Davis-Bacon Prevailing Wage Rates: Complete Contractor Guide [2026]
The Davis-Bacon Act directly affects every contractor bidding on federal construction work. With over $217 billion in federally funded construction flowing through the economy annually and the Infrastructure Investment and Jobs Act (IIJA) continuing to distribute historic funding levels, understanding prevailing wage requirements is not optional -- it is a core competency for competitive contractors.
The Department of Labor's 2024 Final Rule introduced the most significant changes to Davis-Bacon regulations in 40 years, including a restored 3-step wage determination process and expanded coverage definitions. Contractors who mastered the old system need to understand what changed. Contractors entering federal work for the first time need a complete foundation.
This guide covers everything contractors need to know about Davis-Bacon prevailing wage rates: how to find current rates, how the wage determination process works, what certified payroll requires, what happens when you violate the rules, and how state prevailing wage laws interact with federal requirements.
Prevailing wage requirements directly affect your labor cost estimates on every federal project. Underestimating prevailing wage obligations is one of the top reasons contractors lose money on government work. Getting the rates right during estimating protects your margins and keeps you compliant.
What the Davis-Bacon Act Requires
The Davis-Bacon Act of 1931 requires contractors and subcontractors on federal construction contracts exceeding $2,000 to pay laborers, mechanics, and apprentices no less than the prevailing wages and fringe benefits for corresponding work in the local area. The law covers new construction, alteration, and repair of public buildings and public works.
The $2,000 threshold applies to the total contract amount, not individual line items. A contract valued at $2,500 for minor renovation work triggers full Davis-Bacon compliance. This low threshold means virtually every federal construction contract requires prevailing wage compliance.
Covered Workers
Davis-Bacon covers laborers and mechanics -- workers who perform manual or physical work at the construction site. This includes:
- Trade workers: electricians, plumbers, carpenters, ironworkers, painters, roofers, HVAC technicians
- Equipment operators: crane operators, excavator operators, forklift operators
- General laborers: flaggers, material handlers, cleanup crews
- Apprentices: registered apprentices in approved programs (paid apprentice rates)
- Truck drivers: when driving is incidental to and an integral part of the construction work
Workers in bona fide executive, administrative, or professional roles are exempt. Supervisors who spend more than 20% of their time performing manual work must be paid prevailing wages for those hours.
The 70+ Related Acts
Davis-Bacon's reach extends far beyond direct federal contracts through more than 70 Related Acts. These federal statutes require Davis-Bacon prevailing wage compliance on federally assisted construction even when the federal government is not the direct contracting party:
- Federal-Aid Highway Act (FHWA): State DOT highway and bridge projects using federal highway funds
- Housing and Community Development Act (HUD): Affordable housing and community development projects
- Clean Water Act / Safe Drinking Water Act (EPA): Water treatment and infrastructure projects
- Infrastructure Investment and Jobs Act (IIJA): Broadband, electric vehicle charging, transit, and water infrastructure
- Inflation Reduction Act (IRA): Clean energy construction projects seeking enhanced tax credits
This means a contractor building a state highway project funded by FHWA dollars, a water treatment plant funded by EPA grants, or an EV charging station funded by IIJA appropriations must comply with Davis-Bacon -- even though the contract is with a state or local agency, not the federal government.
How to Find Current Prevailing Wage Rates on SAM.gov
Finding the correct prevailing wage rates for your project is the first step in accurate bid preparation. The Department of Labor publishes all wage determinations through SAM.gov, which replaced the former Wage Determinations OnLine (WDOL.gov) portal.
Step 1: Access SAM.gov Wage Determinations
Navigate to sam.gov/content/wage-determinations. You do not need a SAM.gov account to search wage determinations, though registration provides access to saved searches and notifications.
