What is the Davis-Bacon Act?

The Davis-Bacon Act is a federal law that applies to contractors and subcontractors performing work on federally funded or assisted construction projects in Texas and across the United States. It requires that all employees working on such projects are paid according to a local prevailing wage, which is determined to be the most commonly paid wage rate in the area for a specific occupation. The purpose of the act is to ensure that all employees performing work on a federal project are paid fairly for their labor, preventing underpayment of wages and exploitation of labor. The Davis-Bacon Act applies to any contract that exceeds $2,000 in amount, and it requires contractors to post the prevailing wage they must pay employees at their project sites. In Texas, the U.S. Department of Labor’s Wage and Hour Division is responsible for determining the prevailing wage. It does so by collecting wage data from private contractors and public agencies in the area, and determining the most commonly paid wage rate. Contractors and subcontractors are obligated to pay their workers the prevailing wage for that specific project. Violations of the Davis-Bacon Act are treated as a serious offense, and they may result in fines and other penalties. The Davis-Bacon Act helps to ensure that workers are paid fairly for their labor, and that contractors don’t have an unfair advantage over one another.

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What is the Davis-Bacon Act?

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