The U.S Department of Labor (DOL) has issued a final rule, revising its procedures for determining prevailing wages under the Davis-Bacon and Related Acts (DBRA) for the first time in four decades, according to Ballard Spahr LLP. This reinstatement of a three-step process has implications for construction workers and the broader industry.
The DBRA requires that contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works must pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract’s Davis-Bacon wage determination.
These changes to the procedure could have significant effects on how prevailing wages for construction workers are calculated, thus affecting the legal provisions for a sizable workforce in the United States.
While it will be some time before we can fully understand the implications of this new rule, it will invariably have wide-ranging impacts on contracting, wage negotiations and labor law adherence, especially within large companies and corporations with significant construction elements. It is important for law firms and company legal departments to stay abreast of these changes in order to ensure compliance and protect their labor force.
It is advisable that all relevant parties closely monitor how this new rule is implemented in practice, how it affects their operations, and how best to navigate through this new legal landscape within the construction industry.