Key Takeaways:
- The United States Department of Labor’s (DOL) new final rule interpreting the federal Davis-Bacon Act is expected to result in increased prevailing wage rates for construction workers on federally funded public works projects across the country, particularly in predominantly non-unionized geographical localities.
- The new rule also adds more worker protections, such as enhanced anti-retaliation provisions and greater record-keeping retention requirements.
- The effect of the DOL’s new rule will extend beyond federally funded public works projects, as prevailing wage rate sheets issued under the Davis-Bacon Act apply to wind, solar, hydrogen, electric vehicle, carbon capture and the many other clean energy and climate projects eligible for the extended and expanded tax credits and deductions made available by the Inflation Reduction Act.
On August 8, 2023, the United States Department of Labor (DOL) issued a final rule interpreting the federal Davis-Bacon Act, the federal law governing payment of wages to construction workers working on federally funded public works projects. Among other things, the final rule alters how the DOL sets the prevailing wage rate for workers that work in geographic regions where the majority of workers do not receive a single wage rate. The DOL notes that this change will affect an estimated $217 billion in federal and federally-assisted construction projects and approximately 1.2 million construction workers across the country....
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