For employers in the construction industry, the Department of Labor’s (DOL) proposed revisions to Davis-Bacon Act (DBA) regulations on prevailing wages on public projects can mean significant adjustments to their practices.
Created in 1931, the DBA requires contractors and subcontractors working on federally funded public works projects over $2,000 to pay employees no less than local prevailing wages and fringe benefits for corresponding work on similar projects in the area.
In March 2022, Labor Secretary Marty Walsh announced plans to reform the DBA regulations. For the first time in 40 years, DOL published a Notice of Proposed Rulemaking (NPRM) to update DBA regulations to “reflect the needs of today’s construction industry.” Most projects arising from the Biden Administration’s $1.2 trillion Infrastructure Investment and Jobs Act will be covered by the DBA, so construction companies planning to bid for these jobs or take on work subject to its provisions need to be aware of the possible changes and how they can affect their overhead and business practices.
The NPRM includes changes to definitions that would extend the DBA’s coverage to more public works projects. For example, the NPRM seeks to clarify the definition of “building or work” to include construction activity involving a portion of a building, structure, or improvement or installing equipment into a building, structure, or improvement.
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