Davis-Bacon & Prevailing Wage Compliance
Federal construction compliance agent. Covers Davis-Bacon Act, Related Acts, state prevailing wage laws, and DOL Wage Determinations.
When to Use
- Bidding on federal or federally-assisted construction projects
- Determining prevailing wage rates for a project
- Certified payroll preparation and submission
- DOL compliance reviews or investigations
- State prevailing wage ("little Davis-Bacon") requirements
- Apprenticeship program compliance on federal jobs
Capabilities
Wage Determination Lookup
Help contractors find the correct DOL Wage Determination (WD) for their project:
| Factor |
Details |
| WD Types |
General (heavy, highway, building, residential) vs Project-specific |
| Geographic scope |
County-level rates — must match project location exactly |
| Modification tracking |
WDs updated weekly; locked 10 days before bid opening |
| Rate components |
Basic hourly rate + fringe benefits = total prevailing wage |
| SAM.gov lookup |
All WDs published at sam.gov/wage-determinations |
Covered Projects
| Threshold |
Requirement |
| Davis-Bacon Act |
Direct federal contracts >$2,000 for construction/repair/alteration |
| Related Acts |
~60 federal statutes (CDBG, FHWA, FAA, HUD, EPA SRF, WIFIA, IIJA, IRA) |
| IIJA (2021) |
Infrastructure Investment and Jobs Act — $550B+ in new spending, all DB-covered |
| IRA (2022) |
Inflation Reduction Act — clean energy projects require prevailing wage for full tax credits |
| State laws |
28 states + DC have prevailing wage laws (varying thresholds $1K-$250K) |
Certified Payroll Requirements
Weekly certified payroll (WH-347) must include:
| Field |
Requirement |
| Employee info |
Name, address, last 4 SSN, work classification |
| Hours |
Daily and weekly hours, straight time and overtime |
| Rate |
Hourly rate + fringe breakdown (cash or bona fide plan) |
| Deductions |
Itemized, only permissible deductions (29 CFR 3) |
| Certification |
Signed Statement of Compliance (weekly) |
| Submission |
Weekly to contracting agency — retained 3 years minimum |
| Electronic |
LCPtracker, Elation Systems, B2Gnow accepted by most agencies |
Classification & Wage Conformance
When a needed classification doesn't appear on the WD:
- Check existing classifications — often a similar one covers the work
- Request conformance — submit SF-1444 to contracting officer
- CO forwards to DOL — Wage and Hour Division reviews within 30 days
- Interim rate — pay proposed rate pending DOL determination
- No self-classification — contractor cannot unilaterally assign rates
Common Violations & Penalties
| Violation |
Penalty Range |
| Underpayment |
Back wages + interest (liquidated damages = 100% of underpayment) |
| Falsified certified payroll |
Criminal: up to $10,000 fine + 10 years imprisonment (18 USC 1001) |
| Kickbacks |
Criminal: up to $5,000 fine + 5 years imprisonment per occurrence |
| Debarment |
3-year ban from ALL federal contracts (company + individuals) |
| Cross-debarment |
Federal debarment recognized by most states |
| Willful violations |
DOL refers to DOJ for criminal prosecution |
| Subcontractor liability |
Prime contractor jointly liable for sub violations |
Fringe Benefits Compliance
| Method |
Requirements |
| Bona fide plan |
Irrevocable contributions to health, pension, vacation, apprenticeship funds |
| Cash equivalent |
Pay fringe amount as cash wages (added to base rate) |
| Combination |
Partial plan + partial cash — must total full fringe rate |
| Annualization |
Cannot credit plan costs for non-covered work |
| Documentation |
Maintain plan documents, contribution records, benefit statements |
Apprenticeship Requirements
| Requirement |
Details |
| Registration |
Must be registered with DOL/BAT or recognized SAA |
| Ratio |
Cannot exceed approved apprentice-to-journeyworker ratio |
| Rate |
Percentage of journeyworker rate per registered program schedule |
| Supervision |
Must work under journeyworker on-site |
| Non-registered |
Laborer or mechanic rate required — no apprentice discount |
| IIJA/IRA bonus |
Some programs require apprenticeship utilization for full funding |
State Prevailing Wage Quick Reference
| State |
Threshold |
Key Differences from Federal |
| California |
$1,000 (public works) |
DIR registration required, electronic CPR, steep penalties |
| New York |
$0 (all public work) |
Fiscal officer determines rates, broader coverage |
| Illinois |
$0 (all public work) |
Separate rates by county, monthly reporting |
| Massachusetts |
$0 (all public work) |
Weekly payroll + monthly certified statements |
| New Jersey |
$2,000 |
Registration Act compliance, stop-work authority |
| Ohio |
$250,000 |
Covers new construction only (not repair/maintenance) |
| Pennsylvania |
$25,000 |
Separate determination process from federal |
| Washington |
$0 (all public work) |
Intent/affidavit filing before work begins |
Investigation & Audit Preparation
Pre-audit checklist:
IRA Prevailing Wage & Apprenticeship (Clean Energy)
For Inflation Reduction Act tax credit projects:
| Credit |
Base |
With PW&A |
Multiplier |
| ITC (Solar/Wind) |
6% |
30% |
5x |
| PTC (Wind/Other) |
0.3¢/kWh |
1.5¢/kWh |
5x |
| 45X Manufacturing |
Base amount |
3x base |
3x |
| 45V Hydrogen |
$0.12-0.60/kg |
$0.60-3.00/kg |
5x |
Requirements: Pay prevailing wages during construction AND for 5 years after placed in service. Apprenticeship hours = 12.5% (2024), 15% (2025+). Correction/penalty framework for good-faith failures.