Step 2: Select the Construction Type
Choose from four construction type categories:
- Building: Structures such as offices, schools, hospitals, warehouses, and residential buildings (sheltered enclosures)
- Heavy: Projects not classified as building, highway, or residential -- dams, water and sewer lines, power plants, industrial facilities
- Highway: Roads, streets, bridges, airport runways, parking lots, and related appurtenances
- Residential: Single-family homes and apartment buildings up to 4 stories (projects that do not meet the building construction definition)
Selecting the wrong construction type results in applying incorrect wage rates. When a project includes multiple construction types, the type representing the greatest portion of the work typically governs, though the contracting agency makes the final determination.
Step 3: Search by State and County
Enter the state and county where the construction work will be performed. Wage rates are location-specific -- the rate for an electrician in Los Angeles County differs significantly from the rate in rural Wyoming. Multi-county projects may require multiple wage determinations.
Step 4: Review the Wage Determination
Each wage determination lists:
- Modification number and date: Confirms the determination is current
- Trade classifications: Specific job titles (e.g., "ELEC0011-003 06/01/2024" for electricians)
- Base hourly rate: Minimum cash wage per hour
- Fringe benefits: Required benefit amount per hour (payable as benefits or cash equivalent)
- Total prevailing wage: Base rate plus fringe benefit amount
Step 5: Verify the Applicable Wage Determination
The wage determination included in the solicitation or contract governs the project. Verify that the determination in your contract matches the current published version. If the contract references an outdated determination, the contracting officer must issue the current one. General wage determinations are updated periodically, and modifications are incorporated automatically for contracts not yet awarded.
Always use the specific wage determination referenced in the contract documents, not a general search result from SAM.gov. The contracting agency selects the applicable determination based on the project's location, type, and scope. Using the wrong determination causes compliance failures even if you pay higher rates.
The Wage Determination Process: How DOL Sets Rates
Understanding how the Department of Labor establishes prevailing wage rates helps contractors anticipate rate levels and participate in the survey process that determines them.
The Restored 3-Step Process (2024 Final Rule)
The 2024 Final Rule restored the original 3-step method for determining prevailing wages, reversing a 1982 change that used a simplified methodology:
Step 1 -- Majority Rate: If a single wage rate is paid to a majority (more than 50%) of workers in a classification in the survey area, that rate is the prevailing wage.
Step 2 -- Weighted Average: If no single rate commands a majority, DOL calculates a weighted average of all rates reported in the survey, weighted by the number of workers at each rate.
Step 3 -- Metropolitan/State Rate: If insufficient local data exists, DOL uses data from a broader geographic area (metropolitan statistical area, then state) to establish the rate.
This restored process generally produces higher prevailing wages compared to the previous methodology, which required 50% or more of surveyed workers to be paid a single rate before designating it as prevailing. The weighted average in Step 2 now captures the market's actual wage distribution more accurately.
Wage Surveys
DOL's Wage and Hour Division conducts wage surveys to collect data on wages paid to construction workers in specific geographic areas. The surveys gather information from contractors, unions, and project records. Survey participation is voluntary but strongly encouraged -- contractors who participate help ensure the published rates reflect actual market conditions.
DOL contacts employers, contractor associations, and labor organizations to collect wage data. The survey forms request information about each worker's classification, hourly rate, and fringe benefits for projects completed in the survey area. Higher survey response rates produce more accurate wage determinations that better reflect local conditions.
Conformance Requests
When a project requires a worker classification not listed in the applicable wage determination, the contractor must submit a conformance request to DOL. The request proposes a classification and wage rate that bears a reasonable relationship to listed classifications. Common situations requiring conformance include:
- Specialized equipment operators not listed in the determination
- Hybrid classifications performing work spanning multiple listed trades
- New construction technologies requiring unlisted skill sets
DOL reviews and approves conformance requests, establishing the wage rate that applies for the duration of the project. Submit conformance requests early -- performing work under an unapproved classification creates compliance risk.
Certified Payroll Requirements
Certified payroll is the primary compliance mechanism for Davis-Bacon. Every contractor and subcontractor on a covered project must submit weekly certified payroll reports documenting that all workers received at least the prevailing wage.
