Source & Authority Information
- •Federal Acquisition Regulation(accessed 2026-01-15)
- •SBA Federal Contracting(accessed 2026-01-15)
- •SAM.gov(accessed 2026-01-15)
Understanding Davis-Bacon Act Fundamentals
Wage Determinations and Worker Classifications
- Building construction: Commercial buildings, office structures, institutional facilities, and similar building construction projects where the primary purpose is enclosed building space for human occupancy or equipment housing.
- Residential construction: Housing projects including single-family homes, apartments, condominiums, and similar residential structures primarily intended for human habitation and domestic living purposes.
- Heavy construction: Infrastructure projects including dams, bridges, tunnels, water treatment facilities, power plants, and similar non-building construction that is not highway or building construction.
- Highway construction: Roads, streets, highways, airport runways, parking lots, and similar horizontal surface construction for vehicle transportation purposes.
Compliance Requirements and Obligations
- 1Identify applicable wage determinations before bidding
Review the wage determinations incorporated into the solicitation or contract before preparing your bid or proposal. Understand the minimum wage rates and fringe benefits required for all worker classifications you expect to employ on the project. Factor these mandatory labor costs accurately into your pricing. Wage determination rates are minimums that you must pay regardless of your standard company wage scales.
- 2Properly classify all workers performing covered work
Classify workers based on the actual duties they perform on the project, not arbitrary titles or classifications you might prefer to assign. Review worker duties against wage determination classifications to ensure accurate assignment. When workers perform duties in multiple classifications, establish systems to track time in each classification or pay the highest applicable rate for all hours.
- 3Pay at least prevailing wages and fringe benefits
Ensure all covered workers receive at least the base hourly rate plus fringe benefit amount specified in the applicable wage determination for their classification. Fringe benefits may be paid through qualifying benefit plans or as additional cash wages. Document how fringe benefit obligations are satisfied. Prevailing wage includes both base rate and fringe components.
- 4Maintain complete and accurate payroll records
Keep detailed payroll records showing worker names, addresses, classifications, hours worked daily and weekly, actual wages paid, and fringe benefits provided. Records must demonstrate compliance with prevailing wage requirements for each pay period. Retain records for at least three years after project completion. Records must be available for government review upon request.
- 5Submit weekly certified payroll reports
Prepare and submit certified payroll reports weekly to the contracting agency using required formats, typically WH-347 forms or electronic equivalents. Certify that payroll information is complete and accurate and that workers received at least prevailing wages. False certification constitutes a serious violation with significant consequences.
- 6Post required workplace notices
Display the official Davis-Bacon poster at the job site in a location accessible to all workers. Post the applicable wage determination so workers can verify the minimum rates for their classifications. Ensure notices remain posted throughout project duration. Posting requirements provide workers information to identify potential violations.
Fringe Benefit Requirements
Subcontractor Oversight and Flow-Down
Common Violations and Consequences
- Worker misclassification: Classifying workers in lower-paid categories than their actual duties warrant, resulting in underpayment of prevailing wages for the work actually performed.
- Wage rate violations: Paying covered workers less than the sum of the basic hourly rate plus fringe benefits specified in the applicable wage determination for their classification.
- Fringe benefit shortfalls: Failing to provide qualifying fringe benefits or cash equivalents sufficient to satisfy the total fringe benefit obligation for covered workers.
- Overtime calculation errors: Incorrectly calculating overtime pay for covered workers, who must receive time and one-half for hours exceeding forty in a workweek.
- Recordkeeping failures: Maintaining inadequate payroll records that do not document compliance with classification, wage rate, and fringe benefit requirements.
- Certified payroll deficiencies: Submitting incomplete, inaccurate, or late certified payroll reports to the contracting agency.
- Kickback schemes: Requiring or permitting workers to return portions of their wages, effectively reducing compensation below prevailing wage rates.
- Apprenticeship violations: Improperly using apprentice classifications or failing to comply with registered apprenticeship program requirements.
