What Is a Prevailing Wage Determination?
A prevailing wage determination (WD) is a document issued by the U.S. Department of Labor that specifies the minimum hourly wage rates and fringe benefit rates that must be paid to laborers and mechanics working on Davis-Bacon covered construction projects. Each determination is specific to a geographic area (usually a county) and a type of construction (building, heavy, highway, or residential).
The rates listed in a wage determination are based on wages and benefits prevailing in the local area, as determined through surveys conducted by the DOL or, where survey data is insufficient, based on collective bargaining agreements or other data sources.
Where to Find Wage Determinations
All current Davis-Bacon wage determinations are published on SAM.gov (the System for Award Management). The DOL transitioned wage determination hosting to SAM.gov, replacing the former WDOL.gov site.
Step-by-Step Lookup on SAM.gov
- Step 1: Navigate to sam.gov and select "Wage Determinations" from the navigation menu.
- Step 2: Choose the type of determination. For Davis-Bacon projects, select "Davis-Bacon Act (DBA)."
- Step 3: Enter your search criteria. You will need to specify the state, county, and construction type (Building, Heavy, Highway, or Residential).
- Step 4: Review the search results. You may see multiple active determinations. Identify the one that matches your project's location and type.
- Step 5: Open the wage determination and review the listed classifications, basic hourly rates, and fringe benefit rates.
Understanding the Four Construction Types
The DOL categorizes construction into four types, and choosing the correct one is essential because wage rates differ significantly between them:
- Building: Construction of sheltered enclosures with walk-in access for housing people, machinery, or supplies. Includes office buildings, schools, hospitals, and similar structures.
- Residential: Construction of single-family homes or apartment buildings of no more than four stories. Rates are typically lower than building construction rates.
- Heavy: Projects that are not buildings and not highways. Includes water and sewer systems, dams, flood control, pipelines, and similar infrastructure.
- Highway: Construction, alteration, or repair of roads, streets, highways, runways, taxiways, and parking lots.
How to Read a Wage Determination
A wage determination document contains several important sections:
Header Information
The header includes the WD number (e.g., WD 2024-1234), the revision number, the state, county, and construction type. Pay close attention to the modification number — this tells you if the determination has been updated since it was originally issued.
Classification and Wage Table
The main body of the determination lists each worker classification along with two rates:
- Basic Hourly Rate: The minimum cash wage that must be paid per hour.
- Fringe Benefits: The minimum fringe benefit amount per hour, which may be paid as cash or contributed to bona fide benefit plans.
For example, a determination might list: Electrician — $45.50 basic hourly rate + $22.10 fringe benefits. This means the total prevailing wage obligation for an electrician is $67.60 per hour.
Footnotes and Special Provisions
Wage determinations often include footnotes about apprenticeship ratios, specific union agreements that informed the rates, and notes about classifications that were added through the conformance process. Read these carefully — they can affect how you apply the rates.
Applying Wage Determinations to Your Payroll
Match Workers to Classifications
Each worker must be classified based on the actual work they perform, not their job title within your company. If a worker performs duties that fall under multiple classifications during a single workweek, you must either pay the highest applicable rate for all hours or track hours by classification and pay each rate accordingly (commonly called "split classification").
What If Your Classification Is Not Listed?
If the work being performed does not fit any classification in the wage determination, you can request a conformance (also called an "additional classification") through the contracting agency. The request goes to the DOL for approval. Until a conformance is approved, you should pay the worker a rate that is at least comparable to similar listed classifications.
Tracking Wage Determination Updates
Wage determinations can be modified by the DOL. Under the updated 2023 regulations, wage determination updates may apply to ongoing multi-year contracts at the exercise of option periods. Contractors should monitor SAM.gov for modifications and confirm with their contracting officer which version of the WD applies. CertifiedPayrollPro helps you stay current by linking wage determinations directly to your projects and flagging when updates are available.
Practical Tips
- Save a copy: Always download and save the wage determination that is incorporated into your contract. This is the version you are legally obligated to follow.
- Check before bidding: Look up the applicable wage determination before submitting a bid so your labor costs reflect the actual prevailing rates.
- Use the correct county: Wage rates are county-specific. If your project spans multiple counties, you may need to apply different determinations to different portions of the work.
- Do not confuse general schedule types: Using a "highway" determination for a "building" project (or vice versa) is a common error that can result in underpayment violations.
