Davis-Bacon Wage Rates 2026: Complete Prevailing Wage Guide by State

Davis-Bacon Wage Rates 2026: Complete Prevailing Wage Guide by State

The Davis-Bacon Act governs wages on every federal and federally-assisted construction project exceeding $2,000 in the United States. In 2026, over 1.2 million construction workers on 12,000+ federal projects are protected by its prevailing wage requirements. Contractors who misunderstand or misapply these rates face penalties up to $220,924 per violation, contract termination, and debarment from federal work for up to three years.

This guide covers everything contractors need to know about Davis-Bacon wage rates in 2026: how rates are determined, where to look them up, what changed in recent rule updates, state-by-state prevailing wage requirements, compliance obligations, and how to factor prevailing wages into competitive bids.

The DOL updated wage determinations across 3,100+ counties for 2026, with average increases of 3.4-5.8% depending on trade classification and geographic region. Understanding these rates is essential for accurate estimating on any federal or federally-assisted project.

What the Davis-Bacon Act Requires

The Davis-Bacon Act (40 U.S.C. 3141-3148) requires contractors and subcontractors performing work on federal construction contracts exceeding $2,000 to pay laborers and mechanics the locally prevailing wage rates and fringe benefits as determined by the Department of Labor.

The Act applies to:

• Direct federal contracts for construction, alteration, or repair of public buildings and public works
• Federally-assisted contracts where the federal government provides funding, loans, guarantees, or insurance (including projects under the Infrastructure Investment and Jobs Act, Inflation Reduction Act, and FEMA disaster recovery programs)
• All tiers of subcontractors performing construction work on covered projects

Key requirements include:

• Pay no less than the wage determination rates for each trade classification
• Submit certified payroll reports (Form WH-347) weekly
• Post the applicable wage determination and DOL poster (WH-1321) at the job site
• Maintain payroll records for three years after project completion
• Ensure all subcontractors at every tier comply with the same requirements

The federal threshold is just $2,000 — virtually every federal construction contract is covered. There is no small business exemption, no project type exemption within covered categories, and no ability to contract around the requirement.

For contractors pursuing federal opportunities, understanding Davis-Bacon compliance is non-negotiable. Our guide on federal construction contracts covers the full bid-to-award process.

How Wage Determinations Work in 2026

The DOL determines prevailing wage rates through a structured survey and analysis process that was significantly updated in 2023-2024.

The Three-Step Test

The DOL applies three sequential tests to establish the prevailing rate for each trade classification in each county:

1. Majority Rule (50%+): If more than 50% of workers in a classification are paid the same wage rate, that rate is the prevailing wage
2. 30% Rule: If no majority exists, the rate paid to at least 30% of workers that is also consistent with rates in surrounding counties prevails
3. Weighted Average: If neither test produces a result, the DOL calculates a weighted average of all surveyed rates

This three-step methodology, restored by the 2023 final rule after being abandoned in 1982, produces wage determinations that more closely reflect actual collective bargaining agreement rates in unionized markets.

Four Construction Types

The DOL publishes separate wage determinations for four construction categories:

| Construction Type | Description | Examples | |---|---|---| | Building | Enclosed structures for human use | Offices, schools, hospitals, courthouses | | Heavy | Infrastructure not classified as highway or building | Dams, bridges, water treatment plants, tunnels | | Highway | Roads and related infrastructure | Highways, streets, airport runways, parking lots | | Residential | Housing up to four stories | Apartments (≤4 floors), single-family homes, townhouses |

Each project must use the wage determination matching its construction type and geographic location. Using the wrong determination is a compliance violation.

Wage Determination Components

Every Davis-Bacon wage determination includes two components for each trade classification:

• Base hourly rate: The minimum cash wage that must be paid per hour
• Fringe benefit rate: The minimum employer contribution for health insurance, pension, vacation, training, and other benefits

Contractors can satisfy the fringe obligation through actual benefit plans, cash payments, or any combination that meets the total required rate.

2026 Wage Rate Updates and Key Changes

The DOL issued updated wage determinations for 2026 reflecting significant changes from recent legislative and regulatory activity.

