The Davis Bacon Act is a federal law that requires contractors and subcontractors to pay prevailing wages to workers on federally funded construction projects. It aims to ensure that workers are paid fair wages and to prevent unfair competition in the construction industry.
The Davis Bacon Act is a federal law that requires contractors and subcontractors to pay prevailing wages to workers on federally funded construction projects.
The Davis Bacon Act applies to construction projects that receive federal funding or assistance, including those funded by grants, loans, or contracts.
Prevailing wages are the wages paid to the majority of workers in a specific geographic area for a particular type of construction work. These wages are determined by the U.S. Department of Labor and are meant to ensure fair compensation for workers.
Prevailing wages are determined through surveys conducted by the U.S. Department of Labor. These surveys collect wage data from contractors, unions, and other relevant sources in the local construction industry.
The U.S. Department of Labor’s Wage and Hour Division (WHD) is responsible for enforcing the Davis Bacon Act. They conduct investigations, audits, and compliance reviews to ensure contractors and subcontractors are complying with the law.
Contractors who fail to pay prevailing wages may be subject to penalties, including the withholding of contract payments, debarment from future federal contracts, and legal action to recover unpaid wages.
Yes, there are certain exemptions to the Davis Bacon Act. For example, the act does not apply to projects with a total cost of less than $2,000, projects performed by federal employees, or projects performed by volunteers.
Yes, contractors can request a wage determination from the U.S. Department of Labor for a specific project. This determination will specify the applicable prevailing wages for the project.
Yes, contractors are allowed to pay higher wages than the prevailing wages required by the Davis Bacon Act. However, they cannot pay lower wages than the prevailing rates.
Yes, contractors can include fringe benefits, such as health insurance or retirement contributions, in the prevailing wages. However, these benefits must be bona fide and must be provided to the workers as part of their compensation.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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