In a distinct throwback to the 1980s, the U.S. Department of Labor (DOL) has solidified its final rule regarding the Davis-Bacon Act. This comes as part of a series of legislative updates to regulations related to the Act, announced by the DOL on August 8, 2023. The implementation of the rule, however, is conditional upon its published governing document in the Federal Register, which is expected to occur by the end of this week. Following this publication, the rule will be put into effect 60 days after.
The Davis-Bacon Act, as much of the corporate and legal industry may know, is a federal law that mandates contractors and subcontractors must pay their laborers a prevailing wage on all public works projects. This prevailing wage is typically no less than what workers garner on similar projects.
The reinstatement of the 1980s era definition of the “prevailing wage” within the final rule set by the DOL brings a note of nostalgia. However, it also commands attention to the in-depth effects this decision may have on corporate practices and legalities moving forward. This is an issue that all legal professionals specializing in labor law, particularly those in corporate settings, should be closely following.