Davis-Bacon apprentices: ratios, rates and when you owe journey pay

On a Davis-Bacon job, you may pay an apprentice less than the journeyworker rate only if the apprentice is individually registered in an approved program and you stay within the program’s ratio. Miss either test and the apprentice is owed the full wage determination rate for the work done. The Department of Labor (DOL) lays this out in its Davis-Bacon overview and in 29 CFR 5.5(a)(4).

Who counts as an apprentice under Davis-Bacon?

The DOL overview says apprentices are laborers and mechanics, but they are not listed on wage determinations. The term only covers:

• A person individually registered in a bona fide apprenticeship program registered with DOL’s Office of Apprenticeship, or with a State Apprenticeship Agency recognized by that office.
• A person in the first 90 days of probationary employment as an apprentice in such a program. The current rule in 29 CFR 5.5(a)(4)(i) adds that this person must have been certified as eligible for probationary employment by the Office of Apprenticeship or a State Apprenticeship Agency.

That overview is from 2021, so check the current text of 29 CFR 5.5(a)(4). A helper, trainee or “pre-apprentice” who is not registered does not qualify for a reduced rate just because the job title sounds similar. If you are unsure whether someone is registered, ask the program sponsor for proof before the first payroll.

What is the apprentice-to-journeyworker ratio?

The ratio is set by the registered program, not by the wage determination. 29 CFR 5.5(a)(4)(i) says the allowable ratio of apprentices to journeyworkers on the job site in any craft classification cannot be greater than the ratio the program permits the contractor for its entire workforce, or the ratio that applies to the locality of the project under the reciprocity paragraph of the same rule (covered below).

Two details trip up offices:

• It is checked daily. The DOL overview says compliance with the ratio is determined on a daily basis, not a weekly one. A crew that looks fine over a week can still be out of ratio on a Tuesday.
• It applies per craft. The rule speaks of the job site and each craft classification, so count electricians separately from, say, laborers.

Your program’s agreement, and the project locality’s ratio if you work outside your program’s area, are the places to find the actual numbers. The rule does not give one national ratio.

How much can you pay an apprentice?

Per the 2021 DOL overview, an individually registered apprentice employed within the allowed ratio may be paid less than the journeyworker wage when you pay:

1. The percentage of the journeyworker’s hourly rate that the program requires for that apprentice’s level of training.
2. The fringe benefits specified in the approved program. If the program is silent on fringes, the apprentice gets the full fringe amount listed on the wage determination. The regulation lets the Administrator set a different practice for a particular apprentice classification.

Here is an illustrative example. The numbers are made up. Say a wage determination lists a $40.00 base rate for a trade, and the program sets a first-period apprentice at 50 percent. The cash rate would be $20.00 an hour. If the program says nothing about fringes, the apprentice’s fringe obligation is still the full amount from the determination. Always use your own program schedule and wage determination.

To see how base rates and fringes appear on a determination, read how to read a Davis-Bacon wage determination. For how plan costs turn into an hourly credit, see Davis-Bacon fringe benefits.

When must an apprentice get the full journey rate?

According to 29 CFR 5.5(a)(4)(i), the full wage determination rate for the work actually performed is owed when:

• A worker paid an apprentice rate is not individually registered, and is not a certified probationary apprentice within the first 90 days.
• An apprentice works beyond the allowed ratio. The extra apprentices must be paid at least the wage determination rate for that work.
• The program’s approval is withdrawn. From then on, the contractor may not pay apprentices below the predetermined rate until an acceptable program is approved.

The rules also address work outside the area where the program is registered. When a contractor works in a different locality, the ratios and wage rates for the project’s locality apply. If that locality has none, the contractor’s registered program’s ratio and wage rate apply, as the regulation describes.

Underpayments can bring back wages. The DOL overview lists, among the steps in an investigation, examining certified payrolls and checking for compliance with apprenticeship requirements, and then computing back wages and liquidated damages if any are due.

How do you keep apprentice pay clean on certified payroll?

Your certified payroll must match your timekeeping and your program paperwork. The DOL overview says investigators examine certified payrolls and basic payroll records. For the form itself, see our WH-347 guide. If you are new to the report, start with What is certified payroll?.

A short checklist:

1. Keep proof of each apprentice’s individual registration, and the program’s wage and ratio schedule, in the job file.
2. Record the apprentice’s level of training so the right percentage is used.
3. Count journeyworkers and apprentices by craft, every day, before payroll closes.
4. Pay the program’s fringe amounts, or the full determination fringe if the program is silent.
5. If anyone goes over ratio on a given day, pay the full determination rate for that work.
6. Check state rules too. State prevailing wage laws can differ, as covered in state prevailing wage vs Davis-Bacon.

Where Payrung fits

Payrung is being built to turn your payroll export into submission-ready certified payroll, so rates and fringes carry through to the report without retyping. It is not built yet. Join the waitlist.

This article is general information, not legal or tax advice. Apprenticeship and prevailing wage rules vary by program, contract and state, so check your contract and talk with a qualified professional.