Davis-Bacon Act

Davis-Bacon Act is a federal law that requires Department of Labor to determine the prevailing wage rates for laborers and mechanics employed on federal construction projects, which are funded by the Federal Highway Administration, United States Army Corps of Engineers, and other federal agencies, such as the General Services Administration and the National Park Service. The law was enacted to protect the wages of AFL and CIO workers, including those affiliated with the International Brotherhood of Teamsters, United Brotherhood of Carpenters and Joiners of America, and the Laborers' International Union of North America. The Davis-Bacon Act has been amended several times, including by the Fair Labor Standards Act of 1938, which established the Wage and Hour Division of the United States Department of Labor, and the Copeland Anti-Kickback Act, which prohibits kickbacks on federal construction projects.

Introduction

The Davis-Bacon Act was introduced by Senator James J. Davis of Pennsylvania and Representative Robert L. Bacon of New York, both members of the Republican Party, and was signed into law by President Herbert Hoover on March 3, 1931. The law applies to construction projects that exceed $2,000 in value, including those funded by the Federal Transit Administration, Federal Aviation Administration, and the United States Department of Housing and Urban Development. The Davis-Bacon Act requires contractors to pay their employees the prevailing wage rates, which are determined by the Department of Labor, in consultation with the Bureau of Labor Statistics and the Occupational Safety and Health Administration. The law also requires contractors to submit certified payroll records to the Department of Labor, which are reviewed by the Wage and Hour Division to ensure compliance with the law.

History

The Davis-Bacon Act was enacted in response to concerns about the wages and working conditions of construction workers, including those employed by Bechtel Group, Fluor Corporation, and Kiewit Corporation. The law was also influenced by the Great Depression, which had a significant impact on the United States construction industry, including companies such as Turner Construction, AECOM, and Jacobs Engineering Group. The Davis-Bacon Act was amended in 1935 to include provisions related to the National Industrial Recovery Act of 1933, which established the National Recovery Administration and the Public Works Administration. The law was also amended in 1964 to include provisions related to the Civil Rights Act of 1964, which prohibited discrimination in employment, including in the construction industry, and was enforced by the Equal Employment Opportunity Commission.

Provisions

The Davis-Bacon Act requires contractors to pay their employees the prevailing wage rates, which are determined by the Department of Labor, based on surveys of wages paid to construction workers in the same locality, including those employed by United States Army Corps of Engineers, Naval Facilities Engineering Command, and the Air Force Civil Engineer Center. The law also requires contractors to provide fringe benefits, such as health insurance and pension plans, to their employees, which are regulated by the Employee Retirement Income Security Act of 1974 and the Health Insurance Portability and Accountability Act. The Davis-Bacon Act also prohibits contractors from paying their employees less than the prevailing wage rates, and requires contractors to submit certified payroll records to the Department of Labor, which are reviewed by the Wage and Hour Division to ensure compliance with the law, in consultation with the Office of the Inspector General, U.S. Department of Labor.

Implementation

The Davis-Bacon Act is implemented by the Department of Labor, which is responsible for determining the prevailing wage rates and enforcing the law, in consultation with the Federal Highway Administration, United States Army Corps of Engineers, and other federal agencies, such as the General Services Administration and the National Park Service. The law is also enforced by the Wage and Hour Division, which conducts investigations and audits to ensure compliance with the law, and is assisted by the Office of the Inspector General, U.S. Department of Labor. The Davis-Bacon Act applies to construction projects that exceed $2,000 in value, including those funded by the Federal Transit Administration, Federal Aviation Administration, and the United States Department of Housing and Urban Development, and is implemented in conjunction with other federal laws, such as the Fair Labor Standards Act of 1938 and the Copeland Anti-Kickback Act.

Impact

The Davis-Bacon Act has had a significant impact on the construction industry, including companies such as Bechtel Group, Fluor Corporation, and Kiewit Corporation, and has helped to protect the wages and working conditions of construction workers, including those affiliated with the AFL and CIO. The law has also helped to promote fair competition in the construction industry, including among companies such as Turner Construction, AECOM, and Jacobs Engineering Group, and has ensured that federal construction projects are built with skilled and qualified workers, including those trained by the National Center for Construction Education and Research and the Associated Builders and Contractors. The Davis-Bacon Act has also been credited with helping to reduce the incidence of wage theft and other forms of labor exploitation in the construction industry, including those investigated by the Wage and Hour Division and the Office of the Inspector General, U.S. Department of Labor.

Controversies

The Davis-Bacon Act has been the subject of controversy and debate, including among lawmakers such as Senator Mike Lee of Utah and Representative Steve King of Iowa, both members of the Republican Party. Some critics have argued that the law is unnecessary and drives up the cost of construction projects, including those funded by the Federal Highway Administration, United States Army Corps of Engineers, and other federal agencies, such as the General Services Administration and the National Park Service. Others have argued that the law is too complex and difficult to administer, and that it can be used to discriminate against non-union workers, including those employed by Associated Builders and Contractors and the National Association of Home Builders. Despite these controversies, the Davis-Bacon Act remains an important part of federal labor law, including the Fair Labor Standards Act of 1938 and the Copeland Anti-Kickback Act, and continues to play a critical role in protecting the wages and working conditions of construction workers, including those affiliated with the AFL and CIO. Category:United States federal labor legislation