Average Rate Increases by Region

| Region | Average Base Rate Increase | Average Fringe Increase | Combined Impact | |---|---|---|---| | Northeast | 4.2% | 5.1% | 4.5% | | Southeast | 3.4% | 4.3% | 3.7% | | Midwest | 3.8% | 4.8% | 4.1% | | Southwest | 3.6% | 4.5% | 3.9% | | West Coast | 5.8% | 6.2% | 5.9% | | Mountain | 4.1% | 4.7% | 4.3% |

West Coast rates saw the largest increases in 2026 at 5.8% average, driven by tight labor markets in California, Washington, and Oregon. Contractors bidding in these markets must update their labor rate databases before preparing estimates.

Impact of Recent Legislation

Three major pieces of legislation expanded Davis-Bacon coverage significantly:

Infrastructure Investment and Jobs Act (IIJA): $550 billion in new federal infrastructure spending with Davis-Bacon requirements attached to virtually all construction programs including broadband, transportation, water systems, and energy grid projects.

Inflation Reduction Act (IRA): Clean energy tax credits require prevailing wage compliance for projects seeking the full credit value. Solar installations, wind farms, EV charging infrastructure, and energy efficiency retrofits exceeding $1 million must meet Davis-Bacon standards to claim the five-times multiplier on tax credits.

CHIPS and Science Act: Semiconductor manufacturing facility construction requires Davis-Bacon compliance when receiving federal subsidies.

These laws add an estimated 250,000 workers annually to Davis-Bacon coverage, creating new compliance obligations for contractors who previously worked only on non-prevailing-wage projects. For contractors pursuing these opportunities, see our guide on renewable energy construction bids.

How to Look Up Wage Rates on SAM.gov

The System for Award Management (SAM.gov) is the official source for all Davis-Bacon wage determinations. Follow these steps to find the applicable rates for your project:

Step 1: Navigate to SAM.gov Go to sam.gov and select "Wage Determinations" from the top navigation bar, then choose "Search" under the Davis-Bacon Act section.

Step 2: Enter Search Criteria

• State: Select the project state
• County: Select the specific county where work will be performed
• Construction Type: Choose Building, Heavy, Highway, or Residential
• Date: Use the current date to get the most recent determination

Step 3: Review the Wage Determination The results display a wage determination number (e.g., CA20260001) with effective dates, listed classifications, base rates, and fringe rates. Each classification shows the minimum hourly compensation required.

Step 4: Verify Against Bid Documents The contracting agency includes the applicable wage determination in the solicitation. Compare the SAM.gov result with the determination listed in the bid documents. If they differ, contact the contracting officer for clarification before submitting your bid.

Step 5: Check for Modifications Wage determinations are modified periodically. Check for modifications between the time you download rates for estimating and the bid due date. Modifications issued before contract award supersede the original determination. Set up SAM.gov alerts for the specific wage determination number to receive automatic notification of changes.

Bookmark SAM.gov/wage-determinations and check before every bid submission. Using outdated rates in your estimate leads to either underbidding (cutting into your margin) or overbidding (losing the contract to a competitor using current rates).

State-by-State Prevailing Wage Overview

Thirty states plus Washington D.C. enforce their own prevailing wage laws — often called "little Davis-Bacon" acts — that apply to state and locally funded construction projects. These laws operate independently of the federal Davis-Bacon Act, with different thresholds, coverage, and enforcement mechanisms.

