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 ?
Studies on the impact of the Davis-Bacon Act on federal construction have consistently found that it adds significantly to costs.
The Davis-Bacon Act is the 1931 federal law that sets prevailing wage rates on public works or public building projects.
849) The suspension of the Davis-Bacon Act lasted sixty days; on 3 November 2005, the President revoked the suspension "as to all contracts for which bids are opened or negotiations concluded on or after 8 November 2005.
After Hurricane Katrina rained destruction on residents of the Gulf Coast, President Bush suspended the Davis-Bacon Act for the area.
The Davis-Bacon Act required the payment of excessively high wages on Federal contracts.
The bill marks the fourth time that a Congressional session has considered legislation to improve federal assistance for these infrastructure needs Passage of similar bills has been stymied in the past due to issues related to funding formulae, environmental requirements, and the attachment of pro-labor language that follows Davis-Bacon Act requirements.
SRF legislation progressed through House and Senate committees in the 107th Congress, but neither bill saw floor action because of a few contentious and polarizing issues, including application of the federal Davis-Bacon Act and the state allotment formula.
2869 has been postponed pending Administration assurance to Congressional Democrats that workers involved in brownfields cleanup projects will be paid prevailing wage rates under the federal Davis-Bacon Act.
The first of the big federal acts was the Davis-Bacon Act of 1931, which required that federal construction projects pay "prevailing wages" so as to avoid cutthroat competition for scarce work during the Depression.
Let's take some of that energy used on worrying about porn and use it to enact tort reform or repeal the Davis-Bacon Act.
For example, if construction workers on a federally financed project are paid an hourly rate less than the minimum established by the Secretary of Labor, this constitutes a violation of the Davis-Bacon Act and directly affects the payroll amounts in the entity's financial statements.
The governor has promoted many of the spending cuts in Citizens Against Government Waste's Prime Cuts , including reducing improper payments, repealing the Davis-Bacon Act, cutting the federal workforce, privatizing Amtrak, and repealing Obamacare.