At a Glance
Quick Answer
Tennessee has an active prevailing wage law (Tennessee Prevailing Wage Act (TCA 12-4-401 to 12-4-415)). Administered by Tennessee Department of Labor and Workforce Development, Prevailing Wage Commission. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Tennessee's Prevailing Wage Act is limited in scope — it applies only to state-funded highway, road, and bridge construction projects. It does not cover building construction or other public works. The Prevailing Wage Commission determines rates annually.
Context
Prevailing Wage & Bidding in Tennessee
Tennessee maintains a state prevailing wage law, but its scope is unusually narrow, and that distinction drives how you should bid here. The Tennessee Prevailing Wage Act (TCA 12-4-401 to 12-4-415), administered by the Department of Labor and Workforce Development through the Prevailing Wage Commission, applies only to state-funded highway, road, and bridge construction. It does not reach general building construction, schools, or other vertical public works. If you are estimating a state transportation project, price labor to the Commission's annually determined rates by classification; if you are bidding a state building, no state prevailing wage obligation attaches.
For covered highway and bridge work, build the correct wage rates plus any required fringe directly into your labor line items before you submit, and plan for certified payroll. Tennessee requires certified payroll on covered projects, so factor the administrative cost of weekly reporting, classification accuracy, and recordkeeping into your overhead. Misclassifying laborers into lower trade rates is the most common and most expensive estimating error; it surfaces in audits and forces back-wage payments that erode margin after award.
Remember that federal Davis-Bacon operates independently. Any project receiving federal highway funds carries Davis-Bacon rates and federal certified-payroll rules regardless of the state Act's narrow scope, and where both apply you must pay the higher rate trade by trade. On a federally aided building project, Davis-Bacon governs even though Tennessee's law would not. Violations of the state Act can lead to debarment from state highway contracts and back-wage liability, so confirm the funding source and applicable rate schedule for every transportation bid before you commit a number.
Details
Coverage Details
State Law Details
- Law
- Tennessee Prevailing Wage Act (TCA 12-4-401 to 12-4-415)
- Agency
- Tennessee Department of Labor and Workforce Development, Prevailing Wage Commission
- Thresholds
- State-funded highway, road, and bridge construction projects (no general building coverage)
- 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 Tennessee. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Coverage limited to state-funded highway, road, and bridge construction only
Does not apply to building construction or other public works
Prevailing Wage Commission determines rates annually through wage surveys
One of the narrowest prevailing wage laws in the nation
Enacted in 1975; scope has remained limited to transportation projects
Enforcement
Penalties
Contractors who violate the Act may face debarment from state highway contracts and be required to pay back wages to affected workers.
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 Tennessee have a prevailing wage law?
Yes. Tennessee has an active state prevailing wage law: Tennessee Prevailing Wage Act (TCA 12-4-401 to 12-4-415). Tennessee's Prevailing Wage Act is limited in scope — it applies only to state-funded highway, road, and bridge construction projects. It does not cover building construction or other public works. The Prevailing Wage Commission determines rates annually.
Does Davis-Bacon apply in Tennessee?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Tennessee, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Tennessee?
Yes. Tennessee 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 Tennessee?
Contractors who violate the Act may face debarment from state highway contracts and be required to pay back wages to affected workers.
Does Tennessee prevailing wage apply to school or building construction?
No. Tennessee's Prevailing Wage Act is limited to state-funded highway, road, and bridge construction. It does not cover building construction, schools, or other vertical public works. Building projects only carry prevailing wage if federal funds trigger Davis-Bacon requirements, so always verify the funding source first.
Who sets Tennessee prevailing wage rates for road projects?
The Prevailing Wage Commission within the Department of Labor and Workforce Development determines rates annually through wage surveys. Rates are published by trade classification for covered highway, road, and bridge work. Pull the current schedule from the bid documents and price each classification precisely to avoid back-wage exposure.
What happens if a Tennessee highway contractor underpays prevailing wage?
Contractors who violate the Act can face debarment from state highway contracts and must pay back wages owed to affected workers. Because certified payroll is required, underpayments surface in audits. On federally aided projects, separate Davis-Bacon penalties may also apply on top of state consequences.