State Prevailing Wage Thresholds (Top 15 States by Construction Volume)

| State | Prevailing Wage Law | Threshold | Survey Method | Enforcement Agency | |---|---|---|---|---| | California | Yes | $1,000 (public works) | Modal rate | DIR - Dept of Industrial Relations | | Texas | No | N/A | N/A | N/A | | Florida | No (repealed 1979) | N/A | N/A | N/A | | New York | Yes | $0 (all public work) | Collective bargaining rates | DOL - Bureau of Public Work | | Pennsylvania | Yes | $25,000 | Union/survey hybrid | Dept of Labor & Industry | | Illinois | Yes | $0 (all public work) | Union rates | Dept of Labor | | Ohio | Yes | $250,000 (new); $75,000 (renovation) | DOL survey | Dept of Commerce | | Georgia | No | N/A | N/A | N/A | | Washington | Yes | $0 (all public work) | Survey and CBA | Dept of Labor & Industries | | Michigan | Repealed (2018) | N/A | N/A | N/A | | Massachusetts | Yes | $0 (all public work) | Union rates | Dept of Labor Standards | | New Jersey | Yes | $0 (all public work) | Collective bargaining rates | Dept of Labor & Workforce Dev | | Virginia | No | N/A | N/A | N/A | | Colorado | Yes | $500,000 | DOL survey | Dept of Labor & Employment | | Maryland | Yes | $500,000 | DOL survey | Dept of Labor |

Key observations:

• States with no prevailing wage law (Texas, Florida, Georgia, Virginia) still require Davis-Bacon compliance on federally funded projects
• States like New York, Illinois, Washington, Massachusetts, and New Jersey apply prevailing wages to all public works regardless of dollar value
• California's $1,000 threshold is effectively universal coverage for public projects
• Ohio's thresholds ($250,000 new / $75,000 renovation) create a middle ground where smaller projects are exempt
• Colorado and Maryland set higher thresholds at $500,000, exempting more projects

For state-specific bidding guidance, see our prevailing wage by state guide and California prevailing wage guide.

Sample Wage Rates by Trade and Metro Area (2026)

The following table shows representative Davis-Bacon Building construction wage rates for common trade classifications across five major metropolitan areas. Rates include both base hourly wage and fringe benefits.

| Trade Classification | New York City | Los Angeles | Chicago | Houston | Atlanta | |---|---|---|---|---|---| | Electrician | $78.45 + $42.30 fringe | $62.15 + $31.80 fringe | $58.90 + $35.20 fringe | $34.50 + $14.75 fringe | $32.80 + $12.60 fringe | | Plumber/Pipefitter | $74.20 + $40.15 fringe | $59.80 + $29.45 fringe | $56.40 + $33.80 fringe | $32.90 + $13.80 fringe | $31.20 + $11.90 fringe | | Carpenter | $61.50 + $38.90 fringe | $52.40 + $27.60 fringe | $49.80 + $31.50 fringe | $26.40 + $10.20 fringe | $24.80 + $9.75 fringe | | Laborer (General) | $42.30 + $32.80 fringe | $38.50 + $22.40 fringe | $36.20 + $25.60 fringe | $18.50 + $7.40 fringe | $17.20 + $6.80 fringe | | Ironworker (Structural) | $68.90 + $41.20 fringe | $55.60 + $30.10 fringe | $52.40 + $34.50 fringe | $30.80 + $13.20 fringe | $29.40 + $11.50 fringe | | Sheet Metal Worker | $65.20 + $39.80 fringe | $53.80 + $28.90 fringe | $50.60 + $33.20 fringe | $29.60 + $12.80 fringe | $28.20 + $10.90 fringe | | Operating Engineer | $58.40 + $36.50 fringe | $50.20 + $26.80 fringe | $55.80 + $32.40 fringe | $30.20 + $12.40 fringe | $27.60 + $10.20 fringe | | Painter | $52.80 + $34.20 fringe | $44.60 + $24.50 fringe | $42.80 + $28.60 fringe | $22.40 + $9.20 fringe | $21.60 + $8.40 fringe |

Total compensation for an electrician in New York City reaches $120.75/hour compared to $49.25/hour in Houston — a 145% difference for the same classification. This regional variation makes accurate wage determination lookups essential for competitive bidding.

Important: These are representative rates for illustration. Always verify actual rates on SAM.gov for the specific county and construction type of your project. Rates change with each wage determination update.

Compliance Requirements: What Contractors Must Do

Davis-Bacon compliance involves specific, documented obligations throughout the project lifecycle.

