Davis-Bacon Act
A federal law requiring contractors on federal government construction contracts over a set dollar threshold to pay laborers and mechanics no less than the locally prevailing wage and fringe benefits for the type of work, as determined by the Department of Labor for that specific geographic area.
Why it matters
The required rate isn't one national number, it's a specific determination the Department of Labor publishes county by county and job classification by job classification, so a contractor's usual market wage can be perfectly competitive and still fall short of what a specific federal project actually requires.
On a real project
A contractor bidding a federal courthouse renovation looks up the Department of Labor's wage determination for that specific county and trade classification before pricing labor, rather than assuming its usual market rate will satisfy the requirement.
Who this matters most to
A Certified Payroll Specialist verifies every worker's pay against the applicable Davis-Bacon wage determination and documents it through certified payroll each week.
Where this goes wrong
A contractor on a federal project pays workers its usual market wage rather than checking the Department of Labor's published prevailing wage determination for that specific county and job classification. The rate comes in below what's actually required, and the contractor owes back wages plus penalties once a compliance audit catches the gap.