FEDERAL PREVAILING WAGE

The Davis-Bacon Act, enacted in 1931, requires contractors to pay the local prevailing wage on most federally funded construction projects. The wage rates are set by the U.S. Department of Labor.

Companies awarded a federally funded construction project must:

• Make sure all contractors and sub-contractors comply with Davis-Bacon requirements.
• Pay prevailing wages to all workers.
• Accurately classify workers according to the work they perform.
• Submit copies of certified payroll records to contracting agencies weekly.
• Attach a “Statement of Compliance” to each certified payroll record submitted.
 

Davis-Bacon violations can result in:

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• Termination of contract.
• Liability for back wages and fringe benefits.
• Debarment from bidding on future federally funded construction projects for up to three years.
• Liability for any resulting costs to the government.