Prevailing Wage Requirements in Georgia: Government Contract Rules

The Davis-Bacon Act, 40 U.S.C. § 3141 et seq., is the primary federal prevailing wage statute. It applies to construction, alteration, and repair of public buildings or public works financed in whole or in part by federal funds. The threshold is $2,000 in federal funding.

The Act requires contractors and subcontractors to pay workers no less than the prevailing wage rates determined by the U.S. Department of Labor for the county where work occurs. Rates are classified by trade (electrician, carpenter, laborer, etc.) and include base hourly wages plus fringe benefits (health insurance, retirement, training funds).

The Department of Labor publishes prevailing wage determinations for all counties nationwide. Contractors must obtain the current wage determination before bidding and include it in contracts. All workers on the project, regardless of union membership, must receive prevailing wage.

Enforcement is conducted by the Department of Labor's Wage and Hour Division. Violations can result in debarment from future federal contracts, withholding of federal funds, back pay liability, civil penalties up to $5,000 per violation, and administrative complaints. The EEOC does not enforce Davis-Bacon.

Georgia has enacted no independent state prevailing wage statute. O.C.G.A. § 34-7-2 establishes Georgia's minimum wage requirement, which is aligned with the federal minimum wage of $7.25 per hour, but contains no prevailing wage mandate for any category of worker or project type.

Because Georgia has no state prevailing wage law, only federal Davis-Bacon protections apply to public works projects in the state. This means: (1) contractors on federally funded projects must comply with Davis-Bacon; (2) contractors on state-funded, county-funded, or private projects in Georgia have no prevailing wage obligation and may pay any wage equal to or above the federal minimum wage; (3) Georgia public agencies are not required by state law to incorporate prevailing wage into their contract terms, though they may choose to do so voluntarily.

Georgia is one of only a handful of states without an independent prevailing wage statute. The state has not established separate wage determinations, wage rates, or enforcement mechanisms. Construction workers on non-federal projects in Georgia are therefore protected only by federal minimum wage law, not prevailing wage protections.

For contractors performing work on federally funded projects in Georgia, the applicable prevailing wage rates are those published by the U.S. Department of Labor in its national wage determination system. These rates apply uniformly regardless of whether work is performed in Atlanta or rural counties. Remedies for violation are federal, not state.

Davis-Bacon does not apply to projects that receive no federal funding, regardless of size or public nature. Private construction projects in Georgia, even large ones, have no prevailing wage requirement.

Small federal projects under $2,000 are exempt from Davis-Bacon. Some federal funding sources (e.g., certain small grants, loans) may not trigger Davis-Bacon if the statute is not expressly applicable to that funding stream.

Federal employees and certain other classifications are not covered by Davis-Bacon. The statute applies only to laborers and mechanics employed on federally funded construction.

State and local government agencies in Georgia are not required to impose prevailing wage on their own projects unless a specific federal grant condition requires it. Many Georgia municipalities have not adopted prevailing wage provisions.

Independent contractors and sole proprietors may face different treatment under Davis-Bacon depending on contract structure and degree of control exercised by the project owner.

Unionized workers often receive prevailing wage protections through collective bargaining agreements, which may exceed federal minimums, but these are not mandated by Georgia state law.

If a contractor claims a wage determination is incorrect for their county or trade, they may request a wage determination challenge through the Department of Labor, though this does not suspend the requirement to pay the current rate.

Step 1: Document all wage and hour records. Maintain daily time records, payroll records, fringe benefit payments, and hours worked by each employee. Keep copies of the wage determination applicable to the project, the contract incorporating the prevailing wage requirement, and all invoices and payment receipts. Document any communications indicating the contractor was aware of prevailing wage obligations. Retain these records for at least three years.

Step 2: Understand internal complaint options. Before filing externally, review the contract terms with the project owner or general contractor. Many federal contracts contain dispute resolution or escalation procedures. Document any internal complaints in writing and send them to the contractor's management or the project owner's representative. Request a written response. Internal complaints do not waive external filing rights and may preserve evidence.

Step 3: File a complaint with the U.S. Department of Labor Wage and Hour Division. The Division investigates Davis-Bacon violations. File online at www.dol.gov/agencies/whd or call 1-866-4-USDOL (1-866-487-3652). Provide the project name, location, contractor name, dates of work, job classification, alleged hourly rate paid, the correct prevailing wage rate, and the total underpayment amount. Include copies of pay stubs, time sheets, and the wage determination. There is no filing deadline; complaints may be filed during or after the project, though prompt filing strengthens the case.

Step 4: Expect the investigation process. The DOL will contact the contractor and project owner. Investigators will request payroll records, time records, and wage determinations. They will interview workers and the contractor. The investigation typically takes 30-90 days but may extend longer for complex cases. The DOL may conduct unannounced jobsite visits. Investigators will calculate total underpayment and determine if violations are willful. You will be contacted for additional information if needed.

Step 5: Consult an employment or wage-and-hour attorney if underpayment is significant (over $5,000), if the contractor disputes the claim, or if you are retaliated against. Attorneys can help quantify damages, file federal court suits for back pay, and represent you before the DOL. Many work on contingency. Contact a Georgia bar-certified attorney experienced in prevailing wage or Davis-Bacon claims; the State Bar of Georgia lawyer referral service can assist.