The Davis Bacon Act requires contractors and subcontractors on federally funded or assisted contracts to pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. 

The Davis Bacon Act applies to contracts of more than $2,000 to construct, alter, or repair (including painting and decorating) public buildings or public works.

The Department of Labor determines the locally prevailing wage rates. The rates for more common occupations can be searched at their site. For prime contracts for more than $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to DBA-covered contracts.

Contractors and subcontractors must submit payroll records to DOL on a regular basis; the DOL provides compliance assistance.

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