What is the Davis-Bacon Act? Wages and coverage
The Davis-Bacon Act is a 1931 federal law that requires contractors and subcontractors on federal construction contracts over $2,000 to pay laborers and mechanics at least the locally prevailing wage and fringe benefits. The Department of Labor sets those rates in wage determinations, and related laws extend the rules to many federally assisted projects.
If a subcontract you just signed mentions “Davis-Bacon wages” or “prevailing wage,” this is the law behind it. This guide covers what it requires, who is covered, where the rates come from and how to look yours up.
Which contracts does the Davis-Bacon Act cover?
The Act covers federal contracts “in excess of $2,000” for the construction, alteration or repair, including painting and decorating, of public buildings or public works (40 U.S.C. 3142). A contract of $2,000 or less is outside it.
A group of “Related Acts” applies the same labor standards to construction that is federally assisted through grants, loans, loan guarantees, insurance and similar support. The Department of Labor’s Fact Sheet 66 gives examples such as the Federal-Aid Highway Acts, the Housing and Community Development Act of 1974 and the Federal Water Pollution Control Act. Together, Davis-Bacon and the Related Acts are called DBRA.
A covered contract carries the labor standards clauses in 29 CFR 5.5 and a wage determination for the work. If you are not sure your job is covered, ask the prime contractor or the contracting agency before the first payroll, not after.
Who is covered by the Davis-Bacon Act?
Only “laborers and mechanics” must receive the prevailing wage, and the statute reaches those employed directly on the site of the work. Under 29 CFR 5.2, the term means workers whose duties are manual or physical, including people who use tools or perform the work of a trade. It includes apprentices and helpers. On contracts that carry the overtime law described below, it also includes watchpersons and guards.
It does not include workers whose duties are primarily administrative, executive or clerical, or people employed in a bona fide executive, administrative or professional capacity. A working foreperson who spends more than 20 percent of a workweek on laborer or mechanic duties, and who is not exempt under the FLSA executive rules, counts as one for that time.
Delivery drivers and off-site material suppliers are where this gets tricky. A 2023 Department of Labor rule tried to widen coverage to some of them. In June 2026 a federal district court in Texas vacated those parts of the rule nationwide, in a case brought by AGC of America (AGC release). The rest of the 2023 rule, including how rates are set, was not part of that ruling. Do not assume either way. Ask the agency how it treats deliveries on your job.
What wages does the Davis-Bacon Act require?
The required wage is the base hourly rate plus fringe benefits for the classification of work performed, as listed on the wage determination attached to the contract. A few rules matter from day one:
- Pay at least weekly, and without strings. Wages must be paid unconditionally and at least once a week.
- Meet both parts of the rate. The fringe can be paid as bona fide plan contributions, as cash in lieu, or as a mix. See Davis-Bacon fringe benefits and the hourly credit.
- Pay by the work actually performed. Classification follows the work, not the job title.
- Apprentices need registration. Registered apprentices can be paid less under their program. Anyone paid at an apprentice rate who is not registered must get the full rate for the classification of work performed.
For example, with made-up numbers, a determination might list an electrician at $30.00 base and $11.00 fringe. That is a $41.00 minimum for every hour worked in that classification.
Contracts over $100,000 that are subject to the Contract Work Hours and Safety Standards Act also require at least one and one-half times the basic rate for hours over 40 in a workweek (29 CFR 5.5(b)).
How are Davis-Bacon wage rates set?
The Act directs the Department of Labor to determine the locally prevailing wage (DOL). Its Wage and Hour Division does this classification by classification, for a type of construction in an area. Under 29 CFR 1.2, the prevailing wage for a classification is:
- The wage paid to the majority (more than 50 percent) of workers in that classification on similar projects in the area.
- If there is no majority, the wage paid to the greatest number of workers, as long as that is at least 30 percent.
- If neither applies, the weighted average of the wages paid in that classification.
The results are published as wage determinations. A general wage determination covers a type of construction (building, residential, highway or heavy) in a set of counties and has no expiration date. A project wage determination is written for one project when no general one fits. For a walkthrough of the rate lines, footnotes and unlisted classifications, see how to read a Davis-Bacon wage determination.
How do I look up Davis-Bacon wage rates?
Wage determinations are on SAM.gov, which has been the official source since June 2019 (DOL FAQ).
- Find the decision number and revision in your contract. It is a state code, a year and a sequence number.
- Search for it. On SAM.gov wage determinations, choose the Davis-Bacon category (public buildings or works) and search by number. Without a number, you can search by state, county and construction type.
- Open the exact revision your contract names, not just the newest one, and save a PDF to the job file.
- Match each classification your crew will perform, and read its footnotes.
If the contract does not name a determination, or your trade is not listed, ask the prime before work starts. Pay owed for an added classification can reach back to the first day anyone worked in it.
What are the related laws?
| Law | What it adds |
|---|---|
| Davis-Bacon Act | Prevailing wage and fringe for laborers and mechanics on covered federal construction contracts over $2,000 |
| Related Acts | The same labor standards on federally assisted construction |
| Copeland “Anti-Kickback” Act | Bars inducing workers to give up pay they earned, and requires a weekly statement of wages paid |
| Contract Work Hours and Safety Standards Act | Overtime at one and one-half times the basic rate over 40 hours a week on covered contracts over $100,000, with liquidated damages for violations |
The Copeland Act is why you send weekly certified payroll. Keep payroll records for at least 3 years after all work on the prime contract is complete. For the reporting side, see what is certified payroll and the certified payroll form with a worked example.
What happens if a contractor does not comply?
- Back wages. The agency can withhold payments to cover unpaid wages and interest owed by the prime or any subcontractor, and can suspend further payments if wages go unpaid or required records are not submitted.
- Overtime damages. The current clause sets liquidated damages of $33 per worker for each calendar day of an overtime violation.
- Debarment. A contractor found to have disregarded its obligations can be barred from covered contracts for 3 years (29 CFR 5.12).
- False certifications. Falsifying a certified payroll can bring civil or criminal liability.
How is it different from state prevailing wage laws?
Davis-Bacon is federal. Each state runs its own prevailing wage law with its own coverage, rates, classifications and reporting. A job can fall under both. For federal money plus state or local requirements, the Department of Labor’s guidance on Bipartisan Infrastructure Law projects says to pay whichever rate is higher, classification by classification, and to meet whichever requirements protect workers more (DOL FAQ). Whether a state law applies to your job is a question for the contracting agency.
For the details, see state prevailing wage vs Davis-Bacon and, for one state’s reporting, California DIR certified payroll.
Frequently asked questions
Is Davis-Bacon the same as prevailing wage? Davis-Bacon is the federal prevailing wage law for construction. “Prevailing wage” also describes state laws, which are separate and have their own rates and reports.
Does the Davis-Bacon Act apply to private projects? Not by itself. It is triggered by a federal contract or by federal assistance under a Related Act. A privately funded job with no federal link is outside it, though a state law could still apply, so ask the contracting agency.
Can I pay more than the Davis-Bacon rate? Yes. The wage determination sets a minimum, and workers must be paid no less than the listed base rate and fringe for the work they perform.
Who checks compliance? The contracting agency and the Department of Labor can both review your payroll records, interview workers on the job and open an investigation.
Where Payrung fits
Payrung is being built to load the wage determination for each project, match your crew’s work to its classifications, and flag hours that fall short of base plus fringe before you submit a report. If you would like early access, join the waitlist.
This guide is general information, not legal or payroll advice. Confirm requirements with your contracting agency or a qualified advisor.