Davis-Bacon Act Summary
TheDavis-Bacon Act , established in 1931, is a federal law governing the requirement of contractors working on federally assisted or funded public works projects to pay their labors and mechanics no less than the local prevailing wage rates determined by the Secretary of Labor.
Davis-Bacon Act History
The Act was named after its sponsors, James Davis (Pennsylvania senator and former Secretary of Labor), and Representative Robert Bacon of New York and signed into law by President Herbert Hoover on March 3, 1931 .
Davis-Bacon Act Purpose
The Act’s purpose was to ensure workers earn a fair wage a fair wage and to provide local contractors a fair opportunity to compete for local federal government contracts. (Federal Highway Administration Davis-Bacon FAQ)
Davis-Bacon Act Provisions
“The Davis-Bacon Act, as amended, requires that each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract. Under the provisions of the Act, contractors or their subcontractors are to pay workers employed directly upon the site of the work no less than the locally prevailing wages and fringe benefits paid on projects of a similar character. The Davis-Bacon Act directs the Secretary of Labor to determine such local prevailing wage rates.” (Department of Labor – Wage and Hour Division Summary)
Davis-Bacon Related Acts (DBRA)
The Davis-Bacon Act prevailing wage provisions also apply to the “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance.
[This is why federal prevailing wage project contract language or project descriptions may utilize the acronym “DBRA” – Davis-Bacon Related Acts rather than the typical “DBA” – Davis-Bacon Act.]
Included in the language of these Related Act statutes are references to the DBA labor standards provisions and the requirement that laborers and mechanics be paid prevailing wage rates. Since Congress is continually enacting and amending legislation, the list of the DBRAs in the regulations may not be completely up to date. Consequently, it may be necessary to consult the regional office for verification of DBRA coverage. (Department of Labor Regional Offices)
Davis-Bacon Prevailing Wages
Davis-Bacon wages are “based on the wages the Secretary of Labor determines to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work” in that local area (40 U.S.C. 3142). These wage determinations can be found online at wdol.gov.
Davis-Bacon Coverage – Type of project
29 C.F.R 5.2(j) limits the coverage of the Davis-Bacon Act to “construction, prosecution, completion, or repair” work which is defined by the Department of Labor to mean “all types of work done on a particular building or work at the site thereof (including work at a facility deemed part of the site of the work) by laborers and mechanics of a construction contractor or construction subcontractor including without limitation:
- Altering, remodeling, and installation (where appropriate) on the site of the work of items fabricated off-site
- Painting and decorating
- The manufacturing or furnishing of material, articles, supplies or equipment on the site of the building or work
- Transportation between the site of the work (within the meaning of 29 C.F.R 5.2(l)) and a facility which is dedicated to the construction of the building or work and deemed a part of the site of the work (within the meaning of 29 C.F.R 5.2(l))”
Remember, as mentioned earlier in the “Davis-Bacon Provisions” section, only projects with a total contract value of over $2,000 are covered by this Act.
29 C.F.R references can be found here.
Davis-Bacon Coverage – Workers
The Code of Federal Regulations, a laborer or mechanic “includes at least those workers whose duties are manual or physical in nature . . . as distinguished from mental or managerial” (29 C.F.R. 5.2).
Davis-Bacon Coverage – Site of Work
The “site of the work” is the physical place or places where the building or work called for in the contract will remain and any other site where a significant portion of the building or work is constructed, provided that such site is established specifically for the performance of the contract or project. See 29 CFR 5.2(l)(1). This definition typically stretches to the boundaries of the contracted construction activities but on larger projects can include secondary work sites if their existence is established for and dedicated to the specific Davis-Bacon Act public works project.
Still Have Questions?
Contact Legion Consulting for Davis-Bacon compliance assistance. Reviewing or fortifying contract language, tailored training seminars, complete project document management, compliance audits. Legion Consulting is your best choice for a compliant project. Call us today.