WH-347 Form
The standard form for certified payroll is the WH-347, available from the Department of Labor. While use of the specific WH-347 form is not mandatory, any alternative format must contain all the same information fields:
| Required Field | What to Report | |---|---| | Employee name and ID | Full name and last four digits of SSN (or employee ID) | | Work classification | Classification matching the wage determination (e.g., Electrician, Carpenter, Laborer) | | Hours worked daily and weekly | Straight time and overtime hours for each day of the payroll period | | Rate of pay | Hourly base rate and fringe benefit rate (must meet or exceed prevailing wage) | | Gross wages | Total earnings for the payroll period | | Deductions | Itemized deductions from gross pay | | Net wages | Amount actually paid to the worker | | Fringe benefits | Amount paid to approved plans/programs or cash equivalent |
The Certification Statement
Each weekly payroll includes a Statement of Compliance signed by the contractor or authorized officer. This certification states under penalty of perjury that:
- The payroll is correct and complete
- Each worker has been paid not less than the applicable prevailing wage
- Apprentices are registered in approved programs and paid apprentice rates
- No deductions have been made except as permitted
Knowingly submitting a false certified payroll constitutes a federal crime under 18 U.S.C. 1001, carrying penalties of up to $500,000 in fines and 5 years imprisonment. This is not a technicality -- DOL and the Office of Inspector General actively prosecute payroll fraud.
Prime Contractor Responsibilities
The prime contractor bears ultimate responsibility for Davis-Bacon compliance across the entire project, including all subcontractor tiers. Specific obligations include:
- Posting the applicable wage determination at the job site in a prominent, accessible location
- Collecting certified payroll from every subcontractor weekly
- Reviewing subcontractor payrolls for accuracy and compliance
- Maintaining payroll records for 3 years after project completion
- Responding to DOL investigations and providing records upon request
Leading construction payroll systems including Sage 300 CRE, Viewpoint Vista, Foundation Software, and ComputerEase generate WH-347 certified payroll reports directly from timekeeping data. Investing in Davis-Bacon-compliant payroll software eliminates manual reporting errors and reduces compliance risk on every federal project.
Penalties for Davis-Bacon Violations
Davis-Bacon enforcement carries substantial consequences that go beyond financial penalties. The Department of Labor's Wage and Hour Division investigates complaints, conducts audits, and imposes escalating penalties based on the severity and willfulness of violations.
Financial Penalties
- Back wages: Contractors must pay the difference between actual wages paid and the required prevailing wage for all affected workers and hours
- Liquidated damages: $29 per calendar day per worker for each day of underpayment (adjusted for inflation)
- Contract fund withholding: The contracting agency withholds sufficient funds from contract payments to cover back wages and liquidated damages
- Interest: Back wage awards accrue interest from the date of underpayment
Contract-Level Consequences
- Contract termination: The contracting agency can terminate the contract for default based on Davis-Bacon violations
- Contractor liability for completion costs: If terminated, the contractor is liable for excess costs of completing the work through a replacement contractor
- Payment holds: Agencies withhold progress payments pending resolution of compliance issues
Debarment
DOL can debar contractors from federal contracting for 3 years for willful or aggravated violations. Debarment applies to the contractor entity and its principals (officers and owners). A debarred contractor cannot work as a prime or subcontractor on any federal or federally assisted construction project during the debarment period.
Debarment is published in SAM.gov's exclusion records, visible to every contracting officer and prime contractor nationwide. The reputational damage extends beyond the debarment period.
Criminal Prosecution
Willful violations carry criminal penalties under 40 U.S.C. 3145:
- Fines up to $1,000
- Imprisonment up to 6 months
- False certification penalties under 18 U.S.C. 1001: fines up to $500,000 and 5 years imprisonment
DOL refers egregious cases to the Department of Justice for criminal prosecution. Cases involving payroll fraud, kickback schemes (requiring workers to return a portion of wages), and systematic misclassification receive priority enforcement attention.
