Davis-Bacon vs. State Prevailing Wage: What's the Difference
"Prevailing wage" means the same idea everywhere — workers on public work get paid the locally prevailing rate for their classification. But the law that requires it depends on who is funding the project.
The federal Davis-Bacon Act
The Davis-Bacon Act requires prevailing wages and fringes on federal construction contracts over $2,000. It is federal law (40 U.S.C. § 3141–3148, with 29 CFR Part 5), it applies to federal projects no matter which state they are in, and a state's own law does not change it on a federal job.
State prevailing wage laws
Many states add their own prevailing wage law for state- and locally-funded public work — sometimes called a "little Davis-Bacon" law. These are separate statutes with their own thresholds, coverage, and rate-setting. Whether a state has one, and what it covers, must be confirmed against that state's statute.
Why the distinction matters
A contractor can be subject to Davis-Bacon on one job and a state prevailing wage law on the next — or to neither on private work. Get the funding source right before you assume which wage rule applies.
Related tools and support
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