll Reporting | Weekly WH-347 certified payroll | Varies by state; some require monthly reporting | | Enforcement Agency | DOL Wage and Hour Division | State labor department or attorney general | | Debarment | 3-year federal debarment | Varies: 1-5 years depending on state | | Worker Coverage | Laborers and mechanics | Varies: some states include truckers, flaggers, and surveyors | | Applies When | Federal funding or federal contract | State or local government funding |
When Both Apply
Projects receiving both federal and state funding trigger both Davis-Bacon and state prevailing wage requirements simultaneously. In these situations, contractors must pay the higher of the two rates for each trade classification. This "highest rate prevails" principle means you must compare federal and state wage determinations line by line for every classification used on the project.
States with notably higher prevailing wage rates than federal Davis-Bacon determinations include New York, California, New Jersey, Illinois, and Massachusetts. In these states, the state rate frequently exceeds the federal rate, particularly for union-heavy trade classifications.
For a comprehensive breakdown of state-by-state prevailing wage requirements, thresholds, and enforcement agencies, see our Prevailing Wage by State Guide.
Related Acts: 70+ Federal Statutes with Davis-Bacon Requirements
The Davis-Bacon Act itself applies only to direct federal construction contracts. However, over 70 "Related Acts" extend Davis-Bacon prevailing wage requirements to federally assisted construction, covering far more projects than the original Act alone.
Major Related Acts Affecting Construction
- Federal-Aid Highway Act: All federally funded highway projects, administered through state DOTs
- Housing and Community Development Act: HUD-funded projects including CDBG and HOME programs
- Clean Water Act: EPA-funded water and wastewater treatment facility construction
- Federal Water Pollution Control Act: Water infrastructure projects receiving federal grants
- National Housing Act: FHA-insured construction projects exceeding certain thresholds
- Airport and Airway Development Act: FAA-funded airport construction and improvement projects
- Watershed Protection and Flood Prevention Act: USDA-funded watershed and flood control construction
- Federal Transit Laws (49 U.S.C.): FTA-funded transit facility construction
- Infrastructure Investment and Jobs Act (IIJA): Broad Davis-Bacon coverage for all IIJA-funded construction
- Inflation Reduction Act: Clean energy and climate resilience construction projects receiving federal tax credits above $1 million
Why Related Acts Matter for Contractors
Related Acts dramatically expand Davis-Bacon coverage beyond direct federal contracts. A state highway project funded with Federal-Aid Highway Act dollars triggers Davis-Bacon through the Related Act, even though the contract is between the state DOT and a private contractor. A municipal water treatment plant built with Clean Water Act funding carries Davis-Bacon requirements even though the contract is with the city.
The Infrastructure Investment and Jobs Act is particularly significant because it directs unprecedented federal funding through state and local agencies, triggering Davis-Bacon requirements on thousands of projects that would not otherwise be covered. Contractors working on state and local infrastructure projects funded by IIJA must comply with full Davis-Bacon requirements including certified payroll reporting.
Tips for Bidding on Davis-Bacon Projects
Davis-Bacon compliance adds complexity and cost to federal construction bids. Contractors who accurately account for prevailing wage requirements in their estimates win profitable projects, while those who underestimate wage obligations face cost overruns that erode margins.
Accurate Wage Estimation
Pull the specific wage determination for your project location before preparing your estimate. Do not use rates from a previous project or a neighboring county. Calculate total labor cost per trade by adding the basic hourly rate and fringe benefit rate, then multiply by estimated hours. Factor in overtime at 1.5x the basic rate (fringe benefits do not increase for overtime hours under Davis-Bacon, though FLSA overtime requirements still apply to the basic rate).
Classify Workers Correctly in Your Bid
Map every scope item to the correct trade classification in the wage determination. A concrete worker performing form work is classified differently than one finishing flatwork. Using the wrong classification in your estimate produces inaccurate labor costs that surface as either reduced competitiveness (overestimation) or compliance violations (underestimation).
