Texas Prevailing Wage and Certified Payroll: A Contractor's Guide
— WH347.io Team
Texas has no state prevailing wage law — but that doesn't mean Texas contractors are off the hook. Federal Davis-Bacon rules apply in full on federal projects, and TxDOT's federal-aid highway work comes with its own certified payroll requirements. Here's what Texas contractors need to know.
Texas is one of the few states without a state prevailing wage law. The Texas Government Code previously included a state prevailing wage requirement for public construction, but it was repealed in 1995. As a result, there is no state-level prevailing wage or certified payroll mandate for Texas state-funded public work — a public school building in Austin, a county road, a state office building — none of these trigger a prevailing wage requirement under Texas law alone.
That does not mean Texas contractors are exempt from prevailing wage obligations. When a Texas project is federally funded or federally assisted — and a large share of Texas construction is exactly that — federal Davis-Bacon rules apply in full. The absence of a state law doesn't create a gap; federal law fills it completely.
When Davis-Bacon Applies on Texas Projects
Davis-Bacon applies to Texas construction projects when federal money is involved and the statutory trigger is met. The most common scenarios:
- Direct federal contracts: work for a federal agency such as the Army Corps of Engineers, the GSA, the VA, or military installations. Davis-Bacon is written into these contracts automatically.
- Federal highway funding: Texas receives substantial federal transportation funding through the Federal Highway Administration (FHWA). Projects funded through TxDOT with federal-aid money are subject to Davis-Bacon requirements.
- HUD-funded housing: multifamily housing projects funded through HUD programs (CDBG, HOME, Section 8 construction) are covered.
- FAA airport projects: construction at commercial airports funded by FAA Airport Improvement Program grants.
- Infrastructure law projects: the Infrastructure Investment and Jobs Act (2021) expanded the number of federally funded Texas projects subject to Davis-Bacon, including many broadband, water, and energy infrastructure projects.
How to Look Up Texas Wage Determinations
Texas wage determinations are published by the DOL's Wage and Hour Division and are available at sam.gov under the 'Wage Determinations' section. Texas wage determinations are organized by county and by construction type (building, heavy, highway, and residential). The applicable wage determination for your project will be incorporated into your contract by the contracting agency — you don't choose it.
Texas is a large state with significant geographic and economic variation. The prevailing wage for a carpenter in the Dallas–Fort Worth metroplex is different from the rate in rural West Texas. Always use the wage determination that was incorporated into your specific contract — don't substitute a rate from a different county or a determination pulled from a prior project.
- Look up current determinations at sam.gov/wage-determination.
- Texas determinations are identified by state code (TX) and county.
- Check whether the wage determination in your contract has been modified since the contract was awarded — modifications are incorporated automatically and take effect on the next contract anniversary if not addressed.
- If you believe the wage determination in your contract is incorrect or outdated, raise the issue with the contracting officer before work begins.
TxDOT Federal-Aid Highway Projects
Frequently Asked Questions
Does Texas have a prevailing wage law?
No. Texas repealed its state prevailing wage law in 1995. There is no state-level prevailing wage requirement for Texas state-funded public construction. However, federal Davis-Bacon prevailing wage rules apply in full to any Texas project that is federally funded or federally assisted.
Do federal prevailing wage rules apply to Texas projects?
Yes. When a Texas construction project involves federal funding — through FHWA, HUD, FAA, direct federal contracts, or other federal programs — the Davis-Bacon Act applies and contractors must pay prevailing wages and submit certified payroll reports. The absence of a Texas state law creates no gap; federal law governs.
How do I look up the prevailing wage rate for my Texas project?
Texas wage determinations are published at sam.gov under the Wage Determinations section, organized by county and construction type (building, heavy, highway, residential). The applicable determination for your project is incorporated into your contract by the contracting agency. Always use the determination in your contract — do not substitute a rate from a different county or project.
How does certified payroll work on TxDOT federal-aid highway projects?
On TxDOT federal-aid highway projects, contractors submit certified payroll weekly in WH-347 format, often through the AASHTOWare Project portal. Both prime contractors and subcontractors submit their own payrolls. WH347.io exports PRL 1.2 XML directly for AASHTOWare uploads. Contact the TxDOT project engineer for the specific submission requirements on your project.
If a Texas city or county is the contracting agency, do Davis-Bacon rules still apply?
It depends on the funding source. If the local government project is funded with federal grants — such as CDBG, HUD infrastructure grants, or federal transportation funds — Davis-Bacon requirements apply regardless of the fact that the contracting agency is a local government. Check the contract documents for Davis-Bacon clauses and wage determinations.
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