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Davis-Bacon Act requirements: a contractor's checklist

On federally funded or assisted construction contracts over $2,000, the Davis-Bacon Act requires contractors and subcontractors to pay laborers and mechanics at least the locally prevailing wage and fringe benefits in the contract's wage determination, pay them every week, file weekly certified payrolls, keep records for three years and post the required notices on site. The checklist below covers each duty and the current (2026) status of the rules.

Is your contract covered?

The checklist

#RequirementWhat it means in practice
1Pay prevailing wagesAt least the basic rate plus fringe for each classification in the wage determination, for the work actually performed
2Fringe benefitsPaid as cash, bona fide plans or both; plan credits generally annualized
3Pay weekly"Unconditionally and not less often than once a week", with no rebates or kickbacks (Copeland Act)
4OvertimeContracts over $100,000: time and a half of the basic rate after 40 hours in a workweek (Contract Work Hours and Safety Standards Act)
5Certified payrollA signed payroll for each week with covered work, sent to the agency (via the prime on most federal jobs). See what is certified payroll
6Classify correctlySplit a worker's hours across classifications only if your time records show the split; otherwise pay the highest rate
7Missing classificationsRequest a conformance (SF-1444) through the contracting officer
8ApprenticesOnly registered apprentices, at program rates and within ratios (details)
9PostingThe Davis-Bacon poster (WH-1321) and the wage determination posted where workers can easily see them
10RecordsPayrolls and basic records kept for 3 years after all work on the prime contract is complete, available to the agency and DOL
11Flow-downThe labor clauses in every subcontract, every tier; the prime is responsible for subs' compliance (subcontractors)
12No retaliationThe 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.

ItemCalculationAmount
40 straight hours40 × ($28.00 + $11.50)$1,580.00
5 overtime hours5 × ($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

Where the rules stand in 2026

ChangeStatus
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 wageStill 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

  1. Get the wage determination from the contract and list the classifications you'll use.
  2. Set up a pay rate for each classification in payroll, with overtime at 1.5 × the basic rate.
  3. Decide how you'll pay fringes (cash, plans or both) and work out annualized plan credits.
  4. Put the labor clauses and the WD in every subcontract.
  5. Post the WH-1321 poster and the WD on site.
  6. Track daily hours by classification for every worker.
  7. After the first payday, file payroll No. 1. Our free WH-347 generator fills it from your payroll export.

Sources

General information as of November 2026, not legal advice. Your contract, wage determination and the agency's instructions govern.

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.