The prevailing wage is the average wage paid to workers in similar jobs in your area. This ensures fair pay for construction workers on public projects.

The Department of Labor sets prevailing wage rates for different job titles. These rates are based on local union contracts. You get the wage schedule from the awarding authority (the government agency giving the contract).

The wage schedule applies for the entire project. For long projects, you might need an update. Get updates from the awarding authority. Workers can appeal wage decisions to the DLS Director.

Important! Put the wage schedule up at the worksite. If the awarding authority forgets to give you one, don’t use an old one. Contact them right away to get the correct schedule from the DLS.

The Davis-Bacon Act (DBA) generally applies to contractors and subcontractors who are performing work on federal and federally-funded contracts worth at least $2,000 for construction, alterations (including painting and decorating), or repairs. Any mechanics and laborers who perform work on the site of DBA-covered contracts are required to receive the local area’s prevailing wage rates for their work.

General contractors must submit a certified payroll report on a weekly basis to the contracting agency. Subcontractors must submit their certified reports to the general contractor. The standard form to fill out for a certified report is the WH-347.

Prevailing wage rates can include fringe benefits like health insurance, pensions, and unemployment plans if listed in union agreements. These contributions are listed on the wage schedule. Employers do not have to provide these fringe benefits. Only actual contributions to these plans can be deducted from the total prevailing wage.

The government considers the following as fringe benefits:

For the federal certified payroll reporting form (WH-347) click here.

For more information regarding the Davis Bacon Act and prevailing wage laws click here

For prevailing wage determinations click here.