Originally passed in 1931, the Davis Bacon and Related Acts (DBRA) requires any contractor or subcontractor performing work on a federal or District of Columbia construction contract in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits. The prevailing wage rates and fringe benefits are based upon corresponding classes of laborers and mechanics employed on similar projects in the area, and set by the Secretary of Labor. For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to DBA-covered contracts.
In addition to the Davis Bacon Act itself, Congress added Davis-Bacon prevailing wage provisions to approximately 60 laws—"related Acts"—under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. (Examples of the related Acts are the Federal-Aid Highway Acts, and the Housing and Community Development Act of 1974) Generally, the application of prevailing wage requirements to projects receiving federal assistance under any particular "related" Act depends on the provisions of that law.
The U.S. Department of Labor (DOL) has oversight of prevailing wage determinations, and is responsible for coordination of administration and enforcement of the labor standards provisions of the Davis Bacon and Related Acts. Under this authority, DOL issues regulations establishing standards and procedures for the administration and enforcement of the Davis-Bacon labor standards provisions, while Federal contracting agencies have day-to-day responsibility for implementing DOL policies on covered contracts.
Within DOL, the Employment Standards Administration's Wage and Hour Division (WHD) is responsible for administration and enforcement of the DBRA.
As stated in the Davis-Bacon and Related Acts (DBRA), applies to all contractors and subcontractors working on federal (or federally-assisted) contracts in excess of $2,000. Contractors on applicable Federal projects are required to pay their laborers and mechanics not less than the local prevailing wage rate (plus fringe benefit) as determined by the Secretary of Labor.
For prime contracts in excess of $100,000, contractors and subcontractors are required, pursuant to the Contract Work Hours and Safety Standards Act, to pay employees one and one-half times their basic rates of pay for all hours over 40 worked on covered contract work in a workweek.
Covered contractors and subcontractors are also required to pay employees weekly and to submit weekly certified payroll records to the contracting agency.
Davis-Bacon regulations mandate that the awarding body provide the appropriate wage decision in the bid spec, as well as the contract. If you are unsure of the correct decision, you should go back to the awarding body for clarification.
Contractors or subcontractors found to have disregarded their obligations to employees, or to have committed aggravated or willful violations while performing work on Davis-Bacon covered projects, may be subject to contract termination and debarment from future contracts for up to three years. In addition, contract payments may be withheld in sufficient amounts to satisfy liabilities for unpaid wages and liquidated damages that result from overtime violations of the Contract Work Hours and Safety Standards Act.
Davis-Bacon and Related Acts and the requirements resulting refer only to federally-contracted projects. Some States have their own rules and regulations (known as Little Davis-Bacon’s) which set policies and rules for State-contracted, public works projects.
The bid spec provided by the awarding body will represent what prevailing wage rules apply for the job, regardless of whether you are in a little Davis-Bacon State or not.
