What is the Davis Bacon Act and Davis Bacon Wage Rates?

The Davis Bacon Act is a federal law introduced in 1931 that requires contractors and subcontractors to pay workers on construction projects funded by the federal government an hourly wage rate and fringe benefits, known as the “Davis Bacon Wage Rate”. The Davis Bacon rate is determined by the locality, which can be a municipality, county, or other political subdivision in a state. It covers workers in the construction industry hired to construct, alter, repair, or improve any public building or public work in the United States. In Minnesota, the Davis Bacon wage rates are set by the federal government and are determined by the amount of work being performed and the geographic location of the project. The rates are based on prevailing wage surveys conducted periodically in the areas covered by the Davis Bacon Act. Contractors and subcontractors are required to pay their employees at least the minimum wage determined by the wage surveys. Employees must be paid for work performed, whether the employee works part-time or full-time, and they must also be paid overtime when working more than eight hours in a single day. The Davis Bacon Act was created to protect workers from unfair wages, and it helps to keep construction costs in line with the local labor market. The rate is used to ensure that workers are paid a fair wage and the contractors receive a fair profit from a public works project.

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What is the Davis Bacon Act and Davis Bacon Wage Rates?

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