The Department of Labor headquarters is seen in Washington, D.C., U.S., May 13, 2021. REUTERS/Andrew Kelly
(Reuters) - The U.S. Department of Labor on Friday unveiled a proposal that could lead to wage increases for many workers on government-funded construction projects, as the Biden administration seeks to create jobs through billions of dollars of infrastructure spending.
The proposal from DOL's Wage and Hour Division (WHD) would require more frequent updates to the minimum wages for federal projects set under the Davis-Bacon Act of 1931, which are based on local prevailing wages for construction work, and strengthen anti-retaliation protections for workers.
The rule would also change the way prevailing wages are calculated, basing them on wages paid to at least 30% of local workers. Under a 1983 regulation, wages are currently only considered "prevailing" when they are paid to more than half of workers in a given area.
DOL said the rule would cover 1.2 million workers and $187 billion in federal spending on construction each year.
WHD Administrator Jessica Looman in a statement tied the proposed changes to the Biden administration's broader investments in infrastructure projects.
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