Davis-Bacon Act

The Davis-Bacon Act is a 1931 federal law that requires contractors and subcontractors on federally funded construction to pay laborers and mechanics at least the locally prevailing wage and fringe benefits. It applies to federal contracts over $2,000 for building, altering, or repairing public buildings and public works.

It is the foundation of federal prevailing wage law. A long list of Related Acts extends the same wage standards to federally assisted work such as highways and housing, which is why practitioners often say "DBRA."

Who Is Covered by the Davis-Bacon Act?

Coverage follows the funding and the work. Prime contractors and subcontractors at every tier must comply when the contract is covered, and the prime contractor answers for its subcontractors.

The wage protections apply to laborers and mechanics working on the site of the work. These are workers whose duties are manual or physical, including apprentices and helpers.

Apprentices may be paid below the listed rate only when they are individually registered in an approved apprenticeship program. Executive, administrative, and professional employees are not treated as laborers or mechanics.

What Does the Davis-Bacon Act Require Employers to Do?

Rates come from a wage determination issued by the Department of Labor and published on SAM.gov. Each determination lists a basic hourly rate and a fringe rate by job classification and location.

• Pay each worker at least the listed wage and fringe rate for the classification of work actually performed.
• Pay covered workers every week.
• Submit weekly certified payroll with a signed statement of compliance.
• Pay time and a half after 40 hours on prime contracts over $100,000.

The weekly report is the certified payroll that most contractors file on the optional Form WH-347. A worker who performs two classifications in a week must be paid the right rate for the hours in each.

What Happens When a Contractor Violates the Davis-Bacon Act?

The contracting agency can withhold contract payments to cover unpaid wages, and serious violations can end the contract. The Department of Labor's Wage and Hour Division investigates complaints and audits payroll records.

The heaviest penalty is debarment. A contractor found in violation can be ineligible for federal contracts for three years, along with its responsible officers.

Most cases start as record problems: a misclassified worker, missing hours, or undocumented fringe payments. The Department updated the regulations in 2023, so older internal procedures deserve a review.

How Can HR Teams Stay Compliant With the Davis-Bacon Act?

Compliance depends on clean inputs: who worked, on which project, in which classification, and for how many hours. HR owns most of that data before payroll ever runs.

HR Cloud's time tracking software lets crews enter time from a mobile device and tracks hours by project. Two-way payroll integrations then carry that data to your payroll provider.

Collect apprenticeship registrations and classification documents during digital onboarding so they are on file before the first shift. For mixed workforces, see our guide to union and non-union construction payroll.

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Frequently Asked Questions

Q: What is the Davis-Bacon Act in simple terms?

A: It is a federal law that sets a wage floor on government-funded construction. Contractors must pay workers at least the local prevailing wage and fringe benefits for their trade.

Q: What is the Davis-Bacon Act threshold?

A: The law applies to federal and federally assisted construction contracts over $2,000. That low threshold means nearly every federal construction contract is covered.

Q: Does the Davis-Bacon Act apply to private projects?

A: Not by itself. A private project is covered only when federal funding or assistance brings it under the Davis-Bacon Act or one of the Related Acts.

Q: Who enforces the Davis-Bacon Act?

A: The Department of Labor's Wage and Hour Division enforces it together with the federal agency that awarded or funded the contract.

Q: Where can I find Davis-Bacon wage rates?

A: Wage determinations are published on SAM.gov. The determination attached to your contract controls, so always confirm which version applies to the project.

Q: Is the Davis-Bacon Act the same as certified payroll?

A: No. The Davis-Bacon Act is the law. Certified payroll is the weekly report contractors submit to show they followed it.