Prevailing Wage and Davis-Bacon Compliance in Vermont
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.
Prevailing Wage Determinations
Federal Davis-Bacon Act
- Applies to federally funded or assisted contracts of $2,000 or more
- The U.S. Department of Labor publishes determinations on SAM.gov by county and construction type
- The applicable determination is the one in effect ten days before bid opening
Capital Construction Act
- All employees on covered projects must be paid at least the average prevailing wage published by the Vermont Department of Labor in its annual State Construction Prevailing Wage Rate Schedule
- Rates are drawn from the most recent Occupational Employment and Wage (OEW) Survey
- The state is divided into three rate areas: Burlington-South Burlington NECTA, Northern Vermont, and Southern Vermont
- VDOL publishes new rates annually each July 1 covering the fiscal year through June 30
- A 42.5 percent fringe benefit component is required on top of the basic hourly wage
Components of Wage Determinations
Both federal and state wage determinations in Vermont include:
- Basic Hourly Rate: The minimum hourly wage required for a specific job classification, excluding fringe benefits.
- Fringe Benefits: Health insurance, retirement, paid leave, or other benefits paid on top of the basic rate. Vermont's fringe value is calculated by multiplying the basic hourly rate by 0.425.
- Total Hourly Rate: The sum of the basic hourly rate and fringe benefits.
Contractors can satisfy the fringe benefit obligation by providing bona fide benefits or paying the equivalent value as additional cash on top of the basic wage. Total compensation must equal at least the basic rate plus the fringe component for every hour worked.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in Vermont must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
Use the U.S. Department of Labor's Wage Determinations on SAM.gov for federal projects and the VDOL state construction prevailing wage rate schedule for CCA projects. When both apply, pay the higher rate for each classification.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
File weekly Form WH-347 with the contracting agency on federally funded projects. State CCA projects route certified payroll to VDOL or to the specific state agency overseeing the project, such as the Department of Buildings and General Services (BGS) for state buildings.
Handle Fringe Benefits
Handle Fringe Benefits
Ensure each worker receives the mean prevailing wage plus the 42.5 percent fringe component, paid as cash or as a combination of cash and bona fide benefits.
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Accurate Records
Maintain Accurate Records
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in Vermont can result in:
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Civil Penalty of up to $5,000 for willful failure to pay required benefits that continues for 30 days after payments are due, under Vermont wage and hour statutes
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Public Record of Violations: Vermont publishes prevailing wage enforcement actions on a searchable state website where they remain visible for up to six years. Worker identities are kept private, but the contractor's name and violation details are not.
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Federal Davis-Bacon Penalties when federal funds are involved, including back wages, withholding and cross-withholding, three-year federal debarment, CWHSSA liquidated damages of $33 per worker per day for overtime violations (2025 figure, adjusted annually), and criminal exposure for willful falsification of certified payroll. Under the 2023 federal rule, prime contractors are also liable for unpaid wages owed by their subcontractors.
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Back Wages owed to underpaid workers
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Disqualification from future public works contracts
Unique Aspects of Vermont's Prevailing Wage System
- Geographic Wage Determinations: Vermont publishes rates for three regions: the Burlington-South Burlington Metropolitan New England City and Town Area (NECTA), the Northern Vermont Area, and the Southern Vermont Area. Contractors should confirm the project's region before bidding.
- Mean Wage Plus Fixed Fringe: Vermont applies the mean (average) hourly wage from the Occupational Employment and Wage Survey rather than the most common rate, then adds a fixed 42.5 percent fringe benefit component on top. The fixed percentage is one of the highest in the country.
- Annual Rate Cycle: VDOL publishes new rates each July 1 covering the fiscal year through June 30, drawn from the prior year's Occupational Employment and Wage Survey.
- State-Level Determination: Vermont's prevailing wage rates are set by the Vermont Department of Labor rather than the federal government, and the rate schedule is statewide rather than county-by-county.
Relevant Resources
- Davis-Bacon Wage Determinations on SAM.gov
- Vermont Department of Labor
- DOL Form WH-347 (Revised January 2025)
- Vermont Prevailing Wage Statute: 29 V.S.A. § 161
- Vermont State Construction Prevailing Wage Rate Schedule
- VTrans: Davis-Bacon for Federal-Aid Highway Construction
- Updating the Davis-Bacon and Related Acts Regulations: DOL Final Rule
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.
Vermont Prevailing Wage FAQs
Does Vermont have its own prevailing wage law?
Yes. Vermont's prevailing wage requirement is in 29 V.S.A. § 161(b) and tied to the annual Capital Construction Act. Coverage applies to projects funded in whole or in part by the Act and costing more than $100,000, or projects at least 50 percent funded by the Act and costing more than $200,000. Contractors must pay the mean prevailing wage published by VDOL plus a 42.5 percent fringe benefit component.
What is the 42.5% fringe benefit component?
Under Vermont's prevailing wage rule, employers must add 42.5% of the basic hourly wage to cover fringe benefits, calculated as Fringe Benefit = Basic Wage × 0.425. For example, a $40 mean wage requires $17 in fringe benefits, for a total of $57 per hour. Contractors can provide bona fide benefits such as health insurance, retirement, or paid leave, or pay the fringe value as additional cash on top of the basic hourly rate.
How can I check the current prevailing wage rates?
For Vermont Projects: VDOL publishes the State Construction Prevailing Wage Rate Schedule annually, effective July 1 through June 30. Current rates cover July 1, 2025 through June 30, 2026 and are based on the 2024 Occupational Employment and Wage Survey.
For Federal (Davis-Bacon) Projects: Check SAM.gov for wage determinations by county and construction type. Apply the determination in effect ten days before bid opening.
What are the penalties for non-compliance with prevailing wage laws in Vermont?
Penalties include back wages for underpaid workers, a civil penalty for willful failure to pay required benefits that continues for 30 days, disqualification from future state or federally funded projects, and public posting of enforcement actions by the Commissioner of Labor. Federal Davis-Bacon penalties layer on top when federal funds are involved, including three-year federal debarment, withholding, and cross-withholding of contract payments, and criminal exposure for willful falsification.