2025 Davis-Bacon Act Updates: Certified Payroll, Prevailing Wages & More
If you’re a contractor, subcontractor, or part of a project team working on federally funded construction, you’ve likely run into the Davis-Bacon Act. It’s one of those rules that can feel overwhelming, but it’s too important to ignore.
That’s where Davis Bacon Solutions comes in. Think of us as your “Davis-Bacon Guide for Dummies.” Our job is to simplify federal labor rules so you can focus on running your projects.
This post covers the 2025 Davis-Bacon Act updates you need to know. From certified payroll reporting to prevailing wage changes, we’ll explain the updates in plain language, show you where to double-check the rules, and let you know how to stay compliant without unnecessary stress.
And if you ever need a third-party labor compliance officer, our parent company, Labor Compliance CA, LLC, is here to help.
Quick Refresher: What is the Davis-Bacon Act?
The Davis-Bacon Act (DBA), passed in 1931, makes sure workers on federally funded or federally assisted projects earn fair wages.
Key points:
Applies to federal construction projects over $2,000.
Requires workers to be paid the prevailing wage (average local pay for their trade).
Includes both salaries and fringe benefits (like health insurance or retirement).
Covers contractors and subcontractors alike.
You can find the official rules on the Department of Labor’s site, but if you'd like a simplified version, continue reading here.
2025 Updates You Need to Know
1. Certified Payroll Reporting Gets Stricter
Certified payroll (Form WH-347) must be submitted on a weekly basis. In 2025, the Department of Labor is pushing for:
Electronic submissions instead of paper.
Random audits to catch errors or fraud.
Greater responsibility on prime contractors to ensure the subs’ payroll is correct.
This means contractors must have a system in place for tracking hours, wages, and classifications. One mistake can delay payment or trigger penalties.
Need a refresher? Check our free resource: Certified Payroll Made Simple.
2. Prevailing Wage Rates are Adjusting Faster
In 2025, the Department of Labor is accelerating updates to wage determinations.
Long-term projects (three years or more) may now require mid-project wage updates.
Fringe benefit calculations are under tighter review.
Some job classifications are being updated or split into new categories.
This means you” can’t “set it and forget it when it comes to wages. Contractors should double-check wage determinations on SAM.gov before and during a project.
3. More Enforcement, Higher Penalties
The DOL is prioritizing enforcement in 2025. Expect:
Stricter penalties for misclassifying workers.
Withheld payments until issues are fixed.
Possible debarment (loss of bidding eligibility) for repeat violations.
This makes compliance not just a legal issue but also a business survival issue.
4. Apprenticeship Programs in the Spotlight
Apprentices can still save you money on labor costs, but the rules are firm:
Apprentices must be in a DOL-approved program.
Journeyman-to-apprentice ratios must be followed precisely.
Records must prove compliance.
The good news? The government is promoting apprenticeships as part of its efforts to develop the workforce. If used correctly, they can help lower your costs and ensure compliance.
5. Fringe Benefits Are Non-Negotiable
Contractors must either:
Provide benefits like health insurance, retirement, or training, or
Pay the exact cash equivalent as additional wages.
The DOL is cracking down on contractors who fail to document fringe benefits as part of their wages properly. To avoid issues, keep records of every benefit payment.
For more details, visit our post on Prevailing Wage Fringe Benefits Explained.
How to Stay Compliant in 2025
Here are five simple steps contractors can follow:
Check wage determinations at the start and during projects.
Use certified payroll software for accurate reporting.
Train payroll subcontractors ' information and fringe benefits.
Audit subcontractors’ payrolls before submission.
Keep detailed records (timecards, pay stubs, benefit contributions).
If this still feels overwhelming, reach out to Davis Bacon Solutions. We provide free guides, FAQs, and resources that cut through the confusion. For full-service compliance, Labor Compliance CA, LLC can act as your labor compliance enforcer.
Why These Updates Matter
These changes aren’t just red tape—they have real consequences:
Incorrect payroll = delayed payments.
Misclassifications = back wages and fines.
Repeated mistakes = loss of contracts.
On the other hand, getting compliance right builds trust with agencies, strengthens your reputation, and makes bidding on new projects more straightforward.
The 2025 Davis-Bacon Act updates aim to ensure fairness for workers and hold contractors accountable. By staying on top of these changes, you protect both your workers and your business.
At Davis Bacon Solutions, we break down complex labor laws into plain English so you can stay compliant with less stress. And if your project requires a dedicated compliance officer, our partner Labor Compliance CA, LLC is ready to step in.
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