DAVIS-BACON & PREVAILING WAGE

If you’ve ever worked on a government construction project, you’ve probably heard the name “Davis-Bacon.” The Davis-Bacon Act requires contractors and subcontractors working on federally funded jobs to pay their laborers wages and benefits no less than what others locally pay their workers for similar projects. This is called the “prevailing” wage. Under Davis-Bacon, contractors can pay this wage out as a combination of cash and fringe benefits.

Minimum Davis-Bacon wages are “based on the wages the Secretary of Labor determines to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work” in that local area (40 U.S.C. 3142). In other words, the U.S. Department of Labor sets Davis-Bacon wages and maintains them over time.

These wage determinations are published online at wdol.gov, along with Service Contractor Act wage determinations. Each wage determination lists a cash portion and fringe portion to be paid for each worker classification. However, contractors may also use cash to pay out fringe requirements.

At C&T we can verify that the contractor and all subcontractors working on your Federally funded project are in compliance with the Davis Bacon Act. We track and file all required labor compliance reports, conduct jobsite interviews, audit weekly certified payrolls and evaluate potential violations. We act as intermediary between contractors and employees amicably resolving disputes related to violations, penalties and compliance.

We know the importance of your public works projects–from the value they provide to the community to the complexity of managing labor compliance and wage reporting. Missteps in labor compliance can jeopardize project funding and loss of contract and future contracts. We can handle all of your compliance monitoring and reporting for your important project.