The Davis-Bacon Act is a federal law in the United States that was enacted in 1931. The act requires that contractors and subcontractors working on federal construction projects pay their laborers and mechanics not less than the prevailing wages and benefits for similar work in the area where the project is located. The act applies to all federal construction, alteration, and repair projects that exceed $2,000 in contract price.
Davis-Bacon Act History and Amendment
The Davis-Bacon Act was signed into law by President Herbert Hoover on March 3, 1931. The act was named after its sponsors, U.S. Rep. Robert L. Bacon and U.S. Sen. James J. Davis. It was enacted in response to concerns about low wages and poor working conditions on federal construction projects, and to prevent the undercutting of local wages and labor standards.
The act was initially passed to ensure that workers on federal construction projects were paid fairly and prevent the undercutting of local wages and labor standards. It requires contractors and subcontractors working on federal construction projects to pay their laborers and mechanics not less than the prevailing wages and benefits for similar work in the area where the project is located.
The act has been amended several times since its passage in 1931. Some of the notable amendment include:
- In 1935, the Davis-Bacon Act was amended to include a provision that requires contractors and subcontractors to pay at least the prevailing wage and benefit rates to all workers, including those who are not U.S. citizens.
- In 1948, the Davis-Bacon Act was amended to include a provision that allows the Secretary of Labor to set wage rates for specific types of work and to adjust them as necessary.
- In 1974, the Davis-Bacon Act was amended to provide for the inclusion of fringe benefits in the wage rate determination.
- In 2010, the Davis-Bacon Act was amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which required that contractors and subcontractors on federal construction projects file weekly certified payroll reports with the contracting agency and the Department of Labor.
The Davis-Bacon Act has several provisions that contractors and subcontractors must follow when working on federal construction projects:
- Paying Prevailing Wages: Contractors and subcontractors are required to pay their laborers and mechanics not less than the prevailing wages and benefits for similar work in the area where the project is located.
- Keeping Records: Contractors and subcontractors are required to keep records of the wages and benefits paid to their employees, and to make them available for inspection by the Department of Labor upon request.
- Posting Requirements: Contractors and subcontractors are required to post a copy of the wage determination and a notice of the Act’s provisions on the job site.
- Compliance: Contractors and subcontractors are required to ensure compliance with all provisions of the Davis-Bacon Act and any regulations issued by the Department of Labor to implement the act.
- The Department of Labor’s Wage and Hour Division is responsible for enforcing the provisions of the act, and for determining the prevailing wage rates for different types of work in each area.
The Davis-Bacon Act is a federal law that requires contractors and subcontractors working on federal construction projects to pay their laborers and mechanics not less than the prevailing wages and benefits for similar work in the area where the project is located. The act is intended to ensure that workers on federal construction projects are paid fairly and to prevent the undercutting of local wages and labor standards.
Davis-Bacon Act Responsibilities and Accountabilities
The Davis-Bacon Act imposes specific responsibilities and accountabilities on contractors and subcontractors working on federal construction projects. These include:
- Paying Prevailing Wages: Contractors and subcontractors are responsible for paying their laborers and mechanics not less than the prevailing wages and benefits for similar work in the area where the project is located, as required by the Davis-Bacon Act.
- Keeping Records: Contractors and subcontractors are responsible for keeping records of the wages and benefits paid to their employees, and for making them available for inspection by the Department of Labor upon request, as required by the Davis-Bacon Act.
- Posting Requirements: Contractors and subcontractors are responsible for posting a copy of the wage determination and a notice of the Act’s provisions on the job site, as required by the Davis-Bacon Act.
- Compliance: Contractors and subcontractors are responsible for ensuring compliance with all provisions of the Davis-Bacon Act and any regulations issued by the Department of Labor to implement the act.
- Certified Payroll Reports: Contractors and subcontractors are responsible for filing weekly certified payroll reports with the contracting agency and the Department of Labor, as required by the amendment of the Davis-Bacon Act in 2010.
- The Department of Labour’s Wage and Hour Division is responsible for enforcing the provisions of the act and determining the prevailing wage rates for different types of work in each area.
Davis-Bacon Act Sanctions and Remedies
The Davis-Bacon Act provides for a range of sanctions and remedies for violations of the Act’s provisions. These include:
- Civil Penalties: The Act authorizes the U.S. Department of Labor to bring civil actions against contractors and subcontractors who violate the Act’s provisions, and to seek civil penalties of up to $1,000 for each violation.
- Injunctions: The Act authorizes the U.S. Department of Labor to seek injunctions to prevent or remedy violations of the Act’s provisions.
- Suspension and Debarment: The Act allows the U.S. Department of Labor to suspend or debar contractors and subcontractors who violate the Act’s provisions, which prohibits them from bidding on or working on federal construction projects for a specified period of time.
- Back Pay and Damages: The Act allows for reimbursement of lost wages and benefits to workers who were paid less than the prevailing wage rates, and to recover damages for any damages suffered as a result of the violations.
- Court of Law: The Act also provides that any person aggrieved by a violation of the act may bring a civil action in an appropriate United States district court or in any other court of competent jurisdiction.
- The Department of Labour’s Wage and Hour Division is responsible for enforcing the provisions of the act and for determining the prevailing wage rates for different types of work in each area.
- State attorney General may also bring a civil action on behalf of its residents in federal court, to enforce compliance with the act.
Overall, the Davis-Bacon Act provides a range of sanctions and remedies to ensure compliance with its provisions, including penalties, injunctions, suspension and debarment, back pay, damages, and other remedies. These remedies aim to deter and prevent misconduct by contractors and subcontractors, and to ensure that workers’ rights are protected and that they are paid fairly on federal.