At a Glance
Quick Answer
Pennsylvania has an active prevailing wage law (Pennsylvania Prevailing Wage Act (Act 442 of 1961, 43 P.S. Section 165-1 et seq.)). Administered by Pennsylvania Department of Labor and Industry. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Pennsylvania's Prevailing Wage Act applies to heavy highway and building construction projects that use public funds over $25,000. Projects may not be divided into components to fall below the threshold. The Department of Labor and Industry determines prevailing wage rates.
Context
Prevailing Wage & Bidding in Pennsylvania
Pennsylvania's Prevailing Wage Act (Act 442 of 1961) is one of the oldest in the country and is administered by the Department of Labor and Industry. It applies to heavy/highway and building construction using public funds over $25,000, a relatively low threshold that captures most public work. The law expressly prohibits dividing a project into smaller components to slip below the threshold, so do not try to estimate around it. For every covered Pennsylvania bid, you must price labor to the department's prevailing wage determination for the project's locality and trade classifications, including the fringe component.
Certified payroll is required, so factor weekly reporting for your own forces and all subcontractors into your overhead. Because rates and classifications are set by the department, the estimating discipline is to pull the determination tied to the specific project, map each scope item to the correct craft, and avoid assuming a lower-paid classification covers higher-skilled work. On jobs that also carry federal funding, Davis-Bacon applies alongside the state act, and you should pay the higher applicable rate per classification.
Enforcement distinguishes between unintentional and intentional violations. An unintentional shortfall typically gives you a chance to make workers whole by paying back wages. Intentional violations are far more serious: three-year debarment from public contracts and referral to the Attorney General for liquidated damages. Losing three years of public bidding eligibility is catastrophic for a public-works contractor, so treat classification and payroll accuracy as core to your bid, not an afterthought. Confirm the current determination before submitting and align every sub to it.
Details
Coverage Details
State Law Details
- Law
- Pennsylvania Prevailing Wage Act (Act 442 of 1961, 43 P.S. Section 165-1 et seq.)
- Agency
- Pennsylvania Department of Labor and Industry
- Thresholds
- Public construction projects using public funds over $25,000
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Pennsylvania. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Threshold is $25,000 for projects using public funds
Projects cannot be split to avoid the threshold
One of the oldest prevailing wage laws in the country (enacted 1961)
Intentional violations result in 3-year debarment and potential AG action
Has been a frequent target of repeal efforts that have not succeeded
Enforcement
Penalties
Unintentional violations: opportunity to pay back wages. Intentional violations: debarment from public contracts for 3 years and referral to Attorney General for liquidated damages.
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 Pennsylvania have a prevailing wage law?
Yes. Pennsylvania has an active state prevailing wage law: Pennsylvania Prevailing Wage Act (Act 442 of 1961, 43 P.S. Section 165-1 et seq.). Pennsylvania's Prevailing Wage Act applies to heavy highway and building construction projects that use public funds over $25,000. Projects may not be divided into components to fall below the threshold. The Department of Labor and Industry determines prevailing wage rates.
Does Davis-Bacon apply in Pennsylvania?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Pennsylvania, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Pennsylvania?
Yes. Pennsylvania requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Pennsylvania?
Unintentional violations: opportunity to pay back wages. Intentional violations: debarment from public contracts for 3 years and referral to Attorney General for liquidated damages.
What is the prevailing wage threshold in Pennsylvania?
Pennsylvania's Prevailing Wage Act applies to public construction using public funds over $25,000, covering both heavy/highway and building work. Importantly, a project cannot be split into smaller components to fall below the threshold, so plan to bid covered work at the department's published rates including fringes.
Can I divide a Pennsylvania project to avoid prevailing wage?
No. The Prevailing Wage Act expressly prohibits dividing a project into components to fall below the $25,000 threshold. Artificial splitting is treated as a violation, so estimate the project as a whole and apply the department's wage determination to the full scope of covered work.
What is the penalty for intentional prevailing wage violations in Pennsylvania?
Intentional violations carry debarment from public contracts for three years plus referral to the Attorney General for liquidated damages. Unintentional shortfalls usually allow you to pay back wages and cure the issue. Either way, accurate classification and certified payroll protect your eligibility to keep bidding public work.