Davis-Bacon Act

The Davis-Bacon Act is a federal law that requires contractors and subcontractors working on federally funded construction projects to pay their laborers and mechanics at least the prevailing wage rates and fringe benefits as determined by the U.S. Department of Labor.

Example #1

For instance, if a construction company is hired to build a federally funded highway, the Davis-Bacon Act would require the company to pay its workers the prevailing wage in that locality, ensuring fairness and preventing exploitation.

Example #2

Similarly, if an electrical subcontractor is working on a government-funded building project, they must adhere to the Davis-Bacon Act by paying their electricians the locally determined prevailing wage rates.

Misuse

Misuse of the Davis-Bacon Act could occur if a construction company intentionally underpays its workers on a federally funded project to reduce costs and increase profits. This is harmful as it can lead to unfair labor practices, exploitation of workers, and an imbalance in the construction industry.

Benefits

The Davis-Bacon Act benefits workers by guaranteeing that they receive fair wages and fringe benefits while working on government-funded construction projects. By ensuring that workers are paid at least the prevailing wage, the Act helps prevent wage theft and promotes economic stability for laborers.

Conclusion

The Davis-Bacon Act plays a crucial role in protecting the rights of construction workers on federally funded projects by setting wage standards that prevent underpayment and maintain fair labor practices. Upholding the Act's requirements is essential to promoting equity and accountability in the construction industry.

Related Terms

Prevailing Wage LawFair Labor Standards Act (FLSA)Worker's CompensationMinimum Wage