The U.S. Department of Labor (DOL) will issue a final rule on Aug. 8 to raise the prevailing wage standard for approximately 1 million construction workers under the federal Davis-Bacon Act.
The number of construction workers affected by the new prevailing wages is likely to increase in light of the Bipartisan Infrastructure Law of 2021, which funded many federal infrastructure projects, senior Biden administration officials said.
The final rule will provide periodic updates for noncollectively bargained wages. It also adds anti-retaliation provisions and strengthens the DOL's ability to withhold money from a federal contractor in order to pay employees their lost wages.
The final rule gives the DOL authority to adopt prevailing wages determined by state and local governments, issue wage determinations for labor classifications where insufficient data was received through the wage survey process, and update outdated wage rates.
The Davis-Bacon regulations haven't been comprehensively updated in 40 years.
Background
The Supreme Court has described the Davis-Bacon Act as "a minimum wage law designed for the benefit of construction workers," the DOL noted in its summary of the proposed rule. The law, enacted in 1931, requires the payment of locally prevailing wages and fringe benefits on federal contracts for construction. It applies to workers on contracts in excess of $2,000 entered into by federal agencies and the District of Columbia for the construction, alteration or...
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