Prevailing wages in Florida: Guide for contractors

Prevailing wages in construction ensure fair compensation for workers, but they also make running payroll more complicated. Unlike on private projects, contractors on covered jobs can’t set their own rates. They have to structure compensation packages that meet minimum wage and fringe benefit requirements for each worker classification.

Florida doesn’t have its own prevailing wage legislation, which eases the regulatory burden. However, contractors aren’t completely off the hook. Prevailing wage rules still apply to federally funded projects, and contractors need to know how they work to stay compliant.

This guide explains prevailing wages in Florida, covering federal Davis-Bacon requirements, how to calculate pay rates, and what can happen when a contractor makes a mistake.

What is the prevailing wage in Florida? 

Unlike many other states, Florida doesn’t have any state-level prevailing wage laws. While state law sets the minimum wage in Florida at $14 per hour, this is a wage floor for all workers, not construction workers specifically. The previous prevailing wage law was repealed in 1979, and nothing has taken its place since. 

Until recently, some jurisdictions retained local prevailing wage laws, including Miami-Dade County, the City of Orlando, and the City of Hollywood. However, House Bill 705 redefined what counts as a public works project in 2024, effectively prohibiting local governments from setting their own prevailing wage requirements. The companion bill HB 433 will fully preempt all local wage mandates on contractors by September 30, 2026.

This doesn’t exclude contractors from paying prevailing wages on federally funded projects. The Davis-Bacon Act regulates pay in these cases.

Which projects require prevailing wages in Florida?

Projects that receive at least $2,000 in federal funding are generally subject to Davis-Bacon Act wage and hour regulations. This is a low threshold; however, applicability is not purely cumulative across unrelated contracts. If multiple contracts are part of the same overall project, they may be treated together for purposes of determining Davis-Bacon coverage, particularly where contracts are not legitimately separate. Therefore, most public works projects in Florida that involve federal funding are large enough to trigger federal prevailing wage requirements, though coverage ultimately depends on the specific funding source and project structure.

Below are a few real-world examples of projects subject to Davis-Bacon regulations.

Federal highway projects

• Project type: Interstate maintenance, bridge building, highway expansion
• Example: In 2014, the Florida Department of Transportation received $949 million in federal funds to widen a 21-mile stretch of highly trafficked highway in Central Florida. The project was completed in 2022.

Federal buildings

• Project type: Post offices, federal courthouses, federal agency buildings
• Example: The General Services Administration supplied $196 million for a federal courthouse in Fort Lauderdale in 2023.

Military construction

• Project type: New facilities, military base renovations
• Example: In 2022, the U.S. Army Corps of Engineers awarded a $532 million contract to Hensel Phelps for projects to support F-35 fighter jet operations at Tyndall Air Force Base.

Port infrastructure

• Project type: Dredging, terminal building, security upgrades
• Example: Also in 2022, the $420 million Jacksonville Harbor Deepening Project completed construction, partially using federal funds.

Public housing

• Project type: Construction and renovation of housing developments
• Example: The Department of Housing and Urban Development (HUD) provided $39 million to fund public and affordable housing development in Miami-Dade County in 2024.

Environmental projects

• Project type: Water treatment plants, sewer systems, stormwater management
• Example: In 2023, the Environmental Protection Agency (EPA) awarded Florida $78 million in federal funding to upgrade water, wastewater, and stormwater infrastructure.

How to calculate pay on federally funded Florida construction jobs: 4 steps

Calculating Davis-Bacon prevailing wages involves four key steps.

1. Find the base rate.

The first step is locating the base Davis-Bacon wage rate set by the Department of Labor. These vary by county, worker classification, and construction type (building, heavy, highway, or residential). Contractors can find this information by navigating to the wage determinations section of SAM.gov.

If available, enter the wage determination (WD) number directly into the search form. Otherwise, click “Public Buildings or Works” and enter the project details, including state, city or county, and construction type. This will provide a link to a list of prevailing wage rates for the specified jurisdiction and construction type broken down by role. For example, contractors hiring a pipefitter in Miami-Dade County must offer a minimum wage of $43.38 per hour (before fringe benefits).

2. Calculate fringe benefits.

Davis-Bacon requires contractors on federally funded projects to provide fringe benefits like healthcare, retirement contributions, and paid time off. Contractors have two main ways to satisfy fringe benefit requirements: 

• Offering a bona fide benefits plan: Contractors satisfy the fringe requirement by contributing the fringe amount to an approved program, such as health insurance or a pension plan. 
• Paying cash in lieu: Contractors simply add the fringe rate to the hourly wage. For our Miami-Dade pipefitter, their wage would go from $43.38 per hour to $60.08 after adding in the $16.70 per hour fringe rate. 

