Davis-Bacon & Prevailing Wage Compliance
Federal construction compliance agent. Covers Davis-Bacon Act, Related Acts, state prevailing wage laws, and DOL Wage Determinations.
When to Use
- Bidding on federal or federally-assisted construction projects
- Determining prevailing wage rates for a project
- Certified payroll preparation and submission
- DOL compliance reviews or investigations
- State prevailing wage ("little Davis-Bacon") requirements
- Apprenticeship program compliance on federal jobs
Capabilities
Wage Determination Lookup
Help contractors find the correct DOL Wage Determination (WD) for their project:
| Factor | Details |
|---|---|
| WD Types | General (heavy, highway, building, residential) vs Project-specific |
| Geographic scope | County-level rates — must match project location exactly |
| Modification tracking | WDs updated weekly; locked 10 days before bid opening |
| Rate components | Basic hourly rate + fringe benefits = total prevailing wage |
| SAM.gov lookup | All WDs published at sam.gov/wage-determinations |
Covered Projects
| Threshold | Requirement |
|---|---|
| Davis-Bacon Act | Direct federal contracts >$2,000 for construction/repair/alteration |
| Related Acts | ~60 federal statutes (CDBG, FHWA, FAA, HUD, EPA SRF, WIFIA, IIJA, IRA) |
| IIJA (2021) | Infrastructure Investment and Jobs Act — $550B+ in new spending, all DB-covered |
| IRA (2022) | Inflation Reduction Act — clean energy projects require prevailing wage for full tax credits |
| State laws | 28 states + DC have prevailing wage laws (varying thresholds $1K-$250K) |
Certified Payroll Requirements
Weekly certified payroll (WH-347) must include:
| Field | Requirement |
|---|---|
| Employee info | Name, address, last 4 SSN, work classification |
| Hours | Daily and weekly hours, straight time and overtime |
| Rate | Hourly rate + fringe breakdown (cash or bona fide plan) |
| Deductions | Itemized, only permissible deductions (29 CFR 3) |
| Certification | Signed Statement of Compliance (weekly) |
| Submission | Weekly to contracting agency — retained 3 years minimum |
| Electronic | LCPtracker, Elation Systems, B2Gnow accepted by most agencies |
Classification & Wage Conformance
When a needed classification doesn't appear on the WD:
- Check existing classifications — often a similar one covers the work
- Request conformance — submit SF-1444 to contracting officer
- CO forwards to DOL — Wage and Hour Division reviews within 30 days
- Interim rate — pay proposed rate pending DOL determination
- No self-classification — contractor cannot unilaterally assign rates
Common Violations & Penalties
| Violation | Penalty Range |
|---|---|
| Underpayment | Back wages + interest (liquidated damages = 100% of underpayment) |
| Falsified certified payroll | Criminal: up to $10,000 fine + 10 years imprisonment (18 USC 1001) |
| Kickbacks | Criminal: up to $5,000 fine + 5 years imprisonment per occurrence |
| Debarment | 3-year ban from ALL federal contracts (company + individuals) |
| Cross-debarment | Federal debarment recognized by most states |
| Willful violations | DOL refers to DOJ for criminal prosecution |
| Subcontractor liability | Prime contractor jointly liable for sub violations |
Fringe Benefits Compliance
| Method | Requirements |
|---|---|
| Bona fide plan | Irrevocable contributions to health, pension, vacation, apprenticeship funds |
| Cash equivalent | Pay fringe amount as cash wages (added to base rate) |
| Combination | Partial plan + partial cash — must total full fringe rate |
| Annualization | Cannot credit plan costs for non-covered work |
| Documentation | Maintain plan documents, contribution records, benefit statements |
Apprenticeship Requirements
| Requirement | Details |
|---|---|
| Registration | Must be registered with DOL/BAT or recognized SAA |
| Ratio | Cannot exceed approved apprentice-to-journeyworker ratio |
| Rate | Percentage of journeyworker rate per registered program schedule |
| Supervision | Must work under journeyworker on-site |
| Non-registered | Laborer or mechanic rate required — no apprentice discount |
| IIJA/IRA bonus | Some programs require apprenticeship utilization for full funding |
State Prevailing Wage Quick Reference
| State | Threshold | Key Differences from Federal |
|---|---|---|
| California | $1,000 (public works) | DIR registration required, electronic CPR, steep penalties |
| New York | $0 (all public work) | Fiscal officer determines rates, broader coverage |
| Illinois | $0 (all public work) | Separate rates by county, monthly reporting |
| Massachusetts | $0 (all public work) | Weekly payroll + monthly certified statements |
| New Jersey | $2,000 | Registration Act compliance, stop-work authority |
| Ohio | $250,000 | Covers new construction only (not repair/maintenance) |
| Pennsylvania | $25,000 | Separate determination process from federal |
| Washington | $0 (all public work) | Intent/affidavit filing before work begins |
Investigation & Audit Preparation
Pre-audit checklist:
- [ ] All WH-347 certified payrolls filed weekly
- [ ] Wage determination posted at job site (physical or electronic)
- [ ] Employee interviews match payroll records
- [ ] Fringe benefit contributions documented and current
- [ ] Apprentice registrations on file
- [ ] Subcontractor payrolls collected and reviewed
- [ ] Time records match daily logs/sign-in sheets
- [ ] No split classifications without documentation
- [ ] Overtime calculated correctly (40-hour week, per FLSA)
- [ ] All required posters displayed (WH-1321 "Employee Rights")
IRA Prevailing Wage & Apprenticeship (Clean Energy)
For Inflation Reduction Act tax credit projects:
| Credit | Base | With PW&A | Multiplier |
|---|---|---|---|
| ITC (Solar/Wind) | 6% | 30% | 5x |
| PTC (Wind/Other) | 0.3¢/kWh | 1.5¢/kWh | 5x |
| 45X Manufacturing | Base amount | 3x base | 3x |
| 45V Hydrogen | $0.12-0.60/kg | $0.60-3.00/kg | 5x |
Requirements: Pay prevailing wages during construction AND for 5 years after placed in service. Apprenticeship hours = 12.5% (2024), 15% (2025+). Correction/penalty framework for good-faith failures.
Output Format
- Rate lookups: classification, base rate, fringe, total, WD number, expiration
- Compliance reviews: checklist with pass/fail + corrective action
- Risk assessments: violation exposure in dollars + probability
- Bid preparation: wage cost worksheets by classification and hours
Integration
Works with: contract review, construction project management, payroll systems, bid estimation tools.
Need help building compliant payroll systems or automating Davis-Bacon tracking? Browse our full toolkit: https://afrexai-cto.github.io/context-packs/
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