What is the Davis-Bacon Act?

The Davis-Bacon Act is a labor law in Arizona that establishes the minimum wages that employers must pay to workers who are engaged in federally funded contracts in the construction industry. The law was first enacted in 1931 and is named for its original sponsors, James Davis and Robert Bacon. It requires contractors and subcontractors working on federal construction contracts in excess of $2,000 to pay their laborers and mechanics, including apprentices, the locally prevailing wages and benefits of the area in which the work is performed. The wage determination is issued by the Department of Labor and based on surveys of wage and fringe benefit rates paid in the area. These wage determinations are updated periodically, so employers should be sure to check the latest wage determination before awarding a contract. As a condition of receiving federal funds, contractors must pay workers at least the local prevailing wage and fringe benefits found in the wage determination. The purpose of the Davis-Bacon Act is to ensure that construction workers receive fair wages and benefits. It also helps to protect the competitive nature of the construction industry by providing a level playing field for bidders on federally funded contracts. Fairness and efficiency are two of the objectives of the Davis-Bacon Act. The Act applies to contractors and subcontractors performing construction, alteration, and/or repair work for public agencies in Arizona. The Act does not apply to public works projects performed by state or local public agencies or to contracts funded by non-federal sources.

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What is the Davis-Bacon Act?

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