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Wage and Hour Division (WHD)

Davis-Bacon and Related Acts Frequently Asked Questions

IV. Davis-Bacon Wage Surveys


In responding to a Davis-Bacon wage survey, what should I consider as fringe benefits?

Fringe benefits are:

-The rate of contributions irrevocably made by a contractor or subcontractor to a trustee or third party pursuant to a bona fide fringe benefit fund, plan, or program.

-The rate of costs incurred by a contractor or subcontractor which may be reasonably anticipated in providing bona fide fringe benefits to laborers and mechanics pursuant to an enforceable commitment to carry out a financially responsible plan or program which was communicated to the workers in writing.

Examples:

  • Life insurance
  • Health insurance
  • Pension
  • Vacation
  • Holidays
  • Sick Leave
  • Other “bona fide” fringe benefits

Payments required by federal, state or local law are not fringe benefit contributions. For example, payments required to fund Social Security, unemployment compensation and workers’ compensation programs, as required by law, are not fringe benefits.