What Contractors Need to Know About Davis-Bacon Wages

Last Updated: July 2026

Davis-Bacon wages are the minimum hourly pay (a base wage rate plus a fringe benefit rate) that contractors and subcontractors must pay laborers and mechanics on federally funded construction projects. The U.S. Department of Labor (DOL) sets these minimums for each local area based on the wages that already prevail there for similar work, which is why you'll also hear them called "prevailing wages."

If you've held back from bidding on public work because Davis-Bacon felt complicated, you're not alone, and the good news is that the wage piece is more learnable than it looks. Once you understand how the rates are built, where to find the current numbers, and what you owe in reporting, those federally funded contracts become a genuine opportunity rather than a risk.

Davis-Bacon is a federal law, but the wage rates are applied locally, and many states layer their own prevailing wage requirements on top. This guide covers what the wages are, how rates are set and where to find them, how they vary by state, and the reporting that comes with them. For a full explanation of the Davis-Bacon Act itself and the laws related to it, see our companion guide, Understanding the Davis-Bacon Act and Its Related Acts.

Navigate This Article

• What Are Davis-Bacon Wages?
• Davis-Bacon Wage Rates in 2026
• How to Read a Davis-Bacon Wage Determination
• How Davis-Bacon Wages Are Determined
• Davis-Bacon Wages by State
• Davis-Bacon Reporting Requirements
• Frequently Asked Questions 

What Are Davis-Bacon Wages?

A Davis-Bacon wage is made up of two parts: a base hourly rate and a fringe benefit rate. Added together, they equal the total prevailing wage you must pay a worker for a given job classification, such as an electrician, a carpenter, or a laborer.  

The requirement comes from the Davis-Bacon Act of 1931, which applies to federal and District of Columbia contracts over $2,000 for the construction, alteration, or repair of public buildings and public works. On these projects, you must pay each laborer and mechanic at least the prevailing wage for their classification in the project's location, and you must post the applicable wage scale where workers can see it on site. Many states and localities have their own prevailing wage laws (sometimes called "little Davis-Bacon" acts), and where those apply, you have to meet whichever requirement is higher. More on that in Davis-Bacon wages by state.

One of the most commonly misunderstood aspects of Davis-Bacon compliance is how fringe benefits work: the fringe portion doesn't have to be paid as actual benefits. You can satisfy it by providing bona fide benefits (like health insurance or retirement contributions), by paying the equivalent in cash, or by combining the two. We cover that in more detail under calculating fringe benefits.

Wondering whether a particular worker or worksite is even covered? That's a separate question with its own rules. See Davis-Bacon Act: Who's Not Covered.

Davis-Bacon Wage Rates in 2026

There's no single national Davis-Bacon wage. Rates are specific to three things at once:

• The county (or other geographic area)
• The type of construction
• The worker classification

That means the 2026 rate for a plumber on a building project in one county can differ from the rate for the same plumber on a highway project, or in the next county over.

These variables don't work independently. A rate from one project doesn't necessarily carry over to the next. Even the same worker classification in the same county can have a different rate if the construction type changes. That's why even experienced Davis-Bacon contractors pull a fresh wage determination for every new project rather than relying on memory or a previous bid.

Because of that, the most important thing to know about 2026 rates isn't a number. It's where to find the right one for your project.

All federal wage determinations are published on SAM.gov (the System for Award Management). This is the official source, and it replaced the old wdol.gov site, which has been retired. If you have a bookmark for wdol.gov, update it to SAM.gov.

To pull the rate that applies to your job:

1. Go to the wage determinations area of SAM.gov.
2. Select the state and county where the work will be performed.
3. Choose the construction type: building, residential, highway, or heavy.
4. Find your worker classification to see the current base rate and fringe rate.

Wage determinations are updated over time, so always confirm you're working from the version that applies to your contract rather than a rate you saved on a previous job. If you bid using an outdated determination, you can end up owing back wages. 

How to Read a Davis-Bacon Wage Determination

A wage determination can look dense, but it follows a consistent structure. Once you know what each part means, it's straightforward:

• Location and construction type appear at the top: the geographic area and whether it's a building, residential, highway, or heavy determination.
• Worker classifications are listed down the page (laborer, electrician, ironworker, painter, and so on).
• Base rate is the minimum hourly cash wage for that classification.
• Fringe rate is the additional hourly amount owed in benefits.

