New Hampshire Davis-Bacon Act: A Complete Guide for Contractors
Overview of Federal Prevailing Wage Requirements in New Hampshire
New Hampshire does not have a state prevailing wage law for public works projects. However, contractors working on federally funded construction projects must comply with the Davis-Bacon Act, which establishes prevailing wage requirements to ensure fair compensation for laborers and mechanics.
For any construction company working on federal projects in New Hampshire, Payroll4Construction is here. As a complete payroll service, Payroll4Construction is built to keep contractors compliant with certified payroll reporting and Davis-Bacon prevailing wage determinations.
Keep reading to learn more about Davis-Bacon Act requirements in New Hampshire and how we can help you.
What is Davis-Bacon Act Prevailing Wage in New Hampshire?
The Davis-Bacon Act protects construction workers by requiring prevailing wages on federally funded New Hampshire projects exceeding $2,000. This applies to projects such as:
- Federal highway construction and repair
- Public housing projects with federal funding
- Schools receiving federal construction grants
- Infrastructure projects funded by federal agencies
- Military construction projects
- Post offices and other federal buildings
Under this law, construction workers must receive minimum hourly wages and fringe benefits based on local standards for similar work within New Hampshire as determined by the U.S. Department of Labor.
Don’t Let Prevailing Wage Compliance
Slow Down Your BusinessDavis-Bacon Prevailing Wage Rate Determination
Setting Initial Rates
The U.S. Department of Labor (DOL) has several crucial responsibilities related to establishing and maintaining prevailing wage rates for federal projects in New Hampshire. These ensure fairness throughout the contracting process.
The DOL must:
- Determine appropriate prevailing wages, including hourly rates and benefit rates for New Hampshire localities
- Publish these rates for use in federally funded construction projects
- Include these rates in all project specifications and contracts
- Update rates periodically to reflect current local conditions
Rate Calculation Method
The DOL follows a structured approach to determine fair and accurate compensation rates for New Hampshire. They establish rates by analyzing:
- Collective bargaining agreements in the specific locality
- Actual wages paid on similar construction projects in the area
- Various sources of wage information for the geographic region
- Input from public hearings when necessary
Davis-Bacon Act Requirements for New Hampshire Contractors
Federal prevailing wage laws establish minimum compensation standards for workers on federally funded projects. These requirements ensure fair labor practices and create a level playing field for all contractors bidding on federal work in New Hampshire.
- Contractor
Contractors ensure Davis-Bacon compliance by applying correct wage determinations and submitting certified payroll reports throughout the entire project lifecycle:
- Understanding which projects are subject to Davis-Bacon requirements
- Obtaining current wage determinations for the project location in New Hampshire
- Paying prevailing wages to all covered workers
- Ensuring all subcontractors comply with Davis-Bacon requirements
- Submitting weekly certified payroll reports
How to Submit Davis-Bacon Certified Payroll
Contractors submit WH-347 certified payroll forms weekly to verify prevailing wage compliance for all covered workers on federal projects in New Hampshire.
Certified payroll reports must include:
- Project information and contract details
- Employee names and addresses
- Job classifications for each worker
- Hours worked each day and total weekly hours
- Hourly wage rates paid
- Gross wages earned
- Deductions taken
- Net wages paid
- Fringe benefits provided or cash equivalent
Contractors need accurate certified payroll records that demonstrate proper wage payments and compliance with Davis-Bacon requirements. Each payroll submission must include a signed statement of compliance certifying that:
- Information is correct and complete
- Workers were paid not less than required prevailing wages
- No rebates or deductions reduced wages below required rates
- Records supporting the payroll are available for inspection
These reports must be submitted weekly to the contracting agency and maintained for at least three years after project completion.
Compliance, Enforcement and Consequences
The Davis-Bacon Act compliance system relies on robust enforcement mechanisms and meaningful penalties to ensure all parties adhere to established standards. These measures protect workers' rights while maintaining the integrity of federal projects in New Hampshire.
Wage Payment Rules
Davis-Bacon prevailing wage laws establish minimum compensation requirements that cannot be circumvented. This ensures workers receive fair pay for their labor on federal projects.
The rules surrounding wage payment include:
- Workers must receive local prevailing rates for their job classification
- Rates include both cash wages and fringe benefits
- Rates are based on local wage surveys and collective bargaining agreements
- Employers cannot pay below these rates, even with worker consent
- Certified payroll records must be submitted weekly
Violation Consequences
Significant operational and financial repercussions await contractors who fail to comply with Davis-Bacon requirements, potentially jeopardizing their ability to work on federal projects.
Construction businesses are at risk of penalties, including:
- Administrative action by the U.S. Department of Labor
- Debarment from federal contracts for up to three years
- Assessment of unpaid wages plus interest
- Contract termination
- Withholding of contract payments
- Potential ban from future federal projects
Davis-Bacon Whistleblower Protections
Federal law protects workers who report Davis-Bacon violations from retaliation.
Employees are protected from retaliation when reporting prevailing wage violations:
- Protection from termination
- Protection from disciplinary action
- Protection from discrimination
- Protection from threats
These protections apply specifically to matters involving Davis-Bacon compliance. They allow workers to safely report underpayment, misclassification, or certified payroll record falsification without fear of employer retaliation.
Penalties
The legal framework includes substantial financial penalties and establishes clear liability structures to encourage compliance.
Financial consequences include:
- Payment of back wages with interest
- Administrative penalties
- Contract termination and debarment
- Joint liability between contractors and subcontractors
- Potential criminal charges for willful violations
How Payroll4Construction Helps You Stay Compliant
Payroll4Construction is a construction payroll service that specializes in helping contractors and construction companies navigate the complex wage regulations of the Davis-Bacon Act.
These time-saving services reduce administrative hours spent on complex wage calculations and paperwork. In turn, this gives your team peace of mind knowing that Davis-Bacon obligations are being handled correctly.
Davis-Bacon Act Coverage and Exceptions
Most federally funded construction projects in New Hampshire must adhere to Davis-Bacon prevailing wage requirements. However, certain exemptions exist under specific circumstances.
Projects are subject to Davis-Bacon requirements if they:
- Receive federal funding of $2,000 or more
- Involve construction, alteration, or repair of public buildings or public works
- Are performed for the federal government or with federal assistance
Projects may be exempt from Davis-Bacon requirements if they:
- Fall below the $2,000 federal funding threshold
- Involve only materials supply without installation
- Qualify for specific statutory exemptions such as:
- Certain volunteer work
- Emergency repair work under specific conditions
- Projects explicitly exempted by federal law
- Certain types of maintenance work
Contractors should carefully review project funding sources to determine which wage standards apply. When federal and state/local funding are combined, Davis-Bacon requirements typically apply to the entire project.
We Serve Contractors Throughout New Hampshire
Whether you're working on federal highway projects in Manchester, military construction at Portsmouth Naval Shipyard or federally funded infrastructure improvements in Nashua, Payroll4Construction helps New Hampshire contractors stay compliant with Davis-Bacon requirements.
Our services support contractors across all regions of New Hampshire, from the seacoast to the White Mountains, ensuring accurate prevailing wage compliance on every federal project.