Before Construction Begins

• Obtain the wage determination listed in the contract and verify it on SAM.gov
• Classify all workers according to the trade classifications in the wage determination
• Post required notices at the job site including the wage determination and WH-1321 poster
• Flow down requirements to all subcontractors with contract clauses requiring compliance
• Register apprentices if using apprentice rates, confirming DOL or state agency registration

During Construction

• Pay prevailing rates for all hours worked, including overtime at 1.5x the base rate (fringe benefits are not subject to overtime premium)
• Submit certified payroll (Form WH-347) weekly to the contracting agency
• Track worker classifications to ensure workers perform only duties within their listed classification
• Monitor subcontractors to verify their certified payroll submissions and wage payments
• Update for modifications by checking wage determination modifications and adjusting rates for new hires

After Construction

• Maintain records for a minimum of three years after project completion
• Respond to audits from the DOL Wage and Hour Division or contracting agency
• Resolve complaints promptly if workers file wage claims

For contractors managing complex compliance across multiple projects, our certified payroll requirements guide provides detailed instructions.

Certified Payroll Obligations

Certified payroll reporting is the primary compliance mechanism for Davis-Bacon enforcement. Every contractor and subcontractor performing work on a covered project must submit weekly certified payroll reports.

Form WH-347 Requirements

Each report must include:

• Contractor name, address, and contract number
• Payroll number and week ending date
• Employee name, last four digits of SSN, and work classification
• Daily hours worked (straight time and overtime separately)
• Total hours, base rate, fringe rate, and gross amount earned
• Deductions (taxes, benefits, other)
• Net wages paid and check number
• Statement of Compliance signed by a company officer or authorized representative

Common Certified Payroll Errors

| Error | Consequence | Prevention | |---|---|---| | Wrong classification for work performed | Back wages owed + penalties | Pre-assign classifications; audit daily | | Missing fringe benefit documentation | Presumed non-payment; back wages owed | Maintain benefit plan records on file | | Late submission | Contract compliance violation | Automate weekly submission reminders | | Split classifications not documented | Underpayment assumed | Track split-class hours daily on timesheets | | Apprentice ratio exceeded | Full journeyworker rate required retroactively | Monitor ratios daily per trade |

The DOL completed 1,847 Davis-Bacon enforcement actions in fiscal year 2025, recovering $29.8 million in back wages. The most common violations involve worker misclassification (38%), fringe benefit underpayment (27%), and incomplete certified payroll records (19%).

Penalties for Davis-Bacon Violations

The consequences of non-compliance escalated significantly under the 2023 final rule, with increased penalty amounts phased in through 2026.

Civil Penalties

• Per violation: Up to $220,924 for each violation (adjusted annually for inflation)
• Back wages: Full payment of underpaid wages to affected workers plus interest
• Withholding: Contracting agency withholds sufficient funds from progress payments to cover unpaid wages
• Cross-withholding: Funds from other federal contracts held by the same contractor can be withheld

Administrative Sanctions

• Debarment: Contractors found in willful or aggravated violation face debarment from all federal contracting for up to three years
• Contract termination: The contracting agency can terminate the contract and hold the contractor liable for excess reprocurement costs
• Subcontractor liability: Prime contractors are jointly and severally liable for subcontractor violations

Criminal Penalties

Under the Copeland Anti-Kickback Act (18 U.S.C. 874):

• Fine: Up to $5,000
• Imprisonment: Up to 5 years
• Applies to: Kickback schemes, falsified certified payroll records, and inducing workers to return wages

Exemptions and Thresholds

While Davis-Bacon coverage is broad, specific exemptions exist:

Federal Exemptions

• Projects under $2,000: The federal threshold is $2,000 total contract value (not per worker or per day)
• Material suppliers: Companies that only deliver materials without installing them
• Professional services: Architects, engineers, and surveyors performing non-manual labor
• Utility relocations: Work performed by utility company employees under separate utility agreements
• Government employees: State and local government workers on their own projects (though their contractors are covered)

No Exemption Exists For

• Small businesses (no size-based exemption)
• Emergency construction (Davis-Bacon applies to disaster recovery work)
• Specific construction types within covered categories
• Non-union contractors (the Act applies regardless of union status)
• Short-duration projects (even one day of work on a covered project requires compliance)

Apprenticeship Ratios and Requirements

Using registered apprentices on Davis-Bacon projects offers cost advantages but requires strict adherence to program rules.

