How federal Davis-Bacon prevailing wage works

The Davis-Bacon Act requires contractors to pay locally prevailing wages to laborers and mechanics on federal and federally assisted construction projects exceeding $2,000. This applies to direct federal contracts (like military bases, post offices, or VA hospitals) and projects with federal funding (highway work, affordable housing, etc.). Subcontractors must comply, even if the prime contractor doesn’t pass along the requirement.

Wage Determinations: Locality + Construction Type

The U.S. Department of Labor issues wage determinations (WDs) that list minimum pay rates by:

  • Location (usually county)
  • Project type: Building, Residential, Heavy, or Highway construction

Each WD contains classifications (e.g., Electrician, Laborer) with:

  • A base hourly rate
  • A fringe benefit rate (sometimes listed as *—this *never* means $0; it indicates a separate collective bargaining agreement applies)

The total obligation = base + fringe. Contractors can meet this with:

  • Cash wages covering both
  • Cash wages for base + bona fide benefits (health insurance, retirement) for fringe
  • Any combination that adds up to the total

Finding and Using the Correct Wage Determination

  • Check the contract – The legally binding WD is the one incorporated into your federal contract. It carries a revision number (e.g., “2022-1234 Rev. 3”).
  • Verify the project type – Using a Building WD on a Highway job is a violation.
  • Match classifications carefully – Misclassifying workers (e.g., calling a skilled worker a Laborer) risks underpayment.

PrevailMap provides current federal Davis-Bacon WDs (cached daily from SAM.gov) for quick reference. Always confirm against the WD in your contract.

Certified Payroll: Weekly WH-347 + Statement of Compliance

On covered jobs, contractors and subs must submit:

  • Form WH-347 (certified payroll) weekly, listing each worker’s hours, classification, and wages paid.
  • A Statement of Compliance (signed under penalty of perjury) affirming Davis-Bacon rules were followed.

WageSeal automates WH-347 generation for contractors who need it.

State vs. Federal Prevailing Wage Rules

  • If both apply (e.g., a state-funded school with federal aid), pay the higher rate for each classification.
  • State differences:
  • *California* has its own prevailing wage system (often higher than federal).
  • *Texas* follows federal Davis-Bacon but has additional reporting for state projects.
  • *Florida* has no state prevailing wage law—only federal rules apply.

Common Mistakes

  • Assuming * fringe means $0 – It doesn’t. You must find the correct rate in the CBA or other source.
  • Using an outdated WD – Contracts reference a specific revision; using the wrong one risks underpayment.
  • Missing certified payroll – Late or incomplete WH-347 forms trigger penalties.
  • Ignoring state rules – Federal Davis-Bacon doesn’t replace stricter state laws.

This is informational, not legal advice. Always verify against your contract and official DOL guidance.

See current wage determinations by state →