Payne Hackenbracht & Sullivan
Davis-Bacon Act
Congress passed the Davis-Bacon Act in 1931 (40 U.S.C. 3141 to establish minimum wages for various job classifications on all federal construction projects in excess of $2,000.00. The statute requires that every laborer and mechanic on site will be paid not less than the "prevailing wages" determined by the Secretary of Labor.
The prevailing wages are determined by Department of Labor surveys in specified locations for the various trades. These wages are then included in the solicitation for bids and are applicable throughout the life of the contract. Contractors must pay these wages as a minimum. Both the Department of Labor and the agency may conduct audits and interviews to determine if the proper wages are being paid.
In the event a discrepancy or underpayment is found, the contractor will be requested to make restitution and furnish evidence that such restitution has been made. If a contractor fails to satisfy the labor violations, he runs the risk of having monies withheld and the possibility of having the company and its officers debarred, i.e. suspended for a period of up to three years from receiving another government contract.