Contractors and subcontractors working on federally funded or assisted contracts that exceed $2,000 use the Davis-Bacon Wage Determination Scale. The Davis-Bacon Wage Determination Scale is used to determine how much contractors and subcontractors must pay any laborers and mechanics employed under eligible contracts.Continue Reading
The Davis-Bacon Wage Determination Scale uses prevailing wage to determine worker compensation rates. Prevailing wage is calculated as the average amount of hourly wages, overtime and benefits paid to laborers and mechanics in a particular geographic area. Prevailing wage is calculated using data from ongoing and recently completed construction projects within a specific geographic region. Eligible projects are defined as any construction, repair or renovation of a public building or public works.
The Wage and Hour Division of the U.S. Department of Labor classifies all federal and federally assisted construction projects into building projects, residential projects, highway projects, or heavy projects. The Wage and Hour Division gathers data for each classification of employee found on construction sites.
State-funded construction projects do not use the Davis-Bacon Wage Determination Scale. Each state determines the prevailing wage, if any, on an individual basis. A total of 32 states currently have a prevailing wage rate according to the U.S. Department of Labor.Learn more about Accounting