Davis-Bacon & SCA FAQ
Frequently asked questions from federal contractors, subcontractors, and contracting officers.
Does the Davis-Bacon Act apply to my project?
Davis-Bacon applies if: (1) the contract is with the federal government or uses federal funding, (2) the contract is for construction, alteration, or repair work, and (3) the contract value is $2,000 or more. Subcontractors on covered prime contracts are also covered regardless of their subcontract amount. Check with your contracting officer if you are unsure — the applicable wage determination will be incorporated into the contract if Davis-Bacon applies.
What if no wage determination exists for my county?
If no specific WD has been issued for a county, the contracting agency requests one from the DOL Wage and Hour Division prior to solicitation. If a WD is unavailable, the agency may use the WD from a nearby county in the same metropolitan area. Contact WHD at 1-866-4-US-WAGE if you need guidance.
How do I read a wage determination?
A wage determination lists trade classifications in one column and base hourly rates in the next. A separate fringe benefit line shows required hourly fringe (or specific H&W, pension, vacation, training breakdowns). Add the base rate and fringe rate to get the total package — the minimum hourly cost per worker. On this site, all WD pages display base, fringe, and total in a single table.
Do Davis-Bacon wages apply to salaried employees?
Yes — if a salaried employee performs covered construction work on a Davis-Bacon project, you must compare their effective hourly rate (salary divided by hours worked) against the applicable prevailing wage. If it falls below the prevailing wage, you must make up the difference. White-collar exemptions do not apply to Davis-Bacon covered work.
Can I satisfy fringe benefit requirements with cash?
Yes. Contractors may pay fringe benefits as additional cash on top of base wages. For example, if the WD requires $42.00 base + $15.00 fringe = $57.00 total, you can pay $57.00/hr all in cash. You may also satisfy fringe through bona fide benefit plans (insurance, pension, etc.), or a combination — as long as the total hourly cost equals or exceeds the required total package.
How often are wage determinations updated?
DOL typically updates wage determinations annually, usually in the first quarter of the calendar year. However, WDs may be revised more frequently if local wage surveys warrant it. A WD may be updated mid-contract if it is modified within 90 days of contract award (under some programs). Always verify the current revision before bidding.
What is the difference between Davis-Bacon and state prevailing wage laws?
Davis-Bacon is a federal law that applies to federal contracts. Many states have their own "little Davis-Bacon" laws (called state prevailing wage laws or "little DBA" laws) that apply to state-funded construction. If a project receives both federal and state funding, both laws may apply — and you must pay whichever rate is higher for each trade.
What are the penalties for Davis-Bacon violations?
Violations can result in contract termination, withholding of contract payments to cover back wages, debarment from federal contracting for up to 3 years, and criminal prosecution for willful violations (falsifying certified payrolls is a federal crime). Workers who were underpaid are entitled to back wages.
What is a conformance request?
If a job requires a trade classification not listed in the applicable wage determination, the contractor submits a conformance request (DOL Form SF-1444) to add that classification. The new rate must bear a reasonable relationship to existing WD rates. The contracting agency must submit the request to DOL within 30 days of discovering the unlisted classification.
Does Davis-Bacon apply to design-build contracts?
Davis-Bacon applies to the construction portion of design-build contracts. The design services portion is not covered. The wage determination must be incorporated into the contract before construction begins. For design-build solicitations, the agency should identify the applicable WD in the solicitation based on the expected type and location of construction.
Does the Service Contract Act apply to my contract?
The SCA applies if your federal contract is principally for services (not construction), exceeds $2,500, and will be performed in the United States using service employees. Examples include IT support contracts, janitorial services, security guard contracts, and administrative support services. If your contract involves both construction and services, each portion may be subject to different laws.
How do I find which wage determination applies to my contract?
The applicable WD is specified in your contract or solicitation. If not, contact your contracting officer — they are required to incorporate the correct WD before contract award. You can also use this site to look up WDs by county, state, and construction type, or search by WD number.