Two federal laws, two thresholds
Federally funded construction brings two wage laws with different dollar triggers. Most exam errors come from swapping them.
- Davis-Bacon and Related Acts: federally funded or assisted construction contracts in excess of $2,000 (40 U.S.C. 3142(a)).
- Contract Work Hours and Safety Standards Act (CWHSSA): prime contracts in excess of $100,000 (40 U.S.C. 3702(a)).
The trap: applying the $100,000 CWHSSA figure to Davis-Bacon. $25,000 and $2,500 are not the Davis-Bacon threshold either.
What Davis-Bacon requires
On covered contracts, contractors and subcontractors must pay laborers and mechanics no less than the locally prevailing wages and fringe benefits (40 U.S.C. 3142, as summarized by DOL WHD). Davis-Bacon covers construction, alteration and repair.
- The $7.25 federal minimum is the FLSA floor, not the Davis-Bacon standard, and it leaves out fringe benefits.
- A national union scale is not the measure. The rate is locally prevailing.
- Time and a half is not paid on all hours. It applies to hours over 40 under the CWHSSA and FLSA.
What CWHSSA requires
On prime contracts over $100,000, contractors and subcontractors must pay laborers and mechanics, including guards and watchmen, at least 1.5 times the regular rate for all hours over 40 in a workweek (40 U.S.C. 3702, as summarized by DOL WHD).
- Double time for hours over 8 in a day is not the CWHSSA standard.
- Prevailing wages on contracts over $2,000 is the Davis-Bacon rule, not the CWHSSA.
- Averaging hours across the contract period contradicts the per-workweek test.
Applying both to one contract
Test each law against its own threshold. Take a $75,000 federally funded prime contract to repair a public building:
- Davis-Bacon: $75,000 > $2,000, so prevailing wages apply (40 U.S.C. 3142).
- CWHSSA: $75,000 is not over $100,000, so CWHSSA does not apply (40 U.S.C. 3702).
Saying CWHSSA applies but Davis-Bacon does not reverses the thresholds. Saying both apply ignores the $100,000 CWHSSA threshold. Saying neither applies uses the $100,000 figure for Davis-Bacon.