Five Facts About Davis-Bacon and Related Acts

"With President Biden’s signing of the Bipartisan Infrastructure Law on Nov. 15, 2021, our nation is poised to address our aging infrastructure and at the same time create an estimated 800,000 good paying jobs in construction and related industries. Most of the construction projects funded or assisted through the Bipartisan Infrastructure Law will be subject to Davis-Bacon prevailing wage labor standards. That means construction workers on these projects must be paid at least the locally prevailing wage and fringe benefits required for the work they perform...

1. Davis-Bacon is a federal law that requires local prevailing wages be paid on most federal and federally funded construction contracts. The Davis-Bacon Act ensures that federal government funds elevate labor standards for construction workers across the country, and that taxpayer dollars are used to ensure local wage and benefit standards, allowing responsible contractors to compete for federally funded or assisted construction contracts.

2. If it’s a Davis-Bacon project, it requires Davis-Bacon wages. Construction workers working on Davis-Bacon covered construction contracts must be paid no less than the locally prevailing wages for all hours worked in each labor classification. If a construction worker on a Davis-Bacon project works in more than one labor classification, the contractor or subcontractor must pay the highest applicable wage rate for all hours worked or different wage rates based on the actual hours worked in each labor classification. Local wage determinations that list labor classification and wage rates are issued by the Wage and Hour Division of the U.S. Department and can be found at sam.gov.

3. Understand the wages owed to construction workers. Contractors and subcontractors on Davis-Bacon projects must pay their construction workers not less than the wages and fringe benefits listed on the wage determination for the work performed. To help ensure workers are paid the proper rates, workers, contractors and subcontractors should familiarize themselves with:

   1. where the work is being performed,

   2. the type of construction (building, residential, highway, or heavy), and

   3. the applicable labor classifications for the work being performed..."
      Davis-Bacon Act