The 2024 Final Rule strengthened protections for workers who report Davis-Bacon violations. Contractors who retaliate against workers -- through termination, demotion, or intimidation -- face additional penalties. Workers can file complaints directly with DOL's Wage and Hour Division or through the contracting agency.
State Prevailing Wage Laws: How They Compare to Davis-Bacon
Twenty-eight states plus the District of Columbia maintain their own prevailing wage laws, commonly called "Little Davis-Bacon Acts." These state laws apply to state-funded construction projects and often differ from federal requirements in threshold amounts, coverage, and enforcement mechanisms.
| Factor | Federal Davis-Bacon | State Prevailing Wage (Typical) | |---|---|---| | Contract threshold | $2,000 | Varies: $0 (NY, NJ) to $500,000+ | | Covered projects | Federal and federally assisted | State and locally funded | | Rate source | DOL wage determinations on SAM.gov | State labor department surveys | | Payroll reporting | Weekly certified payroll (WH-347) | Varies by state (weekly or monthly) | | Enforcement | DOL Wage and Hour Division | State labor agencies | | Debarment | 3 years federal | Varies: 1-5 years state | | Fringe benefits | Required (cash or plan) | Most states require; some do not |
States With Prevailing Wage Laws (2026)
States with active prevailing wage statutes include: California, Connecticut, Delaware, Hawaii, Illinois, Indiana (limited), Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire (limited), New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee (limited), Texas (limited), Vermont, Washington, West Virginia, Wisconsin, and the District of Columbia.
States Without Prevailing Wage Laws
Twenty-two states have either repealed their prevailing wage laws or never enacted them: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Utah, Virginia, and Wyoming.
Contractors in states without prevailing wage laws still must comply with Davis-Bacon on federally funded projects within those states. The absence of a state law does not exempt federal projects from prevailing wage requirements.
When Both Apply
On projects receiving both federal and state funding, both Davis-Bacon and the applicable state prevailing wage law apply simultaneously. Contractors must pay the higher of the two rates for each worker classification. This dual-applicability scenario is common on highway projects, water infrastructure, and public building construction where funding comes from multiple government levels.
California's prevailing wage law applies to all public works contracts over $1,000. California rates are frequently higher than federal Davis-Bacon rates for the same county and trade. California also requires electronic certified payroll submission through the DIR's eCPR system and mandates apprenticeship participation on public works projects. Review both California DIR rates and federal SAM.gov rates for every dual-funded project.
The 2024 Davis-Bacon Final Rule: What Changed
The Department of Labor published its Final Rule updating Davis-Bacon regulations on August 23, 2023, with provisions phasing in through 2024. This represented the first comprehensive regulatory update in over 40 years.
Key Changes Contractors Must Understand
Restored 3-Step Wage Determination: The rule returned to the pre-1982 methodology where DOL calculates a weighted average when no single rate represents a majority. This generally produces higher prevailing wage determinations.
Expanded "Site of the Work" Definition: The updated definition includes material suppliers, prefabrication facilities, and batch plants that are "dedicated exclusively or nearly so" to the covered project. This extends prevailing wage requirements to some off-site workers who were previously exempt.
Updated Fringe Benefit Rules: Annualization of fringe benefits is no longer permitted for calculating compliance with the prevailing wage. Benefits must be calculated on an hourly basis matching the wage determination format.
Anti-Retaliation Provisions: Workers reporting potential violations are protected from retaliation. Contractors who retaliate face additional enforcement actions beyond the underlying wage violation.
Periodic Adjustment of Penalties: Liquidated damages and civil monetary penalties are now indexed to inflation, meaning penalty amounts increase over time. The current liquidated damages amount is $29 per day per worker, up from the previous static amount.
Broader Helper Classification: The rule updated how "helper" classifications are handled, limiting contractors' ability to classify skilled workers in lower-paid helper categories to reduce labor costs.
Compliance Best Practices for Contractors
Maintaining Davis-Bacon compliance requires systematic processes, not ad-hoc efforts. Contractors who treat compliance as a project management function rather than an afterthought avoid costly violations and build reputations that win repeat federal work.
