Exploring the Davis-Bacon Act: Legal Definition and Key Insights

Definition & Meaning

The Davis-Bacon Act is a federal law in the United States that was enacted in 1931. It mandates that workers on public works projects funded by the federal government must be paid at least the prevailing wages and benefits for similar work in the area. This law applies to all federal construction contracts and most federally assisted construction projects that exceed $2,000. The act aims to ensure fair compensation for laborers and maintain wage standards in the construction industry.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A contractor is awarded a federal contract to build a new school. Under the Davis-Bacon Act, they must pay their workers the local prevailing wage for construction workers in that area.

Example 2: A city receives federal funds to renovate public parks. The contractors hired for the job must comply with the Davis-Bacon Act and ensure that all laborers are compensated according to the prevailing wage rates. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Prevailing Wage Law
California Has its own prevailing wage law that applies to public works projects.
New York Also has a state-specific prevailing wage law that may exceed federal requirements.
Texas Generally follows federal guidelines but has specific local ordinances that may apply.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Davis-Bacon Act Federal law requiring prevailing wages on public works projects. Specific to federal contracts and federally funded projects.
State Prevailing Wage Laws State-specific laws governing wages for public works. May vary significantly from the Davis-Bacon Act in wage rates and applicability.

What to do if this term applies to you

If you are a contractor or subcontractor involved in a federal construction project, ensure you understand the prevailing wage requirements set by the Davis-Bacon Act. You can access US Legal Forms for templates and guidance on compliance. If you encounter complex issues or disputes regarding wages, consider consulting a legal professional for tailored advice.

Quick facts

  • Enacted: 1931
  • Minimum Contract Value: $2,000
  • Enforcement Agency: U.S. Department of Labor
  • Wage Determination: Based on local prevailing wages

Key takeaways