Davis-Bacon Act

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Davis-Bacon Act

A federal law requiring certain minimum levels of wages for all workers involved in construction on federal projects or federally funded projects. The purpose was to give local contractors an opportunity to participate in government contracts, even though out-of-town contractors might have access to cheaper labor and would therefore enjoy a competitive advantage in bidding.The other purpose was to prevent contractors from paying lower wages than currently prevailing in the local marketplace,thereby reducing wages for the entire area.The Act is looked upon as one favoring unions,although that was not the intent.In fact,the Act had an unsavory beginning, introduced by Representative Bacon in 1927 as a reaction to a contractor who hired poor black laborers from Alabama to build a veterans hospital in Bacon's district of Long Island.The Act does not require payment of union wages,merely payment of wages consistent with those prevailing in the community. Today, the Act is still alive and well, and garnered tremendous public support when President Bush attempted to temporarily suspend it for contractors working in hurricane-damaged parts of the country.

References in periodicals archive ?
The Department of Labor ruled that special local union assessments to subsidize wage costs for unionized employers are not legal under the Copeland AntiKickback Act and the Davis Bacon Act.
Fact: DIR has proposed regulations that will bring the method of calculating prevailing wages in California into conformance with the federal government's Davis Bacon Act, which is the same method used in most other states of the Union that have prevailing wage laws.
Implementing efforts to comply with Davis Bacon Act, Minority and Women owned Business Enterprise (MBE/WBE) Objectives/Goals.
The Davis Bacon Act requires most employees working with the federal government to report their payroll in a certified format and pay prevailing wages that are comparable to the pay of union members of those particular trades.
DOE Idaho Operations Office (DOE-Idaho) had ruled that the decontamination work was demolition covered under BBWI's service contract, the Services Contract Act, and DOE and Federal Acquisition Regulations, and was not construction covered by the Davis Bacon Act.