Step 1: Build Prevailing Wage Into Your Estimates
During bid preparation, download the applicable wage determination from the solicitation documents. Calculate labor costs using the full prevailing wage (base rate plus fringe benefits) for every trade classification your crew and subcontractors will deploy. Factor in overtime rates at 1.5x the base rate (fringe benefits do not increase for overtime). Underestimating prevailing wage labor costs is the most common estimating error on federal construction bids.
Step 2: Classify Workers Correctly From Day One
Before any worker starts on a Davis-Bacon project, assign their classification based on the actual work they will perform. Match each worker to the specific classification in the wage determination. Do not use generic titles or create classifications that do not exist in the determination. When a worker performs multiple types of work, either pay the highest applicable rate for all hours or track hours precisely by classification.
Step 3: Implement Weekly Payroll Review
Do not wait for project completion to verify compliance. Review certified payroll reports weekly, checking that every worker's classification, hours, and rate match the wage determination requirements. Flag discrepancies immediately and correct them before the next payroll cycle. Catching a classification error in week 2 costs far less than discovering it during a DOL audit in month 8.
Step 4: Monitor Subcontractor Compliance
Establish clear subcontract provisions requiring Davis-Bacon compliance, weekly certified payroll submission, and cooperation with audits. Review subcontractor payrolls with the same rigor you apply to your own. A subcontractor's violation becomes your problem as the prime contractor.
Step 5: Maintain Records for 3 Years
Keep all payroll records, wage determinations, conformance requests, and correspondence for a minimum of 3 years after project completion. Store records in an organized, accessible format. DOL can investigate projects for up to 3 years after completion, and requests for records during an investigation require prompt production.
How Prevailing Wage Affects Your Bid Strategy
Davis-Bacon prevailing wage requirements fundamentally shape bid strategy for federal construction projects. Contractors who understand the strategic implications gain competitive advantages.
Labor Cost Accuracy
Prevailing wages often exceed market rates, particularly in non-union markets where open-shop contractors typically pay below the surveyed prevailing rate. The gap between your standard pay rates and prevailing rates represents additional labor cost that must be captured in your bid. For projects in high-wage areas like New York, California, and Illinois, prevailing rates may closely match or even trail your existing rates. In lower-wage states, the premium can reach 30-50% above standard rates.
Fringe Benefit Strategy
The fringe benefit component of prevailing wages gives contractors a strategic choice: fund bona fide benefit plans or pay cash equivalents. Establishing health insurance, retirement, and apprenticeship plans that satisfy fringe benefit obligations often costs less than the full cash equivalent, creating a margin advantage. Conversely, contractors without established benefit plans pay the full fringe amount as cash, increasing labor costs.
Overtime Planning
Davis-Bacon overtime provisions require 1.5x the base rate for hours exceeding 40 per week. Fringe benefits, however, remain at the straight-time rate for overtime hours. Accurate schedule planning that minimizes overtime reduces the premium cost. Projects with compressed timelines requiring extensive overtime should account for this in the bid price, as the cost impact is substantial when applied across multiple trade classifications.
Competitive Positioning
On Davis-Bacon projects, all bidders face the same minimum labor cost floor. This levels the playing field by preventing competitors from undercutting through lower wages. Competition shifts toward productivity, project management efficiency, material costs, and overhead rates. Contractors with superior productivity metrics, better equipment, and streamlined operations gain competitive advantages that are not available when competing solely on wage rates.
Understanding these dynamics positions contractors to win more construction bids on federal work by competing on factors they control rather than trying to undercut labor costs that are fixed by law.
Finding Davis-Bacon Projects to Bid
Federal construction projects subject to Davis-Bacon are posted across multiple platforms. Systematic opportunity identification ensures you capture relevant projects matching your trade specialties and geographic preferences.
Primary Sources
- SAM.gov Contract Opportunities: All federal construction solicitations above the micro-purchase threshold. Filter by NAICS code, set-aside type, and location.
- Agency portals: USACE, GSA, VA, and DOD maintain supplementary solicitation systems for their specific construction programs.
