Definition
The Davis-Bacon Act of 1931 requires contractors and subcontractors on federal construction contracts exceeding $2,000 to pay workers and mechanics no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The Department of Labor determines prevailing wage rates through surveys and publishes them in wage determinations incorporated into federal construction contracts. Compliance includes proper worker classification, certified payroll reporting, and posting wage determination notices at job sites. The Act applies to direct federal construction contracts and many federally assisted construction projects through related acts. Violations can result in back wage payments, contract termination, and debarment from federal contracting.
Also Known As
- Davis-Bacon
- Prevailing Wage Act
- DBA
Examples
Common Mistakes to Avoid
- ✕Misclassifying workers in lower-paid categories than their actual duties warrant
- ✕Not including fringe benefits in prevailing wage calculations
- ✕Failing to post required wage determination notices at job sites
Who Should Know This Term
Construction contractors, payroll administrators, project managers on federal construction
Official Source
40 U.S.C. 3141-3148