Your complete guide to the new rule, requirements, and everything AGC has done (to date) advocating on behalf of the construction industry.
On June 24, 2024, the U.S. District Court for the Northern District of Texas issued a nationwide preliminary injunction impacting the following three provisions of the final rule: (1) the provision within 29 CFR 5.2 codifying a distinction between material suppliers and contractors/subcontractors; (2) the provision within 29 CFR 5.2 requiring contractors and subcontractors to pay prevailing wages to delivery truck drivers they employ for onsite time that is more than de minimis; and (3) the provision at 29 CFR 5.5(e) directing that the DBRA apply via operation of law if a contracting agency erroneously omitted the provisions from covered contracts. In light of this injunction, these three provisions may not be implemented or enforced at this time. The remainder of the Department’s final rule remains in effect.
Background on Davis Bacon: Under the Davis-Bacon and Related Acts and Reorganization Plan No. 14 of 1950, the U.S. Department of Labor is responsible for determining prevailing wages, issuing regulations and standards to be observed by federal agencies that award or fund projects subject to Davis-Bacon labor standards, and overseeing consistent enforcement of the Davis-Bacon labor standards.
Who does it apply to: The Davis-Bacon and Related Acts apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Davis-Bacon Act and Related Act contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.
The Davis-Bacon Act directs the Department of Labor to determine such locally prevailing wage rates. The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts. The Davis-Bacon Act prevailing wage provisions apply to the “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance.
For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to DBA-covered contracts.
Recent Davis-Bacon Regulations and Guidance
- Final Rule: Updating the Davis-Bacon and Related Acts Regulations
- Frequently Asked Questions
- Comparison Chart
- Small Entity Compliance Guide
- DBRA Final Rule Webinar
- AAM No. 244: Updating the Davis-Bacon and Related Acts Regulations — This memorandum provides an overview of the most significant provisions of the Department’s recently published final rule, Updating the Davis-Bacon and Related Acts Regulations, as well as an explanation of when the various provisions become effective.
- S. DOL Wage & Hour Division’s Government Contracts Compliance Assistance Page for Construction
AGC Advocacy Efforts
- AGC weighs in on proposed update to Davis-Bacon – May 2022
- AGC meets with White House Office of Management and Budget warning against finalizing key provisions in final rule – January 2023
- AGC sues Biden administration to block key provisions of Davis-Bacon update – November 2023
- AGC testifies in Davis-Bacon lawsuit – June 2024
- Federal Judge issues nationwide injunction blocking key provisions of DOL’s overreaching Davis-Bacon rule – June 2024
AGC Resources to Help with Compliance
- AGC resources on Davis-Bacon final rulemaking
- AGC webinar on final rulemaking
- AGC Davis-Bacon webinar training series
For more information, contact Claiborne Guy at [email protected] or 703-837-5382.
Do you like this page?
Showing 1 reaction
Sign in with
Facebook