US Department of Labor Announces Final Rule to Modernize Davis-Bacon Act

Posted by National Alliance for Fair Contracting on
Agency: Wage and Hour Division
Date: August 8, 2023
Release Number: 23-145-NAT
Aided by labor, industry stakeholders’ comments, most comprehensive updates in 40 years

WASHINGTON – The U.S. Department of Labor today announced the issuance of the final rule “Updating the Davis-Bacon and Related Acts Regulation” to update regulations that implement the Davis-Bacon Act and Davis-Bacon and Related Acts to reflect better the needs of construction workers on federal construction investments.

The announcement follows a Notice of Proposed Rulemaking on March 18, 2022, which received comments from construction industry and labor stakeholders that helped inform the regulatory updates. The updates are the most comprehensive in decades.

The final rule provides greater clarity and enhances the DBRA regulations’ effectiveness in the modern economy. These updates strengthen and streamline the process for setting and enforcing wage rates on federally funded construction projects to make sure that federal government infrastructure investments are also investments in U.S. workers.

“Modernizing the Davis-Bacon and Related Acts is key to making sure that the jobs being created under the Biden-Harris administration’s Investing in America agenda are good jobs, and that workers get the fair wages and benefits they deserve on federally funded constructions projects across the nation,” said Acting Secretary of Labor Julie Su. “This updated rule will create pathways to the middle class for more families and help level the playing field for high-road employers because companies who exploit their workers, or who don’t pay workers fairly, should never have a competitive advantage.”

The final rule’s regulatory changes improve the department’s ability to administer and enforce DBRA labor standards more effectively and efficiently. These changes include the following:

  • Creating new efficiencies in the prevailing wage update system and making sure prevailing wage rates keep up with actual wages which, over time, would mean higher wages for workers.
  • Returning to the definition of “prevailing wage” used from 1935 to 1983 to ensure prevailing wages reflect actual wages paid to workers in the local community.
  • Periodically updating prevailing wage rates to address out-of-date wage determinations.
  • Providing broader authority to adopt state or local wage determinations when certain criteria are met
  • Issuing supplemental rates for key job classifications when no survey data exists.
  • Updating the regulatory language to better reflect modern construction practices.
  • Strengthening worker protections and enforcement, including debarment and anti-retaliation provisions.

The DBRA requirements apply to an estimated tens of billions of dollars in federal and federally assisted construction spending each year and provide minimum wage rates for hundreds of thousands of U.S. construction workers. The department expects a significant increase in the numbers of industry workers due to the historic investments in federally funded construction projects made possible by legislation such as the Infrastructure Investment and Jobs Act.

“In light of recent investments in our nation’s infrastructure, modernized regulations are more important than ever to ensure fair wages and benefits for the workers who build and repair our roads, bridges, federal buildings and energy infrastructure,” said Principal Deputy Wage and Hour Division Administrator Jessica Looman. “They will help set correct wage rates for workers on these federally funded construction projects that better reflect the realities of today’s labor market.”

New federal investments will support projects related to clean energy, power and water infrastructure improvements, legacy pollution remediation, and renovation to the nation’s broadband and transportation infrastructures.

The DBRA’s purpose is to ensure employers on federally funded or assisted construction projects pay locally prevailing wages to construction workers and to prevent the unintended consequence of depressing workers’ wages during the government’s construction contracting activity.

The final rule will be effective 60 days after its publication in the Federal Register. Learn more about the final rule to modernize Davis-Bacon Act regulations.

Learn more about DBRA worker protections or the Wage and Hour Division. You may also call toll-free 1-866-4US-WAGE to speak directly and confidentially to a trained Wage and Hour Division professional. The division protects workers regardless of where they are from and can communicate with workers in more than 200 languages.

NAFC SALUTES THE US DEPARTMENT OF LABOR’S ACTION TO MODERNIZE AND STRENGTHEN THE DAVIS-BACON PREVAILNG WAGE REGULATIONS

Posted by National Alliance for Fair Contracting on

Washington, D.C. – August 8, 2023 – The National Alliance for Fair Contracting (NAFC) issues the following statement:

Today marks a historic milestone in the long journey for workers and responsible contractors to bring a middle-class wage and a level playing field to the construction industry to benefit our families, communities and taxpayers.

The new Davis-Bacon regulations announced by the Biden-Harris Administration  will strengthen the law’s compliance and enforcement procedures which protect all workers – union and non-union alike – and prevent low-road contractors from undermining local economies and local labor standards.

The rule will support locally prevailing wages and benefits for millions of  construction workers employed on federal and federally assisted projects, including on $200 billion of projects funded under President Biden’s Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act.

Learn more about the final rule , which will be effective 60 days after its publication in the Federal Register.

Prevailing wage in New York: a comprehensive guide

Posted by National Alliance for Fair Contracting on

Jacob Maslow
July 30, 2023

Prevailing wage is a crucial aspect of the construction industry in New York, as it ensures that workers receive fair compensation on public works projects. In essence, the prevailing wage is the pay contractors and subcontractors in New York must pay their employees when working on public works sites. This rate is higher than the standard minimum wage, based on hourly rates paid by unions to specific workers in a given market.

