Federal wage and hour officials recently issued proposed rules that will make it easier for unions to have their hourly rates of pay established as the prevailing wage rates and will increase the Department of Labor’s enforcement authority to punish and debar contractors, particularly for claims of retaliation – proposals that are being billed by the Department of Labor as “the most comprehensive review of Davis-Bacon Act regulations in 40 years.” The DOL Wage and Hour Division’s March 11 Notice of Proposed Rulemaking will apply to contracts and subcontracts who perform construction, alteration, or repair work that is covered by the Davis Bacon Act or any of the dozens of Davis Bacon-Related Acts. The timing of the proposed rules is not coincidental, as the federal government is turning the faucet of Davis Bacon Act spending on full blast under the trillion dollar Infrastructure Bill. What do contractors need to know about this monumental development?

5 Most Significant Revisions

The five most significant revisions included in the Department of Labor’s proposals:

• Look for a return to the pre-1983 “30% rule” for setting prevailing wage rates. Currently, if a majority (i.e., more than 50%) of wage survey respondents report the same rate, the Department of Labor uses that rate as the prevailing wage. Under the newly proposed rule, the Department of Labor would be able to utilize a “predominant” rate if at least 30% of survey respondents reported using that rate.
• The DOL...

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