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According to the U.S. Department of Labor's Employment Law Guide, the Davis-Bacon Act: "...requires that all contractors and subcontractors performing on federal contracts (and contractors or subcontractors performing on federally assisted contracts under the related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract’s Davis-Bacon wage determination for corresponding classes of laborers and mechanics employed on similar projects in the area."[1]
In addition to the Davis-Bacon Act itself, Congress added Davis-Bacon prevailing wage provisions to approximately 60 laws—"related Acts"—under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. (Examples of the related Acts are the Federal-Aid Highway Acts , and the Housing and Community Development Act of 1974, and the Federal Water Pollution Control Act.) Generally, the application of prevailing wage requirements to projects receiving federal assistance under any particular "related" Act depends on the provisions of that law.
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For grants and cooperative agreements, the Davis-Bacon Act only applies to "Related Acts", i.e., those that specifically incorporate the requirement in the program's authorizing statuestatute/legislation. For example, the American Recovery and Reinvestment Act (ARRA) incorporated the requirements of the Davis-Bacon Act. See the U.S. Department of Labor's website at http://www.dol.gov/whd/programs/dbra/whatdbra.htm for more information.
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- Sandy Disaster Relief Appropriations Act, 2013 -2 2013 and Division B: Sandy Recovery Improvement Act of 2013.
- The American Recovery and Reinvestment Act (ARRA). Federal Water Pollution Control Act (Clean Water Act).
Does a contract under a federal grant have to follow the Davis-Bacon Act?
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