Some contractors combine both approaches. However, bona fide contributions give contractors prevailing wage fringe credits they can use to reduce payroll taxes and workers’ comp premiums. With this in mind, leaning compensation in the direction of bona fide contributions is often the smartest move.

3. Calculate the overtime rate.

Multiply the worker’s base wage by the Davis-Bacon Act overtime rate of 1.5, leaving out the fringe rate. For the pipefitter, that comes out to:

$43.38 per hour × 1.5 = $65.07 per hour

Note that Florida doesn’t have daily overtime rates. The state considers any hours worked more than 40 in a single week overtime.

4. Calculate total compensation.

These three components combined represent the worker’s total compensation package. Returning to our pipefitter example, they earn $43.38 per hour for base pay, $16.70 per hour for fringe benefits, and $65.07 per hour for overtime.

For a 45-hour week, this comes out to:

40 hours base pay + 5 hours overtime pay + 45 hours of fringe pay

= (40 hours × $43.38) + (5 hours × $65.07) + (45 hours × $16.70)

= $2,812.05

Prevailing wage contractor responsibilities in Florida

Contractors must satisfy several core duties to stay on the right side of prevailing wage laws:

• Pay the right rates: Paying incorrect rates triggers back wage liability, fines, and potential debarment on top of sowing distrust amongst employees.
• Maintain accurate records: Store certified payroll reports in a secure place, and keep payroll records for at least three years after project completion to stay prepared for audits or employee wage disputes.
• Complete certified payroll reporting: Contractors working on Davis-Bacon projects must submit certified payroll reports each week. Failing to do so can result in fines, and contract termination.
• Display required notices: Contractors must display prevailing wage determinations and the Davis-Bacon employee rights poster at each jobsite.
• Ensure subcontractor compliance: General contractors are on the hook for any compliance mistakes hired subcontractors make.

Prevailing wage noncompliance violations and consequences

Here are some of the most common Davis-Bacon compliance mistakes and their potential repercussions.

Common violations 

• Worker misclassification: Prevailing wage rates vary widely between roles. Paying a pipefitter at the rate of a general laborer can mean considerable underpayment, with a considerable back wage liability to match.
• Certified payroll reporting issues: Sending in late, inaccurate, or incomplete certified payroll reports is a common noncompliance trigger for an investigation.
• Insufficient record-keeping: Getting audited is stressful enough. Not having records on hand compounds the problem, as companies can’t prove they paid employees the correct amounts.

Legal consequences

• Fines: Noncompliance mistakes can result in hefty fines. Contractors may owe thousands of dollars per violation.
• Back wages: Underpaid workers must be repaid, with interest.
• Debarment from government contract bidding: “Aggravated or willful violation” of Davis-Bacon regulations can get contractors barred from competing for government contracts for up to three years.
• Project termination: If violations surface while a project is underway, the government may terminate it. The contractor will be on the line for completion costs.

Certified payroll reporting: How to submit prevailing wage proof in Florida

No matter the jurisdiction, submitting prevailing wage proof means certified payroll reporting. The process looks like this.

• Gather required documentation: Collect all the information needed to fill out the report. This includes employee classifications and personal details, wage rates, fringe benefit records, and several other pieces of data. Download Weekly Certified Payroll Form WH-347 for the full list.
• Fill out the report: Complete Form WH-347, including the signed statement of compliance affirming that all employees have been paid in accordance with Davis-Bacon.
• Submit certified payroll reports: Submit certified payroll reports to the contracting agency weekly, within seven days of the payment date. The submission method is up to the contracting agency and may be paper or electronic.
• Maintain records: Davis-Bacon requires contractors to keep at least three years of records starting from the completion of the prime contract.

Stay compliant with prevailing wage requirements.

Managing prevailing wage compliance on federally funded projects means tracking wage determinations by county and classification, calculating fringe correctly, and filing certified payroll reports every week without gaps. One missed filing or misclassified worker can trigger an investigation, back wage liability, or worse.

The compliance work starts in the field. When crews clock in through Miter Time Tracking, their hours are tagged to the right job and classification from the start without manual or duplicate entry. Employee records and classifications flow from HR into payroll automatically, so the data behind your certified payroll reports reflects what’s actually happening on the job.

Miter keeps everything in one place. Contractors use it to pay the correct prevailing wage rates, generate certified payroll reports, and maintain the documentation they need to survive an audit. When time, HR, and payroll data live in the same system, compliance stops being a scramble.