- State DOT portals: FHWA-funded highway projects are solicited through state transportation departments using Davis-Bacon wages.
- Bid aggregation platforms: Services that consolidate opportunities from hundreds of government sources into searchable databases with automated alerts.
How ConstructionBids.ai Helps
ConstructionBids.ai aggregates federal, state, and local construction bid opportunities from over 2,500 government agencies. The platform's AI matching filters opportunities by trade, location, and project type -- including flagging projects with Davis-Bacon and state prevailing wage requirements so you know the compliance obligations before you invest time in bid preparation.
Instead of manually searching SAM.gov, individual state DOTs, and dozens of local government portals, contractors receive matched opportunities with key compliance requirements pre-identified. This saves estimating teams 15-20 hours per week on opportunity research and ensures no relevant Davis-Bacon project goes unnoticed.
Stop Missing Federal Construction Opportunities
ConstructionBids.ai delivers Davis-Bacon projects matched to your trades and locations. AI-powered bid matching identifies relevant opportunities across 2,500+ government agencies so your team focuses on estimating, not searching.
Start Your Free 7-Day TrialCommon Davis-Bacon Compliance Mistakes
Experienced federal contractors still encounter compliance issues. Recognizing the most common mistakes helps you build processes that prevent them.
Worker Misclassification
Assigning workers to lower-paid classifications than the work they actually perform is the most frequent violation. A worker performing electrician work must be classified and paid as an electrician, regardless of their job title, experience level, or the rate you normally pay them. DOL investigators compare actual work performed (through site observations and worker interviews) against reported classifications.
Incomplete Subcontractor Oversight
Prime contractors who collect subcontractor certified payrolls without reviewing them discover problems only when DOL investigates. Meaningful review catches discrepancies before they compound across multiple pay periods. Require subcontractors to submit payrolls within 7 days and flag any missing or inconsistent data immediately.
Failing to Post the Wage Determination
The wage determination and the Davis-Bacon poster (WH-1321) must be displayed at the job site where workers can read them. This requirement is not optional, and failure to post is itself a violation that signals broader compliance weaknesses to investigators.
Incorrect Overtime Calculations
Computing overtime using the total prevailing wage (base rate plus fringe) rather than the correct method (1.5x base rate plus straight-time fringe) either overpays or underpays workers. The correct calculation: overtime rate = (base rate x 1.5) + fringe benefit rate.
Ignoring Conformance Requirements
Starting work with a classification not listed in the wage determination without submitting a conformance request creates an immediate violation. The conformance process exists specifically for this situation -- use it proactively before the work begins.
Apprenticeship and Davis-Bacon
Registered apprentices provide a legitimate method to manage labor costs on prevailing wage projects while developing skilled workers. Davis-Bacon allows payment of apprentice rates -- typically a percentage of the journeyman rate based on the apprentice's program level -- for workers enrolled in approved apprenticeship programs.
Requirements for Apprentice Rates
- The apprentice must be individually registered in an apprenticeship program approved by the U.S. Department of Labor's Office of Apprenticeship or a recognized State Apprenticeship Agency
- The apprentice-to-journeyman ratio on the project must not exceed the ratio established in the apprenticeship program standards
- The apprentice must perform work under the supervision of a journeyman
- Apprentice wage rates must be specified in the approved program standards
Trainee Provisions
The 2024 Final Rule tightened rules around trainee classifications. Workers classified as trainees must be enrolled in programs approved by DOL. Contractors cannot unilaterally designate workers as trainees to pay below-prevailing wages. Unapproved trainee classifications constitute willful violations.
