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federal prevailing wage
The Davis-Bacon Act, enacted in 1931, is a federal law that requires contractors to pay the local prevailing wage on most government funded construction projects with a minimum threshold of $2,000. The wage rates are set by the U.S. Department of Labor.
Companies awarded a federally funded project must:
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Make sure all contractors and sub-contractors comply with Davis-Bacon requirements.
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Pay prevailing wages to all workers.
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Accurately classify workers according to the work they perform.
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Submit copies of certified payroll records to contracting agencies weekly.
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Attach a “Statement of Compliance” to each certified payroll record submitted.
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Davis-Bacon Violations
Can Result In:
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Termination of contract.
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Liability for back wages and fringe benefits.
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Debarment from bidding on future federally funded construction projects for up to 3 years.
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Liability for any resulting costs to the Government.