The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, has updated its primer on the Davis-Bacon Act.
The Davis-Bacon Act (DBA) and a collection of laws called the Davis-Bacon Related Acts (DBRA) require contractors to pay laborers and mechanics working on covered federal construction contracts the prevailing wage and fringe benefits for the same job classification in the same area. The Department of Labor determines the prevailing wage.
The DBA governs contracts worth more than $2,000 signed with federal government or District of Columbia agencies for construction, alteration, or repair of public buildings and public works. The DBRA are federal laws that extend the DBA prevailing wage requirements when the federal government provides assistance for construction through grants, loans, loan guarantees, or insurance. Examples of DBRAs include the Federal-Aid Highway Acts, the Housing and Community Development Act, and the Federal Water Pollution Control Act.
The DBA’s purpose is to prevent non-local construction firms with lower labor costs from undercutting local firms. Organized labor supports the DBA on the premise that it makes it easier for contractors that use union labor to bid competitively on government construction contracts.
CWC members can read more here.