Prevailing Wage and Davis-Bacon Compliance in South 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 for South Dakota include:
- Basic Hourly Rate: The minimum hourly wage that contractors must pay workers for their job classifications. South Dakota 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 Dakota must adhere to the following:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
Identify the correct prevailing wage rates for each job classification and project location on SAM.gov.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
Handle Fringe Benefits
Handle Fringe Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Display the applicable wage rates at the worksite where workers can see them.
Maintain Accurate Payroll Records
Maintain Accurate Payroll Records
Keep payroll, hours, classifications, and worker contact information (telephone and email must be produced on DOL request) for at least three years after project completion.
Penalties for Non-Compliance
While South Dakota does not have state-specific penalties, federal law imposes strict consequences for violations of the Davis-Bacon Act, including:
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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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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 $33 per worker per day for overtime violations under the Contract Work Hours and Safety Standards Act (2025 figure, adjusted annually)
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Debarment for up to three years from future federally funded contracts
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Criminal Exposure for willful falsification of certified payroll under federal false statement statutes
Unique Aspects of South Dakota's Public Works System
- Federal-Only Coverage: South Dakota relies solely on federal Davis-Bacon for prevailing wage requirements. State and locally funded projects carry no separate wage floor.
- SDDOT Federal-Aid Administration: SDDOT administers federal-aid highway construction in the state and enforces Davis-Bacon compliance on those contracts. Contractors and subcontractors must pay the wage rate and fringe benefits based on the determination for the classification of work actually performed.
- Tribal Lands and TERO Compliance: South Dakota is home to nine federally recognized tribes, and many federally funded construction projects intersect with tribal lands. Contractors on reservation projects must consult with the relevant Tribal Employment Rights Office (TERO) before work begins. TERO compliance plans are tribe-specific and apply alongside federal Davis-Bacon obligations.
Relevant Resources
- DOL Form WH-347
- Davis-Bacon Wage Determinations on SAM.gov
- 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
- SDDOT - Tribal Relations and TERO Program
- SDDOT - Davis-Bacon Wage Requirements and Defined Work Classifications
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 Dakota Prevailing Wage FAQs
Does South Dakota have its own prevailing wage law?
No. South Dakota has no state-specific prevailing wage law and has not enacted one. Federally funded public works projects follow the federal Davis-Bacon Act, which requires contractors to pay workers prevailing wages set by the U.S. Department of Labor at the $2,000 contract threshold.
How are prevailing wage rates determined for public works projects in South Dakota?
Prevailing wage rates for federally funded projects are determined by the U.S. Department of Labor through local wage surveys. Rates include both a basic hourly wage and fringe benefits, and are published on SAM.gov by county and construction type. The 2023 DOL final rule lowered the prevailing rate threshold to 30 percent of surveyed workers, pushing many published rates upward in 2025 and 2026.
What are the penalties for non-compliance with prevailing wage requirements in South Dakota?
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 Dakota?
Contractors must provide bona fide fringe benefits 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.