The Davis–Bacon Act requires contractors on federally funded construction projects to pay locally prevailing wages, including fringe benefits, to laborers and mechanics.
Congress passed the law in 1931 during the Great Depression. Its stated purpose was to prevent contractors from winning federal work by undercutting local wage standards. The U.S. Department of Labor determines prevailing wage rates for covered projects, often using rates paid in the relevant geographic area.
The act applies to federal or federally assisted construction contracts above a statutory threshold, and its requirements are included in contract terms. It is often confused with the Fair Labor Standards Act, which establishes federal minimum-wage and overtime rules more broadly. Davis–Bacon concerns prevailing pay on covered public construction rather than a universal wage floor for every worker.