Glossary — Hr compliance

Davis-Bacon Act

A 1931 federal law requiring prevailing wages on federally-funded construction projects.

Definition

The Davis-Bacon Act requires contractors and subcontractors on federally-funded construction projects ($2,000+) to pay laborers and mechanics no less than the locally prevailing wages and fringe benefits. The Department of Labor publishes wage determinations by locality and trade.

Davis-Bacon compliance requires certified payroll (Form WH-347), accurate fringe benefit calculation, and detailed recordkeeping. PEOs serving construction industries often have specialized Davis-Bacon administration as a differentiator.

Common questions about Davis-Bacon Act

A 1931 federal law requiring prevailing wages on federally-funded construction projects.

The Davis-Bacon Act requires contractors and subcontractors on federally-funded construction projects ($2,000+) to pay laborers and mechanics no less than the locally prevailing wages and fringe benefits.

Most PEO buying decisions touch several related concepts at once. Davis-Bacon Act typically comes up alongside the other terms in this category. Closely related terms include Overtime pay, Fringe benefits.

Browse the full PEO glossary

This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.

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