Effective October 23, 2023, changes are coming to the federal construction industry as the Department of Labor (DOL) rolls out its first comprehensive update to the Davis-Bacon Act (DBA) in 40 years. Well-versed developers, owners, contractors, and trades who exploit federal funds for their construction projects need to grasp the weight this will have on their initiatives.
Hitherto, the DBA has necessitated that, for federally funded projects, contractors and subcontractors “shall pay workers a minimum of the locally prevailing wages and fringe benefits paid on similar projects.” This new rule will see alterations to, among other things, the wage requirements for construction workers.
This news comes courtesy of the law firm Levenfeld Pearlstein, LLC, a leading provider of legal advice in real estate, corporate, labor, and employment law. Their article can be read in full
here.
While the specifics of the new rule have not yet been released, it is expected that it will shape the payment of prevailing wages and reporting requirements under the Davis-Bacon Act.
Legal professionals involved in construction cases, corporate law, and employment law should be well aware of the implications this new rule may have on their practice. Those in the construction industry should bolster their compliance efforts to prevent potential penalties relating to wage and hour law violations.
Keep in mind that any new labor law changes can have significant implications not only on future projects but potentially on ongoing jobs, depending on the effective date and any transitional provisions mentioned in the forthcoming rule.