5 Reasons Why You Need to Understand the Davis-Bacon Act

Association of Construction and Development
January 2, 2013 — 1,923 views  

The Davis-Bacon Act is a federal law in the US which states the need for paying a prevailing wage for public work projects. The law is applicable to contractors who work on projects like construction, repair, or alteration of public works and public buildings, which are funded by the federal government. These projects will usually have a budget above $2000. Onsite workers on these projects should be paid no less than the required wages, and they are also entitled to the benefits which are paid on similar projects.

It is necessary for contractors who work on federal projects to have a good understanding of Davis-Bacon law. Listed below are 5 reasons which explain why federal contractors need to know about this act. Understanding this particular act will not only ensure that all workers are treated equally, but will also help contractors to retain their contracts.

Knowledge on Apprentice Pay

Contractors who work on federal projects should understand that the wage and hour laws are not applicable to all apprentices and trainees who work on the project. The Davis-Bacon law states that all trainees and apprentices may receive the established standard training and apprenticeship wages only if they have enrolled in a training or apprenticeship program. It is also necessary for all such programs to be certified by the U.S. Department of Labor.

Rules About Overtime Payment

According to Davis-Bacon law, federal contractors and subcontractors who handle projects which have a total estimate of more than $100,000 are entitled to pay their employees overtime benefits. Under the provision of the wage and hour laws, overtime is calculated at one and a half times of the normal pay rate of all the hours worked above 40, in one single week. Also, contractors should pay their employees on a weekly basis. Additionally, certified copies of all payroll records should be sent to the government agency which oversees the project, on a weekly basis.

The Need to Maintain Records

Davis-Bacon law requires federal contractors to keep a detailed record of the wage and hours for the period of work until 3 years after the end of the contract. According to the wage and hour law, the record must include the name, social security number, and address of all the employees. Also, a record of employee classifications, wage rate per hour, deductions, and net wages should be maintained

Notifying the Employees of their Rights

According to Davis-Bacon Act, federal contractors should keep their employees duly informed of their rights. To bring about this practice, contractors are supposed to put up posters which elaborate the rights of the workers. The employees should also be notified of the prevailing wage rates of all working classes associated with the current contractor.

Rules for Hiring Veterans

The Davis-Bacon Act asks for federal contractors to have an affirmative action program for recently discharged veterans, disabled veterans, and Vietnam-era veterans. The employers should also maintain annual reports regarding the number of veterans who are employed, the work category, and the hiring location of the veteran employees.

Association of Construction and Development