The Davis-Bacon and Related Acts (DBRA) are a set of federal laws that make sure workers on certain government-funded construction projects get paid fair, local wages. If you’re in construction, government contracting, or just curious about how public projects are built in the U.S., understanding these laws is pretty important.
What’s the Davis-Bacon Act?
The Davis-Bacon Act was passed in 1931 during the Great Depression. The main goal was to prevent contractors from undercutting local wage standards on federally funded construction projects.
In plain English, if you’re working on a federal construction job worth more than $2,000-like building a school, repairing a highway, or renovating a government office-the law says you have to pay your workers at least the “prevailing wage” for that area. This wage is set by the Department of Labor and is based on what similar workers are paid locally for similar work.
Who Has to Follow These Rules?
The Davis-Bacon Act applies to contractors and subcontractors working on federal construction, alteration, or repair projects. This includes painting and decorating, and it covers not just the big companies, but also anyone working under them. The law doesn’t apply to administrative or clerical staff-just the people actually doing the physical work, like laborers, mechanics, electricians, and carpenters.
What Are the “Related Acts”?
Over time, Congress added similar wage requirements to about 60 other laws. These are known as the “Related Acts.” They kick in when federal money is used for construction projects through grants, loans, or loan guarantees-even if the project isn’t strictly federal. For example, if a local government gets federal funds to build a new water treatment plant, the Related Acts make sure Davis-Bacon wage rules are followed there, too.
How Do Prevailing Wages Work?
The Department of Labor surveys local wages and sets the minimums for different job types and skill levels. These are called “wage determinations.” When a government agency puts out a contract for bids, it includes the relevant wage determination so everyone knows what they have to pay. This covers both the hourly wage and any required fringe benefits (like health insurance or retirement contributions).
What’s Required for Compliance?
If you’re a contractor on a Davis-Bacon project, you have to:
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Pay workers at least the prevailing wage and fringe benefits for their job classification.
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Submit certified weekly payrolls to prove you’re paying correctly.
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Keep detailed records of who worked, what they did, and what they were paid.
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Post the wage determination at the job site so workers know their rights.
If you break the rules-like paying less than the prevailing wage, misclassifying workers, or keeping bad records-you can face serious consequences. This could mean paying back wages, having contract payments withheld, or even being banned from future federal contracts.
Why Does This Matter?
The Davis-Bacon and Related Acts help level the playing field for workers and contractors. They prevent a “race to the bottom” where companies win contracts just by paying workers less. Instead, the focus stays on quality and fair competition. These laws also support local economies by making sure federal dollars go to local workers at fair rates.
