Simplify Prevailing Wage Compliance

Stay compliant, bid competitively, retain your team — all while improving your bottom line.

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The Challenge of Prevailing Wage Compliance

Navigating fringe benefit requirements under the Davis-Bacon Act and state prevailing wage laws is complex — and mistakes are costly. Without expert help, you risk:
  • 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

Davis-Bacon Act

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

  • Federal government contracts over $2,000 for construction, alteration, or repair of public buildings/public works

  • Applies to mechanics or laborers working on job sites

  • 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:

  • National Housing Act

  • Federal-Aid Highway Act

  • 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.

State Prevailing Wage Laws

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

  • Some states allow credit for bona fide fringe benefit payments to offset wages

  • 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:

  • Stricter fringe benefit requirements

  • Narrow definitions of what counts as a “bona fide” benefit

  • Certain benefits prohibited entirely in some states

  • Unique state rules that can significantly affect compliance strategies

Why It Matters

  • Even if you’re DBA-compliant, state rules may differ

  • 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

We design programs that keep you compliant and competitive. Benefits can include:

  • 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.

Let’s Plan Your Next Step Together.

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