What Is the Davis-Bacon Act?
The Davis-Bacon Act requires contractors on federal construction contracts over $2,000 to pay laborers and mechanics at least the local prevailing wages and fringe benefits.
Davis-Bacon Act in plain English
The Department of Labor sets the prevailing rates in a wage determination for the county and type of construction. Wage determinations are published on SAM.gov and included in the contract.
The prime contractor and every subcontractor on the job must pay at least those rates, and they submit certified payrolls each week to show it.
Service contracts are covered by the Service Contract Act instead.
Related terms
- Wage determination: A wage determination is a Department of Labor schedule of minimum wages and fringe benefits for workers on a federal construction or service contract.
- Service Contract Act (SCA): The Service Contract Act (SCA) requires contractors on federal service contracts over $2,500 to pay service workers at least the wages and fringe benefits in the contract's wage determination.
- Solicitation: A solicitation is an agency's official request for bids, quotes or proposals. It describes the work, the terms, how to respond and how offers are judged.
Put it to work
Looking for another term? Browse the full glossary or the government contracting glossary guide.
Cyrus Hakimi writes and edits these definitions, using AI tools to help research and draft them, from the FAR, SBA rules and SAM.gov documentation. They're general information, not legal advice. Rules and thresholds change, so confirm the numbers on the official source before you act.