What is the Davis-Bacon Act?

The Davis-Bacon Act is a federal law first enacted in 1931 and applies to most construction projects funded by the U.S. government. It requires contractors to pay locally prevailing wages and benefits, such as health insurance and pension plan contributions, to all workers on the projects. The law covers federal property, federally-financed, or federally-assisted construction in Tennessee and other states. The Davis-Bacon Act is enforced by the Labor Standards division of the U.S. Department of Labor and applies to construction projects with a value of more than two thousand dollars ($2,000). It requires contractors and subcontractors to provide both a prevailing wage rate and fringe benefits on all projects and makes it illegal to pay workers on a construction project less than the local prevailing wage. The Davis-Bacon Act is an important part of Tennessee labor law and affects thousands of workers in the state. It provides wages and benefits for workers on Federal construction projects that are adequate to maintain the prevailing standards in the local labor market, which helps to protect workers against unfair wages. It also ensures fair competition among contractors, by making sure all workers on a project are paid a fair wage and benefits.

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What is the Davis-Bacon Act?

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