How New Infrastructure Funding Is Affecting Davis-Bacon Enforcement
In recent years, federal infrastructure funding has reached historic levels. With billions of dollars flowing into highways, bridges, airports, and public buildings, federal agencies are also paying closer attention to whether contractors are following labor laws. The Davis-Bacon Act (DBA) is at the center of this scrutiny, and enforcement is increasing as funding expands.
If you’re a contractor, subcontractor, or project manager working on federally funded projects, understanding how this funding surge impacts Davis-Bacon enforcement is critical to staying compliant and avoiding costly penalties.
Why Infrastructure Funding Changes the Compliance Landscape
The Bipartisan Infrastructure Law and other federal spending bills have triggered a wave of new projects across the country. While this is good news for contractors, it also means the Department of Labor (DOL) and other agencies are prioritizing enforcement of prevailing wage requirements.
With so many projects receiving federal dollars, regulators are aware that mistakes—or outright violations—can occur more easily. This is why audits, payroll reviews, and worker interviews are being conducted at higher rates.
Stronger Oversight and More Audits
Contractors should expect:
Increased certified payroll reviews – Form WH-347 and supporting documentation are being checked more closely for accuracy.
More on-site worker interviews – Investigators are speaking directly with employees to confirm job classifications and wage rates match what’s reported.
Heavier penalties for non-compliance – Failing to pay prevailing wages or misclassifying workers can lead to withheld payments, debarment, and fines.
These changes are not intended to discourage participation, but rather to ensure that federal funds benefit workers as intended.
Worker Classification: A Growing Focus
One of the most significant areas of enforcement tied to infrastructure projects is accurate worker classification. Agencies want to ensure that laborers, equipment operators, electricians, and other trades are being properly classified according to the prevailing wage determinations.
Misclassifying workers—whether intentional or accidental—has become one of the most common mistakes leading to investigations. If you’re unsure how to classify workers, getting professional guidance early can save your project from major setbacks.
Real-World Example
In 2019, the DOL investigated contractors on federally funded highway projects and found widespread issues with payroll accuracy and worker classification. This resulted in back wages being awarded to multiple employees. While this case predates the most recent funding wave, it highlights exactly what regulators are looking for today: accurate certified payrolls, fair wages, and proper documentation.
Read more about it here: DOL News Release on Back Wages
What Contractors Can Do to Stay Ahead
Here are some best practices to protect your projects in the new enforcement environment:
Double-check prevailing wage rates before starting work.
Train payroll staff to accurately complete certified payroll reports.
Maintain detailed records for each worker, including hours worked, job classifications, and wages.
Conduct internal audits regularly to catch mistakes before the DOL does.
Use third-party labor compliance experts to monitor and verify compliance throughout the project.
Why Partner with Davis Bacon Solutions
At Davis Bacon Solutions, we make Davis-Bacon simple. Think of us as your “Davis-Bacon Guide for Dummies.” We help contractors, subcontractors, and project teams stay compliant with federal labor laws and regulations.
If you require more comprehensive support, our extension, Labor Compliance CA, LLC, can serve as your third-party labor compliance officer, handling certified payroll audits, worker interviews, and project oversight.
With new infrastructure funding increasing enforcement, having the right partner can save you time, money, and headaches.
Contact us today if you need assistance with navigating Davis-Bacon compliance on your federally funded projects.