AI Summary
- 30 states plus DC maintain active prevailing wage laws for public construction projects.
- Federal Davis-Bacon Act covers all federally funded construction projects in every state, regardless of state law.
- Michigan restored its prevailing wage law in 2024 after a 2018 repeal, the first state to reinstate a repealed law.
- Project thresholds range from $0 (all public projects) in some states to $250,000+ in others.
Key Takeaways
- Check BOTH state and federal requirements. A project may be subject to one or both.
- Certified payroll (WH-347) is required on all Davis-Bacon projects and most state prevailing wage projects.
- Penalties for non-compliance include back wages, fines, debarment, and criminal prosecution.
- Several states repealed their laws in 2015-2017, but federal Davis-Bacon still applies to federal projects in those states.
How Prevailing Wage Works
Federal Davis-Bacon
Applies to all federally funded construction projects over $2,000 in every state. DOL determines prevailing rates by area.
State Laws
30 states have their own prevailing wage requirements for state/locally funded public works, often with different thresholds and rates.
Compliance
Contractors must pay the posted rate for each trade classification, submit certified payroll weekly, and maintain records for 3+ years.
State Directory
51 states1–12 of 51
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Frequently Asked Questions
Prevailing wage is the minimum hourly wage, including benefits and overtime, that must be paid to workers on public works construction projects. At the federal level, the Davis-Bacon Act requires prevailing wages on federally funded projects over $2,000. Many states have their own prevailing wage laws that apply to state and locally funded projects.
The Davis-Bacon Act (1931) requires contractors on federally funded or federally assisted construction contracts over $2,000 to pay workers the locally prevailing wages and fringe benefits. The Department of Labor determines these rates through wage surveys. All 50 states are covered by Davis-Bacon for federal projects, regardless of state law.
Currently, 30 states plus DC have active state-level prevailing wage laws. The remaining 21 states have either never enacted one or have repealed their law. States without their own law are still subject to federal Davis-Bacon requirements on federally funded projects.
Certified payroll is a weekly payroll record that contractors and subcontractors must submit on Davis-Bacon and state prevailing wage projects. It documents each worker's name, classification, hours worked, wages paid, and a statement of compliance signed under penalty of perjury. The standard federal form is WH-347.
Penalties vary by state and at the federal level. Davis-Bacon penalties include back wage payments, contract termination, debarment from future federal contracts for up to 3 years, and potential criminal prosecution. State penalties typically include back wages, interest, civil penalties ($1,000-$50,000+ per violation), and potential license revocation.
Generally no. Prevailing wage laws apply to publicly funded construction projects (government buildings, roads, schools, etc.). Private construction projects are not typically subject to prevailing wage requirements unless they receive public funding or tax incentives with prevailing wage conditions attached.
At the federal level, the DOL conducts wage surveys of contractors in specific geographic areas to determine the wage most commonly paid for each trade classification. Many state agencies use a similar survey process, while others adopt Davis-Bacon rates or use collective bargaining agreement rates as the prevailing rate.
Michigan restored its prevailing wage law in 2024 (Act 10 of 2023, effective February 2024) after it was repealed by ballot proposal in 2018. Virginia enacted a new prevailing wage law in 2020 (effective 2021). Several states that repealed their laws in the 2015-2017 period (Indiana, Kentucky, West Virginia, Wisconsin, Iowa) have not reinstated them.