Apprentice Eligibility Requirements

• Individual registration in a DOL-approved or state-approved apprenticeship program
• Written apprenticeship agreement specifying wage progression, training curriculum, and ratio
• Compliance with the apprentice-to-journeyworker ratio specified in the program standards

Typical Apprentice-to-Journeyworker Ratios by Trade

| Trade | Common Ratio | Apprentice Term | Starting Wage (% of Journeyworker) | |---|---|---|---| | Electrician | 1:1 to 1:3 | 4-5 years | 40-50% | | Plumber | 1:1 to 1:2 | 4-5 years | 40-50% | | Carpenter | 1:1 to 1:3 | 3-4 years | 50-60% | | Ironworker | 1:3 to 1:5 | 3-4 years | 55-65% | | Laborer | 1:1 | 2-3 years | 60-70% | | Operating Engineer | 1:2 to 1:4 | 3-4 years | 55-65% |

Critical rule: If an apprentice works in a classification outside their registered program, or if the number of apprentices exceeds the permitted ratio, the contractor must pay the full journeyworker prevailing wage rate for all hours worked. This creates retroactive liability that exceeds the intended savings.

How to Factor Prevailing Wages Into Your Bids

Accurate prevailing wage estimating separates winning bids from losing bids and profitable projects from money-losing ones. Follow this systematic process:

Step 1: Identify All Applicable Wage Determinations

Determine the project's construction type (building, heavy, highway, or residential) and verify the county where work will be performed. Multi-county projects may require rates from multiple wage determinations. Check whether state prevailing wage laws also apply and use the higher rate when both federal and state requirements cover the same classification.

Step 2: Map Your Workforce to Classifications

List every trade classification needed for the project scope. Match your workers to Davis-Bacon classifications, which may differ from your internal job titles. A worker performing duties of multiple classifications must be paid the highest applicable rate for all hours, unless you document split-classification time daily.

Step 3: Calculate Loaded Labor Costs

For each classification, calculate the full loaded cost:

| Cost Component | Example: Electrician (Chicago) | |---|---| | Base hourly rate | $58.90 | | Required fringe benefits | $35.20 | | Subtotal (Davis-Bacon rate) | $94.10 | | FICA (7.65% on base) | $4.51 | | FUTA (0.6% on base) | $0.35 | | SUTA (varies, ~3.2% on base) | $1.88 | | Workers' comp (varies, ~8.5% on base) | $5.01 | | General liability (varies, ~4.2% on base) | $2.47 | | Total loaded cost | $108.32/hour |

Step 4: Account for the Prevailing Wage Premium

Compare prevailing wage loaded costs against your standard rates to identify the premium. For many contractors, the Davis-Bacon premium adds 10-30% over non-prevailing-wage project costs depending on trade mix and geography.

Step 5: Add Compliance Administration Costs

Factor in the cost of certified payroll preparation, compliance monitoring, record-keeping, and potential audit response. Budget $2,000-$5,000 per project for compliance administration, scaled to project size and duration.

Underbidding prevailing wage projects is the fastest path to project losses. Contractors who estimate using standard wage rates instead of prevailing wage rates on Davis-Bacon projects typically experience 15-25% cost overruns on labor.

For tools that automate prevailing wage calculations in your bids, explore ConstructionBids.ai's AI-powered estimating features.

Finding Davis-Bacon Projects to Bid On

Federal Project Sources

• SAM.gov: All federal contract opportunities over $25,000 are posted here
• Agency-specific portals: USACE (Army Corps), GSA, VA, DOD each maintain project listings
• FBO.gov (legacy): Redirects to SAM.gov but some agencies still reference it

State and Local Federally-Assisted Projects

• State DOT websites: Highway and transportation projects funded by FHWA
• State procurement portals: Building and heavy construction with federal grant funding
• Municipal portals: Water, sewer, and infrastructure projects with EPA or HUD funding

Bid Aggregation Platforms

Instead of searching dozens of individual portals, bid management software aggregates Davis-Bacon opportunities into a single dashboard. ConstructionBids.ai tracks over 250,000 active construction bids including comprehensive Davis-Bacon project coverage, with AI-powered filtering that identifies prevailing wage requirements automatically from bid documents.