The New York State Department of Labor issues prevailing wage schedules for general and residential construction projects on a county-by-county basis. General construction rates apply to buildings, heavy and highway, tunnel, and water and sewer work. Contractors and subcontractors must adhere to these wage schedules to comply with state regulations.

Key Takeaways
Prevailing wage is critical in the New York construction industry, ensuring fair pay for workers on public works projects.
The New York State Department of Labor establishes wage schedules for general and residential construction on a county-by-county basis.
Contractors and subcontractors must adhere to these prevailing wage schedules to maintain compliance with state regulations.

Understanding Prevailing Wage
Article 8

In New York State, the prevailing hourly wage and usual benefits and overtime are paid to most workers, laborers, and mechanics within a given area. New York’s prevailing wage law is regulated under Article 8, which focuses on public construction projects. Prevailing wages are usually equivalent to the union wage. They can vary by location, as they are determined based on the average wages earned by professionals in similar roles in the area.

Article 8 of the New York State Labor Law ensures that contractors and subcontractors on public works projects pay their employees the appropriate prevailing wage, as established by the Department of Labor (DOL). These requirements apply to all parties involved in a public work contract, regardless of whether they have a direct contractual relationship with the public entity.

Public Work

Public work refers to any construction, maintenance, or improvement project funded and executed by a public entity, such as federal, state, or local government. These projects typically include building and renovating schools, hospitals, transportation infrastructure, and other public facilities. Regarding prevailing wages, contractors and subcontractors must know the specific rates applicable to their work locality and trade.

The New York State Department of Labor issues prevailing wage schedules for “General Construction Projects” and “Residential Construction Projects” on a county-by-county basis. General construction rates apply to buildings, heavy and highway construction, tunnels, water, and sewer. Employers with government contracts or foreign workers must pay their employees the prevailing wages to comply with the law and ensure fair compensation for their labor.

Understanding prevailing wage laws in New York, specifically under Article 8 and public work projects, is essential for contractors, subcontractors, and employees. Compliance with these laws protects workers’ rights and helps maintain a fair and competitive labor market.

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Assessing prevailing wage benefits to workers, contractors, and the NYC economy

Posted by National Alliance for Fair Contracting on

The Worker Institute of the ILR School at Cornell University
August 3, 2023

The Labor and Employment Law Program, the Buffalo Co-Lab and the Worker Institute of the ILR School at Cornell University are hosting the launch of a report exploring the cost of prevailing wage to New York City workers and contractors.

On January 1, 2022 an expansion of the prevailing wage law in New York City came into force. The new law significantly increases the universe of construction projects subject to prevailing wage requirements. Given the recent change in legislation, researchers at the Buffalo Co-Lab and the Worker Institute will present on research that explored the cost savings of workers covered by prevailing wages versus workers who are not, in four areas of construction work: laborer, carpenter, lather, and cement finisher. On the face of it, there does not appear to be a difference between union and nonunion wages and benefits in a project covered by prevailing wage. But this changes when the percent of the cost of benefits for a union worker is compared to a nonunion worker. This is, in fact, a defining factor and here the analysis will help us better understand the nature of this relationship between cost of wages and benefits for union versus nonunion workers. Researchers will also present a newly created tool that the public can use to determine the cost of a union versus nonunion contractor for future projects.

A panel discussion will follow the presentation of research with distinguished members of government, labor unions and the real estate industry to explore together the role prevailing wage projects play in and how the building industry can better work to protect the health and safety of construction workers while building more cost-efficient projects in New York City. This session will explore the future of prevailing wage projects, the need for enforcement and responsible contractors as stewards in New York City.

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What’s good for workers is good for Wyoming’s economy

Posted by National Alliance for Fair Contracting on

Bob Abbott
August 3, 2023

For project developers and construction contractors across Wyoming, opportunity is knocking.

At the federal level, the bi-partisan Infrastructure and Jobs Act, Inflation Reduction Act and Chips and Science Act are unleashing billions of dollars to support Wyoming energy, infrastructure, and advanced manufacturing.

Indeed, these investments are a big reason why the U.S. Bureau of Labor Statistics is projecting that between now and 2030 about 60% of new jobs in our nation’s economy won’t require a college degree. Many of them, in the skilled construction sector, will build and maintain these federally funded projects.

In short, the opportunities ahead cry out for investments that promote quality jobs and expanded career pathways into the skilled trades.

Yet for generations, Americans have told our kids that college — and the enormous student debt load that comes with it — was the preferred pathway to a middle-class life. State legislatures and courts alike mounted decades of attacks on workers’ rights, labor standards and the institutions that have long replenished our supply of skilled trade workers.

Wyoming has not been immune to these efforts — or their effects.

It is one of roughly two dozen states that have passed laws to weaken collective bargaining institutions. These so-called “right to work” laws are consistently linked to inferior job quality, safety and workforce development outcomes.

This summer, a new state law that restricts the use of pre-hire labor agreements on publicly funded construction projects went into effect — even though research finds these types of agreements lead to better economic and workforce outcomes.

Today, Wyoming has the highest per-capita rate of workplace fatalities in the nation, even as it faces a historically tight labor market.

The fact is that partnerships between employers and labor should not be perceived as a threat to the generational energy and broadband investments coming to Wyoming. They might just be key to their success.

(Read More)