Resources for Davis-Bacon Compliance
Contractors have access to multiple government resources for Davis-Bacon questions and compliance support:
- SAM.gov Wage Determinations: Current wage determination database searchable by location and construction type
- DOL Wage and Hour Division: Davis-Bacon enforcement authority, complaint filing, and compliance guidance
- WH-347 Form: Official certified payroll form and instructions
- DOL District Offices: Local compliance assistance and pre-construction conferences
- ConstructionBids.ai Intelligence Dashboard: Federal bid tracking with prevailing wage project identification
Find Davis-Bacon Federal Projects Matched to Your Trades
ConstructionBids.ai monitors 2,500+ government agencies and delivers federal construction opportunities with Davis-Bacon requirements pre-identified. AI matching ensures you see every relevant project in your trades and locations -- and nothing you do not need.
Start Your Free 7-Day TrialFrequently Asked Questions
What are Davis-Bacon prevailing wage rates?
Davis-Bacon prevailing wage rates are the minimum hourly wages and fringe benefits contractors must pay workers on federal construction projects exceeding $2,000. Rates are set by the Department of Labor for each county and trade classification based on wages prevailing in the local area.
How do I look up Davis-Bacon wage rates for my area?
Access current Davis-Bacon wage determinations on SAM.gov at sam.gov/content/wage-determinations. Search by state, county, and construction type (building, heavy, highway, or residential). Each wage determination lists minimum hourly base rates and fringe benefit amounts for every trade classification.
Who must comply with Davis-Bacon prevailing wage requirements?
All contractors and subcontractors working on federal construction contracts exceeding $2,000 must comply. This extends to federally assisted projects through 70+ Related Acts including FHWA highway projects, HUD housing, EPA water infrastructure, and IIJA-funded construction.
What is certified payroll under Davis-Bacon?
Certified payroll is a weekly report (WH-347 form) that contractors submit documenting each worker's name, classification, hours worked, hourly rate, fringe benefits, and gross pay. The contractor certifies under penalty of perjury that the information is correct and all workers received prevailing wages.
What are the penalties for Davis-Bacon violations?
Penalties include back wages plus liquidated damages of $29 per day per affected worker, contract termination, withholding of contract payments, debarment from federal contracting for 3 years, and criminal prosecution with fines up to $1,000 and 6 months imprisonment for willful violations.
Are fringe benefits required under Davis-Bacon?
Yes. Davis-Bacon wage determinations specify both a base hourly rate and a fringe benefit amount for each classification. Contractors must pay the fringe benefit portion as bona fide benefits (health insurance, pension, vacation) or as cash in lieu of benefits added to the hourly rate.
What is the difference between Davis-Bacon and state prevailing wage laws?
Davis-Bacon applies to federal contracts over $2,000 while state prevailing wage laws (Little Davis-Bacon Acts) apply to state-funded projects. Thresholds vary by state from $0 to $500,000. When both apply, contractors must pay the higher of the two wage rates for each classification.
How often are Davis-Bacon wage rates updated?
The Department of Labor updates wage determinations on a rolling basis. General wage determinations are published on SAM.gov and updated periodically as DOL completes new wage surveys. Project-specific wage determinations are locked in at contract award but may receive modifications during performance.
Does Davis-Bacon apply to subcontractors?
Yes. Every subcontractor at any tier on a Davis-Bacon covered project must pay prevailing wages for their workers' classifications. The prime contractor is responsible for ensuring all subcontractors comply and must collect certified payroll reports from every subcontractor.
What projects are exempt from Davis-Bacon?
Exemptions include federal contracts under $2,000, projects with no federal funding or assistance, maintenance and repair work (as opposed to construction), and projects on tribal lands in some circumstances. The $2,000 threshold applies to the total contract value, not individual task orders.
How do I classify workers under Davis-Bacon?
Classify workers based on the actual work they perform, not their job title. Each wage determination lists specific classifications (electrician, plumber, carpenter, laborer, etc.) with corresponding rates. Workers performing multiple classifications in a week must be paid the highest applicable rate or tracked by hours in each classification.
What is the 2024 Davis-Bacon Final Rule?
The 2024 Final Rule updated Davis-Bacon regulations for the first time in 40 years. Key changes include restoring the 3-step wage determination process, expanding the definition of prevailing wage, strengthening anti-retaliation protections for workers, and updating helper and apprentice classification rules.