Prevailing Wage

In 1931, Davis-Bacon prevailing wage act was passed by congress. According to the Department of Labor, “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.” According to the Davis-Bacon Act, contractors must pay the prevailing wage—a combination of the basic hourly rate a and any fringe benefits—as listed in the Davis-Bacon wage determination based on the type of contract and the area in which the contract is being executed.

UBC members need to pay attention to the Davis-Bacon Act in order to ensure its enforcement. According to the Department of Labor, common problems include:

• Misclassification of laborers and mechanics.
• Failure to pay full prevailing wage, including fringe benefits, for all hours worked (including overtime hours).
• Inadequate record keeping, such as not counting all hours worked or not recording hours worked by an individual in two or more classifications during a day.
• Failure of to maintain a copy of bona fide apprenticeship program and individual registration documents for apprentices.
• Failure to submit certified payrolls weekly.
• Failure to post the Davis-Bacon poster and applicable wage determination.

For more information on the Davis-Bacon prevailing wage act, you can visit the Department of Labor’s website. Wage Determinations are posted online and can be viewed on the Wage Determinations On Line (WDOL) website.