What is the Davis-Bacon Act?

The Davis-Bacon Act is a federal law that sets minimum wage standards for employees working on federal government-funded building and construction projects. The Act was enacted in 1931 in response to public outcry over low wages being paid to workers on government projects. This law requires contractors and subcontractors to pay their laborers and mechanics employed on government contracts no less than the wage rate determined by the Secretary of Labor for the locality in which the work is performed. In South Carolina, the law also applies to any state or local government project that is funded in whole or in part by federal funds or is to be used in the performance of a federal contract. As such, contractors on these projects are required to pay workers at least the prevailing wage rate as determined by the Secretary of Labor. Additionally, these projects are required to post notice of the wage rates to be paid at the worksite and to furnish certified payrolls to the contracting agency. The Davis-Bacon Act helps ensure that workers on federally-funded projects are adequately compensated for their work and prevents contractors from cutting corners on wage payments.

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What is the Davis-Bacon Act?

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