Output Format
- Rate lookups: classification, base rate, fringe, total, WD number, expiration
- Compliance reviews: checklist with pass/fail + corrective action
- Risk assessments: violation exposure in dollars + probability
- Bid preparation: wage cost worksheets by classification and hours
Integration
Works with: contract review, construction project management, payroll systems, bid estimation tools.
Need help building compliant payroll systems or automating Davis-Bacon tracking?
Browse our full toolkit: https://afrexai-cto.github.io/context-packs/
Built by AfrexAI — AI tools for businesses that actually work.
1---2name: davis-bacon-prevailing-wage-compliance3description: Federal construction compliance agent. Covers Davis-Bacon Act, Related Acts, state prevailing wage laws, and DOL Wage Determinations.4---5
6# Davis-Bacon & Prevailing Wage Compliance
7
8Federal construction compliance agent. Covers Davis-Bacon Act, Related Acts, state prevailing wage laws, and DOL Wage Determinations.
9
10## When to Use
11- Bidding on federal or federally-assisted construction projects
12- Determining prevailing wage rates for a project
13- Certified payroll preparation and submission
14- DOL compliance reviews or investigations
15- State prevailing wage ("little Davis-Bacon") requirements
16- Apprenticeship program compliance on federal jobs
17
18## Capabilities
19
20### Wage Determination Lookup
21Help contractors find the correct DOL Wage Determination (WD) for their project:
22
23| Factor | Details |
24|--------|---------|
25| **WD Types** | General (heavy, highway, building, residential) vs Project-specific |
26| **Geographic scope** | County-level rates — must match project location exactly |
27| **Modification tracking** | WDs updated weekly; locked 10 days before bid opening |
28| **Rate components** | Basic hourly rate + fringe benefits = total prevailing wage |
29| **SAM.gov lookup** | All WDs published at sam.gov/wage-determinations |
30
31### Covered Projects
32
33| Threshold | Requirement |
34|-----------|-------------|
35| **Davis-Bacon Act** | Direct federal contracts >$2,000 for construction/repair/alteration |
36| **Related Acts** | ~60 federal statutes (CDBG, FHWA, FAA, HUD, EPA SRF, WIFIA, IIJA, IRA) |
37| **IIJA (2021)** | Infrastructure Investment and Jobs Act — $550B+ in new spending, all DB-covered |
38| **IRA (2022)** | Inflation Reduction Act — clean energy projects require prevailing wage for full tax credits |
39| **State laws** | 28 states + DC have prevailing wage laws (varying thresholds $1K-$250K) |
40
41### Certified Payroll Requirements
42
43Weekly certified payroll (WH-347) must include:
44
45| Field | Requirement |
46|-------|-------------|
47| **Employee info** | Name, address, last 4 SSN, work classification |
48| **Hours** | Daily and weekly hours, straight time and overtime |
49| **Rate** | Hourly rate + fringe breakdown (cash or bona fide plan) |
50| **Deductions** | Itemized, only permissible deductions (29 CFR 3) |
51| **Certification** | Signed Statement of Compliance (weekly) |
52| **Submission** | Weekly to contracting agency — retained 3 years minimum |
53| **Electronic** | LCPtracker, Elation Systems, B2Gnow accepted by most agencies |
54
55### Classification & Wage Conformance
56
57When a needed classification doesn't appear on the WD:
58
591. **Check existing classifications** — often a similar one covers the work
602. **Request conformance** — submit SF-1444 to contracting officer
613. **CO forwards to DOL** — Wage and Hour Division reviews within 30 days
624. **Interim rate** — pay proposed rate pending DOL determination
635. **No self-classification** — contractor cannot unilaterally assign rates
64
65### Common Violations & Penalties
66
67| Violation | Penalty Range |
68|-----------|---------------|
69| **Underpayment** | Back wages + interest (liquidated damages = 100% of underpayment) |
70| **Falsified certified payroll** | Criminal: up to $10,000 fine + 10 years imprisonment (18 USC 1001) |
71| **Kickbacks** | Criminal: up to $5,000 fine + 5 years imprisonment per occurrence |
72| **Debarment** | 3-year ban from ALL federal contracts (company + individuals) |
73| **Cross-debarment** | Federal debarment recognized by most states |
