At a Glance
Quick Answer
Vermont has an active prevailing wage law (Vermont Capital Construction Act Prevailing Wage Requirements). Administered by Vermont Department of Labor. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Vermont's prevailing wage requirements are tied to the Capital Construction Act (CCA). Projects funded by the CCA costing over $100,000, or projects at least 50% CCA-funded costing over $200,000, must pay prevailing wages. Fringe benefit add-on is 42.5% of base wage.
Context
Prevailing Wage & Bidding in Vermont
Vermont's prevailing wage requirements are tied specifically to the Capital Construction Act (CCA) rather than applying to all public works, so identifying the funding source is the threshold question on every Vermont bid. Administered by the Vermont Department of Labor, the rules cover CCA-funded projects costing over $100,000, and projects that are at least 50% CCA-funded costing over $200,000. If a public project draws its money from another source, the state prevailing wage obligation may not attach, so read the funding structure in the solicitation carefully before pricing labor.
When a project is covered, price to the Department of Labor's annual wage rate schedules, and pay close attention to geography and fringe. Vermont divides the state into three geographic wage areas, so the correct rate depends on where the work is performed; using the wrong area's schedule will distort your bid. Critically, Vermont applies a fringe benefit add-on of 42.5% of the base wage rate, a substantial uplift that must be built into your labor line items. Omitting or underestimating that fringe component is the single largest estimating risk on covered Vermont work and will quietly erase margin if you discover it after award.
Certified payroll is required on covered projects, so budget for weekly reporting, accurate trade classification, and disciplined recordkeeping in your overhead. Noncompliance exposes you to back-wage liability and potential debarment from state contracts. Federal Davis-Bacon also applies independently to any federally funded project over $2,000, and where both regimes reach the same job you must pay the higher applicable rate by trade. Confirm CCA status, the correct geographic wage area, and the 42.5% fringe before you finalize your number.
Details
Coverage Details
State Law Details
- Law
- Vermont Capital Construction Act Prevailing Wage Requirements
- Agency
- Vermont Department of Labor
- Thresholds
- State Capital Construction Act projects over $100,000Projects at least 50% funded by CCA over $200,000
- 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 Vermont. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Tied to Capital Construction Act (CCA) funding — not all public projects covered
Threshold: $100,000 (CCA-funded) or $200,000 (50%+ CCA-funded)
Fringe benefit add-on is 42.5% of base wage rate
State divided into 3 geographic wage areas for rate determination
Vermont Department of Labor publishes annual wage rate schedules
Enforcement
Penalties
Contractors face payment of back wages and potential debarment from state contracts for non-compliance.
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 Vermont have a prevailing wage law?
Yes. Vermont has an active state prevailing wage law: Vermont Capital Construction Act Prevailing Wage Requirements. Vermont's prevailing wage requirements are tied to the Capital Construction Act (CCA). Projects funded by the CCA costing over $100,000, or projects at least 50% CCA-funded costing over $200,000, must pay prevailing wages. Fringe benefit add-on is 42.5% of base wage.
Does Davis-Bacon apply in Vermont?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Vermont, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Vermont?
Yes. Vermont 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 Vermont?
Contractors face payment of back wages and potential debarment from state contracts for non-compliance.
When do Vermont prevailing wage requirements apply?
Vermont ties prevailing wage to the Capital Construction Act (CCA). Coverage applies to CCA-funded projects costing over $100,000, or projects at least 50% CCA-funded costing over $200,000. Public projects funded from other sources may not be covered, so verify the funding structure in the solicitation before bidding.
How does Vermont's fringe benefit add-on affect bids?
Vermont applies a fringe benefit add-on of 42.5% of the base wage rate on covered projects. This substantial uplift must be built into every labor line item. Omitting or underestimating it is the most common and costly estimating error, since it can quietly erase margin after award.
Why does location matter for Vermont prevailing wage rates?
Vermont divides the state into three geographic wage areas, and the correct rate depends on where the work is performed. The Department of Labor publishes annual schedules by area. Using the wrong region's rates distorts your bid, so confirm the project's wage area before pricing labor.