Prevailing Wage Requirements by State [2026]: Complete Contractor Guide
Complete state-by-state prevailing wage requirements for 2026. Compare Davis-Bacon vs state laws, thresholds, rate sources, certified payroll rules, and compliance requirements for all 50 states.
Prevailing wage laws vary dramatically across the United States. While federal Davis-Bacon requirements apply to federally-funded projects in all 50 states, only 27 states plus DC maintain their own state-level prevailing wage laws that extend to state and local public works projects.
For contractors bidding government construction work, understanding these requirements is non-negotiable. Violations result in back wage liability, penalty assessments up to $200 per worker per day, contract termination, and debarment from future public works. This guide provides a complete state-by-state breakdown for 2026.
2026 Prevailing Wage Landscape
27
States with PW Laws
23
States Without PW Laws
$2,000
Federal Threshold
$1,000+
Lowest State Threshold
What is Prevailing Wage?
Prevailing wage is the minimum hourly compensation (base wage plus fringe benefits) that contractors must pay workers on public construction projects. These rates are determined by government surveys of wages paid to similar workers in a specific geographic area.
Base Hourly Rate
The minimum cash wage per hour. Varies by trade classification and geographic location.
Fringe Benefits
Health insurance, pension, vacation, training contributions. Can be paid to funds or as cash-in-lieu.
Overtime Premium
1.5x base rate after 40 hours/week (federal) or 8 hours/day (California, some others).
Why Prevailing Wage Exists
- • Protects local wage standards from being undercut on taxpayer-funded projects
- • Ensures quality construction by supporting trained, skilled workforce
- • Prevents unfair competitive advantages from low-wage contractors
- • Keeps public spending circulating in local economies at fair rates
Davis-Bacon Act vs State Prevailing Wage Laws
Understanding the difference between federal Davis-Bacon requirements and state prevailing wage laws is critical for accurate bidding and compliance:
| Aspect | Federal Davis-Bacon | State Prevailing Wage |
|---|---|---|
| Coverage | All 50 states + territories | 27 states + DC only |
| Applies To | Federally-funded projects | State/local funded projects |
| Threshold | $2,000+ | Varies: $1,000 to $1M+ |
| Rate Source | SAM.gov wage determinations | State labor departments |
| Enforcement | U.S. Department of Labor | State labor agencies |
| Certified Payroll | Weekly (WH-347 form) | Varies by state |
| Overtime | 1.5x after 40 hrs/week | Varies (some daily OT) |
When Both Laws Apply
Projects receiving both federal and state funding must comply with both laws. Contractors must pay the higher of the two rates for each worker classification. Compare rates trade-by-trade since federal may be higher for some classifications while state is higher for others.
Quick Reference: States with Prevailing Wage Laws
* Previously had laws that were repealed
Important Note
Even in states without prevailing wage laws, federal Davis-Bacon requirements still apply to all federally-funded construction projects exceeding $2,000. This includes federal highways, HUD housing, military construction, VA facilities, and projects using federal grants.
