Prevailing Wage and Davis-Bacon Compliance in North Dakota
eMars provides certified payroll and compliance solutions tailored primarily for federal projects and select state jurisdictions. While many agencies accept the standard WH-347 form, some states will require their own form. For questions about supported jurisdictions, please contact our team directly.
Components of Wage Determinations
Federal wage determinations applied in North Dakota include:
- Basic Hourly Rate: The minimum hourly wage paid directly to workers in a specific job classification, set by DOL through local wage surveys.
- Fringe Benefits: Non-cash compensation such as health insurance, retirement plans, and vacation/holiday pay paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly wage plus fringe benefits. Contractors can provide bona fide fringe benefits directly or pay the equivalent value as additional cash on top of the basic rate.
If no fringe benefits are provided, the contractor must pay the full total hourly rate as cash wages, matching the basic rate plus the fringe rate listed on the applicable SAM.gov wage determination.
Compliance for Contractors and Subcontractors
Contractors and subcontractors on federally funded public works projects must ensure compliance with the Davis-Bacon Act. The following steps help ensure adherence to prevailing wage requirements:
Determine if Davis-Bacon applies
Determine if Davis-Bacon applies
Obtain wage determinations
Obtain wage determinations
Post wage rates at the job site
Post wage rates at the job site
Submit certified payrolls
Submit certified payrolls
Maintain accurate records
Maintain accurate records
Keep payroll records, including hours worked, classifications, wages, and fringe benefits, for at least three years after the prime contract is completed. Records must include worker telephone and email contact information on DOL request and must be available for inspection by DOL, NDDOT (on federally funded highway projects), or the contracting agency.
Penalties for Non-Compliance
While North Dakota doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:
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Back Wages owed to underpaid workers
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Termination of the federal contract
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- Civil Penalties per violation
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Withholding and cross-withholding of contract payments
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Debarment from federally funded or assisted contracts
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Criminal Prosecution for willful violations
Unique Aspects of North Dakota's Public Works System
- NDDOT Davis-Bacon Enforcement Authority: On federally funded highway construction projects, the U.S. Department of Labor has delegated Davis-Bacon enforcement to NDDOT, which administers wage rate enforcement, certified payroll review, on-site interviews, and corrective actions through its Labor Compliance Program.
- Contractor Licensing Requirement: Under NDCC Chapter 43-07, any person or entity that undertakes a construction job costing more than $4,000 must hold a ND contractor license issued by the Secretary of State. Licenses are issued in four classes: Class A, Class B, Class C, and Class D, with annual renewal by March 1.
- Public Works Bond Requirements: ND public works contracts exceeding $25,000 generally require a performance bond equal to the contract price, and public building contracts valued above $50,000 require a bid bond of at least 5 percent of the proposal.
Relevant Resources
- Davis-Bacon: Wage Determinations On SAM.gov
- NDDOT - Labor Compliance Program (Davis-Bacon)
- DOL Form WH-347 (Revised January 2025)
- U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts
- Updating the Davis-Bacon and Related Acts Regulations - DOL Final Rule
For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or your state's official labor website.
North Dakota Prevailing Wage FAQs
Does North Dakota have its own prevailing wage law?
No. ND is one of eight states that have never enacted a state prevailing wage statute, and there is no "Little Davis-Bacon Act" or substitute requirement. State and locally funded public works projects are not subject to a state prevailing wage rate. For federally funded or assisted projects of $2,000 or more, the federal Davis-Bacon Act applies, and NDDOT administers Davis-Bacon enforcement on federally funded highway construction under delegated authority from U.S. DOL.
How are prevailing wage rates determined for federally-funded projects in North Dakota?
What are the penalties for non-compliance with prevailing wage requirements?
Federal penalties include back wages, withholding and cross-withholding of contract payments, civil penalties per violation, CWHSSA liquidated damages per worker per day for overtime violations on covered contracts of $100,000 or more, three-year debarment from federally funded contracts, and criminal prosecution for willful violations. On federally funded highway projects, NDDOT's Labor Compliance Program can also pursue corrective actions and refer enforcement matters to DOL.
How are fringe benefits handled under the Davis-Bacon Act?
Contractors must provide bona fide fringe benefits such as health insurance, pensions, or paid leave, or pay the equivalent value as additional cash on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate listed on the applicable SAM.gov wage determination. If no fringe benefits are provided, the full total hourly rate must be paid as cash directly to the worker.