Federal Davis-Bacon, state laws, wage determinations, fringe benefits, compliance rules — all in one place.
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Prevailing wage is the minimum hourly wage (base rate + fringes) you have to pay workers on government-funded construction. Rates are set per craft, per locality, and per project type based on what comparable construction workers already earn in that area.
The idea is simple: taxpayer money shouldn't undercut local construction wages. If an electrician in Alameda County typically earns $95/hour (base + fringe), then a contractor on a federally funded job in Alameda County has to pay at least $95/hour to electricians doing the same work.
Prevailing wage laws exist at the federal level (Davis-Bacon Act), the state level (about 30 states), and sometimes at the local level (cities like NYC, San Francisco, Chicago). Projects can catch multiple overlapping requirements at once.
Example: Carpenter in Cook County, IL → $46.80 base + $32.15 fringe = $78.95 total prevailing wage
Passed in 1931, the Davis-Bacon Act is the federal prevailing wage law. It requires contractors and subs on federal or federally assisted construction over $2,000 to pay the local prevailing wage set by the DOL.
About 30 states plus DC have their own prevailing wage laws for state-funded public works. These laws are separate from federal Davis-Bacon and often have different thresholds, different reporting cadences, and different enforcement.
Before you bid or start work, you need to identify the right wage determination. Here's how.
Run through this before and during any prevailing-wage project.
The most frequently cited violations in DOL and state audits.
It's the minimum hourly wage — base pay plus fringes — you have to pay construction workers on government-funded projects. Rates are set by craft, locality, and project type based on what comparable workers already earn in that area. The whole point is to keep government contracts from dragging down local construction wages.
Davis-Bacon is the 1931 federal law requiring contractors and subs on federal or federally assisted construction over $2,000 to pay the local prevailing wage. Over 60 'Davis-Bacon Related Acts' extend it to other federal programs — highways, housing, water infrastructure, etc.
Federal rates are set by the DOL Wage and Hour Division (WHD). They survey contractors and publish 'wage determinations' at SAM.gov. State rates are set by state labor departments (California DIR, Illinois IDOL, New York NYSDOL, etc.). Some rates come from collective bargaining agreements, some from area surveys.
Federal Davis-Bacon? Look it up at SAM.gov using project location (state/county) and construction type (building, residential, heavy, highway). State projects? Check your state labor department's wage rate publication. Our free wage lookup searches SAM.gov instantly.
Prevailing wage = basic hourly rate + fringe benefits. A carpenter in a particular county might have a $38.50/hr base and $22.75/hr fringes, so $61.25/hr total prevailing wage. Fringes can be cash to the worker OR contributions to bona fide benefit plans (health, pension, training, vacation).
Mostly no. Prevailing wage applies to government-funded construction — federal, state, or local public works. But some states stretch it to cover projects with public subsidies (tax credits, bond financing, etc.). Always check whether your project touches federal, state, or local funding.
About 30 states plus DC have state prevailing wage laws on top of federal Davis-Bacon. California, New York, Illinois, Washington, Oregon, New Jersey, Massachusetts, Connecticut, Maryland, Michigan, Minnesota, Nevada, Hawaii, Pennsylvania, Rhode Island, and others. The rest (mostly in the South) rely only on federal Davis-Bacon where it applies.
Back wages owed to underpaid workers, liquidated damages, civil money penalties, held contract payments, debarment from future government contracts (up to 3 years federal, longer in some states), and criminal prosecution for willful fraud. DOL and state agencies audit contractors hard.
The key steps: (1) identify the right wage determination for your project, (2) classify workers by the work they actually do, (3) pay at least the prevailing rate (base + fringe), (4) track hours and wages by classification, (5) submit weekly certified payroll (WH-347 or state equivalent), (6) post wage rates at the jobsite, (7) keep records at least 3 years. Certified payroll software automates most of it.
Yes. You can pay fringes either (a) as cash wages to the worker, or (b) as contributions to bona fide benefit plans (health insurance, pension, training fund, vacation fund). Most contractors do a mix — some fringe to cash, some to plans. The certified payroll report has to show how you paid it.
We check worker pay against the right wage determination, calculate fringes, and build compliant certified payroll reports in minutes.
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