29 C.F.R. § 1.7
§ 1.7 Scope of consideration. (29 CFR Part 1)
Operative Text
(a) In making a wage determination, the “area” from which wage data will be drawn will normally be the county unless sufficient current wage data (data on wages paid on current projects or, where necessary, projects under construction no more than 1 year prior to the beginning of the survey or the request for a wage determination, as appropriate) is unavailable to make a wage determination. (b) If sufficient current wage data is not available from projects within the county to make a wage determination, wages paid on similar construction in surrounding counties may be considered. (c) If sufficient current wage data is not available in surrounding counties, the Administrator may consider wage data from similar construction in comparable counties or groups of counties in the State, and, if necessary, overall statewide data. (d) If sufficient current statewide wage data is not available, wages paid on projects completed more than 1 year prior to the beginning of the survey or the request for a wage determination, as appropriate, may be considered. (e) The use of “helpers and apprentices” is permitted in accordance with part 5 of this subtitle.
Under 29 CFR Part 1 § 1.7, when the Department of Labor sets prevailing wage rates under the Davis-Bacon Act, it follows a defined geographic hierarchy for sourcing wage data. The starting point is the county where the work will occur, but if current local data is insufficient, the process expands outward to surrounding counties, then comparable counties or statewide data, and finally to older project data as a last resort. The rule also confirms that helpers and apprentices may be used on covered projects, subject to the conditions set out in Part 5 of the same subtitle.
Plain English — not legal advice.
Although § 1.7 governs federal wage determination methodology rather than private rental housing, contractors and developers working on federally assisted construction projects should understand that the prevailing wage rates applied to their projects reflect this layered geographic sourcing process. A compliant operator generally reviews the wage determination attached to their contract to understand which geographic tier of data was used, since that affects the wage rates they are obligated to pay workers. Awareness of how 29 CFR Part 1 § 1.7 shapes those determinations can help project managers anticipate the basis for the rates they receive and flag potential discrepancies through appropriate administrative channels.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While 29 CFR Part 1 § 1.7 is primarily a procedural rule governing how federal wage determinations are constructed, workers and residents affected by federally funded construction projects have an interest in understanding that the prevailing wages on those projects are set through a geographic data hierarchy, not arbitrarily. If workers believe a wage determination does not accurately reflect local conditions, the framework under § 1.7 provides a basis for raising concerns with the Wage and Hour Division of the Department of Labor. Tenant-rights and worker-advocacy organizations can help individuals understand how this provision interacts with broader Davis-Bacon Act protections.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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