Labor Department Seeks to Update Prevailing Wage Regulations
The Labor Department is conducting a review of construction wage laws with a proposed rule to update the Davis-Bacon Acts (DBA).
According to the Labor Department, the U.S. Supreme Court has previously described the DBA as a “minimum wage law designed to benefit construction workers.” Enacted in 1931, the legislation requires federal contractors to pay locally prevailing wages and fringe benefits.
The proposed rule would create efficiencies in the prevailing wage update system; ensure that prevailing wage rates adjust for inflation and reflect actual wages paid to local workers; give states and localities more authority to determine their own wages; issue supplemental rates for job classifications without survey data; and update regulatory language to reflect modern construction practices and enhance worker protections and enforcement.
Jessica Looman, Acting Wage and Hour Division Administrator (AA), noted the proposed rule aligns with many administration priorities, including the development of energy infrastructure, the worker organizing task force, and the $15 minimum wage for federal contractors.
“Given recent unprecedented investments in our nation’s infrastructure, this comprehensive regulatory review is necessary to ensure employers on federally funded or assisted construction projects pay fair wages to the workers who build our roads, bridges, federal buildings and energy infrastructure,” stated AA Looman.
Currently, the DBA doesn't guarantee that an employee will not face retaliation if they report prevailing wage violations. Seventy-one DBA laws cover approximately 1.2 million U.S. construction workers, which require the payment of locally prevailing wage rates for federal projects, covering approximately $217 billion in federal spending on construction annually.
“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,” stated Secretary of Labor Marty Walsh, “Federal dollars should be used to create good jobs in local communities all across our country.”
If the proposed rule goes into effect, federal projects covered by the DBA will incur higher costs as the expanded prevailing wage classification will raise wages and benefits substantially.
