The U.S. construction landscape looks much different this week compared to last Friday following the amendments to the Davis-Bacon Act that went into effect on Monday.
The Davis-Bacon Act, originating in 1931, mandates that contractors engaged in federal construction projects pay their workers prevailing local wages and fringe benefits.
The core objective of this act has been to safeguard workers on federal construction projects from being underpaid, ensuring they receive fair compensation for their labor.
Initially, the Department of Labor applied a 30% rule to determine prevailing worker wages and benefits, but this approach evolved over time.
In 1983, the Reagan administration discontinued the 30% rule, opting for a weighted average wage rate based on geographic areas.
For companies, compliance requires adhering to the wage determinations for the specific county or state where the construction occurs, which often leads to varying pay rates for the same worker depending on their location.
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The U.S. construction landscape looks much different this week compared to last Friday following the amendments to the Davis-Bacon Act that went into effect on Monday.
The Davis-Bacon Act, originating in 1931, mandates that contractors engaged in federal construction projects pay their workers prevailing local wages and fringe benefits.
The core objective of this act has been to safeguard workers on federal construction projects from being underpaid, ensuring they receive fair compensation for their labor.
Initially, the Department of Labor applied a 30% rule to determine prevailing worker wages and benefits, but this approach evolved over time.
In 1983, the Reagan administration discontinued the 30% rule, opting for a weighted average wage rate based on geographic areas.
For companies, compliance requires adhering to the wage determinations for the specific county or state where the construction occurs, which often leads to varying pay rates for the same worker depending on their location.
The original article contains 308 words, the summary contains 151 words. Saved 51%. I’m a bot and I’m open source!