Davis-Bacon Act
Federal law requiring prevailing wages on federally funded construction projects. Understand how it affects pay, compliance, and bidding.
What is the Davis-Bacon Act?
The Davis-Bacon Act is a U.S. federal law that requires contractors and subcontractors working on federally funded or assisted construction contracts over a statutory threshold to pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits for the type of work performed. The U.S. Department of Labor sets those rates based on wage surveys for each area.
The Act applies to many public construction projects where federal dollars are involved, not only direct federal buildings. Compliance affects payroll, certified payroll reports, and how you bid and staff jobs.
Why it matters for contractors
- Wage floors: You must pay at least the published prevailing wage for each classification (carpenter, electrician, laborer, etc.) on covered work.
- Fringe benefits: Required fringe amounts may need to be paid as bona fide benefits or, where allowed, as cash in lieu.
- Recordkeeping: Certified payroll and related documentation are typically required on Davis-Bacon jobs.
- Subcontractors: Prime contractors are responsible for ensuring subs meet Davis-Bacon requirements on covered work.
Related wage determinations
Wage determinations list the rates by county (or other geographic area) and trade. They are updated over time; always verify current determinations and any contract-specific wage decisions against official Department of Labor sources before relying on them for compliance.
Look up Davis-Bacon prevailing wages
For a free, easy-to-browse view of federal Davis-Bacon wage data by state, county, and trade (reformatted from public SAM.gov data), see Davis-Bacon Wages. The site is updated weekly and does not require a login. It is an unofficial reference—always confirm rates and classifications with the DOL and your contract documents for legal compliance.
Disclaimer
This glossary entry is for general education only and is not legal or tax advice. Davis-Bacon rules, thresholds, and enforcement can change; consult qualified counsel and official DOL guidance for your projects.
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