The federal Davis-Bacon and Related Acts govern wage requirements for contractors and subcontractors performing federally funded or assisted contracts in excess of $2,000. Administered through an unscientific and fundamentally flawed survey process by the U.S. Department of Labor (DOL), these so-called “prevailing” wages hinder economic growth, increase the federal deficit, and impose enormous burdens. Davis-Bacon stifles contractor productivity by raising project costs, and imposes rigid craft work rules that ignore skill differences.

ABC supports full repeal of the Davis-Bacon Act, as well as any state and local prevailing wage laws that mandate wage and benefit rates that do not reflect the current construction market. In the absence of full repeal, ABC also continues to support legislative and regulatory efforts designed to mitigate the Act’s negative effects. ABC opposes expansion of Davis-Bacon into areas of public and private projects in which it has not been previously mandated.

For a summary of studies on the impact of prevailing wage, click here.

Breaking: March 11, 2022, ABC released a statement in reaction to the U.S. Department of Labor’s proposed rule, Updating the Davis-Bacon and Related Acts Regulations:

“While ABC is still reviewing the 432-page rule, it appears the DOL missed an opportunity for meaningful Davis-Bacon reform. For example, the proposed rule reverts to 1983 regulations that do not result in actual prevailing rates, as required by statute. Reversing course by 40 years is not modernization. Instead, it is even worse public policy catering to special interests embedded in the Biden administration that benefit from the broken status quo.

“Throughout the rulemaking process, ABC will continue to advocate for commonsense reforms to Davis-Bacon regulations that will provide clarity for the regulated community and create accurate and timely prevailing wages. This approach will encourage quality contractors and their skilled workforce to compete to rebuild their communities and give taxpayers the best value for investments in public works projects.” ABC will encourage its members, industry stakeholders and taxpayers to suggest additional improvements to the Davis-Bacon Act regulations within the 60-day comment period deadline.”

Stay tuned for additional updates.

Resources:

• •  ABC General Counsel Maury Baskin of Littler Mendelson’s summary of the proposed rule
• •  April 19 ABC members-only webinar, “DOL’s New Davis-Bacon Proposal––What Construction Contractors Need to Know,” recording available in the ABC Academy
• •  U.S. DOL Davis-Bacon Act Proposed Rule Regulatory Changes Tracker (Updated May 5, 2022)
• •  General Davis-Bacon Act and Prevailing Wage Talking Points, Updated April 2022
• •  ABC 2021 member survey on the Davis-Bacon Act and prevailing wage laws
• •  ABC 2022 member survey on the Davis-Bacon Act and DOL proposed rule
• •  Contact Michael Altman ([email protected]) for help submitting comments in response to the proposed rule’s May 17 comment deadline.
• •  ABC op-ed on DOL’s proposed rule, Biden Administration’s Davis-Bacon ‘Reforms’ Are More Pork for Labor Unions, May 17, 2022
• •  ABC press release on ABC’s May 17 comments on the DOL’s proposal
• •  ABC’s May 17 comment letter to the DOL on its flawed and inflationary Davis-Bacon proposed rule