How to Read a Wage Determination: The BEST Guide for Prevailing Wage Projects

Understanding Federal Wage Determinations

Federal wage determinations are critical documents for construction contractors working on government projects, yet they can be extremely complex to navigate. As prevailing wage requirements continue to evolve, understanding how to correctly interpret these determinations is essential for compliance and profitability.

At eBacon, we’ve streamlined the prevailing wage compliance process through our specialized payroll management system. This comprehensive guide will walk you through the intricacies of federal wage determinations, highlighting common challenges and providing expert solutions to ensure your projects remain compliant.

Official Source for Wage Determinations

As of 2025, the U.S. government posts all wage determinations on SAM.gov. This platform offers advanced search capabilities, though navigating historical wage determinations can still be challenging.

Essential Information for Your Search

Before beginning your research, gather these key details:

• State and County: Precisely identify where the work will take place
• Type of Work: Determine whether it falls under DBA (construction) or SCA (services)
• Award Date: The official date your project was awarded
• Construction Category: For DBA projects, identify if it’s Building, Highway, Heavy, or Residential

Pro Tip: Always confirm your research with your agency contact to ensure complete compliance.

Navigating the SAM.gov Search System

When searching for determinations on SAM.gov, follow these steps:

Compare older and newer revisions to understand rate changes

1. Choose Your Search Type:

• DBA/I do not know the number – For construction-related work
• SCA/I do not know the number – For service contracts
• I do know the number – If you have the exact determination number
• I do not know the number – For general research

2. Filter Your Search:

• Enter the state, county, and work type
• For pre-2019 determinations, uncheck “Active Only” and enter the year in keywords

3. Review Revision History:

• Always check the “History” button first
• Match the revision date to your project’s award date

Understanding Wage Determination Numbers

Each wage determination has an identifier that provides valuable information:

The Three Components of a Wage Determination Number:

1. State Code: Two-character code (e.g., GA for Georgia)
2. Year: When the determination was revised
3. 4-Digit Identifier: Specific code for the determination (sometimes shortened to GA102)

Construction Types Under the Davis-Bacon Act

Davis Bacon Act (DBA) wage determinations generally fall into four broad categories:

• Building: Commercial buildings, hospitals, schools
• Highway: Roads, streets, highways, runways
• Heavy: Non-building projects like dams, water/sewer lines
• Residential: Single-family houses, townhouses, apartment buildings

Service Contract Act Concerns

The Service Contract Act does not have different categories; there are simply classifications for a specific region. However, the classifications themselves can be vague.

It is important to note that sometimes these definitions may be modified, so read the determination closely to make sure that the type is within the scope of your actual work.

Some determinations may have multiple construction types that apply to it, e.g. Heavy or Highway. Furthermore some determinations may say “Heavy,” but are specifically for dam construction or dredging projects.

Critical Step: Always read the full definition of the construction type, as it may contain specific inclusions or exclusions.

Geographic Coverage and Exclusions

Pay careful attention to the geographic scope of each determination:

• Some determinations apply statewide
• Others cover specific counties or cities
• Special exclusions may apply to certain regions (e.g., tribal lands)
• Individual classifications within a determination may have different geographic boundaries

When reviewing a wage determination, it is important to note that even if a county is mentioned at the top of the wage determination, it does not necessarily mean that every classification in that determination will apply to it. As mentioned later in this guide each classification can be further sub-classified into specific sections and chunks of a county.

Example of Geographic Complexity:

In some determinations a county might be split based on geographic features. For instance, in Herkimer County, NY, classifications might differ east and west of the railroad station at Little Falls.

Wage Determination Classifications

Understanding Rate Identifiers

Each classification group begins with a rate identifier that provides additional context:

UAVG-OH-0010: “UAVG” shows that 100% of data came from unions, but no single majority rate existed

SUAZ2011-005: “SU” indicates rates derived from a weighted survey average

IRON0075-008: No “SU” prefix means rates are based on the local union agreement

Area Modifiers and Classification Specificity

Classification rates can vary significantly based on:

• Specific work conditions or tasks
• Geographic area within counties
• Equipment specifications (e.g., crane size)

County Searches

County areas are not always easy to figure out either. In the example for Herkimer County, you would need to open Google Maps and draw a line running north and south through the railroad station at Little Falls, New York. Anything that is east of this and within the county would fall under this classification and anything west would fall under another classification.

