What is the Davis-Bacon Act?

The Davis-Bacon Act is a law in Minnesota labor law that requires contractors and subcontractors on federally funded or assisted contracts, in excess of $2,000, to pay their laborers and mechanics employed on the contract at least the wages and fringe benefits determined by the U.S. Department of Labor to be prevailing for corresponding classes of laborers and mechanics employed on similar projects in the area. The Act was named after its sponsors, Representative Robert L. Bacon and Senator James J. Davis, and first became law in 1931. The purpose of the Davis-Bacon Act is to help protect workers by ensuring that they are paid fair wages and receive benefits for their work on federally funded or assisted projects. The Act applies to all types of labor, including construction, repair, and alteration. When a contractor is awarded a contract, they must submit a wage determination from the U.S. Department of Labor, which sets the minimum wage rates that all workers must be paid on the contract. In addition to payment of the wage rate, the Davis-Bacon Act requires employers to give employees overtime pay for work in excess of 40 hours per week as well as the payment of fringe benefits such as health insurance. Employers must also keep records of wage rates, hours worked, and fringe benefits for all workers on the contract. The intent of the Davis-Bacon Act is to help ensure that workers on federally funded or assisted projects are fairly compensated so that they have an incentive to work on similar projects in the future.

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What is the Davis-Bacon Act?

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