Simplify Prevailing Wage Compliance
Stay compliant, bid competitively, retain your team — all while improving your bottom line.
Missing Out on Competitive Bids
Facing Compliance Penalties & Liabilities
Losing Employees to Union Shops with Better Benefits
How HUB Solves It
Assess Your Needs
We review your contracts, wage determinations, and benefit structure.
Design a Custom Plan
Tailored fringe benefit programs that meet regulations and reduce costs.
Implement & Support
We handle administration, compliance monitoring, and ongoing updates.
Understanding the Law
Overview
The Davis-Bacon Act has been a cornerstone of U.S. labor law since 1931, ensuring workers on federally funded construction projects receive fair wages and benefits.
When It Applies
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Federal government contracts over $2,000 for construction, alteration, or repair of public buildings/public works
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Applies to mechanics or laborers working on job sites
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Prevailing wage rates are determined by the U.S. Department of Labor (USDOL) for the contract location
Recent Updates
- Final Rule Published: August 8, 2023
- Effective Date: October 23, 2023
- Title: “Updating the Davis-Bacon Act and Related Acts Regulations”
Where Else It Applies
DBA requirements also appear in other statutes, including:
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National Housing Act
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Federal-Aid Highway Act
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Infrastructure Investment and Jobs Act (bipartisan)
Key Takeaway
If your project is federally funded, DBA compliance is non-negotiable — and fringe benefit calculations must be accurate to avoid costly penalties.
Current Landscape
- 28 states + D.C. have prevailing wage-type laws
- Applies to companies contracting directly with state or local governments for construction or service contracts
Fringe Benefit Credits
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Some states allow credit for bona fide fringe benefit payments to offset wages
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In states without a separate fringe benefit rate, contractors can reduce wage payments by providing qualifying benefits
State-by-State Variations
While some states mirror the DBA closely, others are more restrictive:
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Stricter fringe benefit requirements
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Narrow definitions of what counts as a “bona fide” benefit
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Certain benefits prohibited entirely in some states
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Unique state rules that can significantly affect compliance strategies
Why It Matters
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Even if you’re DBA-compliant, state rules may differ
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Small nuances — like how credit is applied — can impact bid competitiveness and compliance
Recommendation
Always verify requirements in each state you operate. When in doubt, consult compliance experts to prevent errors that could cost you contracts or trigger penalties.
What You Get with HUB
- Medical, dental, vision, life and disability insurance
- Health savings accounts (HSA)
- Vacation and holiday pay (paid time off)
- Safety and apprentice training reimbursement
- Supplemental unemployment benefits
- Retirement plans
- Funding during layoffs
The Bottom-Line Benefits of HUB
Higher Margins
Lower costs per project mean you can submit more competitive bids and win more contracts.
Better Retention
Stronger benefits keep your best employees and reduce costly turnover.
Lower Costs
Reduce payroll taxes, insurance expenses, and administrative overhead.
Empower Your Team, Elevate Your Organization
Benefits matter more than ever—54% of workers prioritize pay or benefits when evaluating a new job. Make your plan a competitive advantage.
Source: Gallup, “The Top Four Reasons for Taking a New Job”
Let’s Plan Your Next Step Together.
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