What is the Davis-Bacon Act?
The Davis-Bacon Act requires federal construction contractors and their subcontractors to pay at least the locally prevailing wages and fringe benefits to workers on federal construction projects over $2,000. The US Department of Labor publishes the applicable wage determinations.
The Davis-Bacon Act (40 U.S.C. §3141) is a 1931 federal law that requires contractors and subcontractors on federally funded construction projects to pay laborers and mechanics the "prevailing wages" determined by the Secretary of Labor.
Prevailing wages are published as Wage Determinations on SAM.gov and are specific to job classification (carpenter, electrician, ironworker, etc.), geography (typically county-level), and project type (building, residential, highway, heavy). Contractors must pay at least the listed hourly wage AND fringe benefits.
Davis-Bacon applies to federal construction contracts over $2,000 — a very low threshold that captures most federal construction work. It also applies to most state construction projects funded with federal money (highway projects funded by FHWA, housing projects funded by HUD, etc.).
Compliance requires: - Posting wage determinations on the job site - Paying covered workers at least the prevailing rate - Maintaining and submitting certified payroll records (Form WH-347) - Allowing DOL audits and worker interviews
Penalties for non-compliance include back-pay liability, debarment from federal contracts, and criminal prosecution in extreme cases. Most states have their own "Little Davis-Bacon" laws that apply to state-funded construction.
For contractors, Davis-Bacon increases labor cost significantly compared to private-sector work — often by 30-100% depending on the trade and region. Bid accordingly.