Is your contract covered?
- Davis-Bacon Act: contracts over $2,000 to which the federal government or DC is a party, for "construction, alteration, or repair (including painting and decorating) of public buildings or public works".
- Related Acts: dozens of laws that attach the same requirements to projects the federal government assists through grants, loans, loan guarantees and insurance (federal-aid highways, HUD housing programs, water and wastewater funds, transit and more). Your funding agreement says if one applies.
- Workers covered: laborers and mechanics, meaning those who do manual or physical work, including working foremen who spend more than 20% of their week on it. Supervisors, clerical and professional staff are not.
- State law on top: many states have their own prevailing wage laws for state and local projects, with their own rates and filing rules.
The checklist
| # | Requirement | What it means in practice |
|---|---|---|
| 1 | Pay prevailing wages | At least the basic rate plus fringe for each classification in the wage determination, for the work actually performed |
| 2 | Fringe benefits | Paid as cash, bona fide plans or both; plan credits generally annualized |
| 3 | Pay weekly | "Unconditionally and not less often than once a week", with no rebates or kickbacks (Copeland Act) |
| 4 | Overtime | Contracts over $100,000: time and a half of the basic rate after 40 hours in a workweek (Contract Work Hours and Safety Standards Act) |
| 5 | Certified payroll | A signed payroll for each week with covered work, sent to the agency (via the prime on most federal jobs). See what is certified payroll |
| 6 | Classify correctly | Split a worker's hours across classifications only if your time records show the split; otherwise pay the highest rate |
| 7 | Missing classifications | Request a conformance (SF-1444) through the contracting officer |
| 8 | Apprentices | Only registered apprentices, at program rates and within ratios (details) |
| 9 | Posting | The Davis-Bacon poster (WH-1321) and the wage determination posted where workers can easily see them |
| 10 | Records | Payrolls and basic records kept for 3 years after all work on the prime contract is complete, available to the agency and DOL |
| 11 | Flow-down | The labor clauses in every subcontract, every tier; the prime is responsible for subs' compliance (subcontractors) |
| 12 | No retaliation | The 2023 rule added an explicit ban on retaliating against workers who raise wage concerns or cooperate with investigations |
How the pay rules fit together
Wage determination: Laborer, $28.00 + $11.50 fringe. A laborer works 45 hours on a $2 million federal contract; you pay the fringe in cash.
| Item | Calculation | Amount |
|---|---|---|
| 40 straight hours | 40 × ($28.00 + $11.50) | $1,580.00 |
| 5 overtime hours | 5 × ($28.00 × 1.5 + $11.50) | $267.50 |
| Minimum for the week | $1,847.50 |
The overtime premium is on the basic rate only; the fringe is owed for every hour at the straight rate.
What happens if you don't comply
- Back wages owed to workers, and since the 2023 rule, interest on them.
- Withholding: the agency can hold back contract payments to cover unpaid wages, including a subcontractor's, on this or other contracts with the same prime.
- Contract termination and liability for any added cost.
- Debarment: barred from federal contracts for up to three years.
- False statements on certified payroll can bring criminal and civil liability (for example 18 U.S.C. 1001 and the False Claims Act).
Where the rules stand in 2026
| Change | Status |
|---|---|
| DOL's 2023 rule "Updating the Davis-Bacon and Related Acts Regulations" | In effect since October 23, 2023, except three provisions |
| Enjoined provisions (nationwide preliminary injunction, June 24, 2024) | Material supplier distinction; prevailing wage for onsite time of delivery truck drivers; clauses applying "by operation of law" when wrongly left out. DOL says these "may not be implemented or enforced at this time" |
| Executive Order 14026 ($17.75 federal contractor minimum wage) | Revoked March 14, 2025 by EO 14236; DOL no longer enforces it |
| Executive Order 13658 minimum wage | Still applies to certain contracts entered into 2015–early 2022 and not renewed since: $13.65/hour from May 11, 2026 |
Rules change; check DOL's Davis-Bacon rulemaking page before relying on this table.
Starting a covered job: first-week steps
- Get the wage determination from the contract and list the classifications you'll use.
- Set up a pay rate for each classification in payroll, with overtime at 1.5 × the basic rate.
- Decide how you'll pay fringes (cash, plans or both) and work out annualized plan credits.
- Put the labor clauses and the WD in every subcontract.
- Post the WH-1321 poster and the WD on site.
- Track daily hours by classification for every worker.
- After the first payday, file payroll No. 1. Our free WH-347 generator fills it from your payroll export.
Sources
- DOL WHD: Davis-Bacon and Related Acts
- DOL WHD: Davis-Bacon rulemaking and injunction
- DOL WHD: federal contractor minimum wage (EO 14026, EO 13658)
- 29 CFR 5.5: contract provisions
General information as of November 2026, not legal advice. Your contract, wage determination and the agency's instructions govern.
Related guides
- What is certified payroll?
- Find and read your wage determination
- Davis-Bacon fringe benefits, with examples
- Certified payroll for subcontractors
Questions
What is the Davis-Bacon threshold?
Contracts over $2,000. The overtime law (CWHSSA) applies to covered contracts over $100,000.
Does Davis-Bacon apply to subcontractors?
Yes, at every tier, and the prime is responsible for their compliance.
Is the 2023 rule in effect?
Yes, except three provisions blocked by a June 2024 nationwide injunction.
Does the $17.75 contractor minimum wage still apply?
No. EO 14026 was revoked on March 14, 2025. EO 13658 still covers some older contracts at $13.65 from May 11, 2026.
What poster is required?
The Davis-Bacon poster, WH-1321, plus the wage determination, posted where workers can see them.