Senior Research Fellow, Grover M. Hermann Center
Rachel researches and analyzes taxes, Social Security, disability insurance, and pensions to promote economic growth.
Key Takeaways
While the Davis-Bacon Act no longer aims to discriminate against black workers, it blatantly discriminates against nonunionized construction workers.
Instead of correcting the act’s flaws, the Department of Labor’s new rule adds insult to injury with more than 50 significant changes.
While outright repeal is the best solution, if that’s not achievable, the Department of Labor should at least apply more accurate wage and benefit determinations.
The Department of Labor on Aug. 8 finalized an 812-page rule that contains more than 50 significant changes to the 1931 Davis-Bacon Act. Instead of modernizing and improving this deeply flawed law, those changes double down on its shortcomings.
Such massive changes make a bill introduced earlier this year by Rep. Bob Good, R-Va.—the Repeal Davis-Bacon Act—all the more important to protect taxpayers, small construction companies, and the 83% of construction workers who are not unionized.
The Davis-Bacon Act is a 1931 law that requires contractors on federally funded construction projects pay at least the local “prevailing” wage and benefits, so that federal projects don’t drag down local compensation.
While the Davis-Bacon Act no longer aims to discriminate against black workers, it blatantly discriminates against nonunionized construction workers, and it...
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