On August 8, 2023, the U.S. Department of Labor published its final rule, calling for the most sweeping revisions to the rules governing Davis-Bacon Act (DBA) enforcement since the Reagan administration's 1982 reforms.
The final rule makes significant changes to enforcement of the Davis-Bacon Act (DBA), which governs wage payment for contractors and subcontractors working on federal and federally assisted construction projects, and has been incorporated by reference in the Inflation Reduction Act.
The new rule is expected to impose higher wage rates on DBA-covered construction projects, among other considerable changes.
USDOL Finalizes Rule Making Big Changes to Davis-Bacon Enforcement
Littler | Aug 2023
Effective date: 10/22/23 (60 days following publication in the Federal Register which is currently scheduled for August 23, 2023.)
Press release
Final Rule: Updating the Davis-Bacon and Related Acts Regulations (web-published version)
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DOL | Aug 2023
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The Final Rule returns to the so called "Three Step Method" in calculating the prevailing wage. The Three Step Method was in effect between the enactment of the DBA and its revisions in 1983. The Three Step Method uses three steps (instead of two) to filter through the information that DOL collects when determining the prevailing wage. A wage is identified as "prevailing" if it is the rate paid to a majority of workers. If there is no rate that at least 50 percent of workers are paid, then it is the rate paid to at least 30 percent of the workers. And finally, if there is no rate paid to at least 30 percent of workers, then it is the weighted average rate paid to the workers.
DOL Finalizes Landmark Changes to Davis-Bacon Act: What Federal Construction Contractors Need to Know
Piliero Mazza | Aug 2023
The DOL predicts that the final rule will enhance the modern economy and provide better wages and benefits to 1.2 million construction workers. Additionally, the final rule also allows the DOL to update its prevailing wage rate more quickly and efficiently by relying on state and local wage determinations, and strengthens worker protection and enforcement rights through new anti-retaliation provisions.
DOL Reinstates Three-Step Process to Determine Prevailing Wage for Construction Workers
Ballard | Aug 2023
The final rule will impact many industries, employers, and state and local governments. In particular, portions of the rule will apply to those projects aiming to take advantage of the tax incentives included in the Inflation Reduction Act.
U.S. Department of Labor Announces Final Rule Revamp of the Davis-Bacon Act
Holland | Aug 2023
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