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

The Davis-Bacon Act is a federal law that requires contractors working on projects funded by the United States government to pay workers the locally prevailing wages and benefits for similar projects in the area. The law also sets the wages and benefits for each job classification. These wage rates, known as Davis-Bacon Wage Rates, are based on surveys of the wages and benefits employers in the area are actually paying employees for similar types of work. Davis-Bacon was enacted in 1931 to ensure that federal construction projects were not undercutting local wages. In North Carolina, the wage rates for federal construction projects are determined by the Wage and Hour Division of the U.S. Department of Labor. The North Carolina Department of Labor is responsible for enforcing the Davis-Bacon Act in the state. The Davis-Bacon Act is important to North Carolina workers. It ensures they are paid wages and benefits commensurate with those paid to local workers for similar jobs. This helps to keep the cost of construction projects reasonable, while ensuring that local workers benefit from the jobs these projects create.

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