Prevailing Wages on Federally Funded Projects

Public works construction projects that are funded in whole or in part with federal funds are normally subject to federal prevailing wages in addition to Washington State prevailing wages.

Federal legislation governing prevailing wages comes under what is known as the Davis-Bacon Act (and related acts), which was originally passed by Congress during the Depression.

However, depending on the source of the federal funds, the project may or may not actually be subject to federal prevailing wages. For example, projects funded by the National Institutes of Health (NIH), a part of the U.S. Department of Health and Human Services, are not subject to prevailing wages.

It is best to check the actual terms of your grant agreement with the federal agency to determine whether federal prevailing wages apply.

If federal prevailing wages do apply, they would normally apply in addition to Washington State prevailing wages, and the contractor would be obligated to pay the higher of the two wages for a particular classification of labor. Prevailing wages established by the U.S. Department of Labor (federal) and the Washington State Department of Labor and Industries (state) are based on different survey methodologies and thus the wages often differ for particular classifications.

Federal prevailing wage requirements also include an obligation for the contractor and subcontractors to submit weekly payroll reports that must be monitored by the public agency for compliance, and public agencies are often required to conduct on-site interviews with construction workers to validate information being submitted on the payroll reports.