At a Glance
Quick Answer
Alabama does not have a state prevailing wage law. Federal Davis-Bacon Act still applies to federally funded construction projects over $2,000.
Alabama has never enacted a state prevailing wage law. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Context
Prevailing Wage & Bidding in Alabama
Alabama has never enacted a state prevailing wage law, which simplifies labor pricing on the great majority of work bid in the state. For purely private projects and for public projects funded entirely with state, county, or municipal dollars, there is no state-mandated wage floor beyond ordinary minimum-wage and overtime rules. Estimators are free to price labor at competitive market rates, which is one reason Alabama bids on local public work often come in leaner than comparable work in prevailing-wage states. There is no state certified-payroll obligation to budget for either.
The one situation that changes everything is federal funding. Any construction project in Alabama that receives federal money above the $2,000 Davis-Bacon threshold must pay the federal prevailing wage and fringe rates published for the county and trade, and the contractor must submit weekly certified payroll (form WH-347) to the contracting agency. This is common on highway, military, public-housing, and federally assisted infrastructure work. Treat the wage determination attached to the solicitation as binding and build those rates into your labor line items before you submit.
The classic pitfall in Alabama is assuming a job is rate-free because it is in a no-prevailing-wage state, then discovering federal funds attach Davis-Bacon obligations after award. Read the solicitation for any reference to federal assistance, ARPA, FHWA, or HUD funds, and confirm whether a wage determination is incorporated. Underpricing labor on a covered federal job exposes you to back-wage liability, withheld payments, and possible debarment, so verify the funding source before you finalize your number.
Details
Coverage Details
State Status
- Law
- No state prevailing wage law
- Agency
- N/A — No state prevailing wage program
- Certified Payroll
- Not required at state level
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Alabama. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
No state prevailing wage law has ever been enacted in Alabama
Federal Davis-Bacon Act applies to federally funded projects over $2,000
Contractors on federal projects must submit certified payroll to the contracting agency
Alabama is one of the states that has never had a state-level prevailing wage statute
Enforcement
Penalties
Federal Davis-Bacon penalties apply to federally funded projects only.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Alabama have a prevailing wage law?
No. Alabama does not have a state prevailing wage law. Alabama has never enacted a state prevailing wage law. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Does Davis-Bacon apply in Alabama?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Alabama, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Alabama?
Alabama does not have a state-level certified payroll requirement. However, certified payroll (WH-347) is still required on any federal Davis-Bacon project in the state.
What are the penalties for prevailing wage violations in Alabama?
Federal Davis-Bacon penalties apply to federally funded projects only.
Does Alabama have a state prevailing wage law?
No. Alabama has never enacted a state prevailing wage law. Locally and state-funded public projects carry no state-mandated wage floor, so contractors may price labor at market rates. Only federally funded construction triggers prevailing wage obligations, through the federal Davis-Bacon Act.
When do Davis-Bacon wages apply to a project in Alabama?
Federal Davis-Bacon rates apply whenever an Alabama construction project receives federal funding and exceeds $2,000. The applicable wage determination is incorporated into the solicitation and binds your labor pricing. Common triggers include FHWA highway aid, military construction, and HUD-assisted housing.
Is certified payroll required on Alabama public projects?
Not for state or locally funded work, since Alabama has no state program. Certified payroll is required only on federally funded Davis-Bacon projects, where contractors submit weekly WH-347 records to the contracting agency. Budget that administrative effort whenever federal money attaches to a job.