Complete 50-State Prevailing Wage Requirements
The following table provides a comprehensive breakdown of prevailing wage requirements for all 50 states plus DC as of 2026:
| State | Has Law? | Threshold | Rate Source | Notes |
|---|---|---|---|---|
| Alabama | Federal only | SAM.gov | Never had state law | |
| Alaska | $25,000+ | AK Dept of Labor | All public works | |
| Arizona | Federal only | SAM.gov | Repealed 2011 | |
| Arkansas | Federal only | SAM.gov | Repealed 2017 | |
| California | $1,000+ | DIR OPRL | Strictest enforcement | |
| Colorado | Varies by type | CDLE | Reinstated 2022 | |
| Connecticut | $400,000+ | CT DOL | Higher threshold | |
| Delaware | $500,000+ | DE DOL | State projects | |
| DC | $2,000+ | DOES | Strong enforcement | |
| Florida | Federal only | SAM.gov | Repealed 1979 | |
| Georgia | Federal only | SAM.gov | Never had state law | |
| Hawaii | $2,000+ | HI DLIR | All public works | |
| Idaho | Federal only | SAM.gov | Repealed 1985 | |
| Illinois | All projects | IDOL | No threshold | |
| Indiana | Federal only | SAM.gov | Repealed 2015 | |
| Iowa | Federal only | SAM.gov | Never had state law | |
| Kansas | Federal only | SAM.gov | Repealed 1987 | |
| Kentucky | Federal only | SAM.gov | Repealed 2017 | |
| Louisiana | Federal only | SAM.gov | Never had state law | |
| Maine | $50,000+ | ME DOL | State projects | |
| Maryland | $500,000+ | MD DLLR | Higher threshold | |
| Massachusetts | All projects | MA DLS | Strong enforcement | |
| Michigan | Federal only | SAM.gov | Repealed 2018 | |
| Minnesota | $25,000+ | MN DLI | State projects | |
| Mississippi | Federal only | SAM.gov | Never had state law | |
| Missouri | $75,000+ | MO DOL | State projects | |
| Montana | $25,000+ | MT DLI | All public works | |
| Nebraska | $1,000,000+ | NE DOL | High threshold | |
| Nevada | $250,000+ | NV Labor Comm. | State/school projects | |
| New Hampshire | Federal only | SAM.gov | Never had state law | |
| New Jersey | $2,000+ | NJ DOL | All public works | |
| New Mexico | $60,000+ | NM DWS | State projects | |
| New York | All projects | NY DOL | Comprehensive | |
| North Carolina | Federal only | SAM.gov | Never had state law | |
| North Dakota | Federal only | SAM.gov | Never had state law | |
| Ohio | All projects | OH DOC | All public works | |
| Oklahoma | Federal only | SAM.gov | Never had state law | |
| Oregon | $50,000+ | BOLI | Public improvement | |
| Pennsylvania | $25,000+ | PA L&I | All public works | |
| Rhode Island | $1,000+ | RI DLT | Low threshold | |
| South Carolina | Federal only | SAM.gov | Never had state law | |
| South Dakota | Federal only | SAM.gov | Never had state law | |
| Tennessee | $50,000+ | TN DOL | State projects | |
| Texas | All projects | TWC | Weak enforcement | |
| Utah | Federal only | SAM.gov | Never had state law | |
| Vermont | $100,000+ | VT DOL | State buildings | |
| Virginia | Federal only | SAM.gov | Never had state law | |
| Washington | All projects | WA L&I | Strong enforcement | |
| West Virginia | Federal only | SAM.gov | Repealed 2016 | |
| Wisconsin | Federal only | SAM.gov | Repealed 2017 | |
| Wyoming | $25,000+ | WY DOL | All public works |
Note: Requirements and thresholds subject to change. Always verify current state law before bidding. Last updated January 2026.
California Prevailing Wage Requirements
California has the most comprehensive and strictly-enforced prevailing wage regime in the nation. The Department of Industrial Relations (DIR) actively monitors compliance and assesses significant penalties for violations.
Threshold
$1,000
New construction
Penalty
$200/day
Per worker
Registration
$400/year
DIR mandatory
- • Agency: Department of Industrial Relations (DIR)
- • Rate Source: dir.ca.gov/OPRL/DPreWageDetermination.htm
- • Registration: All contractors/subs must register with DIR before bidding
- • Certified Payroll: Weekly electronic submission via eCPR system
- • Apprentices: Required on projects $30,000+ (1:5 ratio minimum)
- • Overtime: Daily overtime (1.5x after 8 hours, 2x after 12 hours)
- • Debarment: Up to 3 years for serious violations
California-Specific Requirements
- • Must be DIR registered BEFORE bidding (not just before starting work)
- • Prime contractors liable for subcontractor violations
- • Certified payroll publicly accessible through DIR website
- • Travel/subsistence required for work 25+ miles from reporting location
New York Prevailing Wage Requirements
New York has comprehensive prevailing wage coverage with no minimum threshold. The state maintains separate rate schedules for building, highway, and heavy/tunnel construction work.
