Davis-Bacon Act

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Davis-Bacon Act is a federal law codified in Title 40 of the U.S. Code that regulates prevailing wage rates on public works projects. Davis-Bacon Act basically provides that all laborers and mechanics working on construction projects which are funded by the federal government shall not be paid a wage less than prevailing wage, as specified by the United States Department of Labor, in the locality in which work is performed. In Frank Bros., Inc. v. Wisconsin Dept. of Transp., 409 F.3d 880, the Seventh Circuit noted that the method of determining prevailing wage rates under Davis-Bacon Act is provided in the Federal Aid Highways Act.  

Any disputes concerning the payment of Davis-Bacon wages are determined by the office of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor. In Universities Research Ass'n, Inc. v. Coutu, 450 U.S. 754, the U.S. Supreme Court held that the contracting agency retains primary responsibility for investigating violations and enforcing Davis-Bacon Act and for determining whether a particular contract is subject to Davis-Bacon Act. The Supreme Court also noted that the Labor Secretary's wage rate determination under Davis-Bacon Act is not subject to judicial review.

[Last updated in September of 2022 by the Wex Definitions Team]