The Davis-Bacon Act is a federal law (passed 1931) requiring contractors and subcontractors performing work on federally funded or federally assisted construction projects above $2,000 to pay laborers and mechanics no less than the locally prevailing wage and fringe benefits as determined by the U.S. Department of Labor. It applies to federal contracts and to state and local projects that receive federal funding.
Compliance includes weekly certified payroll submission (Form WH-347), apprentice ratio requirements, and posted notice of prevailing wage rates on site. Violations carry significant penalties including back-wage payment to workers, withheld payments, and debarment from future federal work. State-level "Little Davis-Bacon" laws apply similar requirements to state-funded projects in many states.