Davis-Bacon fringe benefits are the employer-paid contributions required on top of the base hourly wage for workers on federally funded construction projects. These include health and welfare (medical, dental, vision), pension contributions, apprenticeship training fund payments, vacation pay, and other supplemental benefits. The most common payroll error in prevailing wage compliance is the overtime calculation: overtime must be computed as 1.5 times the BASE rate plus 1.0 times the fringe rate — NOT 1.5 times the total rate. For example, if a worker earns $45.00/hr base with $25.85/hr in fringe benefits, the correct overtime rate is (1.5 × $45.00) + $25.85 = $93.35/hr, NOT 1.5 × $70.85 = $106.28/hr. Employers may satisfy fringe obligations by making bona fide contributions to approved benefit plans, paying cash equivalents directly to workers, or a combination of both. Failure to properly account for fringe benefits is one of the top reasons contractors face Davis-Bacon violations and back-pay claims. These rates are sample data for illustration purposes only. Always verify current prevailing wage rates against the official SAM.gov wage determinations before use on any federally funded project.
| Classification | Base Rate | Health & Welfare | Pension | Training | Vacation | Other | Total |
|---|---|---|---|---|---|---|---|
| Example: Electrician (for illustration) | $45.00 | $12.50 | $10.00 | $0.85 | $2.00 | $0.50 | $70.85 |
These rates are sample data for illustration purposes only. Always verify current prevailing wage rates against the official SAM.gov wage determinations before use on any federally funded project.
Fringe benefits are employer-paid contributions required on top of the base hourly wage. They include health & welfare (medical, dental, vision), pension, apprenticeship training, vacation pay, and other supplemental benefits.
Overtime must be calculated as 1.5x the base rate plus 1.0x the fringe rate. This is NOT 1.5x the total rate — the most common payroll error on Davis-Bacon projects.
Employers can satisfy fringe obligations by making bona fide contributions to approved benefit plans, paying cash equivalents directly to workers, or a combination of both.
Failure to properly account for fringe benefits is one of the top reasons contractors face Davis-Bacon violations and back-pay claims. Accurate tracking is essential.
The base hourly rate for a Example: Electrician (for illustration) is $45.00/hr, with total compensation (including fringe benefits) of $70.85/hr.
Overtime is calculated as 1.5x the base rate plus 1.0x the fringe benefits — NOT 1.5x the total rate. This is the most common payroll error on Davis-Bacon projects.
Fringe benefits include health & welfare, pension, apprenticeship training, vacation pay, and other supplemental contributions. Employers can pay these as bona fide plan contributions or as cash equivalents.
Official prevailing wage rates are published on SAM.gov. The rates shown here are sample data for illustration purposes — always verify against the official wage determination before use on any federally funded project.
TradeStack automates prevailing wage compliance, fringe benefit tracking, and certified payroll reporting.
Join the Hardhat List