Davis-Bacon Act Basics for Subcontractors
The Davis-Bacon Act requires that laborers and mechanics on most federal construction contracts be paid no less than the local "prevailing wage" — the wage rates the Department of Labor determines for that area and classification. Those requirements flow down to subcontractors through the subcontract.
What it means for you
- Know the wage determination for your contract and your workers' classifications.
- Pay at least the required rates, including the proper overtime and fringe rules.
- Keep the records and submit certified payroll weekly.
- Recognize that SF 1413 is the form that acknowledges these clauses are in your subcontract.
The Copeland Act and overtime
The Copeland "Anti-Kickback" Act makes it unlawful to induce a worker to give up part of their required wages, and the Contract Work Hours and Safety Standards Act sets overtime requirements. Together with Davis-Bacon, they form the wage-compliance backbone you will meet on federal work.
Why primes care
A prime is answerable for the wage compliance of its subcontractors. A subcontractor who understands these rules makes the prime's life easier — and gets asked back.