
Prevailing Wage and Davis-Bacon Compliance in Wisconsin
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.
- Fringe Benefits: May include health insurance, retirement plans, or paid leave. Under Davis-Bacon, contractors can either offer bona fide benefits or pay the equivalent amount in cash on top of the basic wage.
- Total Hourly Rate = Basic Hourly Rate + Fringe Benefit Amount
Contractors on federally funded projects in Wisconsin must ensure wages (including fringe benefits) at least meet 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
Submit Certified Payroll Reports
Submit Certified Payroll Reports
Pay Required Wages and Benefits
Pay Required Wages and Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Proper Documentation
Maintain Proper Documentation
Penalties for Non-Compliance
While Wisconsin doesn't have state-specific penalties, federal law imposes strict consequences for Davis-Bacon Act violations, including:
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Withholding of contract payments
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Contract termination
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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Repeal of the State Prevailing Wage Law: Once governed by a statewide prevailing wage requirement, Wisconsin repealed those rules by 2018, making it distinct from states that have kept or expanded similar laws.
Reliance on Federal Davis-Bacon for Federal Projects: Since there is no state-level prevailing wage 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.
Relevant Resources
- U.S. Department of Labor Davis-Bacon Wage Determinations: Wage Determinations Online
- Wisconsin Department of Workforce Development
- U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts
This overview is intended for general informational purposes. Given frequent changes to laws and regulations, always confirm details with official sources or seek legal counsel for up-to-date guidance on labor law compliance in Wisconsin.
Wisconsin Prevailing Wage FAQs
Does Wisconsin still have a state prevailing wage law?
No. Wisconsin repealed its prevailing wage requirements for local projects in 2017 and for state projects in 2018. Now, only federal Davis-Bacon rules apply to 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 both the basic hourly rate and required fringe benefits. Contractors can find specific rates for each county in Wisconsin by using SAM.gov.
What are the penalties for Non-Compliance under Davis-Bacon?
Penalties can include withholding contract funds to remedy wage underpayments, requiring contractors to provide back pay for any shortfalls, debarment from future federal contracts for serious or repeated violations, and criminal penalties in cases involving intentional falsification or fraud.
How are fringe benefits handled if there’s no state requirement?
On federally funded projects, fringe benefits must comply with Davis-Bacon standards. Contractors may provide bona fide benefits—like health insurance and retirement contributions—or pay the required fringe amount in cash, added to the worker's base wage. With no state law in effect, these are the only requirements for such projects.