Each line indicates a separate group of classifications. A classification is the type of work that an employee performs while on the project. Each line has associated rates and fringes included with it.

Finding the right classification is half the battle of making sure you’re paying your employees correctly. Each classification can have many different modifiers, such as area or distance. Some classifications can also be confusing to read and understand exactly how it applies to your workforce.

Finding the Right Classification:

1. Look for classifications that explicitly match your work type
2. If no exact match exists, move toward broader classifications
3. Some roles (like welding) inherit their classification based on the primary work being performed

Navigating Multiple Classifications Across Determinations

Each wage determination has its own unique set of classifications that can vary significantly—even within the same state. A worker might fall under different classifications depending on the specific determination applicable to each project.

Key points to remember:

• Never assume classifications are consistent across different determinations
• Evaluate each project’s determination independently
• Some work types (like welding) are considered “incidental” and inherit the classification of the primary work being performed

For example, if an employee performs welding while completing roofing tasks, you would apply the roofing classification rather than a separate welding rate. This principle helps ensure accurate wage compliance while avoiding unnecessary classification complexity.

Understanding Wage and Fringe Rates

Base Wage Rates:

The determination specifies the minimum hourly rate for each classification. These rates may have modifiers based on:

• Equipment size or capacity
• Experience level
• Special conditions

Fringe Benefits:

Fringe amounts must be paid in addition to the base wage:

• Can be provided as benefits (health insurance, pension, etc.)
• Any unpaid portion must be added to the hourly cash wage
• Some fringes are expressed as percentages of the base wage
• Fringes must typically be “annualized” so they’re not just offered during government projects

Fringe Modifications

Much like rates, fringes can also be modified. In the below example, there are additional fringes that must be paid — one is an additional vacation based on the tenure of the elevator constructor. The second is a list of holidays that must be paid out. Holidays are mentioned below. However, some classifications may have holidays that are not standard with the government’s definition.

What does a percentage mean on a fringe payment?

When you see a percentage, this means that you have to pay a percent of the hourly wage per hour in fringes to that employee. This affects contractors who pay above the prevailing wage and makes sure that the amount of the fringe keeps up with the amount of pay. In the example above, a flagman is paid a base of $27 an hour, meaning that the fringe would be $25.97 per hour. If the flagman was paid $50 an hour, it would mean a required fringe of $27.53 per hour.

Zone Pay Considerations

Remote or difficult-to-access work locations may require additional pay:

• Determinations may specify zone pay based on distance from a city center
• Multiple zone structures may exist within a single determination
• Use mapping tools to accurately calculate “as the crow flies” distances

Wage Determination Classification Groups and Work Types

Many determinations use numbered groups instead of descriptive classifications:

• Accurate time tracking by specific equipment type is essential for compliance
• Power equipment operators are commonly organized by groups
• Each group contains detailed lists of qualifying equipment or tasks

Holiday Pay Requirements

Even if not explicitly mentioned, federal holidays typically require payment:

• Some classifications list specific holidays that qualify for pay
• State-specific holidays may also apply (e.g., Nevada Day)
• Always check both the determination and applicable state laws

How to Properly Classify Work in a Time and Attendance System

The key to compliance is accurate time and task tracking:

1. Map determination classifications to your internal task codes
2. Train employees to document task changes in real-time
3. Ensure your system can calculate the correct rates based on multiple factors

Simplify Compliance with eBacon

eBacon’s specialized payroll management system addresses these complexities by:

• Automatically mapping tasks to proper classifications
• Calculating correct wages and fringes based on multiple variables
• Tracking employee time across different classifications
• Generating compliant certified payroll reports

Don’t risk costly penalties or back-wage payments. Reach out to eBacon for a personalized tour so that you can learn to handle the complexities of prevailing wage compliance while you focus on delivering quality projects on time and within budget.

Basic Wage Determination Q&A —

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The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.