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1 1 (November 13, 2023)

handle is hein.crs/govenla0001 and id is 1 raw text is: Congressional Research Service nforming the IegisI9tive debate since 1914 0 Updated November 13, 2023 Federally Funded Construction and the Payment of Locally Prevailing Wages Intrduion Since the 1930s, numerous statutes have been enacted that establish minimum labor standards for various classes of workers. Some of these standards apply broadly to most employers (e.g., the Fair Labor Standards Act and the National Labor Relations Act), while others apply more narrowly to private employers that enter into contracts wit the federal government for construction work or for the purchase of goods or other types of services. This In Focus examines the federal law that prescribes labor standards for federal construction contracts-the Davis-Bacon Act-and a series of related statutes that incorporate the Davis-Bacon Act standards into their provisions. Th DvsBcnAt The Davis-Bacon Act (DBA), 40 U.S.C. §§3141-3 148, requires government contractors to pay locally prevailing wages to laborers and/or mechanics employed on certain federally funded construction projects. Enacted in 1931, the DBA rflects Congress's interest in giving the government the power to require its contractors to pay their employees the prevailing wage scales in the vicinity of the building projects. S. Rept. 71-1445, at 1-2 (1931). Pursuant to the DBA, the Secretary of Labor calculates prevailing wages by reviewing wages paid to laborers and mechanics employed on projects of a similar character to the contract work in the area in which the work is performed. The DBA defines wages to include not only a basic hourly rate of pay, but also health, retirement, and other fringe benefits. The DBA requires government contractors to pay locally prevailing wages when (1) there is a contract in excess of $2,000; (2) the United States or the District of Columbia is a party to the contract; and (3) the contract is for construction, alteration, and/or repair of public buildings or public works of the United States or the District of Columbia within the geographical limits of the United States or District of Columbia. Contractors are generally required to pay locally prevailing wages to laborers and mechanics when a construction project satisfies these three conditions. The contracting agency may terminate a contract if it discovers that a contractor has not paid the required prevailing wages. Following termination, it may contract to complete the work and hold the original contractor liable for any excess costs incurred. The Comptroller General of the United States is required to distribute to all federal agencies a list of individuals or firms that have failed to pay laborers and mechanics a prevailing wage under the DBA. Federal agencies may not award a contract to persons or firms appearing on the list or to any firm, corporation, partnership, or association in which such persons or firms have an interest until tree years after the date of publication of the list. CRS has identified 49 statutes that authorize financial assistance for construction projects through grants, loans, and other funding mechanisms to which Congress has added prevailing wage provisions. These laws, described as Davis-Bacon related acts because of their prevailing wage requirements, involve construction in areas such as transportation, housing, pollution reduction, and health. The related acts' prevailing wage requirements apply when federal financial assistance is provided for construction, even if the federal government is not a contracting party or no public building or public work is involved. In general, the prevailing wage provisions of the various related acts are phrased similarly and refer to the wages prescribed by the Secretary of Labor under the DBA. For example, Section 1702(k) of the Energy Policy Act of 2005, 42 U.S.C. § 16512(k), states, in relevant part: All laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by a loan guaranteed under tis subchapter shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of Title 40. The following lists Davis-Bacon related acts, at present (ordered by U.S. Code citations): 1. Farm Security and Rural Investment Act, §9003(f); 7 U.S.C. §8103(f) 2. Housing Act of 1959, §401(f); 12 U.S.C. §1701q(c)(3) 3. National Housing Act, §212; 12 U.S.C. §1715c 4. Tennessee Valley Authority Act, §3(b); 16 U.S.C. §83 lb(b) 5. National Foundation on the Arts and the Humanities Act, §§5(k), 7(j); 20 U.S.C. §§954(n), 9560j) 6. General Education Provisions Act, §439; 20 U.S.C. §1232b 7. Education of the Deaf Act, §§105(b)(4), 202(b)(5); 20 U.S.C. §§4305(b)(4), 4332(b)(5)

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