Prevailing Wage Requirements in Colorado: Government Contract Rules

The federal Davis-Bacon Act, 40 U.S.C. § 3141, requires prevailing wage payment on all federally funded or federally assisted construction projects exceeding $2,000. The Secretary of Labor determines prevailing wages for covered classifications, typically based on union rates in the geographic area. The Act applies to construction, alteration, and repair work, and covers all workers on the project site, not just those performing the federally funded portion.

Covered employers include all contractors and subcontractors performing work on qualifying federal projects. The law mandates payment of the full prevailing wage plus fringe benefits (health insurance, retirement contributions, etc.) to all workers in covered classifications. Remedies under Davis-Bacon include wage recovery, liquidated damages equal to the unpaid wages, and potential debarment from future federal contracts.

The Department of Labor enforces Davis-Bacon through the Wage and Hour Division. Workers or unions may file complaints, and the DOL investigates independently. Contractors must submit certified payroll records weekly or biweekly, documenting hours, wages, and fringe benefit payments for each worker.

Colorado's prevailing wage law, C.R.S. § 8-6-101 et seq., applies a lower threshold and broader coverage than federal Davis-Bacon. The Colorado law covers all public works projects (public buildings, infrastructure, etc.) valued at $25,000 or more, regardless of funding source. This means even state and local government projects funded entirely with state or local money trigger prevailing wage requirements, whereas federal Davis-Bacon applies only to federally funded work.

The Colorado Department of Labor and Employment issues prevailing wage determinations by county and trade classification prior to each construction season. These determinations establish the hourly wage rate and fringe benefit amounts required for each job classification. Colorado prevailing wages are typically modeled on union scale wages and are often comparable to or higher than federal Davis-Bacon rates in the same area.

Colorado's law is significantly stronger than federal law in three respects: (1) it applies to a broader range of public projects, including those with no federal funding, (2) it includes a lower dollar threshold ($25,000 versus $2,000 federally), and (3) it imposes more stringent enforcement with higher penalty provisions. Contractors covered by both laws must comply with the higher wage determination if the two differ.

Remedies under Colorado law include unpaid wage recovery, liquidated damages equal to the unpaid prevailing wage (effectively doubling exposure), penalties of up to 10% of the total contract value, and debarment from public projects for up to three years. The Colorado Department of Labor enforces the law directly; workers may also file civil actions. Unlike federal law, Colorado allows prevailing wage claims to be brought in state court without exhausting administrative remedies.

Prevailing wage does not apply to private construction projects, regardless of size or funding source, unless the private developer receives public subsidies or tax incentives that trigger statutory coverage. Certain narrow exemptions exist for owner-builder projects where the property owner performs labor personally without hiring employees. Projects under $25,000 are exempt from Colorado's prevailing wage requirement, though they may still be subject to federal Davis-Bacon if they receive federal funds.

Work performed by permanent employees of the project owner or general contractor performing non-construction work (such as surveying, engineering, or project management) may fall outside prevailing wage scope depending on the contract classification. However, this exemption is narrowly construed; workers performing construction-related duties are covered regardless of job title. Apprentices enrolled in registered apprenticeship programs may be paid at reduced rates established in the prevailing wage determination, typically 50-90% of the journeyperson rate, but only with proper documentation and compliance with apprenticeship agreements.

Contractors may not avoid prevailing wage by subcontracting work or misclassifying workers as independent contractors. The statute explicitly imposes liability on prime contractors for all subcontractor wage violations. Likewise, prevailing wage applies regardless of whether the contractor is union or non-union; the payment obligation is statutory, not contractual. Prevailing wage does not apply to supply contracts or professional services contracts (such as architectural or engineering design work) unless the contract includes construction labor. Seasonal work on public projects, such as maintenance or landscaping by public agencies themselves, may be exempt if performed by permanent municipal employees not in construction classifications.

Step 1: Document all evidence of prevailing wage violations. Keep copies of prevailing wage determinations issued for the project, your employment records showing hours worked and wages paid, timecards or time records, paystubs showing gross pay and deductions, and any written communications from the contractor about wage rates. Photograph or photograph any posted notices (or absence thereof) at the work site. If you work through a staffing agency, retain records from both the agency and the contractor showing which entity withheld prevailing wage.

Step 2: Attempt internal resolution. Notify the contractor in writing (email is acceptable) that you believe prevailing wage was not paid correctly, citing the rate you should have been paid under the prevailing wage determination. Request a written response within 10 business days. Notify the project's public agency (city, county, school district, or state agency) in writing, providing project details, your name, dates worked, and the alleged violation. This internal notice triggers agency investigation obligations and preserves your claim. Do not expect the contractor to voluntarily cure the violation; documentation of the complaint is what matters.

Step 3: File a complaint with the Colorado Department of Labor and Employment (CDLE), Division of Labor Standards and Statistics. File online at colorado.gov/dol-prevailing-wage or mail a written complaint to 1515 Arapahoe Street, Denver, CO 80202. You may file anonymously. Include your contact information, contractor name, project name and location, dates you worked, wage rates you received, and the prevailing wage rates you should have been paid (reference the CDLE determination by year and county). No filing fee applies. The statute of limitations is typically three years from the violation date, but claims under the wage theft statute may extend further. Include a request for investigation and wage recovery.

Step 4: Understand the CDLE investigation process. After filing, the Department will request payroll records, project documentation, and wage determinations from the contractor and project agency. The investigation typically takes 30-90 days but may extend longer if records are complex or the contractor disputes liability. CDLE investigators will contact you for additional information if needed. You have the right to participate in any investigation meeting. The agency will issue a determination letter stating whether a violation occurred and, if so, the amount owed. If CDLE finds a violation, they will demand payment and may assess penalties. The contractor has a right to appeal.

Step 5: Consider attorney consultation if the unpaid wages exceed $5,000 or the contractor disputes the claim. An employment attorney specializing in prevailing wage can review your records for completeness, calculate the correct wage owed including fringe benefits and overtime, and determine whether you have claims for liquidated damages (doubling the wages owed) or penalties under Colorado's Wage Theft Act. If CDLE investigation stalls or the contractor refuses to pay after a favorable determination, an attorney can file a civil action in Colorado district court to enforce the determination and pursue additional penalties. Given the statutory penalties of up to 10% of contract value, many prevailing wage cases justify legal representation from initial filing onward.