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What are the Davis-Bacon and Related Acts?

This Act, requires that each contract over $2,000 on government-funded construction, alternation, or repair projects has fair wages, benefits, and overtime to employees.

This apply in constructions in which the United States or the District of Columbia is a party for the construction actions of public buildings.

Also applies in public works which contain a clause setting forth the minimum wages to various classes of laborers and mechanics employed under the contract.

According to the Act, contractors or their subcontractors are intended to pay workers employed at least the locally prevailing wages paid on similar projects.

To accomplish this Act, the Secretary of Labor must determine such local prevailing wage rates.

In addition to the Act, Congress has added prevailing wage provisions to about 60 statutes for assistance to construction projects by grants, loans, and insurance.

These statutes include construction in different areas: transportation, housing, air and water pollution reduction, and health.

If a construction project is funded under more than one Federal statute, the Davis-Bacon prevailing wage provisions may apply to projects funded by federal statutes.

The geographic scope of the Davis-Bacon Act applies on the 50 States and the District of Columbia.

The scope of the related Acts is determined by the particular statute under which the Federal assistance is provided.

Davis-Bacon wage determinations must be used in accordance with the provisions of Regulations, 29 CFR Part 1, Part 3, and Part 5.

What is the purpose of the Davis Bacon Act?

The Davis-Bacon Act, was intended to prevent non-unionized black or immigrant laborers from competing with unionized white workers for scarce jobs during the Depression.

Who does the Davis Bacon Act apply to?

The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts.

The Davis-Bacon Act prevailing wage provisions apply to the “Related Acts,” under which federal agencies assist construction projects.

This assistance is accomplished through grants, loans, loan guarantees, and insurance.

What is considered a prevailing wage job?

The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers.

This wage must be according within the locality and in the nearest labor market area.

What is Davis Bacon Certified payroll?

Certified payroll is a way of tracking a company’s pay practices on Davis Bacon jobs.

It also, ensure that the contract met the requirements about local, state, and federal laws and prevailing wage.

Failure to comply with Davis Bacon and certified payroll reporting can result in hefty fines for a contractor.

What is the difference between prevailing wage and certified payroll?

A report is considered certified when it has a signed statement of compliance indicating the payroll forms are correct and complete.

Another requirement is that each employee must be paid at least with  the proper prevailing wage for the work performed.

What is the purpose of certified payroll?

It is a detailed record that records hours worked, the wages paid to each employee, and the jobs those employees performed.

The primary purpose is to provide the government with a method of oversight to guarantee that its contractors compensate employees “prevailing wages” according with requirements.

If this article has been interesting for you, and if you want to know more about this topic, here there are some links where you will find more information about it:

https://cdbg-dr.pr.gov/wp-content/uploads/2021/01/DAVIS-BACON-AND-RELATED-ACTS-POLICY_EN-1.pdf

https://www.dol.gov/agencies/whd/government-contracts/construction

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