Davis Bacon
Act
Federal construction contracts
in excess of $2000 are subject to the Davis-Bacon Act, which requires payment of local "prevailing wages" including
the "anticipated cost of prevailing benefits." Generally, this is expressed as a per-hour wage and per-hour cash
equivalent value of benefits, and is often based on a union scale. Prevailing wages are set by the U.S. Department of Labor
and are included in the bid specifications of covered contracts.
Many contractors pay the fringe benefit portion of the prevailing wage as additional cash wages, believing
it's the easiest way to comply with the law.
DO NOT PAY FRINGE BENEFIT IN CASH! This costs you money!
To see how we can save you money and
win more jobs, view Fact Sheet of Savings.
U.S. Dept. Of Labor Davis-Bacon Act Compliance Assistance