Davis-Bacon is the federal prevailing wage law, applying to federal and federally assisted construction. Around thirty states plus the District of Columbia have their own prevailing wage laws — often called "little Davis-Bacon" acts — that apply to state and locally funded public works. The two are separate obligations with separate rate schedules and separate reporting systems: where both apply to one project, the higher rate governs for each classification and both sets of filings are still required.
Two independent systems
Federal and state prevailing wage laws are not tiers of one scheme. Each has its own trigger, its own rate-setting method, its own classifications and its own paperwork. A project can be covered by one, both, or neither.
The most common mistake is assuming that complying with the federal determination automatically satisfies a state requirement. It does not — the state agency has its own schedule and its own filing system, and a project can carry two different rates for the same trade in the same county.
Which one applies
| Funding | Typically applies |
|---|---|
| Direct federal contract over $2,000 | Davis-Bacon. |
| Federally assisted (grant, loan, guarantee) | Davis-Bacon via a Related Act, plus state law if the state also funds it. |
| State-funded public works | State prevailing wage law, if the state has one and the threshold is met. |
| City or county funded | State law where it reaches local projects, plus any local ordinance. |
| Purely private, no public funding | Usually neither. |
When both apply: the higher rate governs
Where a project carries both federal and state coverage, the contractor owes the higher of the two rates for each classification — compared classification by classification, not as a total package. The federal rate can be higher for one trade and the state rate higher for another on the same job.
Both reporting obligations remain. Filing federal certified payroll does not discharge a state requirement to file through the state's own system, and the two systems often want different formats and different submission deadlines.
Why the numbers differ so much
- Different survey methods. Federal rates come from DOL wage surveys and collective bargaining agreements; states use their own surveys, or adopt union scale directly.
- Different geography. Federal determinations are county-based; some states use regions, zones or a single statewide rate.
- Different classification vocabularies. A state schedule may not have a classification the federal determination does, and vice versa.
- Different update cycles. A state schedule refreshed annually will drift from a federal determination revised on its own schedule.
Thresholds vary widely
The federal threshold is $2,000 and has not moved since 1935. State thresholds vary enormously — some are far higher, some apply from the first dollar, and several differ by project type or by contracting authority.
That variation is the practical reason to check your specific state rather than reason from the federal rule. The Department of Labor publishes a state-by-state table of dollar thresholds, which is the authoritative starting point.
How to check your state
- Start with the DOL state-by-state threshold table to confirm whether your state has a law and what triggers it.
- Go to the state's own labor or industrial relations agency for the current rate schedule — that agency, not DOL, sets and publishes state rates.
- Check whether the city or county adds its own ordinance, which is common in larger metros.
- Confirm the reporting system. Several states require submission through a specific portal, which is not the same as filing WH-347.
- Re-check annually. State prevailing wage law is politically volatile — states have both repealed and reinstated these laws in recent years.
Frequently asked questions
If a project has both federal and state prevailing wage requirements, which rate do I pay?
The higher of the two, compared classification by classification. The federal rate may be higher for one trade and the state rate higher for another on the same project, so the comparison has to be done line by line rather than in aggregate.
Does filing federal certified payroll satisfy my state requirement?
Generally no. States commonly require submission through their own system on their own schedule and format. Treat them as two separate filing obligations unless the state explicitly accepts the federal filing.
How many states have prevailing wage laws?
Roughly thirty plus the District of Columbia, though the count moves — states have repealed and reinstated these laws over the last decade. The Department of Labor maintains the current state-by-state list with each state's dollar threshold.
My state has no prevailing wage law. Am I exempt?
Only from state requirements. If the project receives federal funding or assistance, Davis-Bacon applies regardless of state law, and since October 2023 it attaches by operation of law even if the contract omits the clauses.
Sources
- DOL — Dollar threshold amounts for state prevailing wage coverage
- DOL Fact Sheet #66 — Davis-Bacon and Related Acts
- Final Rule: Updating the Davis-Bacon and Related Acts Regulations
WageFinder publishes wage data and plain-English explanations. This is not legal advice, and it does not replace the wage determination on your contract or guidance from the contracting agency.
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