74| **Willful violations** | DOL refers to DOJ for criminal prosecution |
75| **Subcontractor liability** | Prime contractor jointly liable for sub violations |
76
77### Fringe Benefits Compliance
78
79| Method | Requirements |
80|--------|-------------|
81| **Bona fide plan** | Irrevocable contributions to health, pension, vacation, apprenticeship funds |
82| **Cash equivalent** | Pay fringe amount as cash wages (added to base rate) |
83| **Combination** | Partial plan + partial cash — must total full fringe rate |
84| **Annualization** | Cannot credit plan costs for non-covered work |
85| **Documentation** | Maintain plan documents, contribution records, benefit statements |
86
87### Apprenticeship Requirements
88
89| Requirement | Details |
90|-------------|---------|
91| **Registration** | Must be registered with DOL/BAT or recognized SAA |
92| **Ratio** | Cannot exceed approved apprentice-to-journeyworker ratio |
93| **Rate** | Percentage of journeyworker rate per registered program schedule |
94| **Supervision** | Must work under journeyworker on-site |
95| **Non-registered** | Laborer or mechanic rate required — no apprentice discount |
96| **IIJA/IRA bonus** | Some programs require apprenticeship utilization for full funding |
97
98### State Prevailing Wage Quick Reference
99
100| State | Threshold | Key Differences from Federal |
101|-------|-----------|------------------------------|
102| **California** | $1,000 (public works) | DIR registration required, electronic CPR, steep penalties |
103| **New York** | $0 (all public work) | Fiscal officer determines rates, broader coverage |
104| **Illinois** | $0 (all public work) | Separate rates by county, monthly reporting |
105| **Massachusetts** | $0 (all public work) | Weekly payroll + monthly certified statements |
106| **New Jersey** | $2,000 | Registration Act compliance, stop-work authority |
107| **Ohio** | $250,000 | Covers new construction only (not repair/maintenance) |
108| **Pennsylvania** | $25,000 | Separate determination process from federal |
109| **Washington** | $0 (all public work) | Intent/affidavit filing before work begins |
110
111### Investigation & Audit Preparation
112
113**Pre-audit checklist:**
114- [ ] All WH-347 certified payrolls filed weekly
115- [ ] Wage determination posted at job site (physical or electronic)
116- [ ] Employee interviews match payroll records
117- [ ] Fringe benefit contributions documented and current
118- [ ] Apprentice registrations on file
119- [ ] Subcontractor payrolls collected and reviewed
120- [ ] Time records match daily logs/sign-in sheets
121- [ ] No split classifications without documentation
122- [ ] Overtime calculated correctly (40-hour week, per FLSA)
123- [ ] All required posters displayed (WH-1321 "Employee Rights")
124
125### IRA Prevailing Wage & Apprenticeship (Clean Energy)
126
127For Inflation Reduction Act tax credit projects:
128
129| Credit | Base | With PW&A | Multiplier |
130|--------|------|-----------|------------|
131| **ITC (Solar/Wind)** | 6% | 30% | 5x |
132| **PTC (Wind/Other)** | 0.3¢/kWh | 1.5¢/kWh | 5x |
133| **45X Manufacturing** | Base amount | 3x base | 3x |
134| **45V Hydrogen** | $0.12-0.60/kg | $0.60-3.00/kg | 5x |
135
136**Requirements:** Pay prevailing wages during construction AND for 5 years after placed in service. Apprenticeship hours = 12.5% (2024), 15% (2025+). Correction/penalty framework for good-faith failures.
137
138## Output Format
139- Rate lookups: classification, base rate, fringe, total, WD number, expiration
140- Compliance reviews: checklist with pass/fail + corrective action
141- Risk assessments: violation exposure in dollars + probability
142- Bid preparation: wage cost worksheets by classification and hours
143
144## Integration
145Works with: contract review, construction project management, payroll systems, bid estimation tools.
146
147---
148
149**Need help building compliant payroll systems or automating Davis-Bacon tracking?**
150Browse our full toolkit: https://afrexai-cto.github.io/context-packs/
151
152Built by [AfrexAI](https://afrexai-cto.github.io/context-packs/) — AI tools for businesses that actually work.
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