Account for Fringe Benefit Strategy
Decide before bidding whether you will fund fringe benefits through benefit plans, cash payments, or a combination. Each approach has different cost implications:
- Benefit plans: Lower taxable wage base reduces payroll taxes (FICA, FUTA, SUTA) but requires plan administration costs
- Cash payments: Higher taxable wage base increases payroll tax burden by 7.65% (employer FICA) plus FUTA and SUTA costs
- Combination: Optimize by funding standard benefits to reduce tax exposure and paying any shortfall as cash
Build in Compliance Costs
Include administrative costs for Davis-Bacon compliance in your bid:
- Payroll processing with prevailing wage tracking capabilities
- Certified payroll preparation and submission (1-2 hours per week per project)
- Record retention and document management systems
- Training for field supervisors on classification and compliance
- Potential costs for payroll software or LCPtracker subscriptions
Subcontractor Wage Verification
Verify that your subcontractors' bids incorporate correct prevailing wage rates before submitting your proposal. A subcontractor who bids below prevailing wage creates a compliance problem that falls on the prime contractor. Request wage rate breakdowns from subcontractors and compare them against the project wage determination.
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Federal construction projects over $150,000 require performance and payment bonds under the Miller Act. Sureties evaluate your Davis-Bacon compliance history when underwriting bonds. A clean compliance record strengthens your bonding capacity, while violations and debarment effectively eliminate your ability to obtain federal project bonds. For a deeper dive into bonding requirements, see our Construction Bid Bonds Requirements Guide.
Frequently Asked Questions
What is the Davis-Bacon Act?
The Davis-Bacon Act is a federal law requiring contractors on government-funded construction projects exceeding $2,000 to pay workers no less than the locally prevailing wages and fringe benefits. It applies to laborers, mechanics, and apprentices working on federal contracts. The Act has been in effect since 1931 and covers all 50 states, the District of Columbia, and U.S. territories.
How do I find Davis-Bacon wage rates for my area?
Access current wage determinations through SAM.gov (formerly WDOL.gov). Search by state, county, and construction type (building, heavy, highway, or residential). Each determination lists minimum hourly rates and fringe benefits by trade classification. No account is required to search and download wage determinations.
What changed in the 2024 Davis-Bacon rule update?
The 2024 final rule returned to a 3-step process for setting prevailing wages, expanded the definition of prevailing wage, strengthened anti-retaliation protections, and updated the regulatory framework for the first time in 40 years. The restored 3-step methodology uses a 30% threshold before falling back to weighted averages, generally producing higher prevailing wage rates than the previous single-step method.
What is certified payroll under Davis-Bacon?
Certified payroll (WH-347 form) is a weekly payroll report that contractors and subcontractors must submit on federal projects. It certifies that workers received at least the prevailing wage rate including fringe benefits for their trade classification. The person signing the certification does so under penalty of perjury, making false certified payrolls a federal crime.
What are the penalties for Davis-Bacon violations?
Penalties include withholding of contract payments, contractor debarment from federal work for 3 years, back wages owed to workers, liquidated damages of $29 per day per affected worker, and potential criminal prosecution for willful violations. False certified payroll reports carry penalties of up to 5 years imprisonment and $250,000 in fines per offense.
Does Davis-Bacon apply to subcontractors?
Yes. Davis-Bacon requirements flow down to all subcontractors and lower-tier subcontractors on covered projects regardless of their contract amount. The prime contractor is responsible for ensuring all tiers comply, collecting certified payrolls from every subcontractor, and including Davis-Bacon clauses in all subcontracts.
What construction types does Davis-Bacon cover?
Davis-Bacon covers four construction types: building construction, residential construction, heavy construction (dams, bridges, utilities), and highway construction. Each type has separate wage determinations with different rate structures reflecting the distinct labor markets for each construction category.
How often are Davis-Bacon wage rates updated?
The Department of Labor conducts wage surveys on a rolling basis and publishes updated wage determinations regularly. Under the 2024 rule, DOL also adjusts rates between surveys using BLS Employment Cost Index data. Contractors must use the wage determination in effect at the time of contract award, with modifications incorporated through contract modifications.
Key Resources
- SAM.gov Wage Determinations: sam.gov/wage-determinations - Official source for all current Davis-Bacon wage determinations
- DOL Wage and Hour Division: dol.gov/agencies/whd/government-contracts/construction - Regulatory guidance, compliance assistance, and complaint filing
- WH-347 Form: dol.gov/agencies/whd/forms/wh347 - Official certified payroll form and instructions
- Federal Debarment List: sam.gov/exclusions - Public list of debarred contractors
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