A quick example. Say a determination lists an electrician at a $32.00 base rate and an $18.50 fringe. The total prevailing wage is $50.50 per hour. You can meet the $18.50 fringe by contributing $18.50/hour to bona fide benefits, by adding $18.50 to the worker's cash wages, or by splitting it (for instance, $12.00 in benefits and $6.50 in cash). Figures are illustrative; always use the current determination for your project.

Learn More about 'How to Read a Wage Determination'

How Davis-Bacon Wages Are Determined:

Contractors are the source: the WD-10 survey

Here's something many contractors don't realize: you are the data behind the rates. The DOL determines prevailing wages largely from surveys it sends to contractors, using Form WD-10. These surveys collect wage and fringe benefit information by construction type (building, residential, highway, and heavy) so the agency can calculate what's actually being paid for each classification in each area.

When the DOL doesn't get enough survey responses from a region, it has to fall back on other data, such as certified payrolls from local projects, and the resulting determinations can end up thin or incomplete. That's why it's in your interest to complete a WD-10 when you receive one: better participation means rates that more accurately reflect real local pay. Good construction payroll software makes this far easier by producing the retrospective payroll reports you need to fill out the form.

How rates are calculated and updated under the 2023 rule

In 2023, the DOL finalized its first comprehensive overhaul of the Davis-Bacon regulations in roughly 40 years. The final rule took effect on October 23, 2023, and two changes matter most for wages:

• How prevailing wages are calculated. The rule restored an earlier method for identifying the prevailing rate, which generally makes it easier for a single rate to be deemed "prevailing" in an area and, over time, tends to push determinations closer to actual local wages.
• How rates stay current. The rule created a mechanism for the DOL to update certain published rates more regularly, so determinations don't go stale for years at a time.

2026 Status: What's in Effect and What's Paused?

Davis-Bacon has been unusually active in the courts, and it's worth knowing where things stand:

• The 2023 final rule is in effect. It took effect on October 23, 2023, including the changes to how prevailing wages are calculated and updated.
• Some coverage expansions are paused. In June 2024, a federal court in Texas issued a nationwide preliminary injunction blocking three provisions that would have expanded Davis-Bacon coverage: to certain delivery truck drivers, to certain material suppliers, and through an "operation of law" provision that applied requirements even when contract clauses were missing.
• The litigation is on hold. In early 2025, the case was stayed so new DOL leadership could review it, leaving those expansions unsettled.

The practical bottom line for 2026: the wage-calculation and rate-update changes apply, but a few of the coverage expansions are not currently being enforced. When in doubt about whether a specific worker or arrangement is covered, work from the current determination and confirm coverage questions against the exemptions and coverage guidance.

Davis-Bacon Wages by State

Federal Davis-Bacon wages serve as the baseline for federally funded work, but they're rarely the full story. Most states have their own prevailing wage laws that apply to state- and locally funded construction, and some set thresholds, classifications, and rates that differ from the federal ones. Where both apply, you generally owe the higher of the two.

States with especially active prevailing wage requirements include California, New York, Ohio, and Washington. Because the details vary widely, the safest approach is to check both the federal determination on SAM.gov and your state's labor department for any state-specific obligations.

For a state-by-state breakdown of prevailing wage and certified payroll requirements, use our State-Specific Prevailing Wages resource.

Davis-Bacon Reporting Requirements

Paying the right wage is only half the obligation. You also have to prove it. Davis-Bacon requires weekly certified payroll reports, typically using federal Form WH-347, plus a signed statement of compliance. Projects under state prevailing wage laws may require additional state-specific forms, which contractors working across multiple states often manage alongside WH-347.

Reporting is usually the most time-consuming part of Davis-Bacon compliance, especially as project and worker counts grow. Certified payroll software can automate WH-347 and state reports, fringe calculations, and audit-ready recordkeeping, but the requirement itself doesn't change: accurate, weekly, certified.

For a full breakdown of certified payroll requirements, see our Davis-Bacon Act and Certified Payroll guide.

With the basics in hand, and payroll and reporting processes that can keep up, federally funded contracts are well within reach. Thousands of contractors rely on Points North to simplify prevailing wage and certified payroll reporting. Talk to us about simplifying your Davis-Bacon wage compliance, or request a demo today using the form below.