Davis-Bacon Wage

Definition

Davis-Bacon Wage refers to a wage determination issued by the U.S. Department of Labor under the Davis-Bacon and related acts. It establishes the requirement for paying local prevailing wages on public works projects for laborers and mechanics on federally funded or assisted construction projects.

Purpose

The purpose of the Davis-Bacon Wage determination is to ensure fair wages for laborers and mechanics working on federally funded or assisted construction projects. By mandating the payment of local prevailing wages, the act aims to protect workers from being underpaid and to maintain consistent wage standards across different regions. This helps promote economic stability and prevents contractors from underbidding projects at the expense of fair labor compensation.

Examples of Use

1. Federal Building Construction: When constructing a new federal office building, contractors must adhere to the Davis-Bacon Wage rates to ensure all laborers are paid at least the prevailing wages for their trades.
2. Highway Projects: On federally funded highway construction projects, subcontractors must also comply with the Davis-Bacon Act, paying their workers the locally determined prevailing wages.
3. School Renovations: For school renovation projects receiving federal assistance, the contractors must ensure that their employees receive Davis-Bacon Wage rates, ensuring fair compensation.

Related Terms

• Prevailing Wage: The average wage paid to similarly employed workers in a specific area, as determined by the U.S. Department of Labor.
• Public Works Projects: Construction projects such as roads, schools, and government buildings funded by the government.
• Wage and Hour Division: A division of the U.S. Department of Labor responsible for enforcing federal labor laws, including the Davis-Bacon Act.

Notes

• The Davis-Bacon Act applies to contracts exceeding $2,000 for construction, alteration, or repair of public buildings or public works.
• For projects over $100,000, laborers must be paid one and one-half times their regular rate for all hours worked over 40 in a week.
• Contractors and subcontractors are required to submit certified payroll records to ensure compliance with the wage determinations.