Davis-Bacon Act (1931)

Davis-Bacon Act Public Works Projects Prevailing Wages Federal Construction Contracts Labor Law Wage Standards
The Davis-Bacon Act is a United States federal law mandating the payment of prevailing wages on public works projects. This legislation ensures that all federal government construction contracts, along with most contracts for federally assisted construction over $2,000, include provisions for paying on-site workers no less than the locally prevailing wages and benefits.
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Davis-Bacon Act (1931)

Definition

The Davis-Bacon Act (1931) is a United States federal law that requires contractors and subcontractors working on public works projects funded by the federal government to pay their laborers and mechanics no less than the locally prevailing wages and benefits for similar work. The act applies to construction, alteration, or repair of public buildings or public works and encompasses all federal government construction contracts and most federally assisted contracts exceeding $2,000.

Key Provisions

  • Prevailing Wages: Contractors and subcontractors must pay wages and benefits that are comparable to those paid for similar work in the same geographic area.
  • Reporting: Contractors are required to maintain and submit weekly payroll records to ensure compliance.
  • Enforcement: The U.S. Department of Labor is responsible for enforcing compliance. Violations can result in withheld payments, contract termination, and debarment from future contracts.

Examples

  1. Highway Construction: A federally funded highway construction project in Texas would have to ensure that all laborers and mechanics are paid wages in line with those prevailing in the Texas construction industry.
  2. School Renovation: A public school renovation project receiving federal assistance must include wage provisions so that workers are compensated following the prevailing wage standards of the local area.

Frequently Asked Questions

Q1: What types of projects are covered by the Davis-Bacon Act? A1: The Davis-Bacon Act covers construction, alteration, and repair projects of public buildings or public works financed wholly or partially by federal funds.

Q2: How are prevailing wages determined? A2: Prevailing wages are determined by the U.S. Department of Labor and are based on the wages and benefits paid to similarly employed workers in the area of the project.

Q3: What are the consequences of non-compliance with the Davis-Bacon Act? A3: Non-compliance can lead to the withholding of contract payments, contract termination, debarment from future contracts, and other penalties.

Q4: Are there any exemptions to the Davis-Bacon Act? A4: Yes, there are certain exemptions such as projects receiving less than $2,000 in federal funds and specific small-scale residential construction projects.

Q5: Does the Davis-Bacon Act apply to all federal government construction contracts? A5: Yes, the Davis-Bacon Act applies to all federal government construction contracts and most federally assisted construction contracts over $2,000.

  • Fair Labor Standards Act (FLSA): A federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards for employees in the private sector and in federal, state, and local governments.

  • Service Contract Act (SCA): Requires contractors and subcontractors performing services on federal contracts to pay service employees prevailing wages and benefits.

  • Wage Determinations: The official decisions issued by the Department of Labor on the prevailing wage rates and fringe benefits that must be paid for work performed on federal contracts under the Davis-Bacon Act.

Online References

Suggested Books for Further Studies

  1. “The Construction Lawyer’s Guide to the Davis-Bacon Act” by Peter T. Bowler
  2. “Wage Theft in America: Why Millions of Working Americans Are Not Getting Paid—And What We Can Do About It” by Kim Bobo
  3. “Prevailing Wage Legislation: A History of the Davis-Bacon Act, 1931-1981” by Peter Phillips

Fundamentals of Davis-Bacon Act: Business Law and Labor Regulation Basics Quiz

### Which year was the Davis-Bacon Act enacted? - [x] 1931 - [ ] 1941 - [ ] 1951 - [ ] 1961 > **Explanation:** The Davis-Bacon Act was enacted in 1931 to ensure fair labor standards and prevent undercutting of local wage levels in public works projects funded by the federal government. ### Which department is responsible for enforcing the Davis-Bacon Act? - [ ] Department of Transportation - [ ] Department of Commerce - [x] Department of Labor - [ ] Small Business Administration > **Explanation:** The U.S. Department of Labor is responsible for enforcing the Davis-Bacon Act, ensuring compliance with wage and reporting provisions. ### Which type of projects does the Davis-Bacon Act primarily cover? - [ ] Private sector projects - [ ] Volunteer work - [ ] International projects - [x] Public works projects > **Explanation:** The Davis-Bacon Act primarily covers construction, alteration, or repair projects of public buildings or public works funded by the federal government. ### What is the monetary threshold for contracts to fall under the Davis-Bacon Act provisions? - [ ] $200 - [x] $2,000 - [ ] $20,000 - [ ] $200,000 > **Explanation:** The Davis-Bacon Act applies to federal government construction contracts and most federally assisted construction contracts over $2,000. ### How are prevailing wages defined under the Davis-Bacon Act? - [ ] Arbitrarily set amounts - [x] Based on local wages and benefits for similar work - [ ] National average wages - [ ] Company-specific wages > **Explanation:** Prevailing wages under the Davis-Bacon Act are based on the wages and benefits paid for similar work in the project's local area. ### What actions can be taken against a contractor who violates the Davis-Bacon Act? - [ ] Project approval expansion - [ ] Bonus payments - [x] Withholding of contract payments - [ ] Shortening project deadlines > **Explanation:** Contractors who violate the Davis-Bacon Act can face the withholding of contract payments among other penalties to enforce compliance. ### Do Davis-Bacon Act wage rules apply to private contracts funded without federal assistance? - [ ] Yes, all contracts - [x] No, only federally assisted contracts - [ ] Yes, in selected states - [ ] No, only private ones worth over $20,000 > **Explanation:** Davis-Bacon Act wage rules do not apply to purely private contracts without federal assistance; they apply to federal government construction contracts and most federally assisted construction contracts over $2,000. ### What is the purpose of maintaining and submitting weekly payroll records under the Davis-Bacon Act? - [x] Ensure compliance with wage standards - [ ] Plan future project budgets - [ ] Schedule project deadlines - [ ] Facilitate worker promotions > **Explanation:** The purpose of maintaining and submitting weekly payroll records is to ensure compliance with the prevailing wage provisions of the Davis-Bacon Act. ### Are any specific projects exempt from the Davis-Bacon Act provisions? - [x] Yes, projects under $2,000 - [ ] No, all public projects are included - [ ] Yes, privately funded projects - [ ] No, renumeration specifics exempt none > **Explanation:** Certain projects receiving less than $2,000 in federal funds and specific small-scale residential construction projects are exempt from the Davis-Bacon Act provisions. ### What type of valuable benefit does the Davis-Bacon Act provide for local laborers? - [ ] Increased workload - [ ] Reduced work hours - [ ] Lower wage thresholds - [x] Wage protection by prevailing standards > **Explanation:** The Davis-Bacon Act provides wage protection for local laborers by ensuring they are paid no less than the locally prevailing wages and benefits for similar work on public works projects.

Thank you for exploring the Davis-Bacon Act with us and tackling the basics quiz. Continue advancing your labor and business law knowledge!

Wednesday, August 7, 2024
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