At a Glance
Quick Answer
Texas has an active prevailing wage law (Texas Prevailing Wage Law (Government Code Chapter 2258)). Administered by Texas Workforce Commission. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Texas requires prevailing wages on all public works construction projects regardless of dollar value. The prevailing wage is determined by the contracting public body based on local surveys or federal Davis-Bacon rates. Overtime at 1.5x applies for hours over 40/week or 8/day.
Context
Prevailing Wage & Bidding in Texas
Texas requires prevailing wages on all public works construction regardless of contract value, so there is no dollar threshold to shelter behind when bidding. Under Government Code Chapter 2258, the contracting public body, not a single statewide schedule, sets the prevailing rate for the locality, either through its own local wage survey or by adopting federal Davis-Bacon rates. That means the rates can vary from one awarding authority to the next, and your first estimating step on any Texas public job is to pull the specific rate determination included in the bid documents and price every trade classification to it.
Certified payroll is required, so account for the weekly reporting burden and disciplined classification in your overhead. Texas also imposes overtime at 1.5 times the rate for hours worked over 40 in a week or over 8 in a day, which is a meaningful cost driver on accelerated or shift-based schedules; if your sequence pushes crews past eight hours daily, model that premium into your labor budget rather than discovering it during execution. Underbidding labor because you assumed straight time is a frequent and avoidable margin killer here.
Watch the enforcement exposure. Workers may file complaints directly with the contracting public body or the Texas Workforce Commission, and unpaid prevailing wages trigger back-wage liability plus penalties, with intentional violations carrying potential criminal consequences. Because the public body itself administers the rate and fields complaints, errors are caught close to the source. Confirm whether the awarding authority is using a local survey or Davis-Bacon rates, lock those numbers into your bid, and keep clean records from day one to protect both your payment and your eligibility for future Texas public work.
Details
Coverage Details
State Law Details
- Law
- Texas Prevailing Wage Law (Government Code Chapter 2258)
- Agency
- Texas Workforce Commission
- Thresholds
- No minimum dollar threshold — applies to all public works projects
- 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 Texas. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
No minimum dollar threshold — all public works projects covered
Public bodies determine prevailing rates via local surveys or Davis-Bacon rates
Overtime at 1.5x for hours over 40/week or 8/day
Workers can file complaints directly with the contracting public body
Texas Workforce Commission provides guidance and resources
Enforcement
Penalties
Contractors face payment of back wages plus penalties. Workers may file complaints with the public body or TWC. Intentional violations may result in criminal penalties.
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 Texas have a prevailing wage law?
Yes. Texas has an active state prevailing wage law: Texas Prevailing Wage Law (Government Code Chapter 2258). Texas requires prevailing wages on all public works construction projects regardless of dollar value. The prevailing wage is determined by the contracting public body based on local surveys or federal Davis-Bacon rates. Overtime at 1.5x applies for hours over 40/week or 8/day.
Does Davis-Bacon apply in Texas?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Texas, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Texas?
Yes. Texas 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 Texas?
Contractors face payment of back wages plus penalties. Workers may file complaints with the public body or TWC. Intentional violations may result in criminal penalties.
Is there a minimum project size for Texas prevailing wage?
No. Texas Government Code Chapter 2258 applies prevailing wage to all public works construction regardless of dollar value. Even small public jobs require prevailing wage payment and certified payroll, so contractors cannot rely on a low contract amount to avoid coverage when bidding state or local work.
How are Texas prevailing wage rates determined?
The contracting public body sets the rate for its locality, either by conducting a local wage survey or by adopting federal Davis-Bacon rates. Rates therefore vary by awarding authority. Always pull the specific determination attached to the bid documents rather than assuming a statewide figure exists.
Does Texas require overtime pay on public works projects?
Yes. Texas requires overtime at 1.5 times the worker's rate for hours over 40 in a week or over 8 in a day. On accelerated or shift-based schedules this premium can significantly raise labor costs, so estimators should model daily and weekly overtime exposure before finalizing a bid.