The Davis-Bacon and Related Acts

- The Davis-Bacon and Related Acts apply to contractors and subcontractors working on construction, alteration or repair of public works and public buildings under contracts exceeding $2,000.
- The Act requires that employees who are working under such contracts must receive the locally prevailing wages and benefits.
- Congress has added prevailing wage provisions to approximately 60 statutes which assist construction projects through grants, loans, loan guarantees, and insurance. These are known as the “Related Acts.”
The Davis-Bacon and Related Acts apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works.
Laborers and mechanics who work directly at the site have the right to receive at least the locally prevailing wage rate and fringe benefits, as determined by the Department of Labor, for the type of work performed.
On a contract to which the labor standards apply, holiday pay and/or vacation pay is required for specific classifications of workers only if the Davis-Bacon wage determination in the covered contract specifies such requirements for workers in those classifications.
Apprentices and trainees may be employed at less than predetermined rates. Apprentices must be employed pursuant to an apprenticeship program registered with the Department of Labor or with a state apprenticeship agency recognized by the Department. Trainees must be employed pursuant to a training program certified by the Department.
Contractors and subcontractors on prime contracts in excess of $100,000 are also required (under the Contract Work Hours and Safety Standards Act) to pay employees one and one-half times their basic rates of pay for all hours over 40 in a workweek.
Covered contractors and subcontractors are also required to pay employees weekly and to submit weekly certified payroll records to the contracting agency.
In addition to the Davis-Bacon Act, Congress has added prevailing wage provisions to approximately 60 statutes which assist construction projects through grants, loans, loan guarantees, and insurance. These “related Acts” involve construction in such areas as transportation, housing, air and water pollution reduction, and health. If a construction project is funded or assisted under more than one federal statute, the Davis-Bacon prevailing wage provisions may apply if any of the applicable statutes requires payment of Davis-Bacon wage rates.
The geographic scope of the Davis-Bacon Act is limited to the 50 states and the District of Columbia. The scope of each of the related Acts is determined by the terms of the particular statute under which the federal assistance is provided. For example, Davis-Bacon prevailing wage provisions would apply to a construction contract located in Guam or the Virgin Islands funded under the Housing and Community Development Act of 1974, even though the Davis-Bacon Act itself does not apply to federal construction contracts to be performed outside the 50 states and the District of Columbia.