The Labor Department is taking on the “most comprehensive review” of a contractor construction wage law in 40 years, which would align with the Biden administration's other priorities.
The department announced on Friday a proposed rule to update the Davis-Bacon and Related Acts, which require contractors and subcontractors that work on federally funded or assisted contracts over $2,000 for construction, alterations, or repairs for public buildings or public works to pay their workers at least the locally prevailing wage and fringe benefits for similar work in the area.
“Federal dollars should be used to create good jobs in local communities all across our country,” Labor Secretary Marty Walsh said in a statement. “These proposed regulations are good for workers, good for building high-quality infrastructure and for ensuring we have a strong construction industry, as we rebuild America.”
This would be the “most comprehensive review” of the Davis-Bacon Act in 40 years, he said on a call with reporters on Friday.
The proposed rule would create efficiencies in the prevailing wage update system; make sure that prevailing wage rates keep up with actual wages; return “to the definition of ‘prevailing wage’ used from 1935 to 1983 to ensure prevailing wages reflect actual wages paid to workers in the local community;” update prevailing wage rates periodically; give more authority to adopt state or local wage determinations if certain criteria is met; issue supplemental rates for...
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