Wages & Compensation
Davis-Bacon Act
A 1931 federal law requiring contractors on federally funded construction projects worth over $2,000 to pay locally prevailing wages and benefits.
What It Means for Trade Workers
The Davis-Bacon Act is the foundational federal prevailing-wage statute in the United States. Enacted in 1931, it requires all contractors and subcontractors working on federal or federally assisted construction contracts exceeding $2,000 to pay their workers no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Department of Labor Wage and Hour Division conducts surveys of wages paid in each county and publishes wage determinations that contractors must follow. These determinations cover dozens of trade classifications, from laborers and carpenters to specialized trades like elevator constructors and boilermakers. The Act applies to a wide range of federal construction, including highways, bridges, military facilities, federal buildings, and projects receiving federal grants or loans. Related statutes, collectively known as Davis-Bacon "Related Acts," extend prevailing-wage requirements to projects funded by over 60 other federal programs, including housing, transportation, and water infrastructure. For skilled tradespeople, Davis-Bacon projects represent premium work. The prevailing rates published under the Act frequently track union negotiated rates, and compliance is enforced through certified payroll requirements and potential debarment of violating contractors.
Frequently Asked Questions
A 1931 federal law requiring contractors on federally funded construction projects worth over $2,000 to pay locally prevailing wages and benefits.
The Davis-Bacon Act is the foundational federal prevailing-wage statute in the United States. Enacted in 1931, it requires all contractors and subcontractors working on federal or federally assisted construction contracts exceeding $2,000 to pay their workers no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Department of Labor Wage and Hour Division conducts surveys of wages paid in each county and publishes wage determinations that contractors must follow.