Prevailing Wage and Davis-Bacon Compliance in South Carolina
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 for South Carolina consist of:
- Basic Hourly Rate: The minimum hourly wage paid to workers in a specific job classification, excluding fringe benefits. South Carolina counties carry different rates because Davis-Bacon surveys are county-specific.
- Fringe Benefits: Health insurance, retirement, paid leave, or other benefits paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits. For example, if the basic rate is $20 and fringe is $5, the total hourly rate is $25. Workers must receive the full $25 in cash wages if the contractor does not provide fringe benefits, or a combination of basic wage and bona fide benefits totaling $25 per hour worked.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on federally funded public works projects in South Carolina must:
Determine the Applicable Wage Rate
Determine the Applicable Wage Rate
Identify the prevailing wage rate for each job classification and project location on SAM.gov by construction type.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
File the Form WH-347 weekly with the contracting agency. SCDOT federal-aid highway contractors also submit Form FHWA-1391 each July to report workforce composition by classification.
Handle Fringe Benefits
Handle Fringe Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Federal law requires posting the applicable wage determination at the job site where workers can see it.
Maintain Accurate Payroll Records
Maintain Accurate Payroll Records
Penalties for Non-Compliance
While South Carolina doesn't have state-specific penalties, federal law enforces strict consequences for violations of the Davis-Bacon Act, which may include:
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Back Wages owed to underpaid workers, with prime contractors liable for unpaid wages owed by their subcontractors
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- Criminal Exposure for willful falsification of certified payroll under federal false statement statutes
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Debarment for up to three years from future federally funded contracts
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Withholding of Contract Payments by the contracting agency, including cross-withholding from any other federal contract held by the same contractor
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Liquidated Damages of per worker per day for overtime violations under the Contract Work Hours and Safety Standards Act
Unique Aspects of South Carolina's Public Works System
- Federal-Only Coverage: South Carolina relies solely on federal Davis-Bacon for prevailing wage requirements. State and locally funded projects carry no separate wage floor.
- SCDOT Federal-Aid Administration: SCDOT incorporates Davis-Bacon obligations into its 2025 Standard Specifications for Highway Construction and requires federal-aid contractors to file annual Form FHWA-1391 workforce composition reports each July.
- HUD CDBG Program: Davis-Bacon coverage extends to HUD Community Development Block Grant projects administered through the South Carolina Department of Commerce, which often fund local infrastructure and housing work.
- Environmental Overlays: Public works projects in ecologically sensitive areas of South Carolina, including the Lowcountry, may carry environmental review requirements that affect project timelines and contracting.
Relevant Resources
Davis-Bacon Wage Determinations on SAM.gov
DOL Form WH-347 (Revised January 2025)
SCDOT - 2025 Standard Specifications for Highway Construction
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.
South Carolina Prevailing Wage FAQs
Does South Carolina have its own prevailing wage law?
No. South Carolina has no state-specific prevailing wage law. For federally funded public works projects, the federal Davis-Bacon Act requires that workers be paid prevailing wages set by the U.S. Department of Labor at the $2,000 contract threshold.
How are prevailing wage rates determined in South Carolina?
Prevailing wage rates for federally funded projects are determined by the U.S. Department of Labor based on local wage surveys. Rates include both a basic hourly wage and fringe benefits, and are published on SAM.gov by county and construction type.
What are the penalties for non-compliance with prevailing wage requirements in South Carolina?
Penalties for non-compliance with Davis-Bacon prevailing wage laws include back wages, withholding and cross-withholding of contract payments from any federal contract held by the same contractor, debarment for up to three years from future federally funded contracts, CWHSSA liquidated damages of $33 per worker per day for overtime violations, and criminal exposure for willful falsification. Under the 2023 final rule, prime contractors are also liable for unpaid wages owed by their subcontractors.
How are fringe benefits handled under the Davis-Bacon Act in South Carolina?
Contractors must provide bona fide fringe benefits such as health insurance, retirement, or paid leave, or pay the equivalent value as additional cash wages 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.