What is the Davis-Bacon Act?

The Davis-Bacon Act is a federal law that applies to many construction and renovation projects funded, in whole or in part, by the federal government. The Davis-Bacon Act requires contractors and subcontractors working on these projects to pay their laborers and mechanics the prevailing local wage rate, and also to pay workers in accordance with the applicable collective bargaining agreement. This means that the wages paid to these workers must be equal to or exceed the prevailing local wage rate. The Davis-Bacon Act applies only to federal contracts or federally funded projects, but in California there are additional state laws in place that also provide workers additional protections. The California State Prevailing Wage Law applies to public works contracts and requires contractors and subcontractors to pay their laborers and mechanics a wage rate that is equal to or greater than the wage rate that has been determined to be the prevailing wage rate for the same type of work in the county or city in which the contract is being performed. In addition, California’s prevailing wage statutes also provide for a system of “prevailing wage supplements” that serve to increase the wages of workers performing certain jobs for public works projects. The Davis-Bacon Act serves as an important tool in ensuring that construction and renovation workers in California are paid a fair wage rate for their work, and also provides an additional layer of protection for workers who are covered by collective bargaining agreements. It also serves to protect the public by ensuring that contractors and subcontractors are held accountable for paying the required wages to their employees.

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