What is the Davis-Bacon Act?

The Davis–Bacon Act is a federal law that requires contractors and subcontractors who work on certain federally financed or assisted construction projects to pay their workers prevailing wages. This law applies to construction projects in Pennsylvania that are financed by the federal government, such as certain military construction projects, public housing projects, and federally funded infrastructure projects like highways and dams. The Davis–Bacon Act requires contractors and subcontractors to pay workers their prevailing wages, which are wages set by a local government or the state of Pennsylvania for a particular job. These prevailing wages are determined by surveying the wages of workers in the surrounding area who are doing the same job. This means that contractors must pay their workers at least the local prevailing wages, even if the workers’ union contract or individual agreement with the employer specifies a different wage. The Davis–Bacon Act also requires contractors and subcontractors to keep accurate records of the wages they paid workers. These records include payroll documents and other documents that show the amount of time each worker worked, the wages they were paid, and the name of each worker. If employers are found to be in violation of the Davis–Bacon Act, they can face serious penalties, including being barred from receiving future federal contracts.

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