The Biden Administration announced on August 8, 2023, the issuance of a final rule from the Department of Labor (DOL), Wage and Hour Division, that overhauls the prevailing wage pay requirements for construction workers working on federally-funded construction projects under the Davis-Bacon Act (DBA) and Related Acts (collectively, DBRA). The DOL last engaged in comprehensive revisions to the DBRA over forty years ago, in 1982.
The DBA applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration or repair (including painting or decorating) of public buildings or public works. The DBA is essentially “a minimum wage law designed for the benefit of construction workers.” United States v. Binghamton Constr. Co., 347 U.S. 171, 178 (1954). It obliges federal contractors and their subcontractors to pay their workers the same prevailing wages and benefits as similar projects in the same geographical area.
In its 2023 final rule, the DOL sought to update the DBRA due to the increased need for infrastructure projects for Federal and State governments in the energy and transportation sectors to mitigate climate change. Presently, the Federal government spends $217 billion on construction projects annually, which effects an estimated 1.2 million U.S. construction workers. The overhaul of the DBRA will change how the prevailing wages to these construction workers are calculated, with a goal of...
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