Davis-Bacon Act

The Davis-Bacon Act requires the inclusion of minimum wage rates for laborers and mechanics employed on the site of federal government contracts for construction, alteration or repair, painting and decorating of public buildings or public works. It also covers federally assisted construction including contracts and grants partially funded by the US Government. Adopted in 1931, it was adopted to ensure that contractors wouldn’t base their bids and proposals on prices obtained by paying workers substandard pay and benefits less than the prevailing rates of compensation in their area.

Today, the DBA applies to federal contractors and subcontractors at all tiers and requires the payment of prevailing wages and fringe benefits determined by the Department of Labor for the classes of employees working at the site in the local areas where the work is to be performed. The DBA doesn’t exist in a vacuum. It is governed by DOL regulations and its requirements are referred to or required by dozens of other federal statutes related to labor standards covering federally financed and assisted construction. These cover a variety of housing, school, transportation, health, social, welfare and Native American programs.

In addition, DBA projects and employees are also governed by the Contract Work Hours and Safety Standards Act. Many questions can arise:

Is your contract a covered project under the DBA? Does your contract call for construction? Is it a public work? What is the site of the work? Are your workers laborers or mechanics? Are you paying the correct prevailing wages or providing appropriate fringe benefits? Do your fringe benefits fulfill DBA requirements? Is your contract governed by a wage determination? Which one? Are your employees properly paid under the correct classification under the wage determination? What impact do other laws such as the Contract Work Hours and Safety Standards Act, the Fair Labor Standards Act, and the Service Contract Act have on your DBA compliance? Are you entitled to any price adjustments? What do you do when job classifications are not found on the wage determination?

Dan Abrahams, the head of AWR’s DBA practice, is one of the leading practitioners in the DBA field. He has counseled numerous organizations in compliance with the DBA’s requirements. He has represented clients in their response to Department of Labor investigations.

BLOG

Featured
The Federal Enclave Doctrine – A Practical Guide to its Application

A federal enclave doctrine has emerged that precludes the application of state laws to those contracts, including state wage and hour laws, which are being performed in enclaves where only the federal government has exclusive jurisdiction. But the devil is in the details of figuring out if an enclave exists. This blog is meant to identify a process to make that determination.

Don’t Defund the Police – The Number of Wage & Hour Investigators Is Getting Too Low

The U.S. Department of Labor Wage & Hour Division has only about 720 investigators. Once upon a time it had over 1,000 investigators. This means that those who would cross the lines set for child labor, minimum wage, and overtime pay, along with noncompliance with Government contract wage laws, are less likely to be found or punished.

What Happened Here? DOL finds “Widespread Violations” of Government Contract Labor and Contract Violations

The Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week that it recovered “$1.5 million dollars of back wages and damages for more than 400 workers” working for employers that had “federally funded” contracts. The announcement doesn’t convey the underlying cause of this multi-contractor compliance breakdown—the scale of which actually is extremely rare. I sure would like to know what happened here.

A Thumb on the Scale? Department of Labor Establishes “Partnership” with Union

The Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week a three-year “collaborative agreement” with a union to educate workers and identify labor law violations. Is this an unfair thumb on the scale? Hopefully not, but this agreement arguably erodes the degree of independence that should accompany the Government’s enforcement of employment laws.

white papers

AWR’s attorneys have:

  • Conducted proactive internal DBA audits to ascertain whether a company’s practices are proper under the DBA

  • Assisted clients in ascertaining whether and which wage determinations are applicable to their contracts

  • Represented firms in pursuing the correction of improper wage determinations

  • Defended organizations faced with an investigation or audit by the Department of Labor

  • Negotiating the fair settlement of sanctions for alleged DBA violations