Prevailing Wage and Davis-Bacon Compliance in Pennsylvania
eMars provides certified payroll and compliance solutions tailored primarily for federal projects and select state jurisdictions. While many agencies accept the standard WH-347 form, some states will require their own form. For questions about supported jurisdictions, please contact our team directly.
Components of Wage Determinations
Both federal and state wage determinations in Pennsylvania include:
- Basic Hourly Rate: The minimum wage rate paid directly to workers in a specific job classification.
- Fringe Benefits: Health insurance, retirement, paid leave, or other benefits paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits.
For example, if the basic hourly rate is $25 and fringe benefits are $10, the total hourly rate is $35. Workers must receive the full $35 in cash wages if the contractor does not provide fringe benefits, or a combination of basic wage and bona fide benefits totaling $35 per hour worked.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in Pennsylvania must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
For state and local projects, use the L&I-issued prevailing wage determination for the project locality. For federally funded projects, use the U.S. Department of Labor's wage determinations on SAM.gov.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
For Pennsylvania public works projects, submit certified payroll weekly to the public body that awarded the contract, not directly to L&I. Records must show each worker's name, craft or classification, daily hours worked, hourly wage rate including fringe benefits, and deductions. For federally funded projects, file Form WH-347 weekly with the contracting agency. The DOL released a revised WH-347 effective January 6, 2025.
Handle Fringe Benefits
Handle Fringe Benefits
Post Wage Rates On-Site
Post Wage Rates On-Site
Display the prevailing wage determination in a conspicuous place at the job site.
Maintain Accurate Records
Maintain Accurate Records
Keep all required payroll records, including hours, classifications, wages, and fringe benefits, for at least two years under Pennsylvania law and provide access to L&I and the public body that awarded the contract during reasonable hours. Federal Davis-Bacon recordkeeping under the 2023 rule runs three years and includes worker telephone and email contact information on DOL request.
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in Pennsylvania can result in:
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Three-Year Debarment from bidding on public works contracts in Pennsylvania for willful violations, with the bar extending to any firm in which a debarred contractor has an interest
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Referral to the Pennsylvania Attorney General to seek liquidated damages on top of unpaid wages
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Criminal Misdemeanor Charges for falsification of certified payroll under Pennsylvania law
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- Termination of the underlying public works contract
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Back Wages owed to underpaid workers
Unique Aspects of Pennsylvania's Prevailing Wage System
- L&I-Set Rates Based on CBAs: L&I sets Pennsylvania rates from collective bargaining agreements and local wage data for each craft and locality, rather than adopting federal Davis-Bacon determinations.
- Weekly Certified Payroll to the Public Body: Contractors file weekly with the awarding public body, not directly with L&I, which differs from many states that route filings through a state agency portal.
- Two-Year Recordkeeping Under State Law: Pennsylvania requires retention for at least two years under the PA Prevailing Wage Act, shorter than the federal Davis-Bacon three-year minimum.
- Three-Year Debarment for Willful Violations: A contractor or any firm in which a debarred contractor has an interest cannot be awarded a public works contract for three years.
Relevant Resources
- PA Department of Labor and Industry - Prevailing Wage
- DOL Form WH-347 (Revised January 2025)
- Pennsylvania Prevailing Wage Act (43 P.S. §§ 165-1 through 165-17)
- PA L&I - Prevailing Wage Projects (Forms and Documents)
- DOL Final Rule: Updating the Davis-Bacon and Related Acts Regulations
For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or your state's official labor website.
Pennsylvania Prevailing Wage FAQs
What is the Pennsylvania Prevailing Wage Act?
The Pennsylvania Prevailing Wage Act, 43 P.S. §§ 165-1 through 165-17, requires contractors and subcontractors on public works projects funded by state or local governments to pay workers
How are prevailing wage rates determined for public works projects in Pennsylvania?
For state-funded projects, prevailing wage rates are determined by the Pennsylvania Department of Labor and Industry (L&I) based on wage data and collective bargaining agreements. For federally funded projects, prevailing wage rates are determined by the U.S. Department of Labor.
What are the penalties for non-compliance with prevailing wage laws in Pennsylvania?
Penalties include back wages, referral to the Pennsylvania Attorney General for liquidated damages, three-year debarment from bidding on public works contracts for willful violations, contract termination, and criminal misdemeanor charges for falsification of certified payroll. Federal Davis-Bacon penalties layer on top when federal funds are involved.
How are fringe benefits handled under Pennsylvania’s prevailing wage laws?
Contractors must provide bona fide fringe benefits such as health insurance, retirement, or paid leave, or pay the equivalent value as additional cash on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate listed on the applicable L&I or SAM.gov wage determination. If no fringe benefits are provided, the full total hourly rate must be paid as cash directly to the worker.