Threshold
$0
No minimum
Record Retention
6 Years
Beyond federal 3 yrs
Debarment
5 Years
Maximum period
- • Agency: NYS Department of Labor
- • Rate Source: labor.ny.gov/workerprotection/publicwork
- • Coverage: Building, highway, heavy/tunnel construction
- • Supplements: Fringe benefits must be paid as cash or to funds
- • Certified Payroll: Weekly to contracting agency
- • Enforcement: Comptroller and AG enforcement authority
Illinois Prevailing Wage Requirements
Illinois requires prevailing wages on all public works projects with no minimum threshold. The state often bases rates on collective bargaining agreements, resulting in some of the highest prevailing wages in the Midwest.
Threshold
$0
No minimum
Penalty
20%
On underpayments
Payroll Submission
Monthly
To public body
- • Agency: Illinois Department of Labor (IDOL)
- • Rate Source: illinois.gov/idol/laws-rules/fls/prevailing-wage-rates
- • Rate Basis: Often based on union collective bargaining agreements
- • Travel/Subsistence: Required in addition to base rates
- • Certified Payroll: Monthly submission to awarding body
- • Debarment: Up to 4 years for willful violations
Other Major States with Prevailing Wage Laws
- • Threshold: All public works (no minimum)
- • Agency: WA Department of Labor & Industries
- • Unique: Intent and Affidavit forms required
- • Apprentices: Mandatory utilization requirements
- • Penalties: Back wages, $5,000 civil penalties
- • Threshold: All public construction (no minimum)
- • Agency: MA Executive Office of Labor
- • Posting: Rate sheets must be displayed on-site
- • Certified Payroll: Weekly submission required
- • Debarment: Up to 5 years for violations
- • Threshold: All public improvements
- • Agency: Ohio Department of Commerce
- • Rates: County-by-county schedules
- • Overtime: 1.5x after 40 hours/week
- • Record Retention: 3 years required
- • Threshold: $25,000+ public works
- • Agency: PA Labor & Industry
- • Coverage: Building, heavy, highway, utility
- • Certified Payroll: Weekly submission
- • Penalties: Back wages plus interest
Federal Davis-Bacon Act Requirements
The Davis-Bacon Act of 1931 applies to all federally-funded construction projects exceeding $2,000 in all 50 states, DC, and US territories. This is the baseline for prevailing wage compliance nationwide.
Covered Projects
- • Federal building construction/renovation
- • Federally-funded highways, bridges
- • Military base construction (DoD)
- • VA hospitals and federal facilities
- • HUD-funded affordable housing
- • Federal transit (FTA) projects
- • Federal water/wastewater infrastructure
- • School construction with federal grants
Key Requirements
- • Threshold: Projects over $2,000
- • Rates: SAM.gov wage determinations
- • Overtime: 1.5x after 40 hours/week
- • Payrolls: Weekly certified WH-347
- • Posting: Wage decision posted on-site
- • Records: 3-year retention required
- • Debarment: Up to 3 years
Davis-Bacon Related Acts
Over 60 federal statutes extend Davis-Bacon prevailing wage requirements to federally-assisted construction:
- • Federal-Aid Highway Act (FHWA)
- • Housing and Community Development Act
- • Federal Water Pollution Control Act
- • Elementary and Secondary Education Act
Certified Payroll Requirements
Both federal and most state prevailing wage laws require contractors to submit certified payroll records documenting wage compliance. Failure to submit timely and accurate payrolls triggers automatic penalties in many jurisdictions.
Frequency: Weekly submission to contracting agency or prime contractor
Required Info: Worker name, address, last 4 SSN, classification, daily hours, rates paid, deductions, net pay
Certification: Signed statement under penalty of perjury attesting to accuracy
Retention: Maintain all payroll records for 3 years after project completion
California eCPR
Mandatory electronic submission via DIR eCPR portal. Weekly deadline with automatic late penalties.
New York
Weekly certified payroll to contracting agency. Subject to public disclosure upon request.
Illinois
Monthly certified payroll to public body. Must include statement of compliance.
Washington
Statement of intent before work, affidavit of wages paid after completion.
