Davis-Bacon Act (Davis-Bacon)
A federal law requiring contractors on federally funded construction projects over $2,000 to pay at least the locally prevailing wages and fringe benefits.
Definition
The Davis-Bacon Act (40 U.S.C. §3141) is a 1931 law that applies to federally funded construction. Contractors and subcontractors must pay each laborer and mechanic the prevailing wage for their job classification in the project's geography, as published by the US Department of Labor in Wage Determinations on SAM.gov.
When it applies
Applies to all federal construction contracts over $2,000, and to many state and federally assisted construction projects. Compliance requires posting wage determinations on the job site, paying prevailing rates from day one, maintaining certified payroll records (Form WH-347), and allowing DOL audits and worker interviews. Penalties for non-compliance include back wages, liquidated damages, and debarment.