Federal contracting laws: Davis-bacon act

Federal Contracting Laws Davis-Bacon Act Overview Requires pay to all mechanics and laborers at prevailing wage to workers working on a federally-funded contract. Also, the prevailing levels of employee fringe benefits for the locality where a public contract project is to take place (distinguishable from Walsh-Healey Act) Does not require the payment of overtime Not superseded by FLSA, Contract Work Hours Act, or Walsh-Healey Act that require overtime pay BUT in computing overtime compensation, employers generally may exclude any payments for prevailing fringe benefits

Federal Contracting Laws Davis-Bacon Act REQUIREMENTS Required to pay mechanics and laborers weekly Required to submit certified weekly payroll reports to the contracting agency Required to post the WH-1321 “Employee Rights Under the Davis-Bacon Act” poster and the applicable wage determination at the site of the work in a prominent and accessible place where it may be easily seen by workers

Federal Contracting Laws Davis-Bacon Act RECORDKEEPING Employers are required to maintain basic and payroll records during and for three years after a project including: Name, address, and social security number of each worker Each worker’s work classifications Hourly rates of pay, including rates of contributions or costs anticipated for fringe benefits or their cash equivalents Deductions made Actual wages paid Detailed information regarding bona fide fringe benefit plans and programs, including records that show that the plan or program has been communicated in writing to the laborers and mechanics affected

Federal Contracting Laws Davis-Bacon Act Coverage Covers the following types of public contracts: The building or repair of public buildings, highways, bridges, dams, plants, streets, subways, sewers, power lines, airports, terminals, docks, buoys, jetties, breakwaters, canals Building or repair of public works, including lease-purchase contracts, demolition work, steam or blast cleaning operations on public buildings or works, the spreading of oil on road surfaces under construction Repair of rented equipment used for construction Covers the following employees: All mechanics and laborers employed on the construction site, including employees of subcontractors Employees of firms supplying building materials are covered only where such employees spend more than 20% of working time at construction site

Federal Contracting Laws Davis-Bacon Act Enforcement If fail to follow the rules and do not provide prevailing wages, the Act may be enforced in the following ways: Cancellation of the contract Withholding payment of amounts to the contractor to cover payments due employees Blacklisting – i.e., barring the contractor for a period of three years from any other federal contract