federal prevailing wage
The Davis-Bacon Act, passed in 1931, is a key federal law that ensures construction workers on government-funded projects receive fair wages. It requires contractors and subcontractors working on federally funded or assisted construction projects worth $2,000 or more to pay their employees the prevailing local wage for similar work in the area. These wage rates, set and enforced by the U.S. Department of Labor, help maintain fair labor standards, prevent wage undercutting, and promote stability in the construction industry by ensuring workers receive appropriate compensation for their skills and labor.
Companies awarded a federally funded project must:
1.Make sure all contractors and sub-contractors comply with Davis-Bacon requirements.
2. Pay prevailing wages to all workers.
3. Accurately classify workers according to the work they perform.
4. Submit copies of certified payroll records to contracting agencies weekly.
5. Attach a “Statement of Compliance” to each certified payroll record submitted.
Davis-Bacon Violations Can Result In:
1. Termination of contract.
2. Liability for back wages and fringe benefits.
3. Debarment from bidding on future Federally funded construction projects for up to three years.
4. Liability for any resulting costs to the Government.