At a Glance
Quick Answer
Iowa does not have a state prevailing wage law. Federal Davis-Bacon Act still applies to federally funded construction projects over $2,000.
Iowa repealed its state prevailing wage law in 2017. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Context
Prevailing Wage & Bidding in Iowa
Iowa repealed its state prevailing wage law in 2017, joining a wave of Midwest repeals during that period. As a result, contractors bidding state, county, school, and municipal work in Iowa face no state-mandated wage schedule. You set labor rates based on your own market and crew costs, which gives you pricing flexibility but also makes disciplined, accurate labor estimating entirely your responsibility rather than something dictated by a published rate book.
The enduring exception is federal funding. The federal Davis-Bacon Act continues to apply to any construction project receiving federal funds and exceeding $2,000. On those jobs you must pay the U.S. Department of Labor prevailing wage determination for the project's county and trade classifications and submit weekly certified payroll to the contracting agency. Federal-aid road work, federally backed housing, and projects tied to federal grants all carry these obligations even when an Iowa agency runs the procurement.
When building a bid, verify the funding source before you price labor. If federal money is involved, load the correct Davis-Bacon wage and fringe rates into your estimate and budget the administrative time for certified-payroll reporting. For purely state, local, or private Iowa work, price to your market. The classic pitfall is assuming Iowa's repeal means no wage rules anywhere, then underpricing labor on a federally assisted project and absorbing back-wage exposure and certified-payroll costs that were never in the bid.
Details
Coverage Details
State Status
- Law
- Repealed in 2017
- Agency
- N/A — State law repealed
- 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 Iowa. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
State prevailing wage law repealed in 2017
Federal Davis-Bacon Act still applies to federally funded projects over $2,000
Iowa was among the last of the Midwest states to repeal its prevailing wage law
The repeal was part of a broader wave of prevailing wage repeals in the mid-2010s
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 Iowa have a prevailing wage law?
No. Iowa does not have a state prevailing wage law. Iowa repealed its state prevailing wage law in 2017. Only federally funded construction projects are subject to Davis-Bacon prevailing wage requirements.
Does Davis-Bacon apply in Iowa?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Iowa, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Iowa?
Iowa 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 Iowa?
Federal Davis-Bacon penalties apply to federally funded projects only.
Does Iowa still have a prevailing wage law?
No. Iowa repealed its state prevailing wage law in 2017 as part of a broader wave of Midwest repeals. State, county, and local public projects now have no mandated wage schedule. Only federally funded construction is governed, through the federal Davis-Bacon Act.
How should I price labor on an Iowa public works bid?
On purely state or local Iowa work, price labor at your actual market and crew rates since no prevailing wage schedule applies. If the project receives federal funding over $2,000, you must instead use the applicable Davis-Bacon wage determination for that county and trade.
What happens if I miss federal funding on an Iowa bid?
Bidding a federally assisted Iowa job at open-market rates exposes you to Davis-Bacon back-wage liability and unbudgeted certified-payroll costs after award. This erodes margin and risks enforcement action, so confirm the funding source in the solicitation before finalizing your labor pricing.