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Enacted in 1931, the Davis Bacon Act requires the payment of prevailing wages on any federally funded or assisted project involving the construction, repair and/or alteration of a public building in excess of $2,000.
The specific requirements of the Davis-Bacon Act are as follows:
The Davis-Bacon “prevailing wage” is the combination of the basic hourly rate and any fringe benefits listed in a Davis-Bacon wage determination. Davis-Bacon labor standards clauses must be included in covered contracts in order to ensure that contractors and subcontractors pay laborers at least the Davis-Bacon prevailing wage determination (including fringe benefits) for the work performed.
The wage determination is made based upon wages paid to various classes of laborers employed on specific types of construction projects in an area.
Violations of the Davis-Bacon contract clauses may be grounds for:
Local communities ultimately benefit from the Davis-Bacon “prevailing” wage because it ensures that each federally-funded construction project has laborers experienced in their crafts, as well as all necessary health and safety procedures.
Since Michigan’s Legislature voted to repeal the State’s Prevailing Wage Law on June 6, 2018, it is imperative that each Local 1191 member contact their respective member(s) of Congress to ensure that they understand the importance of protecting public investments by standing strong against weakening Davis-Bacon prevailing wage rules.
The State’s repeal of its Prevailing Wage Law, which required that any construction firm securing state-funded projects pay laborers union-scale wages and benefits, does not impact the Federal Davis-Bacon Act requirements discussed above.
Published on June 23, 2020 | Categories: Issues