Prevailing wage

Scope

The Act requires that all contractors and subcontractors performing on federal contracts, (and most contractors or subcontractors performing on federally assisted contracts under the Related Acts) in excess of $2,000 pay their laborers and mechanics not less than the wage rates and fringe benefits determined by the Secretary of Labor to be prevailing in the area for corresponding classes of laborers and mechanics employed on projects of a similar nature.

Regulatory citations

• None

Key definitions

• None

Summary of requirements

Basic provisions/requirements. The prevailing wage shall be the wage paid to the majority (more than 50 percent) of the laborers or mechanics in the classification on similar projects in the area during the period in question. If the same wage is not paid to a majority of those employed in the classification, the prevailing wage shall be the average of the wages paid, weighted by the total employed in the classification.

Apprentices and trainees may be employed at less than the 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.

Penalties. Contractors or subcontractors who have been found to have disregarded their obligations to employees or have committed aggravated or willful violations while performing work on Davis-Bacon covered projects may be subject to contract termination and debarment from future contracts for up to three years. In addition, contract payments may be withheld in sufficient amounts to satisfy liabilities for unpaid wages and liquidated damages (resulting from overtime violations of the Contract Work Hours and Safety Standards Act). Contractors and subcontractors may appeal determinations of violations and debarment to an administrative law judge. Appeals of administrative law judge decisions may be filed with the Administrative Review Board. Final determinations on violations may be appealed to and are enforceable through the courts.

Falsification of certified payroll records may subject a contractor or subcontractor to civil or criminal prosecution, the penalty for which may be fines and/or imprisonment.

Relation to other laws. Since 1931, Congress has extended the Davis-Bacon prevailing wage requirements to some 60 related Acts which provide federal assistance for construction through loans, grants, loan guarantees and insurance. These Acts include by reference the requirements for payment of prevailing wages in accordance with the Davis-Bacon Act. Examples of the related Acts are the Federal-Aid Highway Acts, the Housing and Community Development Act of 1974, and the Federal Water Pollution Control Act.