For more on finding and winning federal work, see our guides on government construction contracts and how to bid on government contracts.

DOL Enforcement: What to Expect

Enforcement Statistics (FY 2025)

| Metric | Value | |---|---| | Total investigations completed | 1,847 | | Back wages recovered | $29.8 million | | Workers receiving back wages | 26,400+ | | Debarments issued | 47 | | Average back wage per investigation | $16,134 | | Average investigation duration | 4.2 months |

Common Investigation Triggers

• Worker complaints: The most common trigger — any worker can file a confidential complaint with the DOL
• Certified payroll review: Contracting agencies flag discrepancies during routine reviews
• Random audits: DOL conducts targeted compliance reviews in geographic areas or industries with high violation rates
• Cross-referencing: DOL cross-references certified payroll data with tax records and benefit plan contributions

Best Practices for Audit Readiness

1. Maintain organized records accessible within 48 hours of a DOL request
2. Conduct internal audits quarterly on active Davis-Bacon projects
3. Use compliance software or checklists to verify each payroll submission
4. Train field supervisors on proper classification documentation
5. Document all fringe benefit plan contributions with third-party receipts

Building a Davis-Bacon Compliance Program

Contractors pursuing federal work consistently need a formalized compliance program that scales across multiple simultaneous projects.

Essential Program Components

• Compliance Officer: Designate a single person responsible for Davis-Bacon compliance across all projects — reviewing wage determinations, auditing certified payroll, and monitoring subcontractors
• Classification Guide: Map your company's job titles to Davis-Bacon classifications and update when wage determinations change
• Payroll System: Configure payroll software for Davis-Bacon tracking with prevailing wage rates, fringe calculations, and WH-347 report generation
• Subcontractor Monitoring: Flow down Davis-Bacon clauses to all subcontracts and review subcontractor certified payroll weekly
• Annual Training: Train estimators, project managers, and payroll staff on current prevailing wage requirements

For contractors building out their compliance infrastructure, our construction bid compliance checklist provides a comprehensive starting framework, and our guide on public works prevailing wage compliance covers implementation details.

The Bottom Line: Davis-Bacon Compliance as Competitive Advantage

Davis-Bacon compliance is not just a legal obligation — it is a competitive differentiator. Contractors with established compliance programs bid more accurately, avoid costly violations, and build reputations that earn repeat awards from federal agencies.

The 2026 landscape amplifies this advantage. Expanded Davis-Bacon coverage under the IIJA, IRA, and CHIPS Act means more projects and more contractors entering the federal market for the first time. Contractors who already understand prevailing wage requirements hold a structural advantage over newcomers still learning the system.

Three actions to take immediately:

1. Audit your current wage rate database against the latest SAM.gov determinations for every active and upcoming project
2. Review your certified payroll process for accuracy, timeliness, and completeness — the DOL is increasing enforcement actions
3. Factor compliance costs into every federal bid including certified payroll administration, training, and monitoring

Find Davis-Bacon construction projects on ConstructionBids.ai — search 250,000+ active bids with AI-powered compliance requirement extraction that identifies prevailing wage obligations before you start estimating.

Related Articles

• Prevailing Wage by State Guide
• Prevailing Wage California Contractors Guide
• Certified Payroll Requirements Guide
• How to Win Federal Construction Contracts
• Government Construction Contracts Guide
• Public Works Prevailing Wage Compliance Guide
• How to Bid on Government Contracts

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Last updated: February 15, 2026. Wage rates shown are representative examples for illustration purposes. Always verify current rates on SAM.gov for the specific county and construction type of your project. This guide does not constitute legal advice — consult a construction labor attorney for project-specific compliance questions.