Prevailing Wage and Davis-Bacon Compliance in Wisconsin
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
Even though there is no statewide requirement, federal Davis-Bacon standards apply when a project is federally funded:
- Basic Hourly Rate: The minimum "base" wage for a given trade or classification. Wisconsin counties carry different rates because surveys are county-specific.
- Fringe Benefits: May include health insurance, retirement plans, or paid leave. Contractors can offer bona fide benefits or pay the equivalent in cash on top of the basic wage.
- Total Hourly Rate = Basic Hourly Rate + Fringe Benefit Amount
Contractors on federally funded Wisconsin projects must ensure wages (including fringe benefits) meet at least the Davis-Bacon determination for the project's location and job classifications.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on federally funded public works projects in Wisconsin must:
Identify Applicable Wage Determinations
Identify Applicable Wage Determinations
Pull the relevant county wage determination on SAM.gov by construction type (building, residential, highway, or heavy). Verify the schedule before bidding.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
File the U.S. Department of Labor's WH-347 form weekly with the contracting agency to ensure appropriate wages and fringe benefits are paid to workers.
Pay Required Wages and Benefits
Pay Required Wages and Benefits
Ensure each worker in each classification receives the correct basic wage plus the required fringe benefit or cash equivalent.
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Proper Documentation
Maintain Proper Documentation
Keep records of payroll, hours, job classification, and worker contact information (telephone and email) for at least three years after project completion in case of audits or investigations.
Penalties for Non-Compliance
While Wisconsin has no state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:
-
Back Pay to compensate underpaid workers, with prime contractors liable for unpaid wages owed by their subcontractors
-
Withholding of Funds by the contracting agency, including cross-withholding from any other federal contract held by the same contractor
-
Criminal Charges in extreme cases of intentional fraud or falsification of payroll documents
-
Civil Penalties per violation for late, inaccurate, or falsified certified payroll
-
Debarment from future federal contracts for up to three years
Unique Aspects of Wisconsin's Public Works System
Repeal of the State Prevailing Wage Law: Wisconsin repealed local prevailing wage requirements effective January 1, 2017, and state prevailing wage requirements effective September 23, 2017, joining a small group of states that rely entirely on federal coverage for public works wage requirements.
- Reliance on Federal Davis-Bacon for Federal Projects: With no state mandate, projects funded in whole or in part by federal dollars must follow the Davis-Bacon Act, which ensures workers receive federally determined wages and benefits. IRA and IIJA spending on energy, broadband, and transportation has expanded the share of Wisconsin construction work covered by Davis-Bacon.
Relevant Resources
- U.S. Department of Labor Davis-Bacon: Wage Determinations On SAM.gov
- Wisconsin Department of Workforce Development: Labor Standards
- 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.
Wisconsin Prevailing Wage FAQs
Does Wisconsin still have a state prevailing wage law?
No. Wisconsin repealed its prevailing wage requirements for local and state projects in 2017. Only federal Davis-Bacon rules apply to Wisconsin projects with federal funding.
How are wage rates determined for federally funded projects?
The U.S. Department of Labor sets wages for Davis-Bacon projects, listing the basic hourly rate and required fringe benefits for each Wisconsin county and construction type. Contractors can find specific rates for each county in Wisconsin by using SAM.gov.
What are the penalties for Non-Compliance under Davis-Bacon?
Possible penalties include back pay to underpaid workers, withholding and cross-withholding of contract funds from any federal contract held by the same contractor, debarment for up to three years from future federal contracts, civil penalties per violation for late or inaccurate certified payroll, and criminal charges in cases involving intentional falsification or fraud. Under the 2023 final rule, prime contractors are also liable for unpaid wages owed by their subcontractors.
How are fringe benefits handled if there’s no state requirement?
Davis-Bacon governs fringe benefits on federally funded Wisconsin projects. Contractors must provide bona fide benefits such as health insurance, retirement contributions, or paid leave, or pay the required fringe 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.