Prevailing Wage & Davis-Bacon

On many public construction projects, contractors must pay at least the “prevailing wage,” a set hourly rate plus fringe benefits for each trade in that area. It is often much higher than minimum wage.

• Construction
• State-specific

Federal: the Davis-Bacon Act

• Applies to federal and D.C. contracts over $2,000 for construction, alteration or repair of public buildings and public works, and to many federally funded projects through “Related Acts” (for example, highway, housing and water projects).
• Laborers and mechanics must be paid at least the wage rate and fringe benefits listed in the project’s wage determination for their trade classification.
• You must be paid for the classification of work you actually do. If you run a piece of equipment, you get the operator rate for those hours.
• Contractors submit weekly certified payroll reports.
• The wage determination and a Davis-Bacon poster must be posted at the site.
• Overtime still applies on top of prevailing wage.

State prevailing wage laws

Many states have their own “little Davis-Bacon” laws for state- and locally funded public projects, each with its own dollar threshold and rates. Some states have no state prevailing wage law or have repealed theirs, and a few have recently restored or added one. Check your state labor department for current rules.

Signs of prevailing wage violations

• Being paid one flat rate no matter what work you do
• Being classified as a “laborer” while doing skilled trade work
• Fringe benefits not paid as wages or into a real benefit plan
• Being asked to sign false payroll records or “kick back” part of your pay

Last updated: October 1, 2026