Below are some frequently asked questions about prevailing wage laws in Texas. Contact us for any specific questions.
What is Prevailing Wage?

The prevailing wage rate was established to ensure that contractors have a level playing field when bidding on government projects and ensuring that construction workers are paid a fair wage when working on these projects. These hourly wages and fringe benefits are based on craft and location.

Basics of Prevailing Wage Rates in Texas

All the counties in Texas must choose between adopting the Federal Davis Bacon Act or the Texas Code 2258. The cities/counties in which the Davis Bacon Act applies are:

Austin Baytown Houston
Houston Airports Lubbock Pasadena
Texas City Galveston County Galveston County College of Mainland
Harris County Harris County Hospital District Metropolitan Transportation Authority of Harris County
Texas Facilities Commission  


The prevailing wage rates are determined by the trade classification and by the location of the work performed. These wage determinations can be found here.

Threshold Requirement
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.
Overtime Determinations

Overtime must be paid by contractors and subcontractors whose employees work more than 40 hours in a work week. The rate is one and one-half times the prevailing wage. The fringe benefits are excluded from overtime payment calculation. This overtime regulation only applies to Davis Bacon work. If an employee worked a combination of Davis Bacon and non-Davis Bacon work then the overtime calculation doesn’t apply to the Davis Bacon wage rate, however under the Fair Labor Standards Act overtime will still apply. This overtime, however, will not be based on the prevailing wage rate set under the Davis Bacon Act.

What can be considered Fringe Benefits?
On a job regulated by the Davis Bacon Act, workers must be paid a certain wage and a set amount must be contributed to fringe benefits. The government considers the following as fringe benefits to:

The costs for fringe benefits are incurred by the contractor/employer; they are not payroll deductions from employee pay.

Reporting Requirements

General contractors must submit a certified 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. The Texas Department of Transportation (TxDot) has the option for electronic fillings. The TxDOT submission instructions can be found here.

Forms and More Information

UPDATED: 2019 Prevailing Wage Rates click here.

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

Information about Texas Code 2258 click here.

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

Failure to comply with Prevailing Wage and Certified Payroll requirements can result in fines and penalties, which can cause your company to be banned from doing government contracts.

Have any questions about prevailing wage laws? Let us know and one our Certified Payroll Specialist will be in touch.

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.