Prevailing Wage Compliance Tips
Identify Requirements Before Bidding
Determine if federal, state, or both prevailing wage laws apply. Review bid documents for wage determination.
Build Prevailing Wages Into Estimates
Use correct rates for each classification. Include fringe benefits and overtime premiums in labor costs.
Register Where Required
Complete state registration (e.g., California DIR) before bidding, not just before starting work.
Train Field Supervisors
Ensure foremen understand proper classification of workers based on actual work performed.
Implement Certified Payroll Systems
Use dedicated software to automate weekly submissions and reduce errors.
Monitor Subcontractor Compliance
Collect and review sub payrolls weekly. Prime contractors are often liable for sub violations.
Conduct Internal Audits
Regularly compare payroll records against time sheets and rate schedules.
Maintain Records Beyond Minimums
Keep all payroll documentation for at least 6 years to cover longer state requirements.
Common Prevailing Wage Mistakes to Avoid
1. Worker Misclassification
Paying workers at lower classifications than actual work performed. Classify based on work done, not job titles.
2. Missing Fringe Benefit Payments
Not paying full fringe benefits or cash equivalent. Must pay to approved funds or add to hourly cash wage.
3. Incorrect Overtime Calculations
Computing OT at regular rate instead of prevailing wage. Overtime premium applies to full prevailing rate.
4. Late Certified Payroll Submission
Missing weekly deadlines triggers automatic penalties in states like California. Set calendar reminders.
5. Using Wrong Wage Determination
Applying outdated rates or wrong geographic area. Always use the wage decision specified in contract documents.
6. Subcontractor Non-Compliance
Prime contractors are liable for sub violations in most states. Verify sub registration and review their payrolls.
7. Apprentice Ratio Violations
Using too many apprentices or unregistered apprentices. Comply with state apprenticeship program requirements.
8. Not Posting Wage Rates
Failing to display wage determination on-site. Required by both federal and most state laws.
Frequently Asked Questions
Which states have prevailing wage laws?
27 states plus DC have prevailing wage laws: Alaska, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Washington, and Wyoming.
Does Davis-Bacon apply in states without prevailing wage laws?
Yes. Federal Davis-Bacon Act requirements apply to all federally-funded construction projects exceeding $2,000, regardless of whether the state has its own prevailing wage law. Contractors in all 50 states must comply with Davis-Bacon on federal projects.
What happens when both federal and state prevailing wage apply?
When a project is subject to both federal Davis-Bacon and state prevailing wage laws, contractors must pay the higher of the two rates for each worker classification. Compare rates classification-by-classification since federal may be higher for some trades while state is higher for others.
How do I find current prevailing wage rates?
For federal Davis-Bacon rates, visit sam.gov/content/wage-determinations. For state rates, contact the state labor department or visit their website. In California, use dir.ca.gov/OPRL. Always use the wage decision specified in the bid documents or contract.
What are the penalties for prevailing wage violations?
Penalties vary by jurisdiction but typically include: back wages with interest, civil penalty assessments ($200/day per worker in California), contract withholding or termination, debarment from public works (1-5 years), and potential criminal prosecution for willful falsification.
How often must certified payroll be submitted?
Federal Davis-Bacon requires weekly certified payroll submission. State requirements vary: California requires weekly electronic submission via eCPR, Illinois requires monthly, and other states have their own schedules. Check specific requirements for each project.
Conclusion
Prevailing wage compliance is non-negotiable for contractors pursuing government construction work. With 27 different state regimes plus federal Davis-Bacon requirements, understanding which laws apply—and how to comply with them—is essential for successful bidding and project execution.
The variation in state laws is dramatic: from California's strict $1,000 threshold and mandatory DIR registration to states with no prevailing wage protections beyond federal requirements. Contractors working across multiple jurisdictions must invest in robust payroll systems, maintain detailed records, and stay current on changing regulations.
Build prevailing wage costs into your estimates from day one, verify subcontractor compliance throughout projects, and maintain accurate certified payroll records. The penalties for non-compliance—back wages, debarment, and reputational damage—far exceed the cost of doing it right.
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