If you bid public or government-funded construction, you will hear "prevailing wage" and "Davis-Bacon" constantly—often as if they mean the same thing. They are closely related but distinct, and understanding the difference keeps you compliant and paid.
What is the Davis-Bacon Act?
The Davis-Bacon Act is the federal law that requires contractors on federal and federally assisted construction projects over $2,000 to pay laborers and mechanics no less than the local prevailing wages and fringe benefits. It is the law that creates the requirement.
What is a prevailing wage?
A prevailing wage is the actual required hourly wage plus fringe benefits for a specific job classification in a specific geographic area, as determined by the Department of Labor. Davis-Bacon is the law; the prevailing wage is the rate the law requires you to pay.
Do states have their own prevailing wage laws?
Yes. Many states have their own prevailing wage laws (sometimes called "little Davis-Bacon" laws) that apply to state-funded projects, often with their own rates and reporting rules. Always check both federal and state requirements for your project.
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