Introduction to the Davis Bacon Act

Davis Bacon Act Basics for Prevailing Wage Contractors
The Davis Bacon Act was created in 1931 with the intention of ensuring fair wages for all workers on Federal construction contracts. According to the U.S. Department of Labor (DOL):

“The DBA applies to contracts involving the construction, alteration, and/or repair (including painting or decorating) of public buildings or public works. These contracts must specify the minimum wages and fringe benefits to be paid to laborers and mechanics employed under the contract.”

To provide an idea of how large a scale this encompasses, from 2014 – 2017, more than 70 federal agencies spent over $169 billion on covered construction projects. The Department of Labor organizes these projects into four broad categories: Heavy, Highway, Building and Residential.

When the Davis Bacon Act Applies
• Federal government construction projects (buildings, public works etc.)
• Includes building, heavy, highway and residential categories
• Employees on the job site are doing manual or physical labor
• Jobs or contracts over $2,000

What it Mandates:
• Employees must be compensated with minimum prevailing wage and fringe benefits
based on their role not skill level (rates determined by the DOL and vary state-to-state)
• Posting those rates on the job-site
• Weekly certified payroll reports
• Full record keeping for a minimum of three years

Who it Applies To:
• Contractors and subcontractors, all employers

Why it’s Important to Your Business:
• Face fines, penalties and back-wages for non-compliance
• Potential withholding of contract funds by the government
• Potential “debarment” (no bidding for 3 years)
• Potential to maximize your bottom line by leveraging fringe benefits in lieu of cash
compensation. According to the DOL:

“Contractors may take credit (without prior approval from DOL) for bona fide FB fund contributions made to third-party trustees or insurers that: Are irrevocably paid; and Are made regularly, not less often than quarterly.”

At Archer Jordan we are experts at building and administering bona fide fringe benefit packages for government contractors. Our plans ensure compliance, increase bid competitiveness and maximize profitability.

3 handbook cover images.

For Government Contractors

Our Contract Compliance
Handbook Series will help ensure your company is fully compliant and positioned to win and secure more bids!


AD & D
Affordable Care Act
AK Prevailing Wage
AL Prevailing Wage
AR Prevailing Wage
AZ Prevailing Wage
CA Prevailing Wag
CA Prevailing Wage
CA Prevailing Wage 401k
Call Centers
CO Prevailing Wage
Compliance Tips
Critical Illness
CT Prevailing Wage
Davis Bacon Act
DE Prevailing Wage
Department of Labor
Disability Insurance
Employee Benefits
Employee Training
Employer Tips
Farm Labor Plan
Fixed Indemnity
FL Prevailing Wage
Fringe Benefits
GA Prevailing Wage
Government Contracting
Government Contractors
Health and Welfare Wrap
Healthcare Benefits
HI Prevailing Wage
Hospitality Benefits
Hourly Seasonal Workers
Hourly Workforce
Human Resources
ID Prevailing Wage
IL Prevailing Wage
IN Prevailing Wage
IO Prevailing Wage
KS Prevailing Wage
KY Prevailing Wage
LA Prevailing Wage
Limited Medical
MA Prevailing Wage
Major Medical Insurance
McNamara-O’Hara Act
MD Prevailing Wage
ME Prevailing Wage
MI Prevailing Wage
MN Prevailing Wage
MO Prevailing Wage
MS Prevailing Wage
MT Prevailing Wage
NC Prevailing Wage
ND Prevailing Wage
NE Prevailing Wage
NH Prevailing Wage
NJ Prevailing Wage
NM Prevailing Wage
NSRMCA Members
NV Prevailing Wage
NY prevailing wage
OH Prevailing Wage
OK Prevailing Wage
OR Prevailing Wage
PA Prevailing Wage
Part Time Employees
Podcast Guest Appearances
Prevailing Wage
Prevailing Wage Workers
Restaurant Group Benefits
Retirement Plans
RI Prevailing Wage
SC Prevailing Wage
SCA Audits
SCA Compliance
SD Prevailing Wage
Seasonal Workers
Service Contract Act
Small Business
State Prevailing Wage
SUB Plan
Supplemental Benefits
Supplemental Unemployment
Third Party Administrator
TN Prevailing Wage
Trust Services
TX prevailing wage
UT Prevailing Wage
VA Prevailing Wage
Violations – SCA
Voluntary Benefits
WA Prevailing Wage
WI Prevailing Wage
Workplace Health
Workplace Safety
WV Prevailing Wage
WY Prevailing Wage