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The Davis-Bacon Act (DBA) is a federal law that requires contractors and subcontractors working on federally funded or assisted public building/public work construction contracts exceeding $2,000 to pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits.
Davis-Bacon Act requirements may be extended to federal financial assistance programs by the terms of other statutes, collectively referred to as the Davis-Bacon Related Acts (DBRA).
What are the primary terms under The Davis-Bacon Act?
Do DBA requirements apply to all job classifications?
How are prevailing wages and fringe benefits determined under DBA?
Are there circumstances in which a worker can be paid less than prevailing wage?
What requirements does DBA establish for worker payment and payroll documentation?
What are some examples of common DBA compliance issues?
What happens in the event of a violation of DBA labor standards?
How is retaliation addressed under DBA?
Additional Davis-Bacon Act Resources
DBA labor standards apply to all laborers and mechanics employed by the applicant, subrecipients, contractors or subcontractors performing work on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works. DBA contractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.
All parties involved in infrastructure projects covered under DBA acknowledge that they will comply with all DBA requirements, including but not limited to:
Ensuring that the wage determination(s) and appropriate DBA clauses and requirements flow down to and are incorporated into any applicable subcontracts or subrecipient awards.
Ensuring that all subcontractors and/or subrecipients comply with DBA labor standards.
Completing and reviewing certified weekly payrolls submitted by all subcontractors and subrecipients for accuracy to identify potential compliance issues.
Maintaining certified weekly payroll records for three years after the completion of a project.
Posting the wage determination(s) and U.S. Department of Labor (DOL) WH-1321 poster in a prominent and accessible place at the site of construction.
Conducting payroll and on-site interviews with employees to assure compliance by subcontractors and subrecipients and as requested or directed by the U.S. Department of Energy (DOE).
Cooperating with any authorized representative of the DOL in their inspection of records, interviews with employees, and other actions undertaken as part of a Department of Labor investigation.
No. DBA applies to laborers and mechanics working on the covered site of work.
The act defines “laborers and mechanics” as workers whose duties are manual or physical in nature as distinguished from mental or managerial work.
Laborers and mechanics include workers who use tools or who are performing work of a particular trade, and do not include individuals performing non-manual work, such as supervising, engineering, timekeeping, clerical work, or other administrative functions.
Prevailing wages are determined by the DOL based on survey data and local wage rates paid to various classes of laborers and mechanics.
The prevailing wage represents the combination of the basic hourly rate and any fringe benefits for each labor classification in a predetermined geographic area for a particular type of construction.
Prevailing wages, including fringe benefits, must be paid on all hours worked on the site of work.
The contractor’s obligation to pay at least the prevailing wage listed can be met by paying each laborer and mechanic using:
DBA wage determinations are published on the System for Award Management (SAM) website for contracting agencies to include them into covered contracts/subcontracts.
Yes. Apprentices and trainees may be paid at a rate less than the applicable prevailing wage if they are individually registered in an apprenticeship program or state agency recognized by the DOL’s Office of Apprenticeship.
For workers who participate in approved apprenticeship and training programs, wage rates are paid in accordance with the provisions listed in the approved program.
It is the responsibility of contractors and subcontractors to obtain proper documentation to support designating a worker as an apprentice or trainee.
Contractors and subcontractors are required to pay covered workers weekly and submit weekly certified payroll records to the contracting agency.
A free software program, LCPtracker, will be made available to BIL/IRA subgrantees and their contractors for this purpose.
Payroll records must clearly list specific job classification and wages for each employee and break down the time each employee spent in each classification, if the employees perform multiple types of work.
It is important to remember that certified weekly payroll records must still be submitted even if no construction was performed during the week.
DBA mandates overtime payment at a rate of at least one and a half times the basic rate of pay for hours worked beyond the standard 40-hour work week. This rate does not apply to fringe benefits.
Compliance issues commonly associated with DBA projects include but are not limited to:
Violations of DBA labor standards may be grounds for contract termination, contractor liability for any resulting costs to the government and debarment from future contracts for a period of three years.
Contractors are allowed the opportunity to challenge the Wage and Hour Division’s (WHD) determinations of violations and debarment before an Administrative Law Judge (ALJ). Interested parties may appeal ALJ decisions to the Department’s Administrative Review Board (ARB). Final ARB decisions may be appealed to and are enforceable through federal courts.
Retaliation is prohibited against any worker or job applicant for engaging in protected activities. Examples of protected activities include, but are not limited to:
U.S. DOL Davis-Bacon Act Fact Sheet – A webpage and downloadable fact sheet that provides general information on DBA and DBA coverage.
Davis-Bacon 101: An Overview of the Davis-Bacon Act – A presentation, provided by the U.S. DOL Wage and Hour Division, providing an overview of the Davis-Bacon Act.
Prevailing Wage Seminars Presentations – A collection of virtual presentations and videos covering various aspects of the DBA and DBRA, including coverage, wage determinations, compliance principles, and enforcement.
System for Award Management (SAM) Wage Determinations – Provides access to wage determinations related to government contracts under DBA and DBRA. This page can be used as a resource for contractors and stakeholders to find relevant wage rates for various job classifications in specific geographic areas.
Related Topics: climate coastal energy, Davis-Bacon Act, energy, faq, federal funding, funding, incentives, infrastructure, questions and answers
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