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Davis-Bacon Act Resource

The Davis-Bacon Act of 1931 requires contractors and subcontractors working on federally funded jobs to pay their laborers wages and benefits no less than what others locally pay their workers for similar projects. The Davis-Bacon “Related Acts” (DBRA) are federally funded construction projects funded through grants, loans, and insurance that include provisions requiring Davis-Bacon labor standards. In general, most federal funding requires adherence to the Davis-Bacon Act. Some federal programs may waive some or all of the provisions so it is important to be familiar with the terms and conditions of the funding stream specific to an agency’s projects.

General Overview

The Davis-Bacon Act requires that all contractors and subcontractors performing construction, alterations and repair (including painting and decorating) work through federal funding in excess of $2,000, pay their laborers and mechanics not less than the prevailing wage including fringe benefits for the geographic location. In accordance with the statute, contractors must be required to pay wages not less than once a week. The non- federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act which provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which an individual is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency per the process defined by the federal agency.

Among other requirements, the recipients of federal funding must:

  • ensure that the Davis-Bacon contract clauses and applicable wage determinations are inserted into any construction contracts entered into by themselves or their sub-recipients for projects receiving any federal funding subject to Davis-Bacon labor standards (the required contract clauses are set forth at 29 CFR 5.5, and general wage determinations and guidance on their application can be found at SAM.gov);
  • provide guidance to sub-recipients and contractors as to DBRA coverage, wage determination applicability, and the classifications of work performed on the contract;
  • conduct sufficient monitoring of sub-recipients and contractors to ensure that laborers and mechanics are being paid the applicable prevailing wages and fringe benefits and required signage is posted at the job site;
  • receive and review certified payrolls, and, where applicable, forward certified payrolls to the federal awarding agency; and
  • upon the written request of the U.S. Department of Labor, the federal funding agency or on their own initiative, the funding recipients must withhold payments to the prime contractors in an amount sufficient to cover any unpaid prevailing wages owed to workers, or suspend any further payments until violations of the Davis-Bacon labor standards have ceased. NOTE: Departments should reach out to the OSC Grants Office immediately to discuss issues of non-compliance and next steps.

Among other requirements, contractors and subcontractors must:

  • pay at least the Davis-Bacon prevailing wages listed in the applicable wage determinations included in the contract to laborers and mechanics who work on the site of work—
    • the Davis-Bacon prevailing wage is the combination of the basic hourly rate and any fringe benefits listed in a Davis-Bacon wage determination;
    • contractors can meet this obligation by paying each laborer and mechanic the applicable prevailing wage for the classification of work they perform entirely as cash wages or by a combination of cash wages and employer-provided bona fide fringe benefits;
    • contractors must pay laborers and mechanics the applicable prevailing wages for all hours worked on the site of the work on a weekly basis (except for contributions to bona fide fringe benefit plans, which must be made at least quarterly);
  • maintain an accurate record of hours worked and wages paid, including fringe benefit contributions;
  • submit certified payrolls to the contracting agency/funding recipient each week, within seven days of the payroll date for that workweek; and
  • ensure that the required contract clauses and applicable wage determinations are incorporated into any lower-tier subcontracts.

Determining Prevailing Wage for Geographical Areas

NOTE: If the project is on state owned land, contact the Office of the State Architect for prevailing wage information and OSA requirements.

Different geographical areas in the state may have different prevailing wages. Prevailing wages may also differ based upon the type of infrastructure project, such as highways, buildings, residential or heavy construction. There may be different prevailing wages if there are more than one of these construction categories involved in a project. Additionally, supervisors, foremen, etc. who devote more than 20% of time performing laborer or mechanic duties must be paid prevailing wages for those duties according to percentage of time spent. Otherwise, they are exempt from prevailing wage for time spent on administrative duties.

To find the prevailing wages for a specific type of project, Sam.gov provides a searchable database for the current prevailing wages based upon type of project and area.

Agencies must also verify the contractor has not been suspended or debarred through SAM.gov and thus able to receive federal funds in the contract.