The Davis-Bacon Act of 1931 applied to contractors and subcontractors holding federally funded or assisted contracts in excess of $2,000. These contractors are required to pay their workers no less than the local prevailing wage and fringe benefits for similar projects in the area, per the U.S. Department of Labor.
Contracts covered by the Davis-Bacon Act include building, alteration, repair, painting and decorating of public buildings or public works. Projects that receive assistance from the federal government through grants, loans, loan guarantees or insurance are also subject to Davis-Bacon.
The DOL determines the local prevailing wages, which are specific to the state, county and type of job. The Wage Determination Online Web page provides a look-up service for the current Davis-Bacon wages.