Davis-Bacon Act

What does the Davis-Bacon Act require?

The Act requires that contracts for the construction, alteration or repair of public buildings and public works include a provision for minimum wages. The minimums are the wages the Secretary of Labor determines to be prevailing for similar work in the area, set out in a wage determination attached to the contract.

• Pay laborers and mechanics at least the determined wage and fringe for the classification they actually perform.
• Keep payroll records and submit a certified weekly payroll (see certified payroll).
• Keep records for 3 years after all work on the prime contract is complete.

What are the Related Acts?

The Related Acts are separate federal programs, such as certain loan and grant programs, that require Davis-Bacon wages on the construction they fund. Together the group is called the Davis-Bacon and Related Acts, or DBRA. Which acts apply to a project is stated in the contract documents.

Overtime

On covered prime contracts over $100,000, the Contract Work Hours and Safety Standards Act requires time and a half for hours over 40 in a workweek, according to the Department of Labor.

State laws

Many states have their own prevailing wage laws for state-funded projects, sometimes called little Davis-Bacon acts. They are separate from this federal law.

What does Davis-Bacon mean for a contractor on a job?

A subcontractor with a federally funded roofing job reads the wage determination in the contract, matches each worker's daily work to a classification, pays at least the listed total for each hour and submits the weekly payroll with a signed statement. A worker who spends part of a day on a lower-rated classification is paid that rate for those hours only.

The reporting duty is why hours by worker, day and jobsite matter more on covered projects. See prevailing wage for how the rate is set